Authoriszor Inc. Announces 3rd Quarter Results; Quarter Highlighted by Expanded Service Offerings.Business/Technology Editors BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Mass.--(BUSINESS WIRE)--May 14, 2001 Authoriszor Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AUTH AUTH Authority/Authorization/Authorized AUTH Author Auth Authentication AUTH Aristotle University of Thessaloniki AUTH Authentication Service ), a leading-edge provider of patent pending secure Internet access See how to access the Internet. solutions, today announced third quarter results for the period ended March 31, 2001. Operating Results The Company recorded sales of $64,306 in the third quarter of 2001 compared to sales of $15,937 for the second quarter of fiscal 2001. The net loss in the third quarter of 2001 was $3,267,304 or $(0.19) per basic share, compared to a net loss of $6,257,839 or $(0.36) per basic share for the second quarter of fiscal year 2001. In a year-to-year comparison, the Company recorded sales of $64,306 in the third quarter of 2001 compared to sales of $121,186 for the third quarter of fiscal 2000. The net loss in the third quarter of 2001 was $3,267,304 or $(0.19) per basic share, compared to a net loss of $2,894,044 or $(0.18) per basic share for the third quarter of fiscal 2000. For the nine months ended March 31, 2001, the Company recorded sales of $88,483 compared to sales of $121,186 for the nine months ended March 31, 2000. Net losses were $13,621,612 or $(0.78) per basic share, compared to $4,608,864, or $(0.32) per basic share for the comparable nine-month period in fiscal year 2000. Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. at the end of the third quarter of fiscal year 2001 are $15,473,798, compared to current assets at the end of the second quarter of $20,128,414. "While we are all disappointed with the sales recorded in the third quarter, the new management team was able to significantly reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in this quarter as compared to the previous quarter. Still, more needs to be done, and I remain confident that the company is strategically moving in the right direction," commented Raymond Raymond, town, Canada Raymond, town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town. Seitz Seitz may refer to:
Business Highlights and Developments Authoriszor announced several significant business developments during the second quarter, including the following agreements with new customers: - On March 22, 2001, Authoriszor announced a signed agreement with Cyberes Plc, a leading travel consolidator that provides business-to-business e-commerce solutions for independent travel agents. Based in the United Kingdom, Cyberes purchased the Authoriszor 2000(TM) solution and related services, enabling them to expand their current network and offer a secure Extranet environment with transactional capabilities to their customers. - On March 29,2001 Authoriszor announced the formation of three strategic reseller partnerships in the United States which will extend Authoriszor's market reach to companies expanding their web-based services in the financial, insurance, telecommunications and entertainment industries throughout North America. The new reseller partners are Cybercorp Management Group, LLC (CMG) based in Chicago, Illinois; Global Integrated Solutions of Agoura Hills, California; and Stevens Group of Yorba Linda, California. - On March 30, 2001 Authoriszor announced that it signed a letter of intent to increase its ownership interest in WRDC Ltd., a communications consultancy firm specializing in information security and data communications. The letter of intent proposes to increase Authoriszor's equity position in WRDC to 60% (on a fully diluted basis) as well as provide Authoriszor with an option to acquire the remaining shares of WRDC. Based in the United Kingdom, WRDC provides complete consulting services, which will complement and expand Authoriszor's current product and service offering. "As part of our business plan going forward the new management team has committed to expanding the service side of our offering, positioning Authoriszor as a full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. security solution provider offering a complete suite of security products and services. We will continue to expand these services during the fourth quarter of this fiscal year. In addition, we will emphasize our internal R & D initiatives, designed to ensure that our offerings are in fact state-of-the-art, a must-have for our present and future customers," commented Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Ayres Ayres may refer to: People:
Subsequent to the closing of the third quarter, on May 8, 2001, Authoriszor announced a company restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). which included the elimination of 32 positions, 15 positions 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. and 17 positions in the United Kingdom, representing 49 percent of the total workforce. As a result of these changes, the Company expects it will reduce Authoriszor's personnel related expenses by as much as 35%. In addition, on May 9, 2001, Authoriszor announced the completion of a transaction which increases its equity position in WRDC WRDC Western Rural Development Center WRDC Women in Resource Development Committee WRDC World Radiation Data Centre WRDC Wisconsin Rural Development Center WRDC Wyoming Rural Development Council WRDC Wright Research and Development Center Ltd. (WRDC) to 66.4% from 25.1% on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, and provides for the acquisition of the remaining outstanding capital stock of WRDC no later than January January: see month. 1, 2002. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of operations See Income statement. to follow:
AUTHORISZOR INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, June 30,
2001 2000
(unaudited) (audited)
$ $
ASSETS
Cash 14,786,263 27,095,734
Receivables
VAT recoverable and trade 207,377 70,847
Accrued interest 297,598 246,832
Other 46,247 159,457
Prepaid expenses 136,313 76,568
Total current assets 15,473,798 27,649,438
Investment in securities,
available-for-sale 924,462 1,992,769
Computer and office equipment,
net of accumulated depreciation 949,871 681,094
Restricted bank deposits 959,826 408,000
Note receivable from WRDC 317,711 336,086
Investment in WRDC
at net cost, adjusted
for equity in earnings
or losses 549,712 506,880
Intangibles and other assets 194,294 70,643
3,895,876 3,995,472
$19,369,674 $31,644,910
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - trade 608,591 798,846
Accrued liabilities 2,216,736 395,175
Current maturities of capital
lease obligations 103,990 58,990
Total current liabilities 2,929,317 1,253,011
Long term capital lease
obligations, less current
maturities 257,830 133,442
Stockholders' equity
Preferred stock, par value
$.01 per share;
authorized: 2,000,000
shares; issued: none
Common stock, $.01 par value
per share; authorized: 30,000,000
shares; issued and
outstanding: 17,526,784 shares
at March 31, 2001 and
17,414,081 at June 30, 2000 175,267 174,141
Additional paid-in capital 35,094,703 33,946,818
Accumulated other
comprehensive income 19,384 1,622,713
Accumulated deficit during
the development stage (19,106,829) (5,485,215)
16,182,527 30,258,457
$ 19,369,674 $ 31,644,910
AUTHORISZOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three For the nine January 15,
months ended months ended 1997
March 31, March 31, (inception) to
March 31,
2001 2000 2001 2000 2001
$ $ $ $ $
Net sales 64,306 121,186 88,483 121,186 246,670
Cost of sales 36,005 1,277 38,710 1,277 55,385
Gross profit 28,301 119,909 49,773 119,909 191,285
Operating expenses
Professional
fees 643,372 435,210 3,234,787 1,131,615 5,042,959
Marketing and
advertising 392,232 280,179 1,368,795 492,408 2,249,160
Administrative 2,404,803 2,462,470 9,334,331 3,178,013 14,317,861
Total operating
expenses 3,440,407 3,177,859 13,937,913 4,802,036 21,609,980
Operating
loss (3,412,106)(3,057,950)(13,888,140)(4,682,127)(21,418,696)
Other income (expense)
Interest
income 245,343 162,064 942,278 163,590 1,527,195
Loss on sale
of subsidiary - - - (291,448) (291,448)
Gain on sale of
investments 60,529 - 60,529 199,279 1,952,532
Currency
transaction
losses (224,615) - (855,870) - (950,826)
Equity in
earnings of
WRDC 63,545 1,842 119,591 1,842 74,416
Total other
income
(expense),
net 144,802 163,906 (266,528) 73,263 2,311,869
Net
loss $(3,267,304)$(2,894,044)$(13,621,612)$(4,608,864)$(19,106,827)
Weighted average shares
outstanding
Basic and
Diluted 17,523,538 15,719,912 17,474,486 14,462,226
Loss per common share
Basic and
Diluted $(0.19) $(0.18) $(0.78) $(0.32)
AUTHORISZOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the nine months Jan. 15, 1997
ended March 31, (inception)
to March 31,
2001 2000 2001
$ $ $
Cash flows used
in operating activities
Net loss during the period (13,621,612) (4,608,864) (19,106,827)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Issuance of stock and
stock options in exchange
for services 689,012 613,949 1,470,961
Non-cash compensation
expense 60,000 1,816,000 1,833,500
Equity in earnings
in WRDC (119,591) 1,842 (74,416)
Loss on foreign exchange
transactions -- -- 94,957
Loss on sale of
subsidiary -- 291,448 291,448
Gain on sale of
investments (60,529) (199,279) (1,952,532)
Depreciation and
amortization 279,780 43,197 391,367
Changes in operating
assets and liabilities
Receivables and
other assets 65,465 (69,353) (482,613)
Accounts payable and
accrued liabilities 1,693,969 506,395 2,917,869
Net cash used in operating
activities (11,013,506) (1,604,665) (14,616,286)
Cash flows (used in) provided by
investing activities
Proceeds from sale of
subsidiary -- 809,750 809,750
Acquisition of equipment (312,934) (292,815) (898,563)
Sale of investments 117,298 1,360,579 4,533,208
Exercise of warrants -- -- (977,608)
Investment in WRDC -- (606,617) (604,800)
Advances to WRDC -- (356,997) (356,000)
Purchase of intangible assets (70,564) (42,126) (149,399)
Increase in restricted
bank deposits (551,729) -- (959,729)
Net cash flows (used in) provided
by investing activities (817,929) 871,774 1,396,859
Cash flows provided by
financing activities
Payments on capital leases (58,392) -- (58,392)
Proceeds from the
issuance of stock 400,000 28,567,705 28,732,847
Recapitalization -- 711 711
Net cash flows provided
by financing activities 341,608 28,568,416 28,675,166
Effect of exchange rate
changes on cash (819,644) (44,066) (669,476)
Net (decrease) increase
in cash and cash equivalents (12,309,471) 27,791,459 14,786,263
Cash and cash equivalents
at beginning of period 27,095,734 698 --
Cash and cash equivalents
at end of period $ 14,786,263 $ 27,792,157 $ 14,786,263
Supplemental disclosure of
cash flow information:
Cash paid during the
period for:
Interest $ -- $ -- $ --
Income taxes -- -- --
About Authoriszor Inc. Authoriszor Inc. is a leading-edge provider of integrated security solutions. Authoriszor provides audits, assessments, product integration, and managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality for a wide range of organizations. Leveraging a skilled team of security experts and high-quality security technologies, the Authoriszor solution is designed to ensure organizations confidentiality Restrictions on the accessibility and dissemination of information. Confidentiality is one of the six fundamental components of information security (see Parkerian Hexad). , availability and integrity of their information infrastructure. Founded in 1997 by IT engineers, Authoriszor continues to evolve Evolve may refer to several terms:
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 . For more information about Authoriszor, visit www.authoriszor.com. Authoriszor, Authoriszor 2000, SZ logo, A Logo and "Secures the Web" are trademarks or registered trademarks of Authoriszor Inc. or its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Authoriszor Ltd., in the United States, UK and other countries. This press 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. . Actual results may differ materially from those projected in the forward-looking statements. These statements are based on current expectations of Authoriszor and are subject to risks and uncertainties that may cause actual results to be materially different from those that may be 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 contained in this press release. Important factors that could result in such differences include: general economic conditions in Authoriszor's markets; those factors identified in Authoriszor's Form 10-QSB, dated December December: see month. 31, 2000 including without limitation, those factors identified as risk factors in Authoriszor's Prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. , dated May 19, 2000, as supplemented, those factors identified in subsequent filings with the Securities and Exchange Commission and other factors that may affect business generally. |
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