He is correct.
HICS in fact trades today, no E
PNEC, here's the news
MIDDLETOWN, N.J.--(BUSINESS WIRE)--Dec. 15, 1999--Planet
Entertainment Corp. (OTCBB: PNEC), a world wide provider of front-line
music, video, DVD and proprietary compilation CD's today announced its
results for the fiscal year ending August 31, 1999.
For fiscal 1999, net revenues increased 25% from approximately
$35,152,000 for fiscal 1998 to $43,791,000 for fiscal 1999. The
Company had net income of $278,462 for FYE 1999 compared to a net loss
of ($645,464) for 1998. Due to the Company's obligation to pay a
preferred dividend of $353,199 earnings per share allocable to common
shares were reduced by $353,199 resulting in a loss of (.01) per share
as compared to a loss of (.37) per share for FY 1998 ended August 31,
1998. During 1999 the Company increased its revolving credit agreement
with Congress Financial from $6,000,000 to $8,500,000 with an
additional $1,500,000 line for equipment purchases.
The Company stated, "We are very pleased with the progress that
we achieved during FYE 1999". In addition to record sales during FYE
1999 the Company reinvested approximately $1,000,000 on capital assets
at its wholly owned subsidiary Northeast One Stop (NEOS).
Specifically, the Company upgraded its mainframe inventory and
financial software package, replaced the majority of its computer
hardware with new LAN (Local Area Network), and upgraded NEOS's
warehouse carousel pick to light automation system, which allows the
Company to increase volume and carry additional SKUs (Stock-Keeping
Units). A new software platform, the NxTrend "Trend" system software
package was installed, allowing NEOS to simplify and expedite
operations, improve productivity, and integrate the Internet into
daily operations. The new systems allow the Company to seek additional
revenue through larger mass merchants with its upgraded EDI
(Electronic Data Interchange) and ASN (Advanced Shipping Notice)
capabilities. The Company believes that these new systems also achieve
Year 2000 compliance.
During FYE 1999 NEOS began servicing several Internet retailers
such as Amazon.com (NASDAQ: AMZN), EveryCD.com, Tower Mailorder,
Internet Shopping Network (ISN), and CDUniverse (OTCBB: EUNI). With
new systems in place NEOS plans to concentrate on internet fulfillment
which is the fastest growing segment of the industry.
Planets wholesale website ( www.neoneb2b.com) is devoted to NEOS
customers. The Company plans to open the site during December 1999.
The site is meant as an order entry tool for wholesale business
customers and affiliated Internet based customers. At the heart of the
site is a MUZE database a searchable database, a powerful search
engine tool that quickly returns information on a massive catalog of
Pop, Rock, Jazz, Country, and all other genres of music. The database
contains hundreds of thousands of artist names, album titles, millions
of song titles as well as MUZE album art. The database also includes a
full line of DVD and music videos.
The NEOS b2b site is designed with the customer in mind. Flexible
"fuzzy logic" searches allow users to input partial, or even incorrect
information and still get their desired result. Price information and
purchase options are listed with search results, making ordering
product simple and quick. A search engine based on NEOS's own
accessory database features the same functionality as the main search
engine allowing customers to search for accessories (headphones,
recordable CDs, blank video/audio tapes, and others) by manufacturer,
product category, or item.
In early 1999, NEOS expanded its SKU base to include a full line
of DVD product. While sales of this product line are not fully
maximized, industry trades are reporting hardware sales for this
format in numbers well beyond all previous projections and it is
expected that sales to consumers will follow. We expect 2000 to be a
breakthrough year for DVD sales and believe that we will participate
in that growth.
NEOS is presently negotiating a lease for the first quarter of
calendar year 2000, which will increase NEOS's corporate
headquarters/warehouse from the current 41,000 square feet to
approximately 88,000 square feet. The larger warehouse space will
allow us to further increase our SKU count from approximately 140,000
to more than 200,000, which should make us more attractive to
customers.
As a full line entertainment wholesaler, with new systems in
place, the Company will concentrate on specific target groups of
potential new customers including large mass merchants, and export
customers. In addition to music and video retailers, the Company may
market music and video products to a variety of stores, including
those offering book and gift items. Additionally, NEOS has plans
during the year 2000 to open two additional satellite sales offices.
The Company currently has sales offices in New York, Vermont,
Pennsylvania, Maryland, Michigan and Florida and the distribution
facility in Latham, N.Y. The Company currently employs over 120
people.
Special Note Regarding Forward Looking Statements: A number of
statements contained in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that involve risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the applicable statements. These risks and uncertainties
include but are not limited to: the Company's vulnerability to rapid
industry change, technical obsolescence, limited customer base and
reliance on relatively a small number of its customers, the possible
impact of competitive products and pricing, uncertainties in the
duration of the life cycle of its products, manufacturing
difficulties, dependence on key personnel, market acceptance, reliance
on a limited number of outside vendors, potential difficulties,
managing growth, the ability to perform on existing and future
agreements, the availability of financing, and other risks all, or any
of which may have a material adverse impact on the company, its
business, business prospects, and financial condition.
--30--fap/ny* csm
CONTACT: Planet Entertainment, Middletown, N.J.
Ivy Ball, 732/530-8819
pnec@aol.com
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