Sorry to interrupt but I thought someone might want to see this prior to the invasion. Jeff
FutureLink Distribution Corp. Announces 1999 Q1 Results Including Revenues of $1.7 Million
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Story Filed: Thursday, May 20, 1999 5:56 PM EST
CALGARY, ALBERTA (May 20) BUSINESS WIRE -May 20, 1999--Raghu Kilambi, FutureLink's CFO, is pleased to announce that FutureLink Distribution Corp. (OTC BB:FLNK) has filed its 10-QSB quarterly report with the US Securities and Exchange Commission. The filing includes the March 31, 1999 consolidated financial statements, a detailed management discussion, analysis of the results, and financial position of the company as at the end of the first quarter.
The filing is available on www.edgar-online.com for shareholders and other interested parties. FutureLink's commission file number is 0-24833. The quarterly report is also available on FutureLink's Web site at www.futurelink.net.
In the three months ended March 31, 1999, the company recorded total revenues of $1,743,625 (all figures in U.S. dollars). In the first quarter of 1998, FutureLink did not record any consolidated revenues. In all of fiscal 1998, FutureLink recorded consolidated revenues of $2.4 million.
The major source of FutureLink's 1999 Q1 revenues was information technology and ASP consulting revenues. Revenues of $1,196,848 were generated by its subsidiaries for providing information technology outsourcing services, IT business practices consulting and server-based computing. FutureLink also generated $164,076 of Server Farm revenue in the first quarter, being direct ASP revenues, having launched its Class "A" Server Farm on March 10, 1999. Between direct Server Farm revenue and ASP consulting revenue, FutureLink's ASP related revenues exceeded $250,000 for 1999 Q1. The other source of FutureLink's 1999 Q1 revenues was hardware and software sales, resulting from FutureLink's subsidiaries procurement business whereby the company sources, purchases and then resells hardware and software to its IT consulting clients. FutureLink generated a 7.9 percent gross margin on those procurement services.
The company's EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the first quarter was $1,591,681 and the comprehensive loss, including foreign exchange adjustments, was $3,144, 042.
FutureLink had a quarterly EBITDA loss of $0.05 per share and a quarterly comprehensive loss per share of $0.11.
As at March 31, 1999, FutureLink had a working capital deficit of $1,534,882. From April 1 to May 10, 1999, FutureLink has obtained additional financing in excess of $8 million and has eliminated its working capital deficit.
Commenting on the financial results, Raghu Kilambi stated, "In the first quarter of 1999, FutureLink expanded its client base for its ASP, IT outsourcing and IT business practices consulting. In addition, we launched our world class server farm and raised expansion capital to ensure our continued leadership in the ASP sector." About FutureLink Distribution Corp
FutureLink is a founder of the Application Services Provider (ASP) industry. According to Forrester Research Inc., this industry is projected to reach $20 billion by 2001. FutureLink provides small and mid-sized businesses (10-1,000 employees) with off-site, Internet-based computing, allowing subscribers to escape hardware/software upgrade cycles, precisely control total cost of technology ownership and focus on their core businesses. FutureLink's expertise in application hosting on a monthly subscription basis, outsourcing and facility management, and business practices consulting enables the company to offer an all-inclusive, trouble-free service at a predictable price. FutureLink, "The Computer Utility Company," offers computer and information service as transparently and reliably as today's utilities deliver electricity, water and telephone services. For more information, contact FutureLink toll-free at (877) 216-6001; e-mail: sales@futurelink.net; or visit the FutureLink Web site at futurelink.net.
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