| SAN FRANCISCO, CA: Forecross® Corporation (VSE-FRX.U)
announced today its operating results for the three months ended June 30, 1998, and
concurrently its first Form 10-Q filing as a U. S. reporting company. Third quarter
revenues were $2,270,675 as compared to $2,273,037 for the corresponding period in 1997.
The Company’s net loss amounted to $319,205 (or $.03 per share) for the three months
ended June 30, 1998 as compared to $81,061 (or $0.01 per share) for the three months ended
June 30, 1997. Operating results (in U.S.
dollars) for the three and nine months ended June 30 include:
| |
Three Months
Ended
June 30, 1998 |
Three Months Ended
June 30, 1997
(Restated) |
Nine Months
Ended
June 30, 1998 |
Nine Months
Ended
June 30, 1997
(Restated) |
Revenues |
$2,270,675 |
$2,273,037 |
$5,656,094 |
$4,406,596 |
Cost of Revenues |
1,508,038 |
1,430,276 |
4,198,073 |
2,537,647 |
Operating Expenses |
963,550 |
766,811 |
2,899,315 |
1,938,970 |
| Income (Loss) from Operations |
(200,913) |
75,950 |
(1,441,294) |
(70,021) |
Other (Expense) |
(118,292) |
5,111 |
(217,869) |
(63,649) |
Net Income (Loss) |
(319,205) |
81,061 |
(1,659,163) |
(133,670) |
| Net Income (Loss) per share |
(0.03) |
0.01 |
(0.14) |
(0.01) |
| Weighted Average # of Shares Outstanding |
11,763,612 |
11,749,488 |
11,761,412 |
11,660,012 |
At June 30, 1998, the Company’s backlog was $1,604,000.
"While revenues increased 7% versus the prior quarter
(3/31/98), the Y2K portion of the Company’s revenues grew by over 95%" said Kim
Jones, President and Chief Executive Officer. "This reflects the late start that many
companies have had in finally addressing their year 2000 problems."
Revenues in the third quarter (6/30/98) were $2,270,675
versus second quarter (3/31/98) revenues of $2,121,228. Year 2000 revenues were $1,844,774
versus $943,975 in the third and second quarter of fiscal 1998, respectively. Migration
services revenues in the third quarter (6/30/98) were $398,401 versus second quarter
(3/31/98) of $1,029,707. Reported losses for the third quarter were $319,205 as compared
to $360,751 for the second quarter.
The revenues, net income (loss), and net income (loss) per
share for the three and nine months ended June 30, 1997, reflect the amounts as restated
by the Company and as previously announced on July 17, 1998. As a result of the
restatement, the Company recognizes the fees, which the Company has already received from
certain software license and distributor agreements, ratably over the entire contractual
term of the agreements, instead of over the period when the Company expects that
substantially all contract work would be completed. The effect of the restatement was to
reduce revenues and increase net loss by $240,093 for the nine months ended June 30, 1998
(containing the six months ended March 31, 1998), reduce revenues by $73,701 in the three
and nine month periods ended June 30, 1997, and to reduce net income and increase net loss
by $73,701 in the three and nine months ended June 30, 1997, respectively.
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 for its Complete/2000®
offerings include AASKI Technologies, Ltd., TRW, Inc. (BDM International), CIBER, Inc., Information Sciences Group, Inc., NCR Corporation, SCB Computer
Technology, Inc., and Sapiens Americas (a subsidiary of Sapiens International). |
