IARC - (Summary) Revenues down but should beat estimates...
(COMTEX) B: Information Architects Comments on Third Quarter
B: Information Architects Comments on Third Quarter
CHARLOTTE, N.C., Oct 11, 2000 (BUSINESS WIRE) -- Information Architects(R)
(NASDAQ: IARC), providers of XML-based dynamic content delivery and interchange
ebusiness solutions, today announced its preliminary expectations for the third
quarter ended September 30, 2000.
The Company estimates that it will beat analyst's projected third quarter
earnings by $0.05 - $0.06 per share. IA estimates the loss for the third quarter
to be approximately $3 million versus analyst expectations of a $4.8 million
loss. Management believes this reflects the improved operating efficiencies
implemented to continue moving the company toward its profitability goal. The
company continues to maintain a strong, debt-free balance sheet with a cash
position of an estimated $13 million. Negative net cash flow for the third
quarter is estimated at less than $1 million per month.
"While we have made significant streamlining measures, which are reflected in
both our short-term and long-term bottom line, we are less than pleased with our
revenue number for the quarter," said Robert Gruder, Chairman and CEO. "The
results are largely attributed to a longer time period than anticipated in
hiring key sales management personnel, which resulted in a temporary delay in
realizing revenue growth. These delays led to third quarter revenue estimates of
approximately $1.3 million, which is below analyst expectations. We remain
confident in the growth of the Internet infrastructure marketplace, and the
growing acceptance by the marketplace of our SmartCode(R) line of infrastructure
technologies."
The company recently filled the two key management positions of Senior Vice
President of Sales and Vice President of Business Development. The company also
hired 10 additional sales personnel in the month of September, and expects to
add 10 more by the end of November. iA believes these additional hires will add
substantially to the market penetration. Because hiring key sales personnel took
longer than expected, the company currently anticipates that revenues for the
fourth quarter are expected to be in line with third quarter revenues. The
company currently anticipates strong growth beginning in the first quarter of
2001.
During the third quarter, the company continued to validate its SmartCode
product offering through the ongoing Eastman Kodak contract, the new Novant
Health contract, and increasing relationships with key partners such as Art
Technology Group and Interwoven. Partnership activities included joint sales
calls, as well as participation in partners' conferences and sponsorship of the
Interwoven conference in October, at which iA publicly unveiled its new XVP
SmartCode GUI, which enables enterprises to quickly migrate their existing
infrastructure into the world of JAVA, XML, wireless PDAs, and broadband ISPs.
The expected financial results contained in this announcement for Information
Architects' third quarter are preliminary and are subject to the completion of
customary quarter-end review procedures with its auditors. Information
Architects plans to announce its final financial results for the third quarter
on October 26, 2000.
ABOUT IARC
Information Architects(R) offers Internet Infrastructure Content Delivery
Solutions with its SmartCode(R) technology. The SmartCode Content Delivery
Matrix contains metadata "nodes" that locate and route content. It's the only
content delivery application that is pure JAVA, patented, and uses metadata.
Metadata nodes can store multiple types of information such as the location of
content (database, HTML, PDF, application programs, etc.). Therefore, you don't
have to store all the data/content in a repository. Metadata nodes can also
contain logic so you can decide what and when you need to access content and
what to do with it, all in real-time. SmartCode can even utilize entire
application programs and syndicate/rebrand them to other sources. The cost to
maintain repositories is growing, as are the costs of competent IT
professionals. With SmartCode you can help reduce these costs and become more
competitive because:
-1. SmartCode is the only technology that can locate content from multiple
sources simultaneously without having to put it in a repository.
-2. SmartCode is the only technology that can integrate logic with that content
so you can personalize, move, create access, arrange, and direct the content.
-3. SmartCode is the only technology that can syndicate entire application
programs and rebrand them to other sources. Ideal for ASP's.
-4. SmartCode is the only technology that can dynamically syndicate content onto
any device, i.e. cell phones, PDA's, desktops, etc., without having to write and
rewrite scripts.
-5. It is the ONLY technology that is bi-directional.
FORWARD LOOKING STATEMENTS
The foregoing statements made in this press release that are not historical
facts contain "forward-looking information" within the meaning of the Private
Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended,
which can be identified by the use of forward-looking terminology such as "may,"
"will," anticipates," "expects," "projects," "estimates," "believes," or
"continue," the negative thereof, other variations or comparable terminology.
Important factors, including certain risks and uncertainties with respect to
such forward-looking statements that could cause actual results to differ
materially from those reflected in such forward looking statements include, but
are not limited to, our ability to manage growth and acquisitions of technology
and people, the ability to attract and retain technical personnel, variations in
quarterly operating results, significant current and expected additional
competition, the need to continue to develop our products, the need to continue
to expand product distribution and services offerings and other risks detailed
from time to time in our SEC reports. We assume no obligation to update the
information in this release.
CONTACT: Information Architects, Charlotte
John Deem, 704/367-2023
john.deem@ia.com
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KEYWORD: NORTH CAROLINA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
INTERNET
HARDWARE
SOFTWARE
MANAGEMENT
CHANGES
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