NEWS...
August 25, 1999 22:32
Diamond Entertainment Today Announced Results for Its Quarter Ended June 30, 1999.
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CERRITOS, Calif.--(BUSINESS WIRE)--Aug. 25, 1999--Diamond Entertainment Corporation, dba e-DMEC, Inc. (OTC BB:DMEC) today announced results for its quarter ended June 30, 1999.
The Company's net loss for the three months ended June 30, 1999 was approximately $776,000 as compared to a net loss of approximately $340,000 for the same period last year. The primary reason for the net loss was the Company's operating loss of approximately $612,000.
The Company's operating loss for the three months ended June 30, 1999 was approximately $612,000 as compared to an operating loss of approximately $302,000 for the same period last year. The Company's operating loss arose primarily from increased operating expenses of approximately $334,000 offset by an increase in gross profit of approximately $23,000.
The Company's sales for the three months ended June 30, 1999 and 1998, were approximately $699,000 and $791,000, respectively. The Company's sales decreased by approximately $95,000 from the same period a year earlier with decreased toy product sales of approximately $102,000. The lower toy product sales when compared to the same period a year earlier was attributable primarily to the selling of certain toy inventory at a reduced selling price. The Company intends on marketing furniture and personal computers in the second half of fiscal 2000, although there can be no assurances that the Company will be successful in such efforts. Sales of the Company's products are generally seasonal resulting in increased sales starting in the third quarter of the fiscal year. The Company expects the sales to increase in fiscal year ending March 31, 2000.
Gross profits for the three months ended June 30, 1999 and 1998 were approximately $234,000 and $211,000, or 34% and 27% of sales, respectively. Sale of higher margin video products contributed to the increased percentage for gross profit as a percent to sales.
Operating expenses for the three months ended June 30, 1999 and 1998 were approximately $846,000 and $513,000, respectively. This increase in operating expenses of approximately $334,000 was the result of the Company's higher expense levels in selling, general administrative, bad debt, and non-cash consulting and compensation amounting to approximately $374,000, offset by lower factoring fees of approximately $40,000. General administrative expenses increased by approximately $92,000, resulting primarily from higher expense levels in office rent, license and permits, and professional fees. Bad debt expense was higher by approximately $36,000. Non-cash consulting and compensation expenses increased by approximately $227,000 due to non-cash expenses associated with the issuance of stock options issued by the Company.
The Company is in the business of distributing and selling videocassette titles, certain general merchandise and Internet marketing services.
Diamond Entertainment Corporation
Selected Financial Data
Three Months Ended
June 30,
1999 1998
Net Sales $ 699,085 $ 790,864
Operating (Loss) $( 611,893) $( 301,615)
Other Expenses - Net $ 164,140 $ 104,839
Net (Loss) $( 776,033) $( 340,454)
Net (Loss) Per Share $( .01) $( .01)
Diamond Entertainment Corporation
Selected Balance Sheet Information
June 30,1999
Total Current Assets $ 2,880,176
Total Assets $ 3,632,692
Total Current Liabilities $ 5,127,880
Total Stockholders' Equity [Deficit] $ (1,555,221)
Total Liabilities and Stockholders' Equity $ 3,632,692
This news announcement contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Company or management as well as assumptions made by and information currently available to the Company or management. When used in this news announcement, the words "anticipate," "believe," "expect," and "intend" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties in this announcement and in the Company's forms 10-KSB/A No. 1 for the year ended March 31, 1999, filed on August 23, 1999 and form 10QSB for the quarter ended June 30, 1999 and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein noted or in its SEC filings.
CONTACT: Marketex, Atlanta, Ga.
Investor Relations
Gary Swancey, 770/389-5645 |
