Belzberg Reports Record Revenues for 1st Quarter 2000: Company Continues to Experience Strong Growth.Business Editors TORONTO--(BUSINESS WIRE)--June 1, 2000 Belzberg Financial Markets & News International, Inc. (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. :BELZ Belz (Ukrainian: Белз, Polish: Bełz, Yiddish: בעלז), a small town in the Lviv Oblast (province) of western Ukraine, near the border with Poland, is located between the Solokiya river (affluent of the Bug ), the world's leading supplier of Internet-based securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the solutions, intelligent order routing systems and 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. gateways, today reported record high revenues for the first quarter ended March 31, 2000. Total revenues during the period where Cdn$2.5 million, up 74% from the same period a year ago, and up 59% from Cdn$1.6 million in the fourth quarter of fiscal 1999. The company has turned the corner toward profitability as revenues have now begun to rise at a faster rate than expenses. The company raised in excess of Cdn$9 million from several private placements during the first quarter 2000 leaving it with a strong balance sheet. Belzberg continues to grow exponentially ex·po·nen·tial adj. 1. Of or relating to an exponent. 2. Mathematics a. Containing, involving, or expressed as an exponent. b. as its technology gains widespread acceptance in the electronic securities trading marketplace. This trend is expected continue as the company positions its proven technology in the B2B e-commerce (Business to Business Electronic-COMMERCE) Refers to one business selling to another business via the Web. See e-commerce. technology sector. Specifically, Belzberg is pursuing opportunities where its order routing and gateway technology will be used as an engine for initiating, routing and completing online transactions. These opportunities are expected to contribute significantly the company's growth in the months ahead. "We are extremely pleased be the company's performance on all levels", said Sid (1) (Society for Information Display, Santa Ana, CA, www.sid.org) A membership organization founded in 1962 devoted to the information display industry. With chapters around the world, SID hosts conferences in the U.S. and abroad and publishes a monthly magazine. Belzberg, Chairman and Chief Executive Officer of Belzberg. "We expect our revenues, and more importantly our earnings, to accelerate rapidly as our existing clients continue to use our trading solutions more widely within their operations and as we pursue new revenue opportunities."
Financial Highlights
Interim Consolidated Balance Sheets (Unaudited) As at March 31,
2000 (with comparative figures as at December 31, 1999)
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March 31 December 31
2000 1999
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ASSETS
CURRENT
Cash $ 1,420,952 $ -
Short-term investment 4,109,865 -
Accounts receivable 1,453,522 1,072,074
Investment tax credits recoverable 14,073 126,073
Prepaid and sundry assets 181,877 188,898
----------- ------------
7,180,289 1,387,045
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CAPITAL, at cost 2,128,099 1,458,508
Less: Accumulated amortization 382,287 313,310
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1,745,812 1,145,198
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$ 8,926,101 $ 2,532,243
----------- ------------
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LIABILITIES
CURRENT
Bank indebtedness $ - $ 17,044
Accounts payable and accrued liabilities 1,073,010 2,388,742
Note payable - 1,154,640
Deferred revenue 368,078 744,199
Current portion of obligations under
capital lease 175,689 170,689
----------- ------------
1,616,777 4,475,314
LONG-TERM
Obligations under capital lease -
net of current portion 263,523 238,477
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1,880,300 4,713,791
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SHAREHOLDERS' EQUITY
CAPITAL STOCK 15,419,617 6,227,000
DEFICIT (8,373,816) (8,408,548)
----------- ------------
7,045,801 (2,181,548)
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$ 8,926,101 $ 2,532,243
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----------- ------------
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See accompanying note
Interim Consolidated Statements of Earnings and Deficit For the
three-month periods ended March 31, 2000 and 1999 (Unaudited)
----------------------------------------------------------------------
2000 1999
----------------------------------------------------------------------
REVENUES $ 2,487,018 $ 1,429,338
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OPERATING EXPENSES
Research and development 384,269 378,044
Product and customer services 1,004,402 407,506
Selling and marketing 414,728 256,309
Administrative 581,435 345,177
Amortization 67,452 40,094
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2,452,286 1,427,130
----------- ------------
EARNINGS BEFORE INCOME TAXES 34,732 2,208
Provision for income taxes - 1,330
----------- ------------
NET EARNINGS FOR PERIOD 34,732 878
DEFICIT, beginning of period (8,408,548) (4,876,579)
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DEFICIT, end of period $(8,373,816) $(4,875,701)
----------- ------------
----------- ------------
EARNINGS PER SHARE $ 0.02 $ 0.00
----------- ------------
----------- ------------
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See accompanying note
Interim Consolidated Statements of Cash Flows (Unaudited) For the
three-month periods ended March 31, 2000 and 1999
----------------------------------------------------------------------
2000 1999
----------------------------------------------------------------------
CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Net earnings for period $ 34,732 $ 878
Items not affecting cash
Amortization 67,452 40,094
----------- ------------
102,184 40,972
Net change in non-cash working
capital balances related to operations (1,954,280) (121,833)
----------- ------------
(1,852,096) (80,861)
----------- ------------
FINANCING ACTIVITIES
Obligations under capital lease (66,255) (21,108)
Decrease in note payable (1,154,640) -
Proceeds on issuance of capital stock,
net of issue costs 9,192,617 -
----------- ------------
7,971,722 (21,108)
----------- ------------
INVESTING ACTIVITIES
Acquisition of capital assets (571,765) (83,135)
----------- ------------
CHANGE IN CASH POSITION 5,547,861 (185,104)
CASH AND CASH EQUIVALENTS, beginning
of period (17,044) (111,818)
----------- ------------
CASH AND CASH EQUIVALENTS, end of period $ 5,530,817 $ (296,922)
----------- ------------
----------- ------------
Cash and cash equivalents, represented by:
Cash $ 1,420,952 $ -
Short-term investments 4,109,865 -
Bank indebtedness - (296,922)
----------- ------------
$ 5,530,817 $ (296,922)
----------- ------------
----------- ------------
Changes in non-cash components of working capital, represented by:
Accounts receivable $ (381,448) $ (126,125)
Investment tax credits recoverable 112,000 -
Prepaid and sundry assets 7,021 7,969
Accounts payable and accrued liabilities (1,315,732) 80,347
Deposits and unearned revenue (376,121) (84,024)
----------- ------------
$(1,954,280) $ (121,833)
----------- ------------
----------- ------------
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 64,769 $ 31,630
Income taxes - 1,330
----------------------------------------------------------------------
See accompanying note
1. ISSUANCE OF SHARE CAPITAL During the first quarter of the year, the Corporation issued 390,760 shares out of treasury for proceeds of $9,192,617, net of share issue costs of $370,000. The proceeds were received under numerous private placements at prices ranging from $20.00 to $38.00 per share. In addition, 340,000 warrants were issued as part of these private placements at exercise prices ranging from $20.00 to $50.00. There were no options issued or exercised during the period. About Belzberg Financial Belzberg Financial Markets & News International Inc. (www.belzberg.com), with offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. and Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , is a leading supplier of e-commerce gateways 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 based securities trading solutions. Belzberg Financial has been providing trading systems The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , order management systems, and protocol translation gateways to major US and Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. financial institutions since 1993. Belzberg invented and received a patent for the world's first Internet message translation gateway for the Financial Industry, and brought it to market in 1996. Belzberg is currently extending its high-speed high-speed adj. 1. Operated or designed for operation at high speed: a high-speed food processor. 2. Taking place at high speed: a high-speed chase. 3. , Internet gateway (1) See cable/DSL gateway. (2) A router or server that converts IP packets to IPX, AppleTalk or some other non-IP format and vice versa. It is used to connect non-IP networks to the Internet. to include delivery of secure and personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. electronic information services See Information Systems. , transactions, and payments on a broad range of mass-market mass-mar·ket adj. Of, relating to, or produced for consumption in large numbers, especially when sold in supermarkets, in drugstores, and at newstands: a mass-market paperback. tr.v. wired and wireless Internet-enabled devices, such as personal digital assistants, digital mobile phones, and paging devices. Belzberg's product line includes a powerful suite of front-end front-end adj. 1. Of or relating to the initial phase of a project: a front-end investment. 2. Of or relating to the forward parts of a vehicle: a front-end alignment. securities trading applications and several server-side Refers to any operation that is performed at the server. Contrast with client-side. (World-Wide Web) server-side - Processing or content generation that is done on the web server or other server, as opposed to on the client computer where the web browser is running. applications such as the e-commerce Gateway, Order Management System and Inventory Management System. These products allow individual traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. as well as institutions to send complex trades electronically to broker-dealers and to a variety of exchanges automatically and provide. Belzberg also offers electronic trading  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. services through its hosting facility over private leased lines A private communications channel leased from a common carrier. Most digital lines require four wires (two pairs) for full-duplex transmission. (communications, networking) leased line or via the Internet by accessing www.belzberg.com and following the instructions for Internet-based trading. Belzberg's clients include BT Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. , CIBC World Markets CIBC World Markets is the investment banking division of the Canadian Imperial Bank of Commerce. It helps governments, large companies, and other large institutions obtain capital and credit and is a primary dealer in U.S. Treasury securities. ; ING Barings, Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , State Street, TD Waterhouse TD Waterhouse is the brand used for both British and Canadian brokerages within the TD Bank Financial Group. The brand originated as a United States brand for discount brokerage when TD purchased Waterhouse Securities. and others. This press release may contain forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information, including statements regarding strategic direction. These comments constitute 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. (within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995) which involve significant risks and uncertainties. Actual results may differ materially from the information discussed in these forward-looking statements. Among the factors that could cause actual results, performance or achievement to differ materially from those described or implied in the forward-looking statements are general economic conditions, competition, potential technology changes, changes in or the lack of anticipated changes in the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment in various countries, the ability to secure partnership or joint-venture relationships with other entities, the ability to raise additional capital to finance expansion, and the risks inherent in new product and service introductions and the entry into new geographic markets. |
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