Icon CMT Corp. Reports Record Revenues For 1997
WEEHAWKEN, N.J.--(BUSINESS WIRE)--March 31, 1998--Icon CMT Corp.
(NASDAQ: ICMT), the tier one Internet Solutions Provider offering
value-added Internet, intranet and extranet solutions for businesses
and corporations, today reported its results for its fourth quarter
and full year ended December 31, 1997. These results, included in the
Company's Annual Report on Form 10-K filed today with the Securities
Exchange Commission, were consistent with the preliminary results
previously included in Icon CMT's Registration Statement filed in
connection with its initial public offering on February 12, 1998.
Revenues grew strongly in both the quarter and for the full year
ended December 31, 1997, as Icon CMT posted its best ever quarterly
and annual revenues. Total revenues reached $16.7 million in the
fourth quarter of 1997, an increase of 55% over the $10.8 million
reported for the fourth quarter of 1996. Services revenues grew by
113% and products revenues increased by 28% over the comparable
period.
For the year, Icon CMT achieved record total revenues of $47.0
million, a 23% increase over revenues of $38.1 million for 1996. As
the Company continued to execute its strategy of delivering recurring
value-added Internet services, services revenues increased by 177%,
while third party product resale revenues declined by 20%.
The net loss for the fourth quarter and for the year were also
consistent with the Company's previously announced preliminary
results. The net loss for the fourth quarter was $3.9 million, or
$0.66 per share, compared with $2.5 million, or $0.40 per share, for
the fourth quarter of 1996. The net loss for the year was $13.0
million, or $2.17 per share, compared to $8.0 million, or $1.31 per
share, for 1996. Per share amounts represent both the basic and
diluted loss per share and are based on 6,545,454 weighted average
common shares outstanding for each period presented. Common stock
equivalents that are antidilutive are excluded from the calculation of
diluted loss per share.
On February 18, 1998, the Company completed its Initial Public
Offering (IPO), selling 3,850,000 shares of its common stock at a
price of $10.00 per share providing gross proceeds to the Company of
$38.5 million. Upon the completion of the IPO, all outstanding shares
of the Company's Series A and Series B Preferred Stock converted into
an aggregate of 4,629,831 shares of common stock. On a pro forma
basis, the loss per share for the three months and for the year ended
December 31, 1997 was $0.35 and $1.39, respectively, based on
11,175,329 and 9,347,355 weighted average common shares outstanding.
Icon CMT will report its 1998 first-quarter results the week of
April 27, 1998.
About Icon CMT Corp.
Founded in 1991, Icon CMT is a tier-one Internet service provider
(ISP), offering a value-added platform of communications, technology
and professional services that combine to offer organizations
end-to-end solutions for the design, development and management of
information and applications across its nationwide network backbone.
Icon CMT offers a comprehensive set of services and products that
enable corporate customers to implement their Internet, intranet and
extranet strategies. Icon CMT's mission is to provide end-to-end
solutions to its customers by facilitating the distribution of its
customers' information and applications over the Internet as well as
end-users' access to such information and applications.
Icon CMT's end-to-end solutions encompass services and products
in three key areas: (i) communications services, including
high-quality Internet access and Web/server hosting and management,
enhanced by its proprietary technologies; (ii) a range of professional
services, including custom application and Web-site development and
design, systems integration and maintenance, and support services; and
(iii) product resales, including hardware and software, which are an
integral component of systems design and integration. Icon CMT
differentiates itself by integrating its services and products in
order to provide customized turnkey solutions for the needs of
corporate customers.
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This release may include forward-looking statements concerning
Icon CMT's intent, belief or current expectations with respect to,
among other things, trends affecting its financial condition or
results of operations and its business and growth strategies. Such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that may cause actual results to
differ materially from those projected, expressed or implied. Icon CMT
does not undertake any obligation to update or revise any
forward-looking statements.
ICON CMT CORP
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
Three Three
Months Ended Months Ended
December 31, 1996 December 31, 1997
Revenue, net
Services $ 3,393 $ 7,212
Products 7,400 9,463
Total revenues, net 10,793 16,675
Costs of revenues
Services 2,509 5,480
Products 6,201 7,725
Total costs of revenues 8,710 13,205
Gross profit 2,083 3,470
Operating expenses
Sales and marketing 2,113 3,252
General and administrative 1,957 3,348
Research and development 372 426
Depreciation and amortization 149 378
Total operating expenses 4,591 7,404
Loss from operations (2,508) (3,934)
Interest income (expense), net (31) 25
Loss before income taxes (2,539) (3,909)
Provision (benefit) for income taxes (54) --
Net Loss $(2,485) $ (3,909)
======== ========
Basic loss per share and diluted
loss per share $ (0.40) $ (0.66)
======== ========
Weighted average shares outstanding
used for basic loss per share
and diluted loss per share 6,545 6,545
Proforma Data:
Proforma Data basic loss per share
and diluted loss per share $ (0.35)
Proforma weighted average shares
outstanding used for basic
loss per share and diluted
loss per share 11,175
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ICON CMT CORP
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
For the For the
Year Ended Year Ended
December 31, 1996 December 31, 1997
Revenue, net
Services $ 8,367 $ 23,208
Products 29,741 23,769
Total revenue, net 38,108 46,977
Costs of revenues
Services 6,842 17,001
Products 24,607 19,401
Total costs of revenues 31,449 36,402
Gross profit 6,659 10,575
Operating expenses
Sales and marketing 6,504 9,798
General and administrative 7,006 10,925
Research and development 969 1,347
Depreciation and amortization 460 978
Total operating expenses 14,939 23,048
Loss from operations (8,280) (12,473)
Interest income (expense), net 32 (268)
Loss before income taxes (8,248) (12,741)
Provision (benefit) for income taxes (210) 256
Net Loss $ (8,038) $(12,997)
======== ========
Basic loss per share and
diluted loss per share $ (1.31) $ (2.17)
======== ========
Weighted average shares outstanding used for
Basic loss per share and diluted
loss per share 6,545 6,545
Proforma Data:
Proforma Data basic loss per share and diluted
loss per share $ (1.39)
Proforma weighted average shares outstanding
used for basic loss per share and diluted
loss per share 9,347
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ICON CMT CORP
CONDENSED BALANCE SHEET
(In thousands)
Proforma
Stockholders'
equity
Dec. 31, Dec. 31, Dec. 31,
1996 1997 1997
Assets
Total current assets $ 9,488 $ 13,701
Fixed assets, net 3,721 6,525
Other assets 83 208
======== ========
Total assets $ 13,292 $ 20,434
======== ========
Liabilities, mandatorily redeemable
preferred stock and
Stockholders' deficit
Current liabilities $ 11,388 $ 14,158
Long-term liabilities 155 --
======== ========
Total liabilities 11,543 14,158
======== ========
Series A convertible preferred stock 9,881 10,601
Series B convertible preferred stock -- 16,628
Stockholders' equity
Common stock 7 7 $ 11
Additional-paid-in-capital 23 498 27,335
Accretion of mandatorily redeemable
preferred stock (89) (388) --
Accumulated deficit (8,073) (21,070) (21,070)
Total stockholders' (deficit) equity (8,132) (20,953) $6,276
Total liabilities, mandatorily redeemable
preferred stock and
stockholders' (deficit) $ 13,292 $ 20,434
======== ========
CONTACT:
Company Contacts:
Ken Hall
Icon CMT Corp.
Senior Vice President and Chief Financial Officer
201-319-5301
khall@icon.com
OR
Mike Darcy
Icon CMT Corp.
Director of Public Relations
201-319-5251
mdarcy@icon.com
KEYWORD: NEW JERSEY
BW1584 MAR 31,1998 |
