AXIA Announces Revised Earnings Forecast.Business Editors SALT LAKE CITY--(BUSINESS WIRE)--Dec. 13, 2000 AXIA Group Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXIA) has revised its earnings forecast for the fiscal year end 2000, announcing that it expects earnings to be flat for the period or even below those realized in the prior year. Last year the company reported earnings of $3.624 million or $1.14 a share. The company had previously reported that it appeared to be on track for record earnings based on the pace of earnings set in the first three quarters of the year. However, revenue has slowed considerably in this fourth quarter. AXIA believes that several factors have contributed to a decrease in revenues, including widespread instability in the equity markets and a general slowdown in the demand for financial consulting services. The fourth quarter has been plagued by uncertainty related to the U.S. Federal Reserve's stance on interest rates in a slowing economy and the ongoing struggle for resolution of the U.S. presidential election. The recent uncertainties have generally lead to severe fluctuations in stock values. Several securities held by the company have dropped significantly in value in what could lead to a permanent markdown Markdown The difference between the highest current bid price among broker-dealers in the market and the lower price that a dealer charges a customer. Notes: The broker offers a lower price to try stimulate trading in hopes that they will make the money back on the extra in the value of these securities. Although securities received in payment for consulting services are often discounted to market, the company believes that the intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. of many of the securities held has dropped below the value booked on receipt. Rather than expose the value of these securities to further deterioration, the company has decided to offset losses created by the disposition of securities that have decreased in value against earnings realized in the first three quarters of this year. The anticipated outcome of this action will preserve valuable cash flow by limiting the company's potential tax liability through the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of securities whose value will most likely not be recouped in 2001. AXIA is a diversified holding company whose specialty is investing in and developing undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. real estate and providing financial consulting services to public and private companies. For more information on AXIA's real estate holdings please visit www.cyaa.com. For more information on AXIA's consulting services please visit www.hudsonconsult.com. AXIA strongly encourages the public to read the above information in conjunction with its Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for Dec. 31, 1999, and 10QSB QSB Fading QSB Qualified Small Business (IRS category) QSB Queen Street Backpackers (Auckland, New Zealand) QSB Quality System Basics QSB Qualified Supplemental Benefit QSB Quantum Singleton Bound for Sept. 30, 2000. The above documents can be viewed at www.sec.gov. A number of statements contained in this press release are forward-looking statements which are made pursuant to the 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 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. These forward-looking statements involve a number of risks and uncertainties, including the timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results that AXIA may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. |
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