AppNet Announces First Quarter 2000 Revenue Will be Stronger Than Expected; Will Report Non-Recurring Charge for Accounts Receivable Impairment.Business Editors/Hi-Tech Writers BETHESDA, Md.--(BUSINESS WIRE)--April 13, 2000 AppNet, Inc. (Nasdaq: APNT APNT Association of Physical and Natural Therapists ), a premier provider of end-to-end e-business solutions, today announced it expects to significantly exceed expectations for revenue growth in the first quarter of 2000. Revenue for the quarter is expected to be in the range of $44 million to $45 million, representing sequential organic growth well in excess of 25%, and year over year pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma growth of approximately 100%. Analysts' estimates for revenue in the first quarter were $37.5 million to $38.0 million. As a result of the Prime Retail, Inc. (NYSE NYSE See: New York Stock Exchange : PRT PRT Print PRT Port PRT Portugal (ISO country code) PRT Printer PRT Provincial Reconstruction Team (Iraq) PRT Personal Rapid Transit PRT Personal Rapid Transit ) announcement that it has discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of its subsidiary, eOutlets.com, AppNet now believes it is appropriate to record a reserve against amounts currently outstanding from eOutlets.com. The impact of the non-recurring bad debt expense associated with eOutlets.com is expected to be in the range of 5 cents to 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. after taxes, using a 35% tax rate. Excluding the bad debt expense associated with this customer, AppNet expects to report cash earnings per share in the range of 7 cents to 9 cents; however, on an actual basis, including this non-recurring expense, the Company expects to report cash earnings per share in the range of 1 cent to 2 cents, using a 35% tax rate. "We are pleased with our strong top line growth during the quarter, and plan to announce positive trends in our other operating metrics with our first quarter earnings release on April 24, 2000," said Ken Bajaj, 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. . "However, we are disappointed to report the impairment of the eOutlets.com receivable, as a result of factors beyond our control. Due to strong demand for our services and a robust pipeline, we are already redeploying the Internet professionals previously assigned to this project on other billable business in order to minimize the impact on future revenue." About AppNet, Inc. AppNet (Nasdaq: APNT) is a premier provider to end-to-end e-business solutions, from interactive marketing to back-office integration. For companies transforming themselves for the new Internet economy, the firm offers a unique mix of Internet strategy, marketing, and technology services. AppNet is the fourth largest interactive marketing agency according to Ad Age and one of the 50 largest pure Internet companies, according to Internet World. AppNet works with Fortune 1000 and dot.com companies. Customers include UCCnet, Baxter Healthcare, Dial, Ford, Sprint, Hyundai, bet.com, UNICEF UNICEF (y  `nĭsĕf'), the United Nations Children's Fund, an affiliated agency of the United Nations. , KB Toys, NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98).NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. , and Unilever. This press release may include "forward-looking statements" for purposes of the Securities Exchange Act of 1934. All statements herein, other than those of historical fact, including statements regarding future contractual arrangements or performance, competitive strengths, and business strategy, are forward-looking. Actual results or events may differ materially from those projected in such forward-looking statements. Information regarding the factors that could cause such differences is contained in AppNet's filings with the Securities and Exchange Commission. |
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