Adatom.com Reports Strong Sales Gains for 1999; Stage is Set for Accelerating Internet Expansion.Business Editors MILPITAS, Calif.--(BUSINESS WIRE)--March 30, 2000 Adatom.com, Inc. (Nasdaq:ADTM ADTM Antenna Deployment and Trim Mechanism (aerospace engineering) ) today reported a gain of 229.7% in its revenues for the year ended December 31,1999. For the 12 months of 1999, revenues advanced to $956,000 from $290,000 in 1998. Most of that growth occurred in the fourth quarter 1999. After going public on October 13, 1999, Adatom achieved revenues of $474,000 on sales of $744,652 during the fourth quarter 1999, with over $200,000 of unshipped orders going into the first quarter of 2000. More significantly was the Company's quarter-to-quarter sequential growth. The fourth quarter versus third quarter 1999 results represented growth increases of 347% in orders, 108% in 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. and 75.1% in conversion rate (user sessions divided by orders). Fourth quarter versus third quarter revenue increased by 114.3% on a sales increase of 148.9%. Of the loss from operations in 1999, $8.5 million of the $12.7 million is attributable to common stock and stock options issued in connection with the merger. The remaining $4.1 million in expenses are comparable to the 1998 loss of $1.2 million. The increased costs were used to add staffing required to position Adatom.com to be more competitive, launch the 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 business-to-business offering, and consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. the negotiations for a joint venture program with the China Product Trade Net Center (CPTNC). Additionally Adatom.com invested in a sharply focused advertising campaign in the fourth quarter 1999. The loss per share was $1.83 in 1999 versus $0.23 in 1998. 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. Richard Barton
A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. with access to equity markets, put in place the staffing and processes to make Adatom.com a viable and competitive e-tailer, and make substantial sales and order growth over 1998." In what has almost become a cliche for Silicon Valley, four guys meet at the Sloan Fellowship The Sloan Research Fellowships are awarded annually by the Alfred P. Sloan Foundation since 1955 to "provide support and recognition to early-career scientists and scholars". Fellowships were initially awarded in physics, chemistry, and mathematics. program at Stanford and with their own capital develop a company that in the five months since becoming a publicly traded company announce an international trading deal with the CPTNC in China, raise $4 million, and launch a robust B to B offering in their Adatom.com E-Commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. Solution Program (AESP). "Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , the advances and investments we have made to date have set the stage for accelerating expansion in the business-to-business as well as the business-to-consumer markets in 2000 and beyond," Mr. Barton BARTON, old English law. The demesne land of a manor; a farm distinct from the mansion. continued. "Early this year we launched our AESP offering, a turnkey See turnkey system. solution that provides 'instant' e-commerce capabilities, including back-end 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. , web site development and a full scale e-commerce infrastructure. While we are just starting to build the 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. revenue stream, we expect that this will become a substantial part of our business in the years ahead. We plan to continue to make substantial investments in both our consumer and business-to-business operations to take advantage of the fast growing e-commerce and Internet services and solutions marketplaces here and abroad. "Our primary goal is to become a one-of-a-kind Internet company. Last week, we took an important step towards that goal when we announced that Adatom.com has signed an exclusive joint venture agreement with the China Product Trade Net Center (CPTNC). This joint venture will form a pioneering U.S.-China 'electronic marketplace,' that covers both consumer and industrial goods industrial goods npl → bienes mpl de producción and aims to use Internet technology as its primary information and distribution medium," he concluded. Adatom and the CPTNC are establishing a joint venture company located in Beijing, China, to work directly with the CPTNC. The joint venture company will develop and implement the systems, Internet applications, services and support to enable the marketing and sale of industrial and consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and produced in China into the U.S. as well as goods produced in the U.S. into the Chinese marketplace exclusively through Adatom.com, Inc. About Adatom.com, Inc. Adatom.com is a fast growing e-commerce company. By leveraging its proprietary e-commerce infrastructure and efficient distribution system, the Company reaches both the business-to-business market with E-Commerce Solution Program (ESP) and the business-to-consumer market with its 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. Benefits from both its business-to-business and business-to-consumer capabilities provide price savings and increased customer service for consumers. Adatom.com offers a comprehensive product mix of name brand products for the individual, the home, and the office in 29 product categories. Recently, the Company signed an exclusive joint venture agreement with the China Product Trade Net Center (CPTNC). The scope of this agreement includes the establishment of an electronic business-to-business and business-to-consumer marketing, selling and distribution system accessible in both Chinese and English with back-end factory quality and level of service standards. 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 "expect," "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. 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. 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. The Company refers readers particularly to the Registration Statement on Form S-4 of HealthCore Medical Solutions Inc. (File No. 333-87207) filed with the Securities and Exchange Commission on (September 16, 1999). The Company recently merged with HealthCore.
ADATOM.COM, INC.
STATEMENTS OF OPERATIONS
Year Ended December 31,
1999 1998
Product revenue $ 956,000 $ 285,000
Franchise fee revenue 5,000
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Total revenue 956,000 290,000
Cost of product revenue 945,000 242,000
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11,000 48,000
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Operating expenses:
Website development 343,000 406,000
Selling, general and administrative 3,840,000 916,000
Compensation related to issuance of
common stock and options 8,542,000
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12,725,000 1,322,000
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Loss from operations (12,714,000) (1,274,000)
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Other income (expense):
Miscellaneous income 40,000
License income 250,000
Write off of franchise notes receivable (79,000)
Interest expense, net (37,000) (53,000)
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3,000 118,000
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Net loss $(12,711,000) $(1,156,000)
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Net loss per share basic and diluted $(1.83) $(0.23)
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Weighted average number of common
shares outstanding 6,956,829 5,053,784
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