San Francisco, California: Forecross®
Corporation (OTCBB - FRXX) announced today results for the year ended September 30, 1999.
Revenues decreased to $3,460,351, down 52% from $7,168,752 reported in 1998. The Company's
net loss amounted to $2,731,380 (or $.23 per share) in 1999, versus the loss of $2,328,652
(or $.20 per share) it incurred for the year ended September 30, 1998.
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Three Months Ended Sept 30, 1999 |
Three Months Ended Sept 30, 1998 |
Year Ended
Sept 30, 1999 |
Year Ended
Sept 30, 1998 |
| Revenues |
$836,695 |
$1,512,658 |
$3,460,351 |
$7,168,752 |
| Cost of Revenues |
846,333 |
1,077,198 |
2,745,733 |
4,419,347 |
| Operating Expenses |
687,443 |
1,017,708 |
2,892,067 |
4,772,147 |
| Loss from Operations |
(697,081) |
(582,248) |
(2,177,449) |
(2,022,742) |
| Other (Expense) |
(115,743) |
(87,241) |
(553,931) |
(305,910) |
| Net Loss |
(852,824) |
(669,489) |
(2,731,380) |
(2,328,652) |
| Net Loss per share |
(0.07) |
(0.06) |
(0.23) |
(0.20) |
| Weighted Average Number of Shares Outstanding |
12,191,944 |
11,763,612 |
12,060,919 |
11,761,920 |
The revenue reduction involved a decrease from migration
services of $2,287,000 and a decrease from year 2000 services of $1,422,000. Contributing
to the reduced year 2000 revenue was the fact that the majority of year 2000 projects
completed in 1999 were the lower priced and less difficult confirmation audits rather than
renovations. The reduction in migration revenues may be largely attributed to the deferral
by many enterprise organizations of any new migration projects until after the year 2000
rollover had taken place.
"Our loss is a direct result of the year 2000 business not developing to the level
anticipated by the Company and the industry in general" commented Mr. Kim O. Jones,
President. "While we reduced our expenses dramatically over the past year, I am
pleased that we have maintained the core resources needed to meet the rapidly growing
demand for legacy to web migration services. I think we spent our time wisely this past
year, enhancing our ability to deliver outstanding legacy to web solutions for our
customers."
Backlog was $1,172,000 at September 30, 1999, as compared to $531,000 at September 30,
1998. The increase in backlog is attributable primarily to the signing of several
migration, year 2000 and consulting contracts near the end of September, 1999.
During the first quarter of fiscal 2000, the Company's working
capital was reduced to levels that were lower than customary. This was due to the slowdown
in the Company's application migration business and the near end of new year 2000
contracts as December 31, 1999, approached. The Company has taken steps to reduce its
expenses. In addition, the Company anticipates completing in January 2000, a private
placement of securities from which it expects to receive net proceeds of $500,000 to
$750,000. Beyond these actions already taken to address liquidity concerns, the Company
expects additional revenue during January and February from some of the migration
contracts currently under negotiation.
About Forecross
Founded in 1982 as a high-technology software development laboratory, Forecross
Corporation is dedicated to the design and development of innovative conversion software.
Clients have included such leading corporations as Aetna Life Insurance Company, Brown
Brothers Harriman & Company, Charles Schwab & Co., BDM Technologies, Inc., IBM
Corporation and Bank of America NTSA for its migration software services. Teaming partners
of Forecross Corporation for its Complete/2000® offerings include AASKI Technologies,
Ltd., TRW, Inc. (BDM International), CIBER, Inc., Information Sciences Group, Inc., NCR
Corporation, Quality Systems Inc. (formerly known as Tracor, Inc., now a subsidiary of
Marconi North America, a subsidiary of General Electric Company, p.l.c.), SCB Computer
Technology, Inc., and Sapiens Americas (a subsidiary of Sapiens International).
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