Net Nanny three-month results
Net Nanny Software International Inc NNS
Shares issued 12,097,248 May 19 close $1.02
Thu 20 May 99 News Release
Mr. Gordon Ross reports
Revenues from product sales continue to increase. Revenues for the
nine-month period ended March 31, 1999, rose to $600,000 (U.S.), an
increase of $232,000 (U.S.), or an additional 63 per cent over the same
period in 1998. Gross profit margins on product sales improved to 92 per
cent against 81 per cent for 1998.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended March 31
(U.S. dollars)
1999 1998
Sales $ 600,651 $ 368,467
Cost of sales 50,213 70,879
---------- ----------
Gross margin 550,438 297,588
---------- ----------
Expenses
General and
admin 661,222 432,412
Sales and
marketing 523,709 339,301
Research and
development 262,289 58,088
Write-off of
patents - -
Write-off of
mineral properties - -
Amortization 26,303 26,126
---------- ----------
1,473,523 855,927
---------- ----------
Loss from
operations 923,085 558,339
Interest income 28,957 -
---------- ----------
Loss $ 894,128 $ 558,339
========== ==========
Loss per share 7 cents 6 cents
General and administrative costs were equal to 110 per cent of sales in
1998, which is an improvement over the 117 per cent of sales in 1997. Total
general and administrative costs increased by 53 per cent over 1998 due to
the increased volumes of business in the respective periods. Marketing and
sales costs of $524,000 (U.S.) increased 54 per cent in fiscal 1999, over
1998 due to increased advertising, consulting, trade show attendance and
travel expenditures. However, these costs as a percentage of sales
decreased to 87 per cent from 92 per cent. Research and development costs
increased 351 per cent to $262,000 (U.S.) from $58,000 (U.S.) in 1998 with
the number of R&D personnel growing from one to seven people. Cash surplus
positions in fiscal 1999, allowed the company to earn $29,000 (U.S.) of
interest income during the period. At March 31, 1999, the company's cash
position was $668,000 (U.S.) with no long-term debt.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
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