A1 Internet.com Announces Second Quarter Results.Business Editors ROCKVILLE, Md.--(BUSINESS WIRE)--Aug. 22, 2000 -- Revenues up 142% over same period of prior year A1 Internet.com, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AWON AWON American World War II Orphans Network ) a full-service solutions provider of Internet development, connectivity, systems integration, telecommunications, and e-commerce services, today announced financial results for its fiscal year 2000 second quarter ended June 30, 2000. For the three months ended June 30, 2000, the Company's revenues increased 142% or $964,385 over the same period last year from $680,381 to $1,644,766. For the six-month period ended June 30, 2000, revenues climbed 708% from $680,381 during the six months ended June 30, 1999 to $5,501,328. On a quarter-over-quarter basis, revenues declined from $3,856,562 in the first quarter of fiscal 2000 to $1,644,766 in the second quarter of the current fiscal year. This decline is attributed to a shift into higher-margin product sales. Net losses for the fiscal year 2000 second quarter were $(1,132,325), or $(0.12) per basic and 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, or on an EBIDA EBIDA Earnings Before Interest, Depreciation And Amortization EBIDA Earnings Before Income taxes Depreciation and Amortization basis, $(408,437), or $(0.04) per basic and diluted share. This compares to a net loss of $(395,705), or $(0.04) per basic and diluted share in the second quarter of fiscal 1999, or on an EBIDA basis, $(281,648), or $(0.03) per basic and diluted share. For the six month period ended June 30, 2000, net losses were $(2,073,425),or $(0.22) per basic and dilute di·lute v. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. share, as compared to $(1,294,641), or $(0.17) per basic and diluted share. On an EBIDA basis, the six month results were a net loss of $(658,958), or $(0.07) per basic and diluted share for the current year period as compared to net loss of $(1,107,145), or $(0.15) per basic and diluted share for the same period last year. "We have made significant investments in infrastructure over the past year and we are very excited about leveraging these assets into high-margin revenues while also reaping significant growth in telco revenues through our recent acquisition of Commonwealth Telecommunications," stated Mr. Bruce Bertman, 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 A1 Internet. "Although our revenues have more than doubled over year-ago periods, we are somewhat disappointed in the revenue decrease from Q1 of this year to Q2. The primary driver for this decline is a strategic choice we have made to shift away from lower margin consumer oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. e-commerce sales to higher margin web design, development, bundled telecommunications, and other value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. . Moreover, due to revenue recognition guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , we cannot recognize certain contracts that we have already begun to service until those contracts are completed in later quarters." A1 provides comprehensive, cost-effective Internet technology solutions to businesses and organizations with a total turnkey See turnkey system. approach. Services are designed to enable companies to operate more efficiently by outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. their Internet work, communications, e-commerce, and database needs. A1 offers web development, design, connectivity, database applications, distance learning, and information integration programs. Services include web programming, e-commerce, web site hosting, national leased line A private communications channel leased from a common carrier. Most digital lines require four wires (two pairs) for full-duplex transmission. (communications, networking) leased line connections, dial-up, xDSL, and e-mail access. A1 Internet.com Inc.'s ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. web site is: http://www.a1is.com. 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 provides a "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. " for 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. . Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by A1): contains statements that are forward-looking, such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transaction, anticipated future revenues of the companies and success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of A1 Internet.com Inc.
A1 Internet.com, Inc., and Subsidiaries
(formerly Halo Holdings of Nevada, Inc.,)
Consolidated Statement of Operations
(Unaudited)
Three Months Ending Six Months Ending
June 30, June 30,
2000 1999 2000 1999
NET SALES $ 1,644,766 $ 680,381 $ 5,501,328 $ 680,381
COST OF SALES $(1,266,692) $ (241,255) $(4,596,306) $ (241,255)
----------- ---------- ----------- -----------
GROSS PROFIT $ 378,074 $ 439,126 $ 905,022 $ 439,126
----------- ---------- ----------- -----------
OPERATING EXPENSES:
Salaries and
related expenses $ 394,842 $ 406,970 $ 750,702 $ 426,316
Travel &
Entertainment $ 13,158 $ 60,629 $ 48,836 $ 65,382
Bad Debt Expense $ 11,325 $ 40,318 $ 12,683 $ 40,318
Legal &
Professional $ 67,261 $ 33,520 $ 137,800 $ 65,148
Occupancy Costs $ 144,014 $ 61,419 $ 226,291 $ 62,023
General and
administrative $ 88,591 $ 226,091 $ 200,594 $ 249,225
Consulting $ 25,723 $ 40,827 $ 144,471 $ 186,655
Depreciation
and amortization $ 726,484 $ 252,098 $ 1,388,402 $ 262,115
----------- ---------- ----------- -----------
TOTAL OPERATING
EXPENSES $ 1,471,398 $1,121,872 $ 2,909,779 $ 1,357,182
----------- ---------- ----------- -----------
OTHER INCOME
(EXPENSE):
Consulting fees $ (50,000) $ 149,000 $ (50,000) $ (451,000)
Other Income $ 13,397 $ -- $ 16,196 $ --
Interest expense $ (4,994) $ -- $ (8,799) $ (204)
----------- ---------- ----------- -----------
TOTAL OTHER
EXPENSE $ (41,597) $ 149,000 $ (42,603) $ (451,204)
----------- ----------- ----------- ------------
NET LOSS FROM
CONTINUING
OPERATIONS $(1,134,921) $ (533,746) $(2,047,360) $(1,369,260)
DISCONTINUED
OPERATIONS
(Note 8)
Loss from
operations
of discontinued
subsidiary $ 2,596 $ 48,041 $ (30,076) $ (15,381)
Gain on Disposal
of Subsidiary $ -- $ -- $ 4,011 $ --
----------- ---------- ----------- -----------
TOTAL LOSS FROM
DISCONTINUED
OPERATIONS $ 2,596 $ 48,041 $ (26,065) $ (15,381)
----------- ---------- ----------- -----------
EXTRAORDINARY ITEM
- FORGIVENESS OF
DEBT -- $ 90,000 -- $ 90,000
---------- -----------
NET LOSS $(1,132,325) $ (395,705) $(2,073,425) $(1,294,641)
----------- ---------- ----------- -----------
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE
BEFORE
DISCONTINUED
OPERATIONS $ (0.12) $ (0.06) $ (0.22) $ (0.18)
----------- ---------- ----------- -----------
BASIC AND DILUTED
NET LOSS PER
COMMON SHARE $ (0.12) $ (0.04) $ (0.22) $ (0.17)
----------- ---------- ----------- -----------
WEIGHTED AVERAGE
SHARES OUTSTANDING 9,408,374 9,387,166 9,405,187 7,511,958
----------- ---------- ----------- -----------
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