| SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solutions company, announced today
its operating results for fiscal year ended September 30, 2001. Revenue for the year ended September 30, 2001 was $3,994,000 as compared to
$3,939,000 for the same period of 2000. The overall net loss for the year was $429,000 or
$0.03 per share in 2001, and $1,277,000 or $0.09 per share in 2000. The Company's backlog
was $2,668,000 at September 30, 2001 and $993,000 at September 30, 2000.
"Over the past two years, we have focused our efforts on
rebuilding our legacy-to-web migration business, which suffered greatly during the fiscal
years ended September 30, 2000 and 1999, after having enjoyed some growth during the prior
years. As the deadline for correcting the year 2000 problem approached, most large
corporate enterprises worked at correcting their applications, to the almost complete
exclusion of other projects, such as legacy-to-web or related migrations. Forecross
offered products and services to address the year 2000 problem, and we had related revenue
of $1,622,000 and of $3,052,000 during fiscal 2000 and 1999 respectively. However, year
2000 revenue never reached the amounts anticipated, and at the same time, legacy migration
revenue dropped dramatically.
While we have not yet been able to achieve the level of the
legacy migration revenue that was displaced by year 2000 spending, we have made solid
progress toward that goal during the fiscal years ended September 30, 2001 and 2000, with
related revenue of $3,014,000 and $2,318,000 respectively. We expect that the positive
trend of increasing revenues will continue in the fiscal year that will end September 30,
2002. In 2001 we expanded our sales force by adding two seasoned sales executives,
continued to implement cost containment activities, and developed additional
infrastructure automation that we believe will be reflected in higher gross margins in the
future. Our progress is shown by the reduction of our overall net loss to $429,000 or
$0.03 per share in 2001 despite an adverse economic climate, from $1,277,000 or $0.09 per
share in 2000, based on the weighted average number of shares outstanding during the
respective periods. In the opinion of management, if we can achieve our objectives of
continuing to expand our legacy-to-web sales while continuing to decrease our cost of
operations, we expect we would be profitable in the coming year," commented
Bernadette C. Castello, Senior Vice President and Chief Financial Officer.
Operating results for the periods ended September 30,
include:
|
Three Months Ended |
Nine Months Ended |
Sept. 30, 2001
(Unaudited) |
Sept. 30, 2000
(Unaudited) |
Sept. 30, 2001
(Unaudited) |
Sept. 30, 2000
(Unaudited) |
| Revenue |
$900,832 |
$1,015,509 |
$3,994,437 |
$3,938,797 |
| Cost of revenue |
358,595 |
384,671 |
1,545,595 |
1,355,671 |
| Operating expenses |
719,900 |
741,067 |
2,743,039 |
3,546,739 |
| Income (loss) from operations |
(177,662) |
(110,229) |
(294,197) |
(963,613) |
| Other (expense) |
(9,524) |
(36,530) |
(133,221) |
(313,251) |
| Net (loss) |
(185,587) |
(146,759) |
(429,018) |
(1,276,864) |
| Net (loss) per share |
(0.01) |
(0.01) |
(0.03) |
(0.09) |
| Weighted average shares outstanding |
16,853,380 |
15,053,380 |
15,607,226 |
13,951,186 |
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 & Company, IBM Corporation and Bank of America NT&SA.
Teaming partners of Forecross Corporation include KPMG Consulting, Hitachi Data Systems,
TRW, Inc. (BDM International), CIBER, Inc. and SCB Computer Technology, Inc. |
