Cray, lightly traded but I got some INTN 7.21 +.41 a Chinese Internet content provider, beaten down lately...INTAC International Announces Outlook for Fiscal 2004 and Results of Operations for First Quarter of 2004
Monday May 17, 8:19 pm ET
HONG KONG, May 17 /PRNewswire-FirstCall/ -- INTAC International, Inc. (Nasdaq: INTN - News; FSE: WKN 805768), an Internet content provider in China providing Chinese students exclusively with a full-range of career development services through its Internet portal, supported by China's Ministry of Education ("MOE"), today announced its outlook for fiscal 2004 and results of operations for the three months ended March 31, 2004.
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Revenues for the year ending December 31, 2004 are expected to exceed $120 million, an increase of 32% over 2003, and net income is expected to be at least $5 million for fiscal 2004. Wei Zhou, Chairman and CEO of INTAC stated that "with the expectation of our career development services Internet portal, Beijing Intac Purun Educational Services Ltd. ("Intac Purun"), starting to generate revenue in the second quarter of 2004 plus improved volume and profit margins from our distribution business, we feel confident that we can achieve these results in 2004."
Revenue increased by $423,000, or 5.3%, to $8.4 million for the three months ended March 31, 2004, from $8.0 million for the same quarter in 2003. Gross profit increased by $132,000 to $359,000 for the three months ended March 31, 2004, from $227,000 for the same quarter in 2003. The gross margin increased by 1.5% to 4.3% for the three months ended March 31, 2004 from 2.8% for the same period in 2003.
Loss from operations was $642,000 ($0.03 per share) for three months ended March 31, 2004, as compared to a loss from operations of $493,000 ($0.03 per share) for the same quarter in 2003. Net loss was $519,000 ($0.03 per share) for three months ended March 31, 2004, as compared to a net loss of $492,000 ($0.03 per share) for the same quarter in 2003.
The increases in revenues are due to an increase in sales volume and no material increase in sales prices. The main reason for the decline in operating results and net loss in the three months ended March 31, 2004, as compared to the same period in 2003, has been the formation of our new Internet joint venture, Intac Purun, in October 2003, without accompanying revenues. Our operating loss for the three months March 31, 2004 included costs of approximately $227,000 relating to the Internet portal business. Excluding these additional costs, operating results would have improved for the three months ended March 31, 2004 by approximately $78,000, as compared to the same quarter in 2003. Also, excluding these additional costs related to Intac Purun, net loss would have improved for the three months ended March 31, 2004 by approximately $87,000, as compared to the same quarter in 2003.
"The first quarter is typically seasonal," said J. David Darnell, Senior Vice President and Chief Financial Officer. "Even with this overall seasonal slow down in business in China, we were still able to increase revenues over 2003 and improve our operating loss and net loss, excluding the $227,000 of operating expenses related to the Intac Purun operations."
The Company's annual report on Form 10-KSB for the year ended December 31, 2003 and quarterly report on Form 10-Q for the quarter ended March 31, 2004 may be viewed at the SEC's website www.sec.gov .
About INTAC International, Inc.
INTAC International, Inc. is focused on the exploitation of strategic business opportunities available in China and the Asia-Pacific Rim. INTAC is refocusing its business plan from the traditional distribution of premium brand wireless handsets to Beijing Intac Purun Educational Development Ltd., its new Internet portal business in mainland China. INTAC maintains offices in China (Hong Kong, Beijing and Tianjin), Germany (Frankfurt) and the United States (Dallas).
Forward-Looking Statements
This press release contains certain "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements expressed or implied by such forward-looking statements to differ materially from those projected or implied. Factors that could cause or contribute to such differences include, among other things: changes in general business conditions; the impact of competition in our industry, especially in the Asia- Pacific Rim; the fact that we are an early stage company with an unproven business model; our need for additional working capital, particularly to the extent that we are able to locate a suitable business opportunity; the added expense structure assumed by us as a U.S. public company; political and economic events and conditions in jurisdictions in which we operate; PRC Internet laws and regulations that are unclear and will likely change in the near future; restrictions on foreign investment in the PRC Internet sector that are imposed by the PRC government; the PRC government that may prevent us from distributing; regulation and censorship of information distribution in China which may adversely affect our business; political and economic policies of the PRC government; the risk of the loss of the agreements, or the exclusivity terms, with the Education Management Information Center; the high cost of Internet access that may limit the growth of the Internet in China and impede our growth; advertising and e-commerce customers that have only limited experience using the Internet for advertising or commerce purposes; the acceptance of the Internet as a commerce platform in China which depends on the resolution of problems relating to fulfillment and electronic payment; concerns about security of e-commerce transactions and confidentiality of information on the Internet that may increase our costs, reduce the use of our Internet portal and impede our growth; our network operations that may be vulnerable to hacking, viruses and other disruptions, which may make our products and services less attractive and reliable; changes in interest rates, foreign currency fluctuations and capital market conditions; and other factors including those detailed under the heading "Business Risk Factors" and elsewhere in the Company's annual report on Form 10-KSB for the year ended December 31, 2003 and quarterly report on Form 10-Q for the quarter ended March 31, 2004 as filed with the Securities and Exchange Commission. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future events or otherwise. INTAC undertakes no obligation to update any forward-looking statements made in this media release.
Contact: J. David Darnell, Senior Vice President and Chief Financial Officer, 469-916-9891, for further information.
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Source: INTAC International, Inc.
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