I've been getting another buy signal here. It probably has something to do with new news. I might start loading up below $2.25.
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Cornerstone Internet Solutions Reports Record Results for Fiscal 1999; Internet Services Revenues Nearly Triple While Operating Loss is Cut in Half
PR Newswire - August 31, 1999 07:44
Successfully Launched B2Bgalaxy.com to Create Industry-Specific Business-to Business E-commerce Portals
NEW YORK, Aug. 31 /PRNewswire/ -- Cornerstone Internet Solutions Company (Nasdaq: CNRS) today reported record results for the fiscal year ended May 31, 1999. Internet Services revenues were $3,205,869, as compared to $1,182,600 for the prior fiscal year. The Company's operating loss narrowed to $3,548,106 in the fiscal year ended May 31, 1999 from $7,038,000 in the prior fiscal year. The loss per common share, inclusive of preferred stock preferences, for the fiscal year ended May 31, 1999 was $0.46, compared to a loss per common share, inclusive of preferred stock preferences, of $2.21 for the prior fiscal year.
"Our concentrated efforts in the New York City and Tri-State region have proven to be successful and we continue to grow our blue-chip client base and significantly reduce our overhead," said Ed Schroeder, President and Chief Executive Officer of Cornerstone Internet Solutions. "By re-focusing our strategy, we have been able to expand our roster of Fortune 1000 companies, increase the size of our average engagement and lower our expenses considerably. While these results represent a record achievement for Cornerstone, we recognize that market opportunities are significant and are pursuing ways to capitalize on this demand and achieve profitability."
Based on client experiences, the Company recognizes the increased opportunities in the business-to-business e-commerce marketplace, both in terms of Internet service as well as the application of new technologies. To leverage the Company's expertise in business consulting, Internet technology and the development of business and e-commerce solutions, it formed B2Bgalaxy.com, Inc., a majority-owned subsidiary, to create industry-specific business-to-business e-commerce portals. The portals focus on improving profitability by linking buyers and sellers through competitive on-line bidding. Since the end of fiscal 1999, B2B launched FOODgalaxy.com, which targets the $300 billion a year Food Service industry.
FOODgalaxy.com is the first Internet portal designed to lower the cost of food and supplies for restaurants and other food service providers through increased price competition. FOODgalaxy.com enables restaurants to post a customized inventory list online and requires suppliers to continually submit their latest product bids. This competitive process drives down the cost of goods to buyers by as much as 20 percent and significantly reduces the time traditionally devoted to the comparative price shopping process.
"Early acceptance across a broad range of establishments, such as restaurants, country clubs and caterers, has been very encouraging and strengthens our belief that FOODgalaxy.com will indeed become the Profit Center for the Food Service industry," said Schroeder. "More than 40 establishments have signed on for service to date, putting us on track to achieve our goals. We are currently focused on expanding our dedicated sales force to meet our year-end target of 400 to 500 subscribing establishments."
FOODgalaxy.com is the first in a series of Internet portals Cornerstone expects to launch over the next few years through its B2Bgalaxy.com unit. Each new portal will be industry-specific and will link buyers directly with suppliers and manufacturers.
About Cornerstone Internet Solutions
Cornerstone Internet Solutions operates two subsidiaries, USWeb/CKS Cornerstone and B2Bgalaxy.com, that are in separate but synergistic Internet businesses.
USWeb/CKS Cornerstone is a wholly-owned subsidiary of Cornerstone Internet Solutions Inc. and an independent affiliate of USWeb/CKS Corporation. USWeb/CKS Cornerstone is a full-service Internet consulting firm that uses a combination of strategic planning, technology and creative expertise to provide clients with successful solutions. Additional company information can be found at www.crstone.com
B2Bgalaxy.com, a majority-owned subsidiary, leverages Cornerstone's expertise in business consulting, Internet technology and the development of business and e-commerce solutions to create industry-specific business-to-business e-commerce portals that link buyers and sellers through competitive on-line bidding and focuses on improving profitability.
USWeb/CKS and the USWeb/CKS logo are trademarks of USWeb/CKS Corporation.
Some paragraphs of this news release, particularly those describing Cornerstone's, FOODgalaxy.com's and B2Bgalaxy.com's future business prospects, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in implementing desired features, delays in completing the B2Bgalaxy and various industry specific web sites, including FOODgalaxy.com, technical challenges, cost overruns, changes in design, competition, and so on, any of which could have an adverse effect on the Company and B2Bgalaxy.com and its communities, including FOODgalaxy.com. Factors such as these could have an adverse effect on the Company's results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
CORNERSTONE INTERNET SOLUTIONS COMPANY and Subsidiaries
Consolidated Balance Sheets
May 31, May 31,
1999 1998
ASSETS
Current Assets:
Cash and cash equivalents $ 2,939,596 $ 392,200
Investments 398,348 167,400
Accounts receivable, net 1,024,624 343,700
Other receivables 20,587 100,000
Prepaid expenses and other 49,475 269,300
Total current assets 4,432,630 1,272,600
Affiliation rights, net 191,667 219,200
Property and equipment, net 671,182 485,900
Other 200,920 69,200
$ 5,496,399 $ 2,046,900
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 830,397 $ 538,100
Accrued restructuring expenses 25,286 95,400
Accrued payroll and related expenses 124,866 202,800
Other accrued expenses 437,306 410,300
Other 30,000 9,300
Current maturities of long-term debt 104,954 99,500
Total current liabilities 1,552,809 1,355,400
Long-term debt, excluding
current maturities 1,465 106,400
Total liabilities 1,554,274 1,461,800
Minority interest 938,838 --
Stockholders' Equity
Preferred stock, $.01 par value,
2,000,000 shares authorized;
Class A, 0 and 340 shares issued and
outstanding at May 31, 1999 and 1998 -- --
Class B, 0 and 2,000 shares issued and
outstanding at May 31,1999 and 1998 -- 20
Class C, 540 and 6,260 shares issued
and outstanding at May 31,1999 and 1998 5 100
Class D, 8040 and 0 shares issued and
outstanding at May 31, 1999 and 1998,
liquidating preference of $11,055,000
at May 31, 1999 80 --
Common stock, $.01 par value, 50,000,000 shares
authorized and 13,121,013 and 9,441,117 shares
issued and outstanding at May 31, 1999
and 1998 131,210 94,400
Additional paid-in capital 36,018,294 30,222,480
Accumulated other comprehensive income 398,348 167,400
Accumulated deficit (33,554,650) (29,899,300)
Total stockholders' equity 3,003,287 585,100
$ 5,496,399 $ 2,046,900
See notes to consolidated financial statements.
CORNERSTONE INTERNET SOLUTIONS COMPANY and Subsidiaries
Consolidated Statements of Operations
Year Ended Year Ended
May 31, 1999 May 31, 1998
Internet services revenue 3,205,869 1,182,600
Software licensing and royalty revenue 51,200 328,300
Total revenues 3,257,069 1,510,900
Cost of Internet services revenue 3,967,454 2,855,300
Cost of licensing and royalty revenue -- 36,500
Marketing and selling expenses 519,959 2,756,700
General and administrative expenses 2,317,762 2,472,700
Restructuring expenses -- 427,700
Total costs and expenses 6,805,175 8,548,900
Operating loss (3,548,106) (7,038,000)
Other income (expense):
Interest expense (10,760) (14,600)
Interest income 10,594 108,600
Other income (expense), net (33,292) 200
Loss before income taxes (3,581,564) (6,943,800)
Provision for income taxes -- --
Minority interest in net loss of subsidiary (63,786) --
Net loss $ (3,645,350) $ (6,943,800)
Preferred stock dividends and preferences (1,850,950) (11,477,800)
Net loss to common stock holders $ (5,496,300) $(18,421,600)
Basic and diluted loss per share $ (0.46) $ (2.21)
Weighted average shares of common stock 11,905,740 8,337,063
See notes to consolidated financial statements.
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