VTCO news............
Wednesday September 8, 8:01 am Eastern Time
Company Press Release
Virtual Technology -- VTCO -- Second Quarter & First Half Net Sales Up
Increased Web Sales & New Telesales Program Are Key Rapid Growth
MINNEAPOLIS--(BUSINESS WIRE)--Sept. 8, 1999---Virtual Technology Corporation (OTC BB:VTCO - news), a rapidly expanding e-commerce company and computer Internet reseller, today reported soaring revenues for the second quarter and first half periods ended July 31, 1999.
E-commerce revenues are up significantly, doubling from the first quarter to second quarter and orders are up over 60% in August, the first month of the third quarter, to over 7,000 orders per month from an average of 4,300 orders per month in 2nd quarter.
Net sales for the second quarter ended July 31, 1999 grew more than 16 times to $16.5 million from $952,000 recorded for the second quarter ended July 31, 1998. Net sales for the first half ended July 31, 1999 increased nearly 20 times to $33.9 million from the $1.5 million of net sales reported for the same period in the prior fiscal year.
Greg Appelhof, Virtual's President and Chief Executive Officer, credited a new outbound sales program, increased internet orders and the January 1999 acquisition of GTI as prime factors contributing to Virtual's multiplying sales. ''We've increased our resources, built up our infrastructure and increased our intelligent web marketing. These are all factors that have increased our ability to take and process more orders quickly. Traditionally, the second quarter is a down quarter for our sector. Accordingly, we look for much more significant growth in the second half of this year,'' said Appelhof.
Virtual's net loss for the three months ended July 31, 1999, was $4.5 million, or $(0.16) per share, as compared to a net loss of $438,000, or $(0.03) per share, reported for the same period in the prior fiscal year. The net loss for the six months ended July 31, 1999 was $13.0 million, or $(0.47) per share, as compared to a net loss of $909,000, or $(0.07) per share, reported for the same period in the prior fiscal year.
Appelhof attributed the larger losses primarily to increased advertising and promotion, investments in infrastructure and technology and the charges taken by the company upon its issuance of securities in exchange for consulting services.
Summary of Operations
(unaudited)
Three months ended Three months ended
7/31/99 7/31/98(a)
Net Sales $16,514,314 $952,211
Net (Loss) $(4,536,886) $(438,023)
Net (Loss) Per Common
Share-Basic ($0.16) ($0.03)
Weighted Average
Common Shares
Outstanding 28,937,317 15,796,036
Six Months ended Six Months ended
7/31/99 7/31/98
Net Sales $33,897,077 $1,542,189
Net (Loss) ($12,985,700) $(908,837)
Net (Loss) Per
Common Share-Basic ($0.47) ($0.07)
Weighted Average
Common Shares
Outstanding 27,812,866 12,915,468
(a) 1998 figures do not include consolidated financials for GTI
Statements in this Press Release that are not purely historical are ''forward looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the 1934 Act, including statements regarding VTC's expectations, hopes, beliefs, intentions or strategies regarding the future generally, VTC's growth strategy, future sales and anticipated trends in VTC's business. All forward looking statements included in this Press Release are based on information known to VTC on the date hereof, and VTC assumes no obligation to update any such forward looking statements. It is important to note that actual results could differ materially from those in such forward looking statements as a result of a number of factors, most of which are out of the control of VTC, including, but not limited to, VTC's early stage of development, its lack of profitability and cash flows and competition for the sale of hardware and software products both on and off the internet.
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Contact:
Virtual Technology
Ken Israel, 612/915-1122
or
H.L. Lanzet, Inc. -- investor/public relations
Herbert Lanzet/DeeDee Lanzet, 212/687-0061 |
