Earnings out, doesn't look too good,
however the stocks moving up breaking above $2, interesting ....
Eliminating losers and focus on high gross margin area.
I like it, bot some here and will accumulate on dip.
biz.yahoo.com
Friday February 11, 9:30 am Eastern Time
Company Press Release
Cumetrix Data Systems Reports Third-Quarter Results
CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Feb. 11, 2000-- Cumetrix Data Systems
Corp. (OTCBB:CDSC - news), an e-commerce retailer and national provider of systems
configuration and distribution services, Friday announced its third-quarter results for the period ended Dec. 31, 1999.
Net sales for the third quarter were $3,951,045 compared with $16,251,491 in the previous year. Net income for the third quarter,
ended Dec. 31, 1999, was a loss of $355,842 ($.05 per share) compared with a loss of $110,006 ($.01 per share) for the third
quarter ended Dec. 31, 1998.
The reduction in the third-quarter revenues is attributable to the company's decision to substantially exit various segments of its
hardware distribution business as previously reported. The reduction in net income is mainly attributable to additional legal and
accounting expenses incurred during the quarter.
Commenting on the third-quarter results, Max Toghraie, chief executive officer of Cumetrix, noted: ``We are pleased with our
progress to date in transitioning the company into a leading e-commerce provider of systems assembly and configuration services.
``This transition has enabled us to achieve a four-fold increase in the company's gross profit margins to 12.59 percent of sales in
the third quarter ending Dec. 31, 1999, as compared to gross profit of 3.14 percent in the comparable quarter a year ago.'
Toghraie continued: ``We are also very encouraged by the growth of our online businesses, which represented approximately 70
percent of our revenues through the company's e-commerce as well as affiliated Web sites in the most current quarter.
``We continue to take steps in growing the number of our e-commerce vendor relationships, which we believe represents a huge
opportunity to grow revenues and margins going forward.'
Cumetrix Data Systems is an online retailer and a national provider of fully configured computer systems and peripherals. Through
its Internet subsidiary, the company operates an e-commerce and auction Web site at www.suredeals.com and
www.sureauctions.com. The company has investments in other e-commerce related ventures.
With the exception of historical information, the matters discussed above include numerous forward-looking statements that
involve risks and uncertainties. Actual events and results may vary substantially due to a variety of factors. These and other risk
factors are discussed in the company's recent filings with the Securities and Exchange Commission on Form 10-Q, filed on Nov.
15, 1999, and Form 10-K filed on Oct. 15, 1999, and the reader is directed to these reports for a further discussion of important
factors that could cause actual results to differ materially from the forward-looking statements set forth herein.
CUMETRIX DATA SYSTEMS CORP.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended
Dec. 31,
1999 1998
(unaudited)
Net sales $ 3,951,045 $ 16,251,491
Cost of products 3,453,308 15,740,845
Gross profit 497,737 510,646
Selling, general and administrative
expenses 933,226 796,548
Income (loss) from operations (435,489) (285,902)
Interest expense 51 1,894
Interest income 79,698 101,071
Income (loss) before provision for
income taxes (355,842) (186,725)
Provision for income taxes -- (76,719)
Net income (355,842) (110,006)
Basic and diluted earnings per share $ (0.05) $ (0.01)
-0-
Nine Months Ended
Dec. 31,
1999 1998
(unaudited)
Net sales $ 15,063,615 $ 54,084,126
Cost of products 14,283,306 52,592,335
Gross profit 780,309 1,491,791
Selling, general and administrative
expenses 2,931,620 1,898,243
Income (loss) from operations (2,151,311) (406,452)
Interest expense 410 4,098
Interest income 246,576 421,738
Gain (loss) on equity investment (364,607) --
Income (loss) before provision for
income taxes (2,269,752) 11,188
Provision for income taxes -- 6,052
Net income (2,269,752) 5,136
Basic and diluted earnings per share $ (0.31) $ 0.00
CUMETRIX DATA SYSTEMS CORP.
CONDENSED BALANCE SHEETS
ASSETS Dec. 31, March 31,
1999 1999
(unaudited) (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 4,379,142 $ 6,743,198
Time deposits 1,500,000 1,500,000
Trade receivables, net of allowance
for doubtful accounts of $50,000
and $280,000 at Dec. 31, 1999,
and March 31, 1999, respectively 1,034,269 1,864,685
Inventories 560,535 2,320,127
Income tax receivable 262,430 262,430
Prepaid expenses and other current
assets 155,446 236,555
Total current assets 7,891,822 12,926,995
Fixed assets, net 373,456 504,363
Other assets 527,822 892,429
Total Assets $ 8,793,100 $ 14,323,787
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 728,427 $ 3,945,595
Accrued expenses and other current
liabilities 522,061 561,018
Total current liabilities 1,250,488 4,506,613
Long-term debt, net of current portion -- 4,810
SHAREHOLDERS' EQUITY:
Preferred stock, no par value:
Authorized, 2,000,000 shares; issued
and outstanding, none -- --
Common stock, no par value: Authorized,
20,000,000 shares; issued and
outstanding, 7,392,500 and 7,392,500
at Dec. 31, 1999, and March 31,
1999, respectively 12,063,414 12,063,414
Retained earnings (4,520,802) (2,251,050)
Total shareholders' equity 7,542,612 9,812,364
Total liabilities and shareholders'
equity $ 8,793,100 $ 14,323,787
The accompanying notes are an integral part of these condensed balance sheets.
Contact:
Cumetrix Data Systems Corp., City of Industry
Max Toghraie, 626/965-6899 |
