[2] Leapnet, Inc. Reports $0.04 Profit for Fiscal Third Quarter.CHICAGO--(BUSINESS WIRE)--December 9, 1999-- Quantum Leap quantum leap n. An abrupt change or step, especially in method, information, or knowledge: "War was going to take a quantum leap; it would never be the same" Garry Wills. Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Revenue Growth of 163% For First Nine Months Leapnet, 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 : LEAP), today reported results for its fiscal third quarter and nine months ended October 31, 1999. For the quarter, revenues increased 13.1% to 9.5 million, compared to $8.4 million in the same period last year. Net income was approximately $600,000, or $0.04 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of $16.6 million, or $1.22 per diluted share in the same period last year, which included a one-time write off of goodwill and a charge associated with establishing a reserve against a deferred tax asset. Internet revenues for the quarter posted at Quantum Leap Communications, Leapnet's Internet development and communications subsidiary, increased 163% to $3.4 million compared to $1.3 million for the same period one year ago. For the nine-month period, Quantum Leap's revenues increased 145% to $7.4 million compared to $3.0 million for the same period one year ago. For the nine-month period, Leapnet revenues were $27.2 million, compared to $27.8 million for the year-ago period. Net income for the nine-month period was approximately $965,000, or $0.07 per diluted share, compared to a net loss of $16.5 million or $1.21 per diluted share for the comparable year-ago period, which included a one-time write off of goodwill and a charge associated with establishing a reserve against a deferred tax asset. Frederick A. Smith, Chairman 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 Leapnet stated, "I am extremely pleased with Quantum Leap's Internet revenue growth of 145% through the first nine months of the fiscal year, well exceeding our goal of 100% revenue growth for the year. The team at Quantum Leap has worked hard to achieve organic growth and profitability. Looking ahead, we have set aggressive goals for next year that include 100% revenue growth with projected revenues of $20 million. With the addition of Wal-Mart Stores and SAM's Club Sam's Club is a membership-only warehouse club owned and operated by Wal-Mart Stores, Inc. History The first Sam's Club opened in April 1983 in Midwest City, Oklahoma in the United States.[1] Sam's Club is named after Sam Walton. to Quantum Leap's existing roster of clients, which include American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the , Microsoft and Ernst & Young, we remain confident in our business plan." Mr. Smith added, "As we pursue our goals, we have also addressed certain operational issues facing Quantum Leap as it experiences rapid growth. For example, Quantum Leap will move into a new state-of-the- art facility, three times larger than its existing facilities, before the end of this year. This move, coupled with the addition of a senior level human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. executive, will help to provide a steady stream of talent to meet our growing client needs." Mr. Smith commented on the operations of Leapnet subsidiary YAR YAR You Are Right YAR Yemen Arab Republic YAR Youth As Resources YAR York Antwerp Rules YAR Youth At Risk YAR Yet Another Repository (Perl) YAR Young Australians for a Republic YAR Yearly Accomplishment Report Communications. "Our global language service business, YAR, has been steadily shifting its concentration from print media to a focus on localizing Internet content for global brands. In the past year, we have steadily grown Internet revenues at YAR." Mr. Smith concluded with comments on new subsidiary, Eagle Technology Partners. "We are also confident that with the high caliber of talent that we have assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. , our e-business consulting and systems integration subsidiary, Eagle Technology Partners, will soon represent a meaningful component of our Internet revenue growth plan." Leapnet, Inc. (NASDAQ: LEAP), develops creative and technology solutions for the wired world by combining expertise in Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. and development, global marketing communications Marketing communications (or marcom) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales and traditional brand advertising. Its subsidiaries are Quantum Leap Communications, YAR Communications, Eagle Technology Partners and The Leap Partnership. Headquartered in Chicago, the Company has offices in 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 and 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. . More information on Leapnet can be found at http://www.leapnet.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (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) that involve risks and uncertainties. A number of important factors could cause the Company's actual results, performance or achievements for fiscal 2000 and beyond to differ materially from that expressed in such forward-looking statements. These factors are set forth in the Company's filings with the Securities and Exchange Commission and include, without limitation, material changes in economic conditions in the markets served by the Company's clients, competition in the Company's industry, uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the developing market for new media, changing technologies, seasonality and the Company's dependence on key clients and projects and key personnel. Loss of a key client or a significant reduction in business from a key client could have a significant adverse effect on the Company's business and results of operations. -0-
LEAPNET, INC. AND SUBSIDIARIES
Summary Quarterly Financial Data
Unaudited Condensed Consolidated Statement of Operations
(In thousands - 000's)
Three Months Nine Months
Ended October 31 Ended October 31
-------------------------- -----------------------
1999 1998 1999 1998
------------ ----------- ----------- -----------
Revenues $ 9,514 $ 8,410 $ 27,248 $ 27,776
Operating Expenses (8,929) (9,890) (26,587) (30,125)
Impairment of
long-term assets 0 (9,240) 0 (9,240)
Restructuring
expenses 0 (738) 0 (738)
------------ ------------ ------------ -----------
Total Expenses (8,929) (19,868) (26,587) (40,103)
------------ ------------ ------------ -----------
Operating Income
/ (Loss) 585 (11,458) 661 (12,327)
Loss on
divestitures 0 (1,802) 0 (1,802)
Gain on sale of
building 0 0 0 1,155
Net other income
(expense) 15 (28) 304 (147)
------------ ------------ ------------ -----------
Net Income/(Loss)
before Income
Taxes 600 (13,288) 965 (13,121)
Income tax
(expense) /
benefit 0 (3,307) 0 (3,385)
------------ ------------ ------------ -----------
Net Income /
(Loss) $ 600 $ (16,595) $ 965 $ (16,506)
============ ============ ============ ===========
Net income /
(loss) per share
Basic $ 0.04 $ (1.22) $ 0.07 $ (1.21)
============ ============ ============ ===========
Diluted $ 0.04 $ (1.22) $ 0.07 $ (1.21)
============ ============ ============ ===========
Shares used in per
share
calculations
Basic 14,154,229 13,648,866 14,145,772 13,646,199
============ ============ ============ ===========
Diluted 14,946,918 13,648,866 14,838,461 13,646,199
============ ============ ============ ===========
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