ECNXF announce earnings and profits
biz.yahoo.com
Thursday November 9, 6:04 am Eastern Time
Press Release
E*Comnetrix Realizes Net Profit for Quarter Ended September 30,
2000
Company Improves Performance Over Prior Quarter; Results Include Only 15 Days of
Exstream Data Financial Data
OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 9, 2000-- E*Comnetrix Inc. (OTCBB:ECNXF - news), a
technology holding company owning and acquiring broadband, ISP, ICP, ASP, and e-solutions provider companies,
announced an operating profit of $486,166 on revenue of $1,242,668 and net income of $32,456, an improvement
over a net loss of $49,776 in the prior quarter. The Company's consolidated financial statements include only the final 15
days of quarterly results for Exstream Data, Inc. (EDI).
``We've accomplished some significant goals during the third quarter of 2000 which we believe will pay dividends over
the next several quarters,'' stated E*Comnetrix President Mark Smith. ``We completed the Exstream Data acquisition,
formed two new companies on which to build our strategic plan and have all but completed the integration of our
operations. As we reposition the company for a future in the integrated network services arena it should become clear as
to how our actions today will positively affect tomorrow's outcomes.''
``The acquisition of EDI, and its ancillary company MovingBytes.com, Inc. (MBI), delivered a key component of the
Company's strategic plan to supply an end to end Internet based business solution set to small and medium enterprises
(SME's),'' continued Smith. ``The Company's plan to become a complete provider of e-solutions for SME's, from
desktop to desktop, to include broadband connectivity, web presence and voice and data transmission, all carried on
proprietary network infrastructure, is dependent upon having key technologies and know-how, as well as niche market
distribution capabilities. EDI supplied the engine on which to support electronic document delivery based operational
support, communications links and web based marketing solutions.''
Highlights of the Company's performance during the quarter include:
-- Closed the acquisition of Exstream Data and its ancillary company
MovingBytes.com, Inc.
-- Formed Layer 427, Inc. and Moving Bytes Broadband Corporation
-- Returned to profitability from prior quarter
-- Increased gross profit by 9.9% year on year
-- Increased gross margins to 39.12%, up from 35.69% in the prior
quarter
-- Grew cash faster year to date than in prior year
-- Increased total assets by 122% over the prior quarter
-- Increased net tangible assets by 43% over the prior quarter
-- Increased its current ratio to 3.27 times, up from 2.08 at
September 30, 1999
-- Increased share capital by $2,342,511 over prior quarter end
-- Increased equity to $3,732,570 from $1,255,323 at prior quarter
end, or 197%
-- Completed its integration with Exstream Data
-- Increased core employee base to 35+
Net income for the quarter was $32,456 as compared to a net loss of $49,776 during the previous quarter, but off from
the prior year's quarter net income of $84,608. The Company reduced its net losses for the year from $65,872 at June
30, 2000 to $33,416 at September 30, 2000. For the period ending September 30, 2000, net profit per share was
$0.0024 and for year to date through September 30, 2000, net losses were $0.0025 per share.
The Company has consolidated the balance sheets of both EDI and MBI at September 30, 2000. The Company ended
the period with $971,620 in cash and equivalent balances. Cash increased over the prior year's period by $133,371.
Cash fell by $13,434 from the prior quarter. The Company believes that it has sufficient cash to cover its current level of
spending on operations and marketing programs until such time as it achieves positive cash flow. The Company has
taken measures to increase its cash flow by lowering its cost of sales through revised carrier contracts.
The Company's accounts receivable balances as reported grew from $873,666 at the end of the prior quarter to
$1,102,835. As a percentage of quarterly revenue the results are distorted due to the inclusion of EDI period ending
balances to the receivables account but the inclusion of only 15 days of reported revenue. Accounts receivable largely
represent collectable amounts from the previous ninety days sales.
The Company added $1,930,029 in goodwill assets due to the completion of the acquisition of EDI during the period.
This increased total assets to $4,402,066, up from $1,975,871, or 122%, at the end of the prior quarter. The Company
did not amortize any goodwill during the period. Long term assets were increased by the net asset balance of EDI at the
period end. As a result of the acquisitions completed during the quarter the company increased its tangible assets to
$2,472,037, up from $1,975,871, or 25%, and net tangible assets to $1,802,541, up from $1,255,323, or 43%
compared to period end June 30, 2000.
Total current liabilities fell from $720,548 at the end of the prior period and from $908,224 at the end of the prior year's
period to $669,496 at the end of the period. The Company was able to increase its current ratio to 3.27 times, up from
2.68 at June 30, 2000 and 2.08 at September 30, 1999. This was despite a nominal decrease in cash balances for the
period.
The Company added $2,342,511 in share capital during the period due to the completion of the acquisition of EDI and
MBI, increasing total share capital to $6,143,415. Equity increased to $3,732,570, up from $1,255,323 at June 30,
2000, an increase of 197%. Shares outstanding increased to 13,602,313 at the quarter end from 10,899,277 at the end
of the prior period due to the EDI acquisition.
For the nine month period ended September 30, 2000 cash increased by $403,201 as compared to $143,975 for the
prior year's period. Although cash balances fell by $13,434 during the period, it has grown cash 180% over the prior
year's nine month period equivalent change.
ABOUT E*COMNETRIX INC.
E*Comnetrix, through its operating subsidiaries Exstream Data, Inc. (www.exdata.com), Layer 427, Inc., Moving Bytes
Broadband Corporation and USV Telemanagement, Inc., provides a full e-business solutions set consisting of
e-document delivery and e-marketing services, and voice and data, integrated T-1, Internet, Synchronous Digital
Subscriber Line (SDSL) and other integrated access and broadband services and applications to thousands of
businesses worldwide, including more than a dozen Fortune 1000 companies. The company utilizes the networks of
leading Internet infrastructure companies such as Covad Communications Group, Inc. (COVD), Level 3
Communications (LVLT), MCI WorldCom Inc. (WCOM), Qwest Communications, Inc. (Q), and UUNET (an MCI
WorldCom company).
The company's operating subsidiaries compete in the e-solutions space shared with companies such as Covad
Communications Group, Inc., Critical Path (CPTH), Digital Impact, Inc. (DIGI), Digitas, Inc. (DTAS), eGain
Communications (EGAN), Kana Communications Inc. (KANA), Message Media (MESG), Northpoint
Communications Group Inc. (NPNT), and Rhythms Net Connections, Inc. (RTHM).
E*Comnetrix is audited by KPMG LLP and is registered with the U.S. Securities and Exchange Commission under the
1934 Act. The company's SEC filings can be found on the System for Electronic Document Analysis (SEDAR) at
www.SEDAR.com. For more information, visit our web site at www.ecomnetrix.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by those
sections. Such forward-looking statements, particularly as related to the business plans of the Company, expectations of
strategic relationships, business opportunities, acquisitions of capital equipment, availability of investment capital and
future financing, and the Company's ability to gain market share, are based on current expectations that involve a number
of risks and uncertainties. Actual results may differ materially from the Company's expectations and estimates.
Contact:
E*Comnetrix, Mill Valley, Calif.
News Media and Investor Relations Contact:
William H. Smith, CFA, 866.ECOMNET (866/326-6638) |
