AmTec Reports Third Quarter Results; Joint Ventures Report Revenues; Terremark Merger Proceeding.Business Editors, Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. Writers NEW YORK--(BUSINESS WIRE)--Feb. 10, 2000 AmTec, Inc. (Amex: ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ), an international telecommunications and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services company, today reported results for the third quarter ended December December: see month. 31, 1999. AmTec reported a net loss for the quarter of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $607,176 or $0.02 per share, as compared to a loss of $2.1 million, or $0.08 per share in the third quarter of 1998. The net loss is primarily attributed to costs incurred in launching its new telecommunications and Internet joint-ventures, such as IP.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. , IXS (Integrated XSeries Server) An x86-based xSeries server (motherboard and memory) from IBM that plugs into an iSeries or i5 midrange computer. Running Windows or Linux, the IXS shares disk storage, server management, user administration with its iSeries/i5 host. .NET and others. AmTec's joint venture with Fusion Telecommunications, IP.COM, which provides value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: telecomunications services between the U.S. and the Far East, has been operational since September September: see month. and generated $1.1 million in revenues for the three months ended December 31, 1999 versus approximately $41,000 in revenues for the previous quarter. AmTec's three way alliance with Fusion and IXS.NET, a private IP services provider, is experiencing strong growth as well and reported revenues of over $700,000 for the quarter ended December 31, 1999 versus over $231,000 during the previous quarter. Hebei Hebei or Hopei (both: h  -bā), province (1994 est. pop. 63,660,000), 78,900 sq mi (204,404 sq km), NE China, on the Bohai, an arm of the Yellow Sea. Equipment Company,
AmTec's joint venture in Hebei Province Noun 1. Hebei province - a populous province in northeastern ChinaHebei, Hopeh, Hopei Cathay, China, Communist China, mainland China, People's Republic of China, PRC, Red China - a communist nation that covers a vast territory in eastern Asia; the most , began its sales of IP access cards in November November: see month. . All these joint ventures are focused on the international telecom and Internet markets. On another front, AmTec had earlier announced that its Chinese-Chinese-Foreign (CCF CCF abbr. Cooperative Commonwealth Federation of Canada ) joint venture to build GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. cellular networks in Hebei Province was in the process of being renegotiated and perhaps terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: . This joint venture has indeed been terminated and AmTec's partner, Hebei Equipment Company, has received approximately $817,000 as a result of 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 that CCF joint venture. While Hebei Province is negotiating a potential continued ownership in these networks for Hebei Equipment Company, AmTec has already refocused its efforts and financial resources to expand IP.COM, IXS.NET and other similar business opportunities. These funds will also be used to expand those businesses. Meanwhile, AmTec is proceeding on schedule with its merger with Terremark Holdings which is expected to provide the Company with liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. to fund its expansion into the international telecom and Internet businesses. The Company expects to file the preliminary proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. material for its pending merger within the next few days. Joseph R. Wright, Jr., Chairman 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. stated; &uot;AmTec has used its experience in cellular telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. to enter the lucrative international telecommunications and business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. Internet service market in developing countries. Our new joint ventures, IP.COM and IXS.NET, began operations last year and are rapidly adding customers and revenues. We are working to form other affiliations today and our merger with Terremark is expected to provide us the funding needed to take advantage of these opportunities.&uot; AmTec, Inc. is an international telecommunications service In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. company that provides voice, data and Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. services through IP.com, a partnership with Fusion Telecommunications International, and provides IP fax and related services in Asia through IXS.NET. Note: 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. in this press release are necessarily subject to risks and uncertainties that may affect the accuracy of such statements. Such risks may include any political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in China, any delays in construction of networks, and market acceptance of and demand for the Company's products. For a discussion of such risks, please refer to the Company's Form 10(k) filed with the Securities Exchange Commission for the fiscal year ending March 31, 1999. The Company undertakes no obligation to update such factors or to publicly announce the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to the forward-looking statements contained herein.
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dec. 31, 1999 March 31, 1999
----------------- -----------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 629,960 $ 2,093,141
Prepaid expenses
and other current
assets 53,295 38,805
----------------- -----------------
Total current assets 683,255 2,131,946
Investments in and
advances to
unconsolidated subsidiary 2,439,300 2,496,480
Investments in affiliate 631,453 -
Property, plant and
equipment, net 62,226 96,926
Loans receivable 575,000 -
Office lease deposit and
other assets 55,733 55,733
----------------- -----------------
TOTAL ASSETS $ 4,446,967 $ 4,781,085
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable $ 593,666 $ 439,195
Accrued expenses 25,034 528,548
Loans payable 1,125,050 -
----------------- -----------------
TOTAL LIABILITIES 1,743,750 967,743
----------------- -----------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock: authorized
10,000,000 shares:
Series E Convertible Preferred
Stock: $.001 par value; 74 shares
issued, 0 and 29.8 shares
outstanding at Dec. 31, 1999 and
March 31, 1999, respectively - 1
Series G Convertible Preferred
Stock: $.001 par value; 20
shares issued and outstanding
at Dec. 31, 1999 and March 31,
1999, respectively 1 1
Common stock: $.001 par value,
authorized 100,000,000 shares;
36,309,189 and 30,736,721
issued and outstanding at
Dec. 31, 1999 and March
31, 1999, respectively 36,309 30,737
Additional paid-in
capital 38,267,202 36,947,244
Accumulated deficit (36,082,145) (33,646,491)
Warrants 481,850 481,850
----------------- -----------------
TOTAL STOCKHOLDERS'
EQUITY 2,703,217 3,813,342
----------------- -----------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 4,446,967 $ 4,781,085
================= =================
See notes to consolidated financial statements
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited)
Nine months ended Dec. 31 Quarter ended Dec. 31
------------------------- -----------------------
1999 1998 1999 1998
---- ---- ---- ----
REVENUES $ - $ - $ - $ -
---------- ---------- ---------- ----------
EXPENSES
General and
administrative 2,402,917 2,849,742 795,378 968,417
---------- ---------- ---------- ----------
LOSS FROM OPERATIONS (2,402,917) (2,849,742) (795,378) (968,417)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Amortization of stock
options granted to
non-employees - (459,376) - -
Other - net 46,435 37,304 7,763 (18,073)
---------- ---------- ---------- ----------
Total other
income (expense) 46,435 (422,072) 7,763 (18,073)
---------- ---------- ---------- ----------
LOSS BEFORE EQUITY IN
LOSSES OF UNCONSOLIDATED
SUBSIDIARY (2,356,482) (3,271,814) (787,615) (986,490)
Equity in losses
of affiliate (171,730) - (81,817) -
Equity income from
(losses of) unconsolidated
subsidiary 442,820 (1,412,881) 520,408 (1,053,679)
---------- ---------- ---------- ----------
NET LOSS (2,085,392) (4,684,695) (349,024) (2,040,169)
PREFERRED STOCK
DIVIDEND 350,262 614,051 258,152 145,107
---------- ---------- ---------- ----------
LOSS APPLICABLE TO
COMMON SHAREHOLDERS $(2,435,654) $(5,298,746) $(607,176) $(2,185,276)
========== ========== ========== ==========
BASIC LOSS PER
COMMON SHARE $ (0.07) $ (0.20) $ (0.02) $ (0.08)
========== ========== ========== ==========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 32,924,478 26,458,488 34,367,985 25,971,101
========== ========== ========== ==========
See notes to consolidated financial statements.
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended Dec. 31
-------------------------
1999 1998
---- ----
Unaudited Unaudited
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (2,085,392) $ (4,684,695)
Adjustments to
reconcile net loss to
net cash used in
operating activities:
Amortization of
deferred option cost - 459,374
Depreciation 34,200 35,699
Issuance of common
stock for directors'
fees 25,000 -
Equity in losses of
affiliate 171,730 -
Equity in (income)
losses of unconsolidated
subsidiary (442,820) 1,458,765
(Increase) decrease in:
Prepaid expenses and
other current assets (14,490) 82,225
Office lease deposit
and other assets - 55,186
Increase (decrease) in:
Accounts payable
and accrued expenses 58,453 (222,796)
----------------- -----------------
Net cash used in
operating activities (2,253,319) (2,816,242)
----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale (purchase) of property
and equipment 500 (13,427)
Loans receivable (575,000) -
Investment in affiliate (803,183) -
----------------- -----------------
Net cash used in
investing activities (1,377,683) (13,427)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock buy back (88,633) (321,606)
Series E Preferred stock
buy back - (100,000)
Repayment of advance from
unconsolidated subsidiary 500,000 -
Proceeds from loans
payable 1,125,050 -
Proceeds from exercise
of employee stock options 631,404 2,191,986
----------------- -----------------
Net cash provided by
financing activities 2,167,821 1,770,380
----------------- -----------------
NET DECREASE IN CASH AND
CASH EQUIVALENTS (1,463,181) (1,059,289)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 2,093,141 2,134,662
----------------- -----------------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 629,960 $ 1,075,373
================= =================
See notes to consolidated financial statements
AmTec, Inc. - Selected Footnotes to financial statements
NOTE 7 - INVESTMENT IN AFFILIATE
The following table represents summary financial information
of the Company's investment in an affiliate company, IP.Com,
LLC for the quarter and nine months ended December 31, 1999
and 1998:
Nine months ended Dec. 31 Three months ended Dec. 31
Unaudited Unaudited
1999 1998 1999 1998
---- ---- ---- ----
IP.Com
Revenues $ 1,143,016 $ - $ 1,101,862 $ -
============ ==== ============ ====
Net loss $ (343,459) $ - $ (163,635) $ -
============ ==== ============ ====
AmTec owns 50% of IP.Com, LLC and accounts for its investment
using the equity method of accounting. IP.Com began it
operations in late September 1999 and AmTec's shares of its
equity loss was $171,730 for the nine months ended December
31, 1999.
NOTE 8 - LOAN RECEIVABLE
Loan receivable represents a convertible debt investment made
by AmTec in IXS.Net. The Company has an option to acquire up
to 50% of IXS.NET. AmTec intends to convert the debt into
equity during fiscal year 2001.
Revenue derived from the provision of telecommunications
services are recognized in the period during which the call
terminates and are derived from the sale of IP Fax, IP Phone
and calling card services. The following table represents
summary financial information of IXS.NET for the quarter and
nine months ended December 31, 1999 and 1998:
Nine months ended Dec. 31 Three months ended Dec. 31
Unaudited Unaudited
1999 1998 1999 1998
---- ---- ---- ----
IXS.NET
Revenues $ 955,961 $ - $ 724,553 $ -
============ ==== ============ ===
Net loss $ (468,496) $ - $ (220,129) $ -
============ ==== ============ ===
For complete footnotes, please see our quarterly report filed on Form
10-Q as of February 10, 2000
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