SAN FRANCISCO, CA: Forecross(r) Corporation
(OTCBB: FRXX), a legacy to web and XML implementation solution company, announced today
its operating results for the quarter ended March 31, 2002. Second quarter revenues
decreased 89% to $103,000 as compared to $926,000 for the corresponding period in 2001.
This reduction in revenue was due to increased reserves for project uncertainties, and
increased project costs due to unforeseen challenges in processing non-standard and unique
programming in our clients applications, resulting in a slowing in completion of billable
and revenue generating milestones. Revenue for the six months ended March 31, 2002 was
$1,177,000 compared to $1,398,000 in the comparable period in 2001, primarily reflecting
the elimination of deferred year 2000 distributor revenue. Net losses were $857,000 (or
$0.05 per share) and $810,000 (or $0.05 per share) for the three and six months ended
March 31, 2002 as compared to net losses of $194,000 (or $0.01 per share) and $793,000 (or
$0.05
per share) for the three and six months ended March 31, 2001, respectively.At March 31, 2002, the Company's backlog was $1,175,000 as compared with
$1,129,000 at March 31, 2001. Contracts signed since the end of the March quarter bring
the backlog to $2,322,000 as of May 21, 2002.
Operating results for the quarter ended March 31, 2002
include:
|
Three Months Ended
March 31 |
Six Months Ended March 31 |
2002
(Unaudited) |
2001
(Unaudited) |
2002
(Unaudited) |
2001
(Unaudited) |
| Revenue |
$ 102,742 |
$ 926,190 |
$1,176,932 |
$1,397,771 |
| Cost of revenue |
402,066 |
373,590 |
828,372 |
777,791 |
| Operating expenses |
528,780 |
702,768 |
1,106,463 |
1,321,579 |
| Income (loss) from operations |
(828,104) |
(150,168) |
(757,903) |
(701,599) |
| Other (expense) |
(29,185) |
(43,590) |
(51,805) |
(90,037) |
| Net (loss) |
(857,289) |
(193,758) |
(809,708) |
(793,236) |
| Net (loss) per share |
(0.05) |
(0.01) |
(0.05) |
(0.05) |
| Weighted average shares outstanding |
16,857,730 |
15,053,380 |
16,855,866 |
15,053,380 |
"This was a difficult period for Forecross, especially
given our reliance upon only one customer during the period." commented Bernadette C.
Castello, Chief Financial Officer. "We have recently added two new customers and look
forward to better resource utilization in the future."
About Forecross
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 to re-deploy and integrate legacy applications using
Internet technologies. 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 Allen Systems Group, Inc.,
CIBER, Inc., U.S. Technology Resources and SCB Computer Technology. |
