3rd Quarter earnings release:The Ashton Technology Group, Inc. Reports Third Quarter Earnings
PHILADELPHIA--(BUSINESS WIRE)--Feb. 14, 2000--Ashton Technology
Group, Inc. (NASDAQ: ASTN) today announced that diluted earnings per
share for the third quarter of its fiscal year ended March 31, 2000
totaled $0.02 compared to a loss of $0.20 per share in the same
quarter of its prior fiscal year.
During the third quarter, Gomez Advisors, Inc. (Gomez) completed
two closings of the Gomez Series C Preferred Stock sale resulting in
total gross proceeds of approximately $18,946,000. As a result of the
sale of preferred stock by Gomez, Ashton's ownership percentage in
Gomez was reduced to below 50%.
As such, Ashton began accounting for its remaining investment in
Gomez under the equity method of accounting rather than the
consolidation method. During the three months ended December 31, 1999,
the Company recorded a gain of $5,568,475 as a result of a change in
the accounting for its investment in Gomez from the consolidation
method to the equity method.
The Gomez private placement is expected to be completed during
February 2000.
Net earnings for the third quarter were $644,703 compared to a
loss of $2.2 million for the same quarter last year. Excluding the
effect of our change in accounting for Gomez, third quarter results
would have resulted in a loss per share of $0.20 versus a loss of
$0.20 for the same quarter last year.
For the nine months ended December 31, 1999, the net loss totaled
$7.9 million, or $0.33 per share, compared to $16.9 million, or $1.63
per share, for 1998.
The Ashton Technology Group, Inc.
The Ashton Technology Group, Inc. based in Philadelphia, is
developing a family of on-line transaction and intelligent matching
systems, using advanced telecommunication and computing technologies,
together with data and information security technologies, to
facilitate global financial transactions.
Ashton's proprietary transaction systems are made available to
end users through networks, third parties, and the Internet. Ashton
concentrates on the concept of developing alternative trading systems
as unique adjuncts to established exchanges. Its U.S. eVWAP(TM)
trading system was launched as a facility of the Philadelphia Stock
Exchange in August.
In addition to historical information, this press release may
contain "forward-looking statements", as defined in the Private
Securities Litigation Reform Act of 1995, that reflect management's
expectations for the future. A variety of important factors could
cause results to differ materially from such statements.
Factors which could cause actual results to differ from current
expectations include the Company's ability to achieve expected future
levels of revenue, dependence on arrangements with self-regulatory
organizations; dependence on proprietary technology; ability to
successfully deploy Ashton's volume-weighted average price trading
system ("eVWAP(TM)"); technological changes and costs of technology;
industry trends; and competition.
These and other risks are described in greater detail in the
Company's filings with the Securities and Exchange Commission
including those on forms 10-KSB and 10-Q.
(Financial tables follow)
The Ashton Technology Group, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, December 31,
1999 1999
(Audited) (Unaudited)
----------- -----------
ASSETS
Cash and cash equivalents $ 2,667,347 $ 14,904,873
Investments available for sale --- 9,912,120
Accounts receivable and
prepayments 308,249 372,740
Current portion of notes
receivable 112,499 119,654
Total current assets 3,088,095 25,309,387
Notes receivable, net of current
portion 717,284 626,628
Property and equipment, net of
accumulated depreciation 1,017,179 551,139
Exchange memberships 196,900 196,900
Capitalized software
development costs 95,354 ---
Intangible assets, net of
accumulated amortization 58,563 29,282
Other assets 480,362 301,023
Total Assets $ 5,653,737 $ 27,014,359
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses $ 675,841 $ 294,365
Other liabilities 532,918 ---
----------- -----------
Total current liabilities 1,208,759 294,365
Minority interest --- 2,000,000
Stockholders' equity:
Preferred stock - shares
authorized: 3,000,000
250,000 shares designated as
Series A - (liquidation
preference $10 per share);
shares issued and outstanding;
125,219 and none 1,252,188 ---
590,000 shares designated as
Series B - (liquidation
preference $10 per share);
shares issued and outstanding;
417,500 and 129,200 4,175,000 1,292,000
10 shares designated as Series D
$.01 par value - (liquidation
preference equals stated value);
shares issued and outstanding;
none --- ---
10 shares designated as Series E
$.01 par value - (liquidation
preference $1,000,000 per share);
shares issued and outstanding;
none --- ---
20,000 shares designated as
Series F $.01 par value -
(liquidation preference equals
stated value of $1,000 per share);
shares issued and outstanding;
none and 14,000 --- 14,000,000
Common stock - par value: $.01;
shares authorized: 60,000,000;
Shares issued and outstanding;
20,569,172 and 26,397,069 205,692 263,970
Additional paid-in capital 39,133,830 57,083,075
Deferred consulting expense (285,208) ---
Accumulated deficit (40,036,524) (47,856,504)
Accumulated other
comprehensive loss --- (62,547)
----------- -----------
Total stockholders' equity 4,444,978 24,719,994
Total Liabilities
and Stockholders'
Equity $ 5,653,737 $ 27,014,359
See Notes to Unaudited Consolidated Financial Statements
The Ashton Technology Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
December 31 December 31,
1998 1999 1998 1999
Revenues $ 427,884 $2,012,693 $1,079,836 $3,868,566
Costs and
expenses:
Costs of
revenues 56,250 513,880 146,250 644,510
Development
costs 47,677 --- 143,031 95,354
Depreciation
and
amortization 92,499 218,327 279,128 631,411
Non-cash
compensation
charges 220,313 --- 5,135,511 285,208
Selling, general
and
administrative 2,314,868 6,154,085 6,797,989 14,492,494
Total costs
and expenses 2,731,607 6,886,292 12,501,909 16,148,977
Loss from
operations (2,303,723) (4,873,599) (11,422,073) (12,280,411)
Interest
income 35,640 420,416 111,081 773,312
Gain on decon-
solidation of
Gomez --- 5,568,475 --- 5,568,475
Other income
(expense) 290,080 --- 290,080 (416,632)
----------- ----------- ------------ -------------
Net (loss)
income $(1,978,003) $1,115,292 $(11,020,912) $ (6,355,256)
=========== =========== ============ =============
Dividends
attributed to
preferred stock (129,471) (122,794) (489,170) (987,041)
Beneficial
conversion
feature of
preferred stock --- --- (5,083,484) ---
Dividends in
arrears on
preferred stock (98,507) (347,795) (312,467) (515,738)
----------- ----------- ------------ -------------
Net (loss) income
applicable to
common stock $(2,205,981) $ 644,703 $(16,906,033) $(7,858,035)
=========== =========== ============ =============
Basic net (loss)
income per common
share $ (.20) $ .03 $ (1.63) $ (.33)
=========== =========== ============ =============
Diluted net (loss)
income per common
share $ (.20) $ .02 $ (1.63) $ (.33)
=========== =========== ============ =============
Weighted average
number of common
shares
outstanding:
Basic 10,907,910 25,305,923 10,350,524 23,969,241
Diluted 10,907,910 30,852,564 10,907,910 23,969,241
--30--KMK/ph*
CONTACT: Ashton Technology Group, Inc.
Arthur J. Bacci, CFO, 215/751-1900
or
Investor Relations Contact:
Christine A. Geisser, Director of Corporate
Relations of the Ashton Technology Group, Inc.
215/751-1900
Telefax: 215-970-3481
ashtontechgroup.com
or
Contact:
Fraser P. Seitel, Siegel & Gale, 201/784-8880
Telefax: 201/784-1446 |
