Record First Quarter Revenue
Friday May 5, 1:33 pm Eastern Time
Company Press Release
Wareforce.com Reports Record First Quarter
Company Posts 32% Revenue Growth
LOS ANGELES--(BUSINESS WIRE)--May 5, 2000--Wareforce.com, Inc. (OTCBB:WFRC - news), a comprehensive provider of information technology (IT) products and systems, technical services and e-commerce solutions, today announced results for its first fiscal quarter ended March 31, 2000.
Quarterly revenue increased 32% to $37.3 million from $28.2 million for the same period in 1999. Of the $9.1 million increase, $2.6 million, or 28%, is attributable to technical service revenue. This reflects Wareforce's accelerated growth in the delivery of higher margin technical services.
The Company recorded a net profit for the quarter of $692,000, or $0.06 per share, compared to a loss of ($578,000), or ($0.05) per share, for the same period in 1999. Included in the net income is a one-time gain of $2.1 million due to Wareforce selling 12% of their shares of uMember.com, Inc. (OTCBB:UMEM - news) stock. Shareholders' equity increased from $309,000 at December 31, 1999, to $4,925,000 at March 31, 2000.
``We are extremely pleased to report another significant net sales increase on a year-to-year basis,'' stated Orie Rechtman, Wareforce.com Chairman and CEO. ``We believe that these results help position us for strong performance for the balance of the year 2000. Half our workforce, representing some 150 employees, is currently dedicated to generating higher-margin revenue from technical services.''
``With the Company's pending acquisition of WesTech, an e-business integrator and web development company,'' added Jim Illson, Wareforce.com President, ``we continue to expand the depth and range of our services and our e-commerce solutions. We plan to maintain our momentum in investing in these higher-margin capabilities.''
WAREFORCE.COM, INC.
SELECTED CONSOLIDATED FINANCIAL DATA - Q1, 2000
(unaudited)
(in thousands, except per-share data)
For the three month period
ending March 31,
----------------
2000 1999
Statement of Operations Data:
Consolidated
Net Sales $37,290 $28,214
Cost of Goods Sold 33,421 25,266
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Gross Profit 3,869 2,948
Selling, General &
Administrative Expenses 4,601 3,346
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Loss from Operations (732) (398)
Interest Expense (307) (145)
Interest Income 54 3
Gain from sale of uMember stock 2,150
Loss in equity method investment (438)
Other Income (Expense) (35) (38)
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Income/ (Loss) Before Taxes $692 ($578)
Provision for Income Taxes - -
---------- ----------
Net Income/ (Loss) $692 ($578)
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Net Income/ (Loss) per basic and
diluted common share $0.06 ($0.05)
Shares used to compute basic
Net Income/(Loss) per share 11,314,000 10,550,000
Shares used to compute diluted
Net Income/(Loss) per share 12,232,000 10,550,000
About Wareforce.com
Wareforce.com, with headquarters in El Segundo, California, is a leading provider of IT systems, technical services and e-commerce solutions to government organizations, educational institutions, and small, mid-size and Fortune 1000 companies.
Wareforce.com has integrated its $2 billion virtual warehouse featuring 140,000 computer-related products with the Commerce One MarketSite(TM) Global Trading Portal, the U.S. portal for exchanging goods and services among businesses worldwide. This allows customers immediate access to one of the most comprehensive online inventories of IT products available today. Wareforce.com is committed to provide B2B e-commerce solutions using open industry standards. By adopting XML as the standard interface with internal ERP systems, Wareforce.com provides a complete, seamless integration with leading online procurement technologies. Wareforce.com is located on the World Wide Web at www.wareforce.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in future operating results due to a number of economic, competitive and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the Company's products and services. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. These results presented may contain extraordinary charges and expenses. Additional information with respect to these and other factors that could materially affect the Company and its operations are included on certain forms the Company files with the Securities and Exchange Commission.
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Contact:
Wareforce.com, Inc.
Marcia Mazria, 310/725-5523
mmazria@wareforce.com
or
Phoenix Alliance, Inc.
Phil Huss, 970/259-7241
phoenixalliance@frontier.net |
