AdStar Announces Preliminary Annual Results for 2001; Company Experiences Significant Growth in Revenues and Gross Profit.Business Editors MARINA Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness DEL REY Del Rey may refer to:
AdStar, Inc. (Nasdaq:ADST ADST Association for Diplomatic Studies and Training (Arlington, Virginia) ADST Advanced Distributed Simulation Technology ADST Alexandria University Desalination Studies and Technology Center (Egypt) ) (Nasdaq:ADSTW), a leading software and application service provider for the classified advertising industry, today announced preliminary financial results for the year ended December December: see month. 31, 2001. AdStar reported net revenues of $2,081,000 for 2001, an increase of more than 51 percent compared to 2000 revenues of $1,375,000. Gross profits for 2001 increased by 217 percent to $1,275,000, compared to gross profits of $402,000 in 2000. The company had a net loss of $1,884,000 in 2001, or $0.30 per share, compared with a loss of $4,629,000, or $1.34 per share in 2000. "The strong increase in revenues in 2001 is a direct result of the introduction of AdStar's new application service provider model for publishers," said Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
(born June 29, 1911, Jena, Ger.—died Dec. 1, 2004, Utrecht, Neth.) Prince of The Netherlands. The son of Prince Bernhard Casimir of Lippe-Biesterfeld, Bernhard married the Dutch crown princess Juliana in 1937 and took Dutch citizenship. , president of AdStar. "As a result of contracts with newspapers, including certain Knight Ridder
Knight Ridder (IPA: /ˈrɪdɚ/) was an American media company, specializing in newspaper and Internet publishing. publications, we have experienced significant growth in monthly hosting revenue, processing fees and services revenue. This increase in gross profits demonstrates the viability of our new business model, and we are enthusiastic about 2002 -- particularly given our recent agreements with Tribune Company The Tribune Company (NYSE: TRB) is a large American multimedia corporation based in Chicago, Illinois. It is the nation's second-largest newspaper publisher, responsible for the Chicago Tribune, Los Angeles Times, Newsday, Hartford Courant and CareerBuilder CareerBuilder.com is the largest online job site in the United States. The site posts more than 1.5 million jobs and is updated with new jobs daily. More than 21 million unique vistors come to the site every month to search for opportunities in every industry, field and job type. . "We are continuing to see the benefits of our shift to an ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). model as more publishers are beginning to recognize the need to integrate the Web with their overall classified ad sales strategies. AdStar is in a great position to benefit from the integration of print and Web classified advertising because our technology stands alone in the market in its compatibility with all major vendors' publishing systems and is truly designed to help advertisers target local and regional areas as part of an overall national advertising campaign. In addition, our company continues to improve financially with the recent $1.8 million investment from Tribune Company in early 2002. We are confident that we have enough working capital to meet our needs for the remainder of the year." During 2001, total Web-based transactions increased to more than 86,000, from 55,000 in 2000. The related gross billings Billings, city (1990 pop. 81,151), seat of Yellowstone co., S Mont., on the Yellowstone River, in a valley surrounded by seven mountain ranges; inc. as a city 1885. generated from these transactions, on a combined basis, rose to more than $7,300,000 in 2001, from $4,300,000 in 2000. AdStar estimates that during 2001 more than $400 million in classified ads were placed in newspapers using AdStar's remote entry systems. "AdStar's strength lies in the knowledge gained from working directly with advertisers and publishers for the past 16 years," Bernhard added. "We designed our current ASP model to take advantage of this strength and to become the preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae supplier of technology that connects publishers with classified advertisers -- the main source of newspapers' advertising revenue." AdStar has requested an extension from the Securities and Exchange Commission for its 2001 10-KSB filing as a result of concluding three financings subsequent to the end of the year for an aggregate of $2.5 million, of which $500,000 was received prior to year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . The company felt that year-end financials could not be completed without assessing the impact of these financings on the presentation of year-end information. AdStar expects to file its 2001 Form 10-KSB no later than April 16, 2002. AdStar had 7,729,851 total shares outstanding at the end of 2001 compared with 5,217,119 shares at the end of 2000. About AdStar, Inc. AdStar (Nasdaq:ADST, ADSTW), based in Marina del Rey, Calif., serves as an application service provider (ASP) for the $20+ billion classified advertising industry. AdStar turns publishers' Web sites into full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. classified ad sales channels for their print and online classified ad sections. Since 1986, AdStar has set the standard for remote ad entry software by giving advertisers the ability to place ads electronically with many of the largest newspapers in the United States Newspapers have declined in their influence and penetration into American households over the years. The U.S. does not have a national paper per se, although the influential dailies the New York Times and the Wall Street Journal are sold in most U.S. cities. . Today, AdStar's infrastructure, through its private label model, powers classified ad sales for more than 20 of the largest newspapers in the United States and the Newspaper Association of America's bonafideclassifieds.com, where ads can be placed in more than 120 newspapers. Forward Looking Statements This 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. concerning the business and products of the company. Actual results may differ from those projected or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to, the following: historical business has already matured, new online business is unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy and may not generate expected revenues, and Internet security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. risks. Other risks inherent in the business of the company are described in Securities and Exchange Commission filings, including the company's annual report on Form 10-KSB. The company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release.
AdStar, Inc.
Balance Sheet
December 31,
2001 2000
-------------------------
Assets
Cash and cash equivalents $411,539 $1,606,999
Restricted cash 45,457 100,000
Accounts receivable, net
of allowance for doubtful
accounts of $15,000 and $73,000 210,370 227,144
Prepaid and other assets 174,387 154,648
----------- -----------
Total current assets 841,753 2,088,791
Property and equipment, net 1,917,778 1,616,163
Intangible, net 86,835 124,383
Other assets, net 24,863 34,571
----------- -----------
Total assets $2,871,229 $3,863,908
=========== ===========
Liabilities and stockholders' equity
Accounts payable $416,735 $298,547
Accrued expenses 446,628 542,868
Deferred revenue and
other current liabilities 153,213 165,304
Notes payable -- 1,100,000
Capital lease obligations 5,162 15,009
----------- -----------
Total current liabilities 1,021,738 2,121,728
Other liabilities 8,473 45,594
----------- -----------
Total liabilities 1,030,211 2,167,322
Stockholders' equity 1,841,018 1,696,586
----------- -----------
Total liabilities
and stockholders' equity $2,871,229 $3,863,908
=========== ===========
Statements of Operations
Year ended December 31,
2001 2000
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Net revenues $2,080,612 $1,374,697
Cost of revenues 805,964 972,679
----------- -----------
Gross profit 1,274,648 402,018
Sales expense 656,349 1,428,574
Administrative expenses 1,881,957 2,269,331
Development costs 639,503 1,386,518
----------- -----------
Loss from operations (1,903,161) (4,682,405)
Interest income (expense), net 23,871 58,763
----------- -----------
Loss before taxes (1,879,290) (4,623,642)
Provision for income taxes (5,208) (5,167)
----------- -----------
Net loss $(1,884,498) $(4,628,809)
=========== ===========
Loss per share
- basic and diluted $(0.30) $(1.34)
Weighted average number of shares
- basic and diluted 6,373,037 3,452,619
Statements of Operations
Quarter ended December 31,
2001 2000
----------- -----------
Net revenues $468,356 $301,091
Cost of revenues 229,204 230,197
----------- -----------
Gross profit 239,152 70,894
Sales expense 144,364 309,273
Administrative expenses 448,297 786,391
Development costs 247,478 344,181
----------- -----------
Loss from operations (600,987) (1,368,951)
Interest income (expense), net (2,267) 26,498
----------- -----------
Loss before taxes (603,254) (1,342,453)
Provision for income taxes (1,669) (4,567)
----------- -----------
Net loss $(604,923) $(1,347,020)
=========== ===========
Loss per share
- basic and diluted $(0.09) $(0.26)
Weighted average number of shares
- basic and diluted 6,725,146 5,187,429
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