Net income was a positive $7000 profit (less than 1/2 of one percent) with a one time non cash write off related to conversion of C convertible preferred stock.
siliconinvestor.com
Firstwave Reports Improved Financial Results for Third Quarter 2001; Company Shows First Quarterly Profit in Four Years
ATLANTA, Oct 22, 2001 /PRNewswire via COMTEX/ -- Firstwave Technologies, Inc. (Nasdaq: FSTW chart, msgs), a web-based, eCRM solutions provider, today announced financial results for the Third Quarter of 2001. The Company enjoyed its first quarterly profit since the Third Quarter of 1997. Net income for the quarter was $7,000, excluding a non-cash charge of $462,000 for deemed dividends (further explained below), compared to a loss of $720,000 for the comparable quarter of 2000.
Firstwave reported total revenues of $2.3 million for the Third Quarter of 2001, an increase of $111,000, or 5.1%, over the Third Quarter of 2000. The improved results for the Company resulted from a 57% increase in services revenues, from $770,000 in the Third Quarter of 2000 to $1,209,000 in the Third Quarter of 2001, and a decrease of $638,000 in costs and expenses, from $2,899,000 in the Third Quarter of 2000 to $2,261,000 in the Third Quarter of 2001.
The Company's cash balance as of September 30, 2001, was $1,230,000. This cash balance is consistent with the balance at the end of 2000, and is an increase of almost $500,000 over the cash balance at June 30, 2001 of $738,000. This increase in cash balance is the result of additional capital raised and cost savings implemented. Additionally, the Company is currently carrying no long-term debt.
"We are extremely pleased with our financial performance for the quarter, especially in light of the current economic conditions that have made it more difficult to accurately forecast when a given opportunity will close," commented Richard Brock, CEO of Firstwave. "The cost savings we have implemented since the first of the year and the increase in revenues have enabled us to reach profitability for the quarter." Please refer to Mr. Brock's further comments on the business in his CEO Letter released today.
Net loss per share applicable to common shareholders for the Third Quarter of 2001 was $0.22, which included a one-time non-cash charge of $417,000 applicable to a beneficial conversion feature associated with the issuance of Series C Convertible Preferred Stock. This loss per share improved over the comparable quarter of 2000 net loss of $0.35. The Series C Convertible Preferred Stock, which was approved by the shareholders at the September 7, 2001 special meeting, is convertible into Common Stock pursuant to a formula that was based on the average trading price of the Common Stock over the twenty days prior to the shareholder meeting. Because the conversion price determined by this formula was less than the trading price on the commitment date, current accounting standards require the Company to determine the value of this "beneficial conversion feature" and to record that amount as a charge to earnings on the date any contingencies are resolved, which was the date of shareholder approval, or September 7, 2001.
Firstwave will hold its Third Quarter Earnings Call on Tuesday, October 23, 2001, at 8:30 a.m. EST. To participate in the call, dial (877) 828-7410 (from within the United States and Canada) or (706) 679-7574 (from outside the United States and Canada) no later than 8:20 a.m. EST. When asked for the leader name, ask to join the Firstwave conference with Richard Brock. The Conference ID is 2114116.
A replay will be available from Tuesday, October 23rd at 10:30 a.m. EST through Thursday, October 25th at 10:30 a.m. EST. To access the replay, call (800) 642-1687 (from within the United States/Canada) or (706) 645-9291 (from outside the United States/Canada) and use the Firstwave reservation number - 2114116.
About Firstwave
Firstwave(R) (www.firstwave.net ) provides web-based, eCRM solutions that automate and optimize how companies get, keep and grow customer relationships. Firstwave offers one of the only true, 100% web-based CRM applications in the market today. Originally founded in 1984 as Brock Control Systems, Firstwave maintains the depth and industry experience required to address unique business needs of mid-market companies. With over 17 years of experience in relationship management, Firstwave holds the distinction of being the Best Internet Based CRM Solution as cited by the Denali Group and has received the CRM Excellence Award by the Technology Marketing Corporation.
NOTE: Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The Company noted that the forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, such as the Company's capital requirements and other liquidity concerns and related doubt as to the Company's ability to continue as a going concern, potential fluctuations in quarterly results due to market demand, competition, technological developments, the Company's ability to continue to comply with NASDAQ listing requirements, and the size, timing, and contractual terms of orders, and also the risks and uncertainties discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2000, filed with the Securities and Exchange Commission, under the caption "Certain Factors Effecting Forward Looking Statements," which discussion is incorporated herein by this reference.
Firstwave Technologies, Inc.
Selected Financial Information
(in thousands; except per share data)
Quarter ended September 30,
2000 2001
Revenues $2,177 $2,288
Operating income/(loss) (722) 27
Income/(loss) before income taxes (720) 12
Net Income/(loss) $(720) $7
Dividends on preferred stock (23) (462)
Net loss applicable to common shareholders $(743) $(455)
Basic and diluted loss per share $(0.35) $(0.22)
Weighted average shares outstanding 2,096 2,100
****************************************
P.S. Ooops did I get a century grub? |
