[0] Virtual Communities Inc. -VCIX- Announces First Quarter Results; Revenues Increase 163% Over First Quarter 1999; Conference Call Scheduled For May 17.Business Editors NEW YORK--(BUSINESS WIRE)--May 16, 2000 Virtual Communities Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :VCIX), provider of turnkey solutions for the development and management of Web-based communities, today announced that revenues for the first quarter ended March 31, 2000 increased 163% to $453,000 as compared to revenues of $172,000 in Q1 1999 and an 87% sequential increase over Q4 1999 revenues of $244,000. Revenues generated from the Company's three business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets were as follows: Community Management Solutions (CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. ), $292,000, an increase of 323% over the fourth quarter 1999; wholly-owned online communities, $147,000, which remained the same as the fourth quarter; and Cortext, a proprietary content management software, $14,000, which represents a new revenue stream which commenced in the first quarter of 2000. The net loss for the current quarter, excluding non-cash charges, was $2,465,000 or $(0.16) per weighted average share as compared to a net loss, excluding non-cash charges, of $607,000 or $(0.08) per weighted average share for the first quarter of fiscal 1999. Avi Moskowitz, Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Virtual Communities, stated: "We are extremely pleased with our results for the quarter. We have secured several contracts and successfully added several new technology partners for CMS. The popularity and success of our own communities have been instrumental in the success of our CMS product launch." First Quarter 2000 Highlights Highlights of the Company during Q1 2000 included the following: - The Company negotiated and signed additional CMS design and development agreements with Skills Community Ltd., a European recruitment community for network engineers; ITM ITM See: In-the-money Communications Ltd., a UK firm whose activate.co.uk site targets the 3 million-member student union in the United Kingdom. The Company also has signed letters of intent with two additional parties to provide CMS. - The Company signed an exclusive agreement with Vanco Ltd., a leading independent network services company in Europe, to market, sell and support CMS in the UK and throughout Europe. The Company believes its relationship with Vanco will help provide a platform for growing sales of CMS in the largest Internet services market outside of the U.S. - VCIX continued to acquire third party licenses to increase the functionality of CMS. Web service and technology providers with whom the Company entered into licenses with VCIX during Q1 2000 included: iQ.com: provider of coupon and customer loyalty programs; Smart Age: a banner exchange An Internet advertising network that swaps banner ads among its members. Each time a member site displays an ad from the network, it receives some amount of credit that is used to display its own banner in the network. advertising program; Delta Three: provider of Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. ; Screaming Media: a premier aggregator and distributor of world news and topical content on the Internet; OpenSite Technologies Inc., a leading provider of auction software; Tribal Voice
- The Company completed a stock purchase agreement whereby it acquired a majority interest in Cortext, Ltd., an Israeli-based software company that has developed content management technology that allows web publishers to easily update their sites without the need for programmers. The acquisition of Cortext represents a key acquisition for VCIX because Cortext software currently functions as the central component of the Company's CMS and can be used in conjunction with other web site applications, currently under development by the Company. - VCIX added substantial managerial and staff resources increasing our infrastructure to prepare for the growth of CMS sales and clients. The Company currently employs more than 140 employees situated in its New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of headquarters, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. office and Israel software development subsidiary. The U.S. based CMS sales force and operations team were augmented as was the software development team in Israel to further enhance CMS with new features and modules. - VCIX invested in marketing and promotion of CMS and our five proprietary ethnic communities. The Company launched a major advertising campaign for CMS in new media magazines and was represented at several prominent trade shows. In addition, during the first quarter, the number of registered users increased 27% across VCIX's wholly-owned communities. - During the quarter, the Company completed private placements of its securities totaling $2.5m. In April 2000, the Company received a further $3m in financing pursuant to a private placement of its shares with four institutional investors. The placement was arranged by Josephthal & Co., Inc., a member of the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. Inc. which provided investment banking services to the Company for the financing, and Intercoastal in·ter·coast·al adj. Relating to, involving, or connecting two or more coastlines: intercoastal trade. Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Corp., a Florida based, NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). member firm. Conference Call Scheduled for May 17 The Company has scheduled a conference call for Wednesday, May 17, 2000 at the times listed below. During the call Avi Moskowitz will discuss the financial results for first quarter 2000 and will be available to answer questions. May 17, 2000: 4:05 p.m. Eastern Standard Time 3:05 p.m. Central Time 2:05 p.m. Mountain Time 1:05 p.m. Pacific Time By Phone To participate, please call the following teleconferencing number. Please begin placing your calls 5 minutes before the hour: 1-800-670-3536 Live Webcast To listen to the conference call via a live webcast: http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker= VCIX&script=2100 Certain statements in this news release regarding the company's expectations, estimates; present view of circumstances or events, and statements containing words such as estimates, anticipates, intends, and expects, or words of similar import, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements indicate uncertainty and the company can give no assurance with regard to actual outcomes. Specific risk factors may include, without limitation, the company's inability to enter into definitive agreements and uncertainty of the continuation of working relationships with strategic business partners, possible downturns in business conditions; increased competition; loss of significant customers; availability of qualified personnel and timely deployment of company resources. For additional information visit the Virtual Communities Inc. web site at http://www.vcix.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion