| SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solution company, announced today
its operating results for the quarter ended March 31, 2000. Second quarter revenues decreased to $512,816 as compared to $960,618
for the corresponding period in 1999. Revenues for the six months ended March 31, 2000,
increased to $1,929,721 from $1,720,533 in the comparable period in 1999. Before giving
effect to non-recurring expenses, the net losses were $377,364 (or $0.03 per share) and
$411,950 (or $0.03 per share) for the three and six months ended March 31, 2000, as
compared to net losses of $566,701 (or $0.05 per share) and $1,335,812 (or $0.11 per
share) for the three and six months ended March 31, 1999.
During the quarter, the Company completed a private placement
of its securities. This placement resulted in an increase in Total Current Assets to
$1,735,378 as of March 31, 2000, from $423,703 as of September 30, 1999, and a decrease in
Total Liabilities to $3,416,036 as of March 31, 2000, from $6,491,184 as of September 30,
1999. The Company incurred a non-recurring expense of $954,000 related to the private
placement but that expense item did not affect the Company's cash position.
After giving effect to the non-recurring expenses, the net
losses were $1,331,364 (or $0.10 per share) and $1,365,950 (or $0.11 per share) for the
three and six months ended March 31, 2000, as compared to net losses of $566,701 (or $0.05
per share) and $1,335,812 (or $0.11 per share) for the three and six months ended March
31, 1999.
At March 31, 2000, the Company's backlog was $2,001,000, as
compared with $375,000 at March 31, 1999, an increase of $1,626,000.
"We made great progress during the March 31
quarter," commented Bernadette C. Castello, Chief Financial Officer. "Our
backlog was up, reflecting the renewed and growing interest in our legacy to web
offerings. Our balance sheet was much improved, reflecting the positive impact of our
recent private placement. And our gross margin percentage remained strong, reflecting our
continuing operating efficiency."
Operating results for the quarter ended March 31, 2000,
include:
|
Three Months
Ended March 31, |
Six Months Ended
March 31, |
2000
(Unaudited) |
1999
(Unaudited) |
2000
(Unaudited) |
1999
(Unaudited) |
| Revenues |
$ 512,816 |
$ 960,618 |
$1,929,721 |
$ 1,720,533 |
| Cost of Revenues |
216,266 |
697,111 |
768,318 |
1,339,717 |
| Operating Expenses |
1,510,855 |
716,413 |
2,268,440 |
1,468,845 |
| Loss from Operations |
(1,214,305) |
(452,906) |
(1,107,037) |
(1,088,029) |
| Other (Expense) |
(117,059) |
(112,995) |
(258,913) |
(246,983) |
| Before Non-Recurring Expense |
|
|
|
|
| Net Loss |
(377,364) |
(566,701) |
(411,950) |
(1,335,812) |
| Net Loss Per Share |
(0.03) |
(0.05) |
(0.03) |
(0.11) |
| After Non-Recurring Expense |
|
|
|
|
| Net Loss |
(1,331,364) |
(566,701) |
(1,365,950) |
(1,335,812) |
| Net Loss Per Share |
(0.10) |
(0.05) |
(0.11) |
(0.11) |
|
| Weighted Average Number of Shares Outstanding |
13,617,328 |
12,087,361 |
13,006,449 |
11,948,611 |
Balance Sheet for the March 31, 2000 quarter includes:
|
March 31, 2000 |
September 30, 1999 |
| ASSETS |
| Cash |
$ 1,219,500 |
$ 2,740 |
| Accounts receivable - trade |
494,355 |
375,893 |
| Other Current Assets |
21,473 |
45,070 |
| Total Current Assets |
1,735,378 |
423,703 |
| Equipment and furniture, net |
152,861 |
277,532 |
| Notes receivable from others |
70,576
|
68,707 |
| Other assets |
42,365 |
42,365 |
| Total Assets |
$ 2,001,180 |
$ 812,307 |
|
LIABILITIES AND
EQUITY |
| Accounts payable |
$ 623,340 |
$ 631,479 |
| Accrued compensation and related benefits |
641,455 |
682,533 |
| Accrued liabilities |
157,749 |
158,090 |
| Accrued commissions and distributors' fees |
32,475 |
1,514,650 |
| Payable to factor |
398,487 |
861,427 |
| Accrued warranty costs |
95,691 |
184,828 |
| Capital lease obligations due within one year |
27,714 |
23,215 |
| Deferred revenue |
736,471 |
684,652 |
| Total Current Liabilities |
2,713,382 |
4,740,874 |
|
| Deferred revenue, less current portion |
697,917 |
980,418 |
| Notes payable to officers, net |
- |
750,176 |
| Capital lease obligations less current portion |
4,737 |
19,716 |
| Total Liabilities |
3,416,036 |
6,491,184 |
|
| Common Stock |
9,720,553 |
5,044,582 |
| Additional Paid-in Capital |
954,000 |
|
| Accumulated deficit |
(12,089,409) |
(10,723,459) |
| Total Shareholders' Deficit |
(1,414,856) |
(5,678,877) |
| Total Liabilities and Shareholders' Deficit |
$ 2,001,180 |
$ 812,307 |
|
About Forecross
Founded in 1982 as a high-technology software development laboratory, Forecross
Corporation is dedicated to the design and development of innovative software to re-deploy
and sustain legacy applications on the Internet. Clients have included such leading
corporations as Aetna Life Insurance Company, Brown Brothers Harriman & Company,
Charles Schwab & Co., IBM Corporation and Bank of America NTSA for its re-deployment
software and services. Teaming partners of Forecross Corporation include KPMG Consulting,
Hitachi Data Systems, TRW, Inc. (BDM International), CIBER, Inc., SCB Computer Technology,
Inc., and Sapiens Americas (a subsidiary of Sapiens International).
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