SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solution company, announced today
its operating results for the three months ended December 31, 2000. First quarter revenues
were $471,581 as compared to $1,416,905 for the corresponding period in 1999. The
Company's net loss amounted to $599,478 (or $.04 per share) for the three months ended
December 31, 2000 as compared to a net loss of $34,586 (or $.00 per share) for the three
months ended December 31, 1999.
Operating results for the period ended December 31 include:
|
Three Months Ended Dec. 31, 2000 |
Three Months Ended Dec. 31, 1999 |
| Revenues |
$471,581 |
$1,416,905 |
| Cost of Revenues |
404,201 |
552,052 |
| Operating Expenses |
618,811 |
757,585 |
| Income (Loss) from Operations |
(551,431) |
107,268 |
| Interest Expense, net |
46,447 |
141,854 |
| Net Loss |
(599,478) |
(34,586) |
| Net Loss per Share |
(0.04) |
(0.00) |
| Weighted Average Number of Shares Outstanding |
15,053,380 |
12,316,944 |
At December 31, 2000, the Company's backlog was $1,402,000,
up from $282,000 during the same period last year.
Migration services revenue for the period contributed $247,000 as compared to $111,000 for
the comparable period a year ago. Year 2000 services revenue accounted for $1,057,000 in
1999 with no such revenue for the comparable period in 2000. Revenue from consulting was
$83,000 for the period as compared to $108,000 for the comparable period in 1999, and
revenue from the amortization of deferred year 2000 distributor licenses and fees remained
at $141,000 for both periods. Two factors contributed to the Company's migration revenue
in the 2000 period being less than forecast. First, there were delays in executing
definitive agreements covering new business until late in the reporting period. The
Company also experienced unanticipated challenges in processing non-standard and unique
programming in a portion of one of its client's applications, resulting in a slowing in
completion of billable and revenue generating milestones and lower gross margins. The
Company believes this issue has been substantially
resolved and represented a non-recurring anomaly in the nature of the client code.
"While we encountered some unusual difficulties in this quarter, we did see a
significant increase in our backlog -- a result of the strong pressure on enterprises to
standardize their legacy applications as a first step in e-enabling their businesses,
" commented Kim O. Jones, President and Chief Technology Officer. "Our sales
pipeline reflects this improvement, and we believe that our Smart/XMLTM
offering can play an important role in helping our customers integrate legacy processes
and data with internet-based processing - from simple browser displays to complex
e-business applications."
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. |
