eFax.com CEO Comments On Drop in Share Price
MENLO PARK, Calif.--(BUSINESS WIRE)--May 24, 1999--eFax.com
(Nasdaq:EFAX - news), the leading Internet provider of fax-to-email services, issued a statement today from Rudy Prince, chief executive officer, about the recent drop in the company's share price and its future direction.
''Management does not see any fundamental change in our business and is continuing to execute on its business plan,'' said Prince. ''eFax.com has signed up over 600,000 users since the service was introduced February 8, 1999, clearly making eFax a significant new force in Internet communications. We are continuing to pursue our vision of uniting the 100 million fax machines worldwide with the more than 125 million email users on the Internet. Our goal is to have the eFax brand become a mission critical part of everyday business communications processes and to put an eFax number on every business card.''
''We continue to broaden our reach over the Internet with additional partnerships. A week ago, we launched our second co-branded site, XOOMFax, with Xoom.com. This site reaches more than seven million members of Xoom.com which is in the process of merging with NBC. Today we announced a partnership with eGroups to provide fax services to their member base of more than five million including 200,000 affinity eGroups. Such partnerships continue to demonstrate our distribution and technology leadership on the Internet.''
''Beyond our initial free fax-to-email service, we will continue to release a variety of premium service and software products and will eventually expand beyond fax services to other unified messaging components. As our subscriber base and fax traffic grows, we expect advertising and direct e-commerce offerings to be a greater part of our revenue mix.''
''Financially, we have never been stronger. After concluding our recent $15 million equity financing less than two weeks ago, we have significantly increased our financial resources. Todd Kenck, our new CFO with a strong background in investment banking, will now be turning his attention to establishing coverage from Internet analysts in the investment community.''
''During this initial phase of our eFax services launch, we budgeted $2 million for marketing expenditures. Our sizable user base demonstrates our cost-effectiveness in acquiring Internet subscribers. We are rapidly building a loyal and active user community who rely on eFax service for their fax communications and as we move past this initial launch, we now have the financial resources to take our marketing efforts to another level.''
''With respect to the departure of our recently appointed COO last week, this change after only 60 days is not material to the future of our business. It was a poor fit that we resolved quickly. We continue with the same management team that successfully launched our Internet service, we have grown our organization to meet the rapid expansion of our subscriber base, and with more than a decade of experience in the fax industry, we are confident in our ability to continue executing our plan,'' Prince added.
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