Bidhit.com Announces First Quarterly Results as a Public Company; Positive Performance: Indication of Continued Growth.BOTHELL, Washington--(BUSINESS WIRE)--June 23, 1999-- Bidhit.com (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:BHIT BHIT Bicycle Helmet Initiative Trust (UK) ), a growing online auction company, reported financial results today for the first quarter ended March 31, 1999. These results reflect company operations prior to its recent public offering and subsequent $3 million equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Revenue for the first quarter was up 56 percent from the previous year to $209,207. As in all previous quarters, the company remained profitable. Net income in the first quarter was $17,339, or 8.2 percent of sales. First quarter 1999 financial results indicate the ongoing viability of the Bidhit.com business model and set the stage for the company to achieve exponential growth as a public entity. "We are proud of the fact that our first financial reports as a public company include both profitable and debt free performance", said Timothy Black, President 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. . "As a progressive and growing company our focus is on the tremendous market opportunity in the online auction segment." Operational Infrastructure Bidhit.com has built an operational infrastructure that is highly scaleable to keep pace with its rapid growth. The company's highly secure transaction system is second to none in ensuring customer service and satisfaction. This positions the company to successfully capitalize on the online auction segment, the fastest growing e-commerce sector on the Internet. Strong Relationships Bidhit.com has established strong relationships with vendors and alliance partners and online users alike. Favorable vendor partnerships enable the company to offer a wide selection of name brand consumer goods at attractive prices to its customer base. The company's alliances with industry players such as Interactive Marketing Inc. (IMI IMI International Masonry Institute (Washington, DC) IMI Israel Military Industries IMI Institute of the Motor Industry IMI International Market Insight IMI Imposto Municipal Sobre Imóveis (Portugal) ) enable Bidhit.com to tap into leading Internet resources as it executes its strategic marketing plan. IMI is a leading interactive marketing consulting company based in Manhattan Beach, CA, that has guided many well-known media, technology and Internet companies in developing successful business models. IMI represented YAHOO! (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 :YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ) to create its initial advertising and promotional strategies. More recently, IMI created the blueprint strategy for the "Lycos Network" (NASDAQ:LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ). IMI consults for selected Web properties and interactive technology companies creating unique marketing, promotional, sponsorship and e-commerce strategies and has a proven track record in providing business planning and development services. IMI has developed interactive strategies for other major organizations such as American Express (NYSE NYSE See: New York Stock Exchange :AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. ), Citibank (NYSE:C), Barnes & Nobel.com (NYSE:BKS BKS Barracks BKS Best Kept Secret (gaming) BKS Bildung, Kultur Und Sport (German) BKS Brookside (city) BKS Bergen Kirurgiske Sykehus (Bergen, Norway) ), Netscape, an AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. company (NYSE:AOL), CBS (Cell Broadcast Service) See cell broadcast. Corp. (NYSE:CBS), and 24/7 Media Inc (NASDAQ:TFSM), the National Football League and NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. , a subsidiary of General Electric (NYSE:GE). Solid Financial State In less than two years Bidhit.com has gone from an innovative business model to a profitable company with a solid financial foundation. The first phase of the company's development culminated with it going public and raising in excess of three million dollars. Bidhit.com now has sufficient resources to meet its current operational requirements and has earmarked significant funds to fuel its growth. Continued Growth "With our solid financial footing, Bidhit.com will pursue marketing, alliance and acquisition endeavors in our pursuit of increased market share", said Mr. Black. "We are focused on development in four key areas over the short term. This includes expanding our customer base, increasing our product offering, further enhancing our technical infrastructure and building our corporate team." The company intends to gain an even larger portion of the online auction audience through aggressive strategic marketing and communications initiatives currently being developed in conjunction with Interactive Marketing Inc. At the same time, Bidhit.com is striving for more efficient and effective service to further build its customer base. In the next quarter, Bidhit.com will expand the frequency of its online auctions, add new and profitable product categories and leveraging its database technology to target distinct customer segments. The company believes these initiatives will lead to increase sales and further profitability. To achieve its growth plans, Bidhit.com will build its corporate infrastructure by making key management additions, strategic alliances and acquisitions. With the right team in place, Bidhit.com will continue its exponential, yet responsible, growth pattern. "Ultimately", said Mr. Black, "our business success will continue to translate into long-term value for our shareholders. We look forward to releasing further developments as Bidhit.com progresses." About Bidhit.com Bidhit.com is a fully developed, profitable, real time online auction company with a customer database of over 100,000 registered users. The company is focused on providing quality brand name consumer goods to distinct and growing customer segments. Bidhit.com has achieved rapid growth by building a solid operational infrastructure and is now leveraging this success to become one of the leading online auction brands on the Internet. About the Online Auction Segment According to Forrester Research, 52 percent of online business is expected to be transacted via auctions by 2002, (Reported in Business 2.0, June 1999). The success of online auction sites such as eBay,Inc. (NASDAQ:EBAY), uBid,Inc. (NASDAQ:UBID), Onsale Inc. (NASDAQ:ONSL ONSL Old North St. Louis (neighborhood just north of downtown St Louis, MO) ONSL Optical Network Simulation Layer (VPI) ONSL Organization Nationale des Syndicats Libres ) and Bid.Com International (NASDAQ:BIDS), has been well documented. Bidhit will be focused on growing its online auction presence in attracting and sharing the enormous audience for online auctions. On Behalf of the Board of Directors, Timothy J. Black, President and CEO Bidhit.com 'Safe Harbor' statement under the Private 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: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. |
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