| SAN FRANCISCO, CA: Forecross® Corporation (OTCBB: FRXX), a
leading legacy Migration and year 2000 solution company, announced today its operating
results for the three months ended December 31, 1998. First quarter revenues were $759,915
as compared to $1,384,238 for the corresponding period in 1997. The Company's net loss
amounted to $769,111 (or $.07 per share) for the three months ended December 31, 1998 as
compared to $859,160 (or $0.07 per share) for the three months ended December 31, 1997. Operating results for the quarter ended December 31 include:
|
Three Months Ended
December 31, 1998 |
Three Months Ended
December 31, 1997 |
Revenues |
$759,915 |
$1,384,238 |
Cost of Revenues |
642,606 |
1,153,265 |
Operating Expenses |
752,432 |
1,063,996 |
Loss from Operations
|
(635,123) |
(833,023) |
Other Expense |
(133,988) |
(26,137) |
Net Loss |
(769,111) |
(859,160) |
Net Loss per share
|
(0.07) |
(0.07) |
Weighted Average Number
of Shares Outstanding
|
11,766,112 |
11,758,112 |
At December 31, 1998, the Company's backlog was $423,641.
Migration services revenues in the first quarter (12/31/98) were $67,176 versus first
quarter (12/31/97) of $684,902. Year 2000 revenues in the first quarter (12/31/98) were
$692,739 versus first quarter (12/31/97) revenues of $699,336.
The Company's decrease in revenues for the period primarily
reflected a decline in its core Migration services. The Company considers this a temporary
development resulting from the pressure placed on many of its prospective customers to
address their year 2000 problem to the exclusion of most or all other non-mission-critical
projects. Of the decrease, one major Migration/renovation project that was substantially
completed during fiscal 1998 had accounted for more than half of the Migration services
revenues during the three months ending December 31, 1997.
The Company's revenues in the first fiscal quarter resulted
in large part from demand for Confirm/2000 and Complete/2000Ô services as awareness of
the year 2000 century date conversion problem has grown. Revenues from the year 2000
products and services, although they increased approximately 10% in 1998 as compared to
1997, have not reached the level anticipated by the Company and industry in general. Year
2000 revenues excluding license revenues and distributor fees in the first quarter
(12/31/98) were $551,487 versus first quarter (12/31/97) revenues of $490,117.
During the three months ended December 31, 1998, the Company
took steps to reduce costs, the benefit of which actions were only partially realized
during the quarter. The Company believes that it has sufficient resources in all required
areas to conduct all booked Migration and year 2000 business, and the business presently
in its sales pipeline.
Two factors had significant impact on the reduction in
backlog. First is the substantial completion during fiscal 1998 of the one major
Migration/renovation project noted previously. This project was significantly larger in
terms of dollar value than most Forecross contracts, and therefore made the backlog at
December 31, 1997 substantially larger than its historical norms. Second is that year 2000
contracts, unlike application Migration projects, are typically of much shorter duration.
The average application Migration project takes from six to eighteen months to complete,
whereas the average year 2000 project can be completed in eight weeks or less. Therefore,
revenue associated with year 2000 projects may be booked, recognized and completed without
appearing in the quarterly or annual backlog amount.
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 for its Complete/2000 offerings include AASKI Technologies, Ltd.,
Alydaar Software Corporation, TRW, Inc. (BDM International), CIBER, Inc., Information
Sciences Group, Inc., Marconi Information Systems (a business division of Marconi North
America Enterprise Solutions, formerly known as Tracor, Inc.), SCB Computer Technology,
Inc., and Sapiens Americas (a subsidiary of Sapiens International). |
