9278 Communications, Inc. Reports Second Quarter 2000 Results--Net Sales Increase 42% To $33,740,513.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 15, 2000 9278 Communications, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: NTSE NTSE National Talent Search Examination (India) NTSE Windows NT Server / Enterprise Edition (Microsoft) - news) is pleased to announce that it has filed its Form 10-QSB with the Securities and Exchange Commission, reporting its second quarter financial results. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the six months ended June 30, 2000 rose 42% to $33,740,513 from net sales of $23,766,754 during the three months ended June 30, 1999. Gross profit increased 109% during the 2000 period to $1,738,112 from $832,330 for the 1999 period. The increase in gross profit was due to higher gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. achieved by the sale of private label phone cards, which increased during the current period. Net loss for the six months ended June 30,2000 was $385,932 but net income for the three months ended June 30, 2000 was $106,329. Included in the six months loss was a one-time charge of $363,367 primarily attributable to a write-off of goodwill as a result of the company's sale of assets acquired in the iLink acquisition. In addition, general and administrative expenses for the three months ended June 30, 2000 increased to $646,038, as compared to $171,932 for the period ended June 30, 1999 as a result of the addition of new management personnel, increased professional fees, increased marketing expenditures for new products and the opening of two distribution centers in Fairfax, VA and Yonkers, NY. 9278 Communications Inc. is a value-added integrator of telecom services and technologies, specializing in the distribution of pre-paid telecom products including phone cards. 9278 currently has a network of over 300 master distributors, retailing over 100 different prepaid card products primarily in the 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 , New Jersey and Connecticut markets. Gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. for the year ended December 31, 1999 increased to $78,089,670 from $22,169,108 for 1998, an increase of 250%. With the expected summer 2000 launch of its B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business telecom services site, 9278 will provide access and support for its existing distributors and a mechanism for establishing new markets for the company's products through the expansion of additional independent distributors across the US. For more information about 9278 Communications, Inc. please contact: Investor Relations Investor relations The process by which the corporation communicates with its investors. : de Jong & Associates Toll free: 877-943-9065 Phone: 760-943-9065 Fax: 760-943-7164 E-mail: ntse@dejong.org Corporate Website: www.9278.com Investor Relations: www.dejong.org Forward-looking statements and comments in this press release are made pursuant to safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the companies to complete the transaction and enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the Companies from time to time with the Securities and Exchange Commission in the future. |
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