Adatom.com Announces First Half Results; Revenues Increase 240%, Sales Increase 228% First Half 2000 Versus First Half 1999 While Net Losses In 2000 Decline Quarter Over Quarter.Business Editors MILPITAS, Calif.--(BUSINESS WIRE)--Aug. 15, 2000 Adatom.com, Inc. (Nasdaq:ADTM ADTM Antenna Deployment and Trim Mechanism (aerospace engineering) ), a creator and operator of electronic marketplaces, today announced its financial performance for the six months ended June 30, 2000. The Company's revenues for the first half of 2000 were $888,000 versus $261,000 in the first half of 1999, an increase of 240%. Sales amounted to $1,060,000 in the first half of 2000, versus $323,000 in the first half of 1999, an increase of 228%. The net loss in the second quarter amounted to $2,030,000, a 6.6% decrease versus the loss from the first quarter of 2000. Additionally, online user sessions A count of how many times all users access a Web site regardless whether the same person came back several times during the measurement period. If a user leaves and returns within a short time, some systems count those sessions as one. Contrast with unique visitors. See also user session. for the first half of 2000 were 3,057,397, an increase of 612% over the first half of 1999. Rich Barton Richard Barton (born June 2, 1967) is an internet entrepreneur, founder of online travel company Expedia and real-estate internet company Zillow. External Links [1] , President and Chief Executive Officer of Adatom.com stated, "Q2 was an excellent quarter for the company. We continue to show sequential revenue, order and user session growth quarter over quarter and year over year. Moreover, our quarter over quarter losses for the first half of 2000 have declined as a result of our focus on managing costs and the execution of our predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. producer-direct business model." Mr. Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. continued, "Our implementation of PeopleSoft Financials and Distribution system is almost complete, resulting in a scalable and global transaction platform. Our technology, process and infrastructure investments in www.adatom.com and AESP AESP Aerospace Education Services Program AESP Association of Energy Services Professionals AESP Army Equipment Support Publication AESP Aboriginal Enriched Support Program (Carleton University program) AESP Advanced Energy Systems Program position us for increased volume and profitability. Our success in meeting customer requirements continues to be validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by our exemplary customer satisfaction rating from Bizrate.com. We have consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. marketing partnerships and agreements which give us additional reach and scope with DealTime.com, BizRate.com, eCompare, SalesDriver.com, LifeStyle Technologies, LinkShare and AskJeeves for our www.adatom.com and AESP businesses. We will continue to invest in our GEMS business, focusing on enabling a marketplace between China and the rest of the world, which leverages our key relationships with our Chinese partners." Mr. Barton concluded, "We continue to be very pleased with the relationship and mutual opportunities we are attempting to build with our growing list of Chinese governmental and private partners. We are implementing our e-Commerce networks for enabling a global marketplace while cooperating on near-term opportunities. This is illustrated by our announcement on August 7th of our selection as an exclusive agent by the China Product Trade Net Center to obtain a turn-key solution for the implementation of a $150 million dollar fiber-optic production capability in China." About Adatom.com, Inc. Adatom.com, Inc. (Nasdaq:ADTM) is a creator and operator of electronic marketplaces worldwide, enabling the most direct interfaces between buyers and sellers. Currently, these marketplaces range from an Internet superstore su·per·store n. A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of mechandise in a specific product line, such as computers or sporting goods. (www.adatom.com) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to an evolving global network connecting the China marketplace to the world. Adatom has substantive relationships in China, including strategic partnerships with the China Product Trade Net Center, the Yangling Agricultural Hi-tech Zone, ShenZhen Bay Industrial, Education and Research Center and the China Federation of Industrial Economics. Adatom's Internet superstore (www.adatom.com) offers more than three million items for the home, the individual and the office with a comprehensive mix of name brand products in 29 product categories. Adatom.com also provides branded e-Commerce solutions to other online retailers through its proprietary e-Commerce Solution Program (ESP (1) (Enhanced Service Provider) An organization that adds value to basic telephone service by offering such features as call-forwarding, call-detailing and protocol conversion. ) based on a turnkey See turnkey system. model of Web site enablement, customer service and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. .
Adatom.com, Inc.
Statement of Operations
(unaudited)
Three Months Six Months Ended
Ended June 30, June 30,
2000 1999 2000 1999
------------------------------------------------
Product revenue $ 445,000 $ 161,000 $ 888,000 $ 261,000
Cost of product
revenue 428,000 149,000 861,000 237,000
----------- --------- ----------- ---------
17,000 12,000 27,000 24,000
Operation expenses:
Research and
development 178,000 147,000 542,000 279,000
Selling, general
and administrative 1,873,000 440,000 3,697,000 628,000
----------- --------- ----------- ---------
2,051,000 587,000 4,239,000 907,000
----------- --------- ----------- ---------
Loss from
operations (2,034,000) (575,000) (4,212,000) (883,000)
Other income
(expense)
Internet support
income 0 (38,000) 0 0
Miscellaneous
income
(expense) 0 6,000 1,000 6,000
Interest expense,
net 4,000 28,000 8,000 0
----------- --------- ----------- ---------
4,000 (4,000) 9,000 6,000
Loss before
income taxes (2,030,000) (579,000) (4,203,000) (877,000)
Provision for income
taxes, all current 0 1,000 1,000 1,000
----------- --------- ----------- ---------
Net Loss $(2,030,000) $(580,000) $(4,204,000) $(878,000)
=========== ========= =========== =========
Basic and diluted
loss per share ($ 0.13) ($ 0.11) ($ 0.28) ($ 0.17)
Weighted average
number of
common shares
outstanding 16,164,499 5,174,582 15,462,195 5,174,582
The Accompanying notes are an integral part of these financial
statements
The accompanying notes are an integral part of these financial statements. Statements in this news release that are not descriptions of historical facts are 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. that are subject to risks and uncertainties. Words such as "expects," "intends," "believes," "plans" "anticipates" and "likely" also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to history of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of vital infrastructure and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission. |
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