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
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