DYNAMICWEB ENTERPRISES REPORTS SECOND QUARTER RESULTS
To the Group,
Following is DynamicWeb's 2nd Quarter Earnings release.
BJ Taylor
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Contact: BJ (William) Taylor, 973-244-1000, wtaylor@dynamicweb.com
DYNAMICWEB ENTERPRISES REPORTS SECOND QUARTER RESULTS
FAIRFIELD, NJ, May 17, 1998 - DynamicWebT Enterprises Inc. (OTC
Bulletin Board: DWEB), an Internet electronic commerce (EC) and
electronic data interchange (EDI) software and service provider,
today announced the company's business and operating results for
the second quarter ended March 31, 1998.
Financial Summary Table
....................................Three Months Ended March 31,
.........................................1998...........1997
Revenues...............................$202,834.......$180,554
Cost of Revenues.......................$119,692........$60,612
Gross Profit (Loss)..................$83,143.......$119,942
Costs and expenses.....................$655,804.......$426,686
Interest and other income, net..........($8,146).......($5,560)
Net loss..............................($580,807).....($290,604)
Net loss per share.......................($0.32)........($0.16)
Weighted average shares outstanding...1,851,965......1,997,716
DynamicWeb reported revenues of $202,834 for the three months ended
March 31, 1998, up from $180,554 for the second quarter of 1997.
Revenue for the quarter, although favorable when compared to last
year, was hampered by financial uncertainty until the offering was
completed on Feb. 6, 1998. Due to the completion of a public
offering in February 1998, stockholders equity improved significantly
to $1,209,374 as of March 31, 1998 compared to a deficit of
($651,451)on March 31, 1997.
Balance Sheet Data
..........................................As of March 31,
........................................1998...........1997
Cash and cash equivalents...........$1,061,928......$188,270
Other current assets..................$125,638......$121,163
Property and equipment, net...........$283,500......$284,512
Other assets..........................$171,007......$293,771
Total assets.....................$1,642,073......$887,716
Current liabilities...................$251,816....$1,353,356
Other liabilities.....................$180,883......$185,811
Total liabilities..................$432,699....$1,539,167
Total stockholders' equity..........$1,209,374.....($651,451)
Total liabilities and
stockholders' equity.............$1,642,073......$887,716
"Significant achievements this year have enabled us to remain a
recognized leader in the Internet-enabled EDI supply-chain commerce
space which Geoffrey Moore has identified as 'a truly killer app'
(The Gorilla Game, pp. 298)," said Steve Vanechanos, Jr., CEO of
DynamicWeb. "Some of our major accomplishments include a successful
$4.4M public offering, a partnering agreement with Sterling Commerce
(SE), a roll-out of our latest EDIxchangeBuy 2.0 technology with
Linens 'n Things (LIN), and the launching of our Professional
Services Group with the acquisition of Design Crafting."
"Several external events pointing to the market moving in our
direction also occurred," said Vanechanos. "The highly successful
offering of Exodus Communications (EXDS) vindicated our decision to
build our entire EC network around their state-of-the-art Web hosting
facilities. Netscape's (NSCP) recent decision to migrate their
browser technology to an open-source model validates our choice of
Apache and Perl, both open source technologies, as the core building
blocks for our EDIxchange technology."
"Other important events included distribution agreements with
RealWorld and Synchronics for our EDIxchangeConnect offering as well
as the Healthcare EDI Coalition (HEDIC) for our EDIxchangeBuy/Sell
offerings," said Vanechanos.
"Looking forward, the quantity and quality of leads in our pipeline
has never looked better," said Vanechanos. "As this emerging market
evolves our key challenge rests on our ability to convert quality
leads into committed customers."
About DynamicWeb Enterprises
Located in Fairfield, NJ, DynamicWeb Enterprises Inc. is an innovator
in developing and marketing EC/EDI software and services. The company
uses Internet and EDI technologies to enable companies to maximize
the full business potential of electronic commerce by increasing
participation and compliance with trading partners.
For additional information about DynamicWeb and its products or
services visit the DynamicWeb home page at www.dynamicweb.com, send
an e-mail to sales@dynamicweb.com or call 1-800-4-EDI-HELP.
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NOTE: This press release contains statements that are forward
looking. They are based on the Company's current expectations,
and are subject to a number of uncertainties and risks. The
Company's actual results may differ materially. The uncertainties
and risks include the pace of growth of Internet commerce, the
development by the Company and its competitors of new products
and services, strategic decisions by major participants in the
industry, competitive pricing pressures, legal and regulatory
developments and general economic conditions. Further information
about these and other relevant risks and uncertainties may be
found in the Company's report on Form 10-K and its other filings
with the Securities and Exchange Commission, all of which are
available from the Commission and from the Company's worldwide
web site www.dynamicweb.com, as well as other sources.
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