| San Francisco, California: Forecross® Corporation
(VSE-FRX.U) announced today results for year ended September 30, 1997 of $5,968,786 in
revenues, up 149% from $2,399,672 reported in 1996. The Company’s net loss amounted
to $851,763 (or $.07 per share) in 1997, versus the loss of $461,046 (or $.04 per share)
it incurred for the year ended September 30, 1996. Backlog was $4,281,000 at September 30, 1997, including approximately
$615,000 to be performed after fiscal 1998, as compared to $1,709,000 in 1996.
Operating results (in U.S. Dollars) for the year ended
September 30, 1997 include:
| |
Three Months Ended
Sept 30, 1997 |
Three Months Ended
Sept 30, 1996 |
Year Ended
Sept 30, 1997 |
Year Ended
Sept 30, 1996 |
Revenues |
$1,488,489 |
$685,597 |
$5,968,786 |
$2,399,672 |
Cost of Revenues |
1,461,951 |
540,459 |
4,006,323 |
1,431,489 |
Operating Expenses |
812,326 |
414,669 |
2,744,571 |
1,297,788 |
| (Loss) from Operations |
(785,788) |
(269,531) |
(782,108) |
(329,605) |
Other (Expense) |
(6,006) |
(23,790) |
(69,655) |
(131,441) |
Net Income (Loss) |
(791,794) |
(293,321) |
(851,763) |
(461,046) |
Net Income (Loss) per share |
(0.07) |
(0.03) |
(0.07) |
(0.04) |
Weighted Average Number
of Shares Outstanding |
11,750,862 |
11,455,612 |
11,681,035 |
11,370,804 |
Kim O. Jones, President and Chief Executive Officer, said,
"Fiscal 1997 revenues demonstrate the rapid growth of our Complete/2000™
product offering for the year 2000 problem as well as the continued success and growth of
our core Migration software and services business. Although our revenues grew to
record levels, our loss and the decrease in our gross margin are a direct result of the
year 2000 business not reaching the level anticipated by the Company and the industry in
general."
Summarizing important developments for the year, Mr. Jones
noted: "The Company continued to enhance our technology capabilities with
infrastructure investments which we expect to benefit us in 1998 and beyond. We hired a
number of new people who provide a broader range of technical support expertise and
capability; we increased our strength in both direct and indirect sales channels including
the addition of Electronic Data Systems Corporation (EDS) as a teaming partner; we added
thirty computer servers to our year 2000 factory to enhance our lines of code per day
capacity; we added renovation capability to our Complete/2000™ product for a number
of new languages including CA-UFO for IBM France and CLIST, REXX, and CA-Easytrieve for
EDS; and we developed new support software including the Customer Response System and the
Forecross Customer Support system." The Customer Response System allows year 2000
customers to review assessed code with point and click ease eliminating volumes of paper
review. Forecross Customer Support is an internet-based application designed to allow
customers to log in suspected problems, suggested enhancements, questions and to get
status updates on a continuous basis.
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 IBM Corporation,
Aetna Life Insurance Company, Brown Brothers Harriman & Company, Charles Schwab &
Co., BDM Technologies, Inc., and Bank of America NTSA for Forecross Migration software
services. Teaming partners include BDM International, Inc., NCR Corporation, SCB Computer
Technology, Inc., and Electronic Data Systems Corporation (EDS) for Forecross Complete/2000™
offerings. |
Except for historical information contained herein,
the matters set forth in this release are forward-looking statements that are dependent on
certain risks and uncertainties, including such factors, among others, as market
acceptance, market demand, pricing, changing regulatory environment, changing economic
conditions, risks in new product and service development, the effect of the company’s
accounting policies and other risk factors detailed in the Company’s SEC and BCSC
filings.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this News Release, which has been prepared
by the Company. |
