Recent UTDL news
Notice the escalation of the Time-Warner relationship
Nice client for a small company
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Thursday October 28, 8:01 am Eastern Time
Company Press Release
SOURCE: United Internet Technologies Inc.
United Internet Technologies Inc. Announced the Successful Launch of Its Video Enhanced Broadband Style Internet 'PowerSite' With Turner Entertainment's WCW.com
Event Crowd Eager for New Technology
LOS ANGELES, Oct. 28 /PRNewswire/ -- United Internet Technologies, a wholly owned subsidiary of United Leisure Corporation, (OTC Bulletin Board: UTDL - news) debuted its World Championship Wrestling Internet broadband style Powersite at a sold-out pay-per-view ''Halloween Havoc'' event at the MGM Grand Hotel Arena.
WCW is a subsidiary of Turner Broadcasting System, Inc., a Time Warner Company (NYSE: TWX - news). WCW produces and markets television programs and live events featuring wrestling superstars such as Hulk Hogan, Goldberg, and Sting. WCW's Internet pages currently generate more than 30,000,000 hits per month. In its first 24 hours, the Powersite generated major traffic estimated at 3 times the amount of total software units distributed. The numbers were even greater than UIT expected.
Brian Shuster, president of United Internet Technologies, said: ''We are very excited with the launch of the WCW Internet Video 'PowerSite.' Our technology will position WCW.com with broadband style entertainment and will leverage the WCW video assets into the Internet space, creating first mover advantage. We are so pleased at the initial reaction of fans to the Powersite. WCW has a genuine hit on their hands with our broadband style technology.''
This Internet site features the premiere of the ''CyberMatches,'' where real wrestlers fight on the Internet in full-motion, full screen video. There are also wrestling highlights, interviews, special WCW merchandise, and other exclusive WCW Internet Broadband Style programming. The WCW Power Disk will feature advertisers such as Slim Jim and Surge Cola. For the first time ever, these advertisers have full motion, full screen video commercials, not just banner ads.
United Internet Technologies' software disks create an Internet broadband experience with its proprietary PAV and DIVO technologies. Now the end user can see WCW talent in full-motion, full-screen video on the Internet.
United Internet Technologies creates proprietary video-enabled Web sites or enhanced versions of existing Web sites, to be used by licensees and joint ventures to create broadband style applications for the entertainment, sports, travel, retail, corporate and education markets.
United Internet Technologies recently licensed its Internet video broadband style technologies to NBC, a General Electric company; and has software-bundling partnerships with AT&T and EarthLink/Sprint.
This press release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company's actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward- looking statements made herein to reflect changes in the Company's expectations or future events.
SOURCE: United Internet Technologies Inc.
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Wednesday December 1, 8:16 am Eastern Time
Company Press Release
United Internet Technology Announces Pact With Teen People Magazine and Nordstrom
Company to Create Interactive Showcase
LOS ANGELES--(BUSINESS WIRE)--Dec. 1, 1999--United Internet Technologies (UIT), a wholly owned subsidiary of United Leisure Corp. (OTCBB:UTDL - news) today announced that it has reached an agreement with Teen People Magazine, a Time Warner Company (NYSE:TWX - news), to create an interactive project for Nordstrom Inc. (NYSE:JWN - news), the Seattle-based retailer.
The groundbreaking application for Nordstrom will be targeted to teenagers, and will utilize UIT's technology to showcase the retailer's spring fashion line for the segment. The project marks the first time that Teen People Magazine and Nordstrom have combined their resources in an interactive technology for this audience. Release is planned for early March 2000.
Brian Shuster, President of UIT commented: ''We are delighted to be in business with Teen People and Nordstrom. Both companies are leaders in their markets. This will set them even further ahead of the competition.''
UIT recently showcased its proprietary technology in an interactive, full-motion video Web site created for NBC, which unveiled the network's fall schedule. The company also announced the first release of its new product, WCW Powersite, for World Championship Wrestling (WCW), a subsidiary of Turner Broadcasting, also a Time Warner Company.
This news release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this news release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company's actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this news release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events.
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Contact:
United Leisure Corp., Los Angeles
Brian Shuster, 310/441-0900
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November 15, 1999
UNITED LEISURE CORP (UTDL)
Quarterly Report (SEC form 10QSB)
Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion contains forward looking statements regarding events and financial trends that may affect the Company's future operating results and financial position. Such statements can be identified by the use of such words as "may," "expect," "believe," "anticipate," "intend" and similar expressions. Such statements involve risks and uncertainties that could cause the Company's actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, costs and uncertainties associated with future developments, concerns regarding the Company's liquidity and financial condition, regulatory policies, competition from other similar businesses, and market and general economic factors. The Company undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events. The following discussion should be read in conjunction with the Company's consolidated financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-QSB.
OVERVIEW
Through its wholly owned subsidiary, United Internet Technologies, Inc. ("United Internet"), the Company is primarily engaged in the business of developing and licensing proprietary Internet technology and sites on the World Wide Web that incorporate the Company's technology. The Company has developed two proprietary technologies: (1) Parallel Addressing Technology and (2) Dynamic Integrated Video Overlay. The use of this technology is primarily licensed to others for their use. The Company has licensed an application for television to NBC, an application for wrestling and related activities to World Championship Wrestling, Inc. ("WCW") and travel-related applications to Genisys Reservation Systems, Inc. The Company's technology uses proprietary program instruction applications to provide a means of linking a full motion video on a user's CD- ROM or DVD-ROM drive to a site on the Web. The Company intends to pursue licensing agreements with others and may also develop its own Web sites.
Before February 1997, the Company's primary business was to act as a developer and manager of facilities for children's recreational activities. As part of the Company's decision to reorient its business to developing and licensing its technology, it closed some of its facilities and intends to dispose of others. In August 1999, the Company sold real property located in El Cajon, California which was previously used for some of its children's recreational activities. In October 1999, the Company sold its real estate holdings in Las Vegas. As a result of the reduced operations of the Company's children's recreational activities, it had significantly fewer employees through the third quarter of 1999.
Results of Operations
Three Months Ended September 30, 1999 Compared to Three Months Ended September 30, 1998.
The Company had total revenue of $150,037 in the quarter ended September 30, 1999, compared to total revenue of $816,438 for the quarter ended September 30, 1998, a decrease of $666,401 or approximately 81.6%. This decrease results primarily from lower revenue from children's recreational activities, due primarily to a decline in admissions at the Company's three Planet Kids locations, as well as the fact that Frasier's Frontier amusement park and Camp Frasier facilities did not operate at all during 1999. All of the Company's revenue in the quarter ended September 30, 1999 was provided by Planet Kids centers. Because the Company has reoriented its business to focus on its Internet technology and move away from its historical emphasis on children's recreational activities, the company expects its revenue from children's recreational activities to continue to decline in future periods. There were no licensing fees received in the quarter ended September 30, 1999.
Total operating expenses increased from $1,229,794 for the quarter ended September 30, 1998 to $1,562,347 for the quarter ended September 30, 1999, an increase of $332,553 or approximately 27%. This increase was due primarily to increases in operating expenses of United Internet, including salaries and consulting fees for management and
programmers and promoting the Company's technology. This increase was partially offset by decreased expenses for personnel related to the Company's remaining children's recreational facilities.
For the quarter ended September 30, 1999, the Company had a net loss of $(2,397,422) or $(.16) per share as compared to net income of $3,190,161 or $.23 per share for the quarter ended September 30, 1998. This decrease in net income is primarily a result of the receipt by the Company of approximately $4 million in settlement of litigation that the Company recorded in the third quarter of 1998.
Nine Months Ended September 30, 1999 Compared to Nine Months Ended September 30, 1998.
The Company had total revenue of $951,577 in the nine-month period ended September 30, 1999, compared to total revenue of $2,158,748 for the nine-month period ended September 30, 1998, a decrease of $1,207,171 or approximately 55.9%. This decrease results primarily from a decrease in revenue from children's recreational activities partially offset by licensing fees received from the licensing of the Company's interactive technology to WCW in connection with its wrestling Web site.
Total operating expenses increased from $3,050,130 for the nine-month period ended September 30, 1998 to $3,940,806 for the nine-month period ended September 30, 1999, an increase of $890,676 or approximately 29.2%. This increase was due to increases in direct operating expenses, primarily those associated with United Internet, including salaries and consulting fees for management and programmers and promoting the Company's technology.
For the nine months ended September 30, 1999, the Company had a net loss of $(4,583,280) or $(.29) per share, as compared to net income of $2,047,236 or $.10 per share for the nine months ended September 30, 1998, a decrease of $6,630,516. This decrease of $6,630,516 is a result of the loss of approximately $705,000 on the sale of assets, a decrease in revenue from licensing fees compared to the comparable nine-month period in 1998 and a decrease in revenue from children's recreational activities. In addition, the Company received a payment of approximately $4 million in settlement of litigation in the comparable nine-month period in 1998.
Liquidity and Financial Condition
The Company has experienced operating losses in recent years. For the three months ended September 30, 1999, the Company had cash and cash equivalents of $502,821 and a working capital deficit of $3,130,247.
The Company's future capital requirements will depend on various factors including:
1. The number of applications using the Company's technology that the Company wants to develop; 2. United Internet's need to hire additional technical and marketing personnel; and 3. The length of time that it takes the Company to dispose of its remaining children's recreational facilities and the manner of disposition.
Effective at the close of business on December 31, 1998, the Company's Common Stock was delisted from The Nasdaq Stock Market because it did not meet the minimum bid requirement for continued listing on the Nasdaq SmallCap Market. The Company's Common Stock is now listed on the OTC Bulletin Board which may make it more difficult for the Company to offer and sell its securities to prospective investors.
If the Company is unable to raise additional funds, when needed, through the private placement of its securities, it may seek financing from affiliated or unaffiliated third parties. There can be no assurance, however, that such financing would be available to the Company when and if it is needed, or that if it is available, that it will be available on terms acceptable to the Company. If the Company is unable to sell its securities or obtain financing to meet its working capital needs and to repay indebtedness as it becomes due, the Company may have to consider such alternatives as selling or pledging portions of its assets, among other possibilities, in order to meet such obligations.
As of September 30, 1999, investments in and loans to affiliated companies, Grand Havana Enterprises, Inc., a Delaware corporation ("Grand Havana"), HEP II, L.P., a California limited partnership ("HEP II") and United Hotel & Casino, L.L.C., a Delaware limited liability company, totaled approximately $3,887,188 or approximately 66.5% of total assets. Grand Havana and HEP II have substantial losses and working capital deficits, creating potential liquidity risks for the Company. If these losses continue, a substantial portion of the Company's net worth would be impaired or at risk. Although management believes that it is more likely than not that the investments in and receivables from related companies are not impaired, the cumulative losses and liquidity problems of the affiliated companies create an inherent risk in these assets. In addition, at September 30, 1999, the Company had a net receivable from Harry Shuster, former President and CEO of the Company, of approximately $244,000.
The Company expects that its primary sources for cash over the next twelve months will be its current cash and income investments, repayment of amounts previously advanced by the Company to Grand Havana and proceeds from the recently completed sales of its property in El Cajon, California and Las Vegas. After repayment of a $1.9 million note payable to Westminster Capital, Inc., the Company realized in excess of $3 million from the October 1999 sale of its real estate holdings in Las Vegas. Although the Company believes these sources will provide the Company with sufficient funds to meet the Company's anticipated working capital and capital expenditures needs for at least the next 12 months, there can be no assurance that this will be the case.
The Company wishes to expand its development and marketing capabilities for its technology. While the continued development of some applications can be funded from internal sources, more aggressive development and marketing may require additional financing from either public or private sources. To accomplish this, the Company may raise additional capital by borrowing money or through a public or private sale of debt or equity securities. There can be no assurance, however, that the Company will be able to acquire additional financing on favorable terms, or at all.
Year 2000 Compliance
The Company has a Year 2000 project designed to identify and assess the risks associated with its information systems, operations, infrastructure and technology products, and customers and suppliers that are not Year 2000 compliant, and to develop, implement, and test remediation and contingency plans to mitigate these risks. The project is comprised of four phases: (1) risk identification, (2) risk assessment, (3) correction and contingency development, and (4) implementation and testing. The Company's Year 2000 project is currently in the implementation and testing phase.
The Company believes that the software products currently produced by the Company are Year 2000 compliant, although additional testing is in progress. It is not believed that there will be any adverse effects on the ability to use the interactive products being developed by the Company. In addition, the Company is in the process of obtaining Year 2000 compliance statements from the manufacturers of the Company's hardware and software products. Based on information received from vendors so far, the Company believes that all primary software applications that the Company uses are either Year 2000 compliant or, with upgrades, will be Year 2000 compliant. The costs of the upgrades are not expected to be material.
The Company believes that its greatest potential risks are associated with information systems and systems embedded in its operations and infrastructure, as well as its reliance on Year 2000 compliance by the Company's vendors and suppliers of operating systems and software applications. The Company is continuing to assess its operations and infrastructure and cannot yet predict whether significant additional problems will be identified. The Company has not yet determined the full extent of contingency planning that may be required if additional problems are identified.
Based on the status of the assessments made and remediation plans developed to date, the Company is not able to state the total cost of remediation of all Year 2000 issues. Costs identified to date have not been material. However, the Company has not yet developed remediations for all problems, developed any contingency plans, or completely implemented or tested any of its remediation plans.
Based on the Company's current analysis and assessment of the state of its Year 2000 compliance, the Company's most reasonably likely worst case scenario involves delays in shipping of products by its vendors and suppliers. Such delays could cause the Company to experience delays in delivering its own software products. Specific contingency plans will be formulated after the Company has received information on the status of vendor and supplier Year 2000 compliance.
As the Year 2000 project continues, the Company may discover additional Year 2000 problems, may not be able to develop, implement, or test corrections or contingency plans, or may find that the costs of these activities exceed current expectations and become material. In many cases, the Company is relying on assurances from suppliers that new and upgraded information systems and other products will be Year 2000 compliant. The Company plans to test such third- party products, but cannot be sure that its tests will be adequate or that, if problems are identified, they will be addressed in a timely and satisfactory way. Because the Company uses a variety of information systems and has additional systems embedded in its operations and infrastructure, the Company cannot be sure that all its systems will work together in a Year 2000 compliant fashion. Furthermore, the Company cannot be sure that it will not suffer business interruptions, either because of its own Year 2000 problems, or those of its customers or suppliers whose Year 2000 problems may make it difficult or impossible for them to fulfill their commitments to the Company. If the Company fails to satisfactorily resolve Year 2000 issues related to its products in a timely manner, it could be exposed to liability to third parties. The Company is continuing to evaluate Year 2000 related risks and will take such further corrective actions as may be required.
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