| SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solution company, announced today
its operating results for the year ended September 30, 2000. Revenues increased to $3,939,000, up 14% from $3,460,000 reported in
1999. Before giving effect to non-recurring expenses, the net loss for the year was
$596,000 (or $0.04 per share) as compared to $2,731,000 (or $0.23 per share) for the year
ended September 30, 1999.
During the year, the Company completed a private placement of its securities, and it
issued options to consultants in connection with the acquisition of certain software
rights and related services. The Company incurred non-recurring expenses of $681,000
related to these transactions but the expense items did not affect the Company's cash
position.
After giving effect to the non-recurring expenses, the net
loss was $1,277,000 (or $0.09 per share) for 2000, as compared to net losses of $2,731,000
(or $0.23 per share) for the prior year.
Total revenue for 2000 increased $478,000 over 1999 revenue,
with the $1,430,000 decrease in year 2000 services more than offset by the $1,855,000
increase in migration services. The backlog was $993,000 at September 30, 2000, as
compared to $1,172,000 at September 30, 1999.
"We made solid progress during fiscal 2000 in growing
our legacy-to-web and XML business," commented Bernadette C. Castello, Chief
Financial Officer. "Our gross margin percentage remains strong, and together with the
big decrease in net loss for the quarter and year end, reflects our ongoing commitment to
operating efficiency.
"During 2000 we completed private placements of common
stock, converted certain debt into equity, and developed new legacy-to-web migration and
XML products and services while exercising strict control over costs. As expected, year
2000 upgrade service contracts ended abruptly at the end of the first quarter of fiscal
2000. But over the course of the year we experienced renewed interest in migration
services, driven by the need and value of integrating legacy business applications with
the Internet."
Operating results for the periods ended September 30 include:
| |
Three Months Ended Sept 30, 2000 |
Three Months Ended Sept 30, 1999 |
Year Ended
Sept 30, 2000 |
Year Ended
Sept 30, 1999 |
| Revenues |
$1,015,509 |
$836,695 |
$3,938,797 |
$3,460,351 |
| Cost of Revenues |
384,671 |
846,333 |
1,355,671 |
2,745,733 |
| Operating Expenses |
741,067 |
687,443 |
3,546,739 |
2,892,067 |
| Loss from Operations |
(110,229) |
(697,081) |
(963,613) |
(2,177,449) |
| Other (Expense) |
(36,530) |
(115,743) |
(313,251) |
(553,931) |
| Before Non-recurring Expense |
|
|
|
|
| Net Loss |
(132,109) |
(852,824) |
(595,564) |
(2,731,380) |
| Net Loss per Share |
(0.01) |
(0.07) |
(0.04) |
(0.23) |
| Before Non-recurring Expense |
|
|
|
|
| Net Loss |
(146,759) |
(852,824) |
(1,276,864) |
(2,731,380) |
| Net Loss per Share |
(0.01) |
(0.07) |
(0.09) |
(0.23) |
| Weighted Average Number of Shares Outstanding |
15,053,380 |
12,191,944 |
13,951,186 |
12,060,919 |
The company retroactively restated the 2000 results
previously reported on Forms 10Q for the second and third quarters to reflect certain
corrections contained in the full fiscal year 2000 operating results. These adjustments
related to:
- the computation of the non-cash compensation expense related
to beneficial pricing to employees, a director and year 2000 distributors in the March 31,
2000 private placement, which, due to a clerical error in calculating the Black-Scholes
value, was originally reported as $954,000, instead of the correct amount - $652,000, for
the quarter ended March 31, 2000
- the amortization of purchased software costs and the related
issuance of stock options, which were inadvertently not timely reported, and which
resulted in an increase in net losses of $36,390 for the quarter ended June 30, 2000
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 include, CIBER, Inc., SCB Computer Technology, Inc., and Tiburon
Technologies.
|
