| SAN FRANCISCO, CA: Forecross® Corporation
(OTCBB: FRXX), a legacy Migration and year 2000 solution company, announced today its
operating results for the three months ended March 31, 1999. Second quarter revenues were
$960,618 as compared to $2,001,181 for the corresponding period in 1998. The Company's net
loss amounted to $566,701 (or $0.05 per share) for the three months ended March 31, 1999,
as compared to $480,798 (or $0.04 per share) for the three months ended March 31, 1998. Operating results for the quarter ended March 31,
include:
|
Three Months
Ended
March 31, 1999 |
Three Months Ended
March 31, 1998 |
Revenues |
$960,618 |
$2,001,181 |
Cost of Revenues |
697,111 |
1,116,120 |
Operating Expenses |
716,413 |
1,292,419 |
Loss from Operations |
(452,906) |
(407,358) |
Other Expense |
(112,995) |
(72,640) |
Net Loss |
(566,701) |
(480,798) |
Net Loss per share |
(0.05) |
(0.04) |
Weighted Average Number
of Shares Outstanding |
12,087,361 |
11,763,612 |
"While we have not realized the amount of revenue that
we hoped for, we have made strides in streamlining our costs, so that any significant
increase in revenue should be substantially reflected on our bottom line," said
Bernadette C. Castello, Senior Vice President and Chief Financial Officer.
The decrease in revenues for the period primarily reflected a
decline in the Company's core Migration services. Migration services revenues in the
second quarter 1999 were $270,000 versus second quarter 1998 of $1,030,000. 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 and year 2000
project that was completed early in second fiscal quarter 1999 had accounted for more than
half of the Migration services revenues during the three months ending March 31, 1998.
There was also an overall decrease in revenues from year 2000
services, but the Company's revenues in the second fiscal quarter resulted in large part
from demand for Complete/2000® and Confirm/2000sm
services. Year 2000 services and related revenues of $691,000 representing 72% of total
revenues in the three months ended March 31, 1999. This compares to revenues of $971,000
representing 49% of the Company's total revenues in the three months ended March 31, 1998.
Although year 2000 revenues represent a significant percentage of current reported
revenues, they have not reached the level anticipated by the Company or by the industry in
general.
At March 31, 1999, the Company's backlog was $375,000. Two
factors had significant impact on the reduction in backlog. First, is the substantial
completion during fiscal 1998 of the major Migration and year 2000 project noted
previously. This project was significantly larger in terms of dollar value than most
Forecross contracts, and therefore made the backlog at March 31, 1998, substantially
larger than its historical norms. Second, is that year 2000 contracts, unlike application
Migration projects, are typically of much shorter duration. This is a significant factor
with year 2000 services representing 72% of the quarter's revenues as compared with 49% in
the corresponding 1998 period. 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. Third, the Company believes that many customers have temporarily diverted
resources and attention away from Migration projects toward addressing year 2000 concerns,
and have also attempted to perform much of the year 2000 work internally, which has had a
temporary adverse affect on the backlog.
About Forecross Year 2000 Solutions
Forecross provides automated solutions for all phases of year 2000 projects
including assessment, renovation and independent verification and validation (IV&V). A
variety of languages are supported by Complete/2000® and
Confirm/2000sm including COBOL, CA-ADS, APS, C, C++, CSP,
CA-Easytrieve, CA-IDEAL, IMSADF II, PL/I, PowerBuilder, CA-TELON, CA-MetaCOBOL. COBOL
solutions are available for AS/400, DEC/VAX, HP, MVS, Tandem, Unisys, VM, VSE and Wang.
Forecross Confirm/2000sm for independent
verification and validation accurately identifies source statements that have code that is
compliant, non-compliant or needs to be investigated. Confirm/2000sm
provides detailed documentation of the results, including the degree of compliance,
creating a comprehensive audit-trail.
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., 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). |
