Crosswalk.com, Inc. Reports Financial Results For FY 1999 Second Quarter Ended June 30, 1999
- Quarter Characterized As 'Our Most Significant Quarter Yet' -
CHANTILLY, Va., Aug. 2 /PRNewswire/ -- Crosswalk.com (Nasdaq: AMEN - news) today reported that revenues in its second quarter ended June 30, 1999 were 16 times greater than in the same
quarter last year, and grew sequentially 52% over first quarter 1999 revenues. Total operating revenue for the quarter was $1,639,169, compared to $166,309 in the same quarter last year and $1,075,059
in the first quarter of the current year. Revenue for the first six months of the year totaled $2,714,225, compared to $256,112 in the first half of 1998.
The Company will hold a conference call for investors today at 4:45 pm Eastern Daylight time. Interested investors can call 1-800-547-9328 approximately 5 minutes before the scheduled starting time, or
point their browser to www.vcall.com, where the call will be hear live and archived for a period of 90 days. There will also be a replay of the call available from Tuesday, August 3 thru Wednesday, August 4
from 6:00 am to 8:00 pm EDT by calling 1-800-633-8284 and entering password 12870422.
The company's loss for the second quarter of 1999 was $1,251,383, or ($0.18) per share, computed on a fully diluted basis of 6,949,134 weighted average common shares outstanding. This compares to a
second quarter 1998 loss of $747,598, or ($0.20) per share, computed on a fully diluted basis of 3,651,630 weighted average common shares outstanding, and a first quarter 1999 loss of $1,260,797, or
($0.23) per share, computed on a fully diluted basis of 5,439,853 weighted average common shares outstanding. For the first half of the year, the net loss was $2,512,181, or ($0.41) per share, computed on
the basis of fully diluted 6,253,693 weighted average common shares outstanding.
The gross profit margin (total revenue less cost of goods and services) was 48% of revenues in the 1999 second quarter compared to 39% in the first quarter of the year. Although costs in each expense
category rose in absolute terms between the first quarter and the second quarter of the year, there was a reduction in every expense line item when computed as a percent of total sales, continuing the pattern
established between the 1998 fourth quarter and the 1999 first quarter. Crosswalk operating expenses, comprised mostly of product development and technical personnel, increased 16%, from $768,785 in
the first quarter to $892,908 in the second quarter, but decreased as a percent of revenues to 54% from 72% in the 1999 first quarter, and from 94% in the fourth quarter of 1998. General and administrative
expenses increased 35%, from $390,570 to $529,198, but decreased as a percent of revenues to 32% from 36% in the first quarter of 1999 and 53% in the 1998 fourth quarter. Sales and marketing
expenses grew 26%, from $659,903 to $832,123, amounting to a decrease to 50% of revenues from 61% of first quarter revenues and 103% of revenues in the final quarter of 1998.
President and CEO William Parker said that investors should be prepared to see the company step up its sales and marketing activity. ''Our revenue growth, our ability to control expenses, our growing
membership and pageviews, and a widening recognition that we are the leading Web portal serving the broad Christian community all serve to build our confidence that we are going in the right direction,''
Parker said. ''We have steadily been raising our visibility and the quality and depth of our content, and now we are ready to reach out to a larger audience. We will begin to advertise on national television
networks in the coming months. Accordingly, our sales and marketing expenses will increase in the third and fourth quarters,'' he said.
Parker also noted that the company had current assets of $13,647,314 at June 30, 1999, versus current liabilities of $1,083,513, for a 12.6:1 current ratio. Cash and cash equivalents, plus short-term
investments totaled $11,663,413, plus the company had an additional $5,270,927 in long-term investments. The company had no debt.
''Each quarter has been more significant than the one preceding it, and the second quarter of 1999 was no exception,'' Parker said. ''It was our most significant quarter thus far. With our client and user base
continuing to grow, we have great momentum going into the third quarter. ''
He said that during the quarter the company consummated its branding effort, begun in the fourth quarter of 1998. ''We changed our name to Crosswalk.com, Inc., and that name now has recognition with
our audience, our advertisers and others,'' Parker said. ''Plus, we launched our Health & Wellness Channel, sponsored by Lean Bodies Holdings, and we began the development of our Sports Channel,
which we now expect to launch in month, 1999. Also, we provided our members the opportunity to customize their experience through the introduction of 'My Crosswalk.' We acquired Trinity Zone, which
accelerated our move into e-commerce. Several new major advertisers began to support us, as we initiated our own national radio advertising campaign and began to test television advertising on a limited
basis. And Pennsylvania Merchant Group became the first investment brokerage firm to initiate analytical coverage of us.
''Our membership grew to slightly more than 300,000, as previously reported, and our average monthly pageviews grew to more than 6 million,'' Parker added. ''In the months ahead, we will also benefit
from the acquisition of Media Management and its GOSHEN.net Web site, as we announced this morning.''
For the first half of 1999, revenues total $2,714,225 versus revenues of $256,112 in the first half of 1998. The total net loss for the first half was $2,512,181, or ($0.41) per share on a fully diluted basis,
versus a net loss of $1,499,318, or ($0.44) per share on a fully diluted basis.
About Crosswalk.com
Crosswalk.com, the 1997 and 1998 Christian Web Site of the Year as awarded by Best of the Christian Web (www.botcw.com), is the premier Christian community portal covering the spectrum of life
within a Christian context. Site visitors and members can currently tap into channels targeting music, personal finance, careers and homeschooling (in beta version), lifestyle channels focusing on spiritual life and
specific issues for men and women, and services ranging from free Web access filtering and a full-Web filtered search engine to online shopping, family-friendly movie reviews, games, chat, forums, local
events, news, free email and more. Additional channels and services are planned, including the previously announced Health & Wellness Channel and the Sports Channel.
The Company generates revenues through the sale of sponsorships and advertising; the online retailing of Christian and family-friendly products manufactured or developed by others (music, books, apparel,
gifts, etc.); sales of subscriptions for proprietary online content and services; royalties and referral fees from co-marketing relationships; and to a lesser extent, the continuing provision of technology services to
various Christian organizations. |
