Hitsgalore.com, Inc. Announces a Profitable
2nd Quarter
Business Wire - July 23, 1999 14:10
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 23, 1999--
Hitsgalore.com, Inc., (OTC BB:HITT) has announced preliminary revenues
and expenses for the 2nd Quarter, the three months ended June 30, 1999.
Net sales revenues for the 2nd Quarter, related to the website at
hitsgalore.com, were approximately $1.2 million. This is more than
three times the Net revenues of $391,000 for the previous quarter, as reported
in the Company's Form 10-Q. The Company's Internet model and website
were developed in the second half of 1998, and the Company reported 1998
revenues of only $17,779 in its 1998 Form 10-K.
The Company reports preliminary expenses for the quarter, before taxes,
amortization and depreciation, of just over $1,000,000, indicating income from
operations of about $200,000 before taxes, amortization or depreciation.
Hitsgalore.com has previously reported profitability in its 1998 Annual Report
(Net income of $1,007) and its 1st Quarter Form 10-Q.
Dorian Reed, Chairman and Chief Technology Officer, said, "It is exciting for
us to continue to be profitable, even as we have laid the foundation for future
growth through our advertising efforts and the launching of new Portal
Services. The Hitsgalore.com business model was profitable in its year of
inception, and is continuing that trend into its first full year of operations."
As previously reported by the Company in its filings, over a one-year period
that began in April 1999, the Life Foundation Trust is acquiring Local City
Editions throughout the United States for a total consideration of up to $10
million. Hitsgalore.com recognizes the revenue as new Local City Editions are
ready to be brought online.
The Company experienced a dramatic increase in its advertising costs in the
quarter, as compared to the previous quarter. The Company engaged in
several advertising campaigns, including a national radio placement and banner
advertising placed by DoubleClick Inc. (Nasdaq:DCLK).
Hitsgalore.com projects positive income from its unique business model of
giving away free banners, lifetime banner placement, and other Portal Services.
The Company generates revenue from its Keyword Bid & Rank program,
sponsorships of Portal Services, and Local City Editions featuring local
content. Hitsgalore.com strives to provide porn-free searching and does not
accept or encourage any porn or adult-content listings on its site. The company
believes this compares favorably with other Internet portals and search engine
companies in general, such as GOTO.com Inc: (Nasdaq:GOTO), BeFirst.com
(Nasdaq:FWHT), Lycos Inc. (Nasdaq:LCOS), Ask Jeeves Inc. (Nasdaq:
ASKJ ), Infoseek Corporation (Nasdaq:SEEK) and Yahoo! Inc.
(Nasdaq:YHOO). The recent acquisition by Hitsgalore.com of the Internet
Division of Solvere, Inc., a company that has previously partnered with such
industry leading companies as Microsoft (Nasdaq:MSFT), MCI
(Nasdaq:WCOM), Cisco Systems (Nasdaq:CSCO), Compaq Computer
(NYSE:CPQ), and Hewlett-Packard (NYSE:HWP), provides Hitsgalore.com
control over certain proprietary internet technologies that will be launched
soon.
Financial statements in this press release other than historical facts are
"forward-looking" statements within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934,
and as that term is defined in the Private Securities Litigation Reform Act of
1995. Hitsgalore.com, Inc. intends that such statements about the Company's
future expectations, including future revenues and earnings, and all other
forward-looking statements are subject to the safe harbors created thereby.
Since these statements (future operational results and sales) involve risks and
uncertainties and are subject to change at any time, the company's actual
results could differ materially from expected results. The figures reported by
the Company are internally prepared and have not been subjected to audit.
The stated expenses are before any amortization, depreciation, or allowance
for taxes.
CONTACT: Hitsgalore.com, Inc., Rancho Cucamonga
Danny Gavin, Investor Relations
800-300-5388
investor@hitsgalore.com |
