BiznessOnline.com announces Second Quarter and Year to Date Results; Revenues Increase 475% for the Quarter and 574% Year to Date.Business Editors & High Tech Writers WALL, N.J.--(BUSINESS WIRE)--Aug. 1, 2000 BiznessOnline.com, 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 :BIZZ) today reported results for the quarter ended June June: see month. 30, 2000. Financial Summary Revenues for the quarter ended June 30, 2000 increased 475% to $7,110,000 from $1,237,000 for the same period of 1999. The increase in revenues is attributable to the acquisitions completed during 1999 and during the first quarter of 2000, combined with internal growth. Net loss for the quarter ended June 30, 2000 was $6,277,000 or $0.69 per share, as compared to a net loss of $547,000, or $0.10 per share for the quarter ended June 30, 1999. The net loss for both periods is partially attributable to depreciation and amortization of goodwill associated with the acquisitions. For the quarter ended June 30, 2000, depreciation was $519,000 and amortization of goodwill was $2,503,000. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become loss for the quarter ended June 30, 2000 was $1,315,000, as compared to an EBITDA loss of $139,000 for the same period in 1999. During the quarter ended June 30, 2000, the Company incurred approximately $100,000 of legal and accounting expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc acquisitions which the Company decided to terminate. The Company also incurred approximately $527,000 of expenses associated with integrating the combined companies during the second quarter of 2000. Revenues for the six months ended June 30, 2000 increased 574% to $11,188,000 from $1,661,000 for the same period of 1999. The increase in revenues is attributable to the acquisitions we completed during 1999 and during the first quarter of 2000, combined with internal growth. Net loss for the six months ended June 30, 2000 was $9,659,000 or $1.09 per share, as compared to a net loss of $687,000, or $0.16 per share for the six months ended June 30, 1999. The net loss for both periods is partially attributable to depreciation and amortization of goodwill associated with the acquisitions. For the six months ended June 30, 2000, depreciation was $924,000 and amortization of goodwill was $4,243,000. The EBITDA loss for the six months ended June 30, 2000 was $2,463,000, as compared to an EBITDA loss of $152,000 for the same period in 1999. During the six months ended June 30, 2000, the Company incurred approximately $100,000 of legal and accounting expenses relating to acquisitions which the Company decided to terminate. The Company also incurred approximately $1,200,000 of expenses associated with integrating the combined companies during the first six months of 2000. Operations Highlights Mark E. Munro Mun·ro , Alice Born 1931. Canadian writer noted for vivid novels and short stories of life in rural Ontario. Her collections of stories include Dance of the Happy Shades (1968) and Moons of Jupiter (1982). Noun 1. , 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. of BiznessOnline.com commented, "Our co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. and managed web solutions are on the leading edge of our growth curve, and we continue to gain new accounts every day. To accommodate demand, the Company has invested approximately $2 million in its IDCs in Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. , Albany Albany, town, Australia Albany (ăl`bənē), town (1996 pop. 14,590), Western Australia, SW Australia. It is a port on Princess Royal Harbour of King George Sound. The town has woolen mills and fish canneries. and Buffalo and other facilities during the first six months of 2000. Each data center has been designed to accommodate approximately 1,000 co-located servers, and to produce approximately $8 million in revenue per year per location. In addition, we frequently provide managed web IT accounts with bandwidth services as well, giving credence to our belief in convergent solutions." Mr. Munro continued by saying, "Infrastructure and convergent solutions have always been the central elements of our corporate strategy, and BiznessOnline.com's investment in its facilities and acquisitions reflect the continued execution of that strategy. We recognize the near and long term value of our network, and we're we're Contraction of we are. we're we are committed to continue consolidating in and around our markets."
BiznessOnline.com, Inc.
Statement of Operations
(In Thousands, except share data)
(unaudited)
For the Three Months Ended
June 30, 2000 June 30, 1999
------------- -------------
Revenues $7,110 $1,237
Connectivity and Operations 5,609 467
Selling, General and Administrative 2,816 909
Write Down Of Impaired Assets 901 -
Amortization 2,503 410
Depreciation 519 98
------- -------
Total Expenses 12,348 1,884
------- -------
Operating Loss (5,328) (647)
Other expense (6) -
Interest Income (Expense), net (988) 100
------- -------
Loss Before Taxes (6,232) (547)
Income Tax Expense 45 -
----------- -------
Net Loss $(6,277) $(547)
======== =======
EBITDA $(1,315) (139)
Net Loss per share $(.69) $(.10)
Weighted Average shares Outstanding 9,100,318 5,260,299
BiznessOnline.com, Inc.
Statement of Operations
(In Thousands, except share data)
(unaudited)
For the Six Months Ended
June 30, 2000 June 30, 1999
------------- -------------
Revenues $11,188 $1,661
Connectivity and Operations 8,969 608
Selling, General and Administrative 4,862 1,205
Write Down Of Impaired Assets 901 -
Amortization 4,243 512
Depreciation 924 122
------- -------
Total Expenses 19,718 2,447
------ -----
Operating Loss (8,530) (786)
Other expense (6) -
Interest Income (Expense), net (984) 99
----- -----
Loss Before Taxes (9,520) (687)
Income Tax Expense 139 -
---------- --------
Net Loss $(9,659) $(687)
======== ======
EBITDA $(2,463) (152)
Net Loss per share $(1.09) $(.16)
Weighted Average shares Outstanding 8,857,308 4,298,243
BiznessOnline.com BiznessOnline.com (NASDAQ:BIZZ) is one of the Northeast's leading integrated communications providers, and offers customers co-location, 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. development, Web design and hosting services, high-speed Internet See broadband. access and local/long distance telco services. Committed to satisfying the increasing Web and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. needs of businesses, BiznessOnline.com provides bundled, advanced IP and essential telco services. Customers' secure broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). 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 connections are served via BiznessOnline.com's state-of-the-art Internet Data Centers and fault-tolerant, fiber-optic backbone network A backbone network provides a path for the exchange of information between different LANs or subnetworks.[1] A backbone can tie together diverse networks in the same building, in different buildings in a campus environment, or over wide areas. , and are supported by the Company's 24x7 customer care and network monitoring The term network monitoring describes the use of a system that constantly monitors a computer network for slow or failing systems and that notifies the network administrator in case of outages via email, pager or other alarms. . BiznessOnline.com is focused on continuing to quickly build its regional presence in the Northeast and expanding its growing IP and telco network infrastructure. The Company can be found on the World Wide Web at www.biznessonline.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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: This 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. that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including but not limited to risks inherent to the Company's growth strategy, the ability to complete and integrate acquisitions, market demand for the Company's services and other factors affecting the highly competitive telecommunications and Internet industry. Please refer to BiznessOnline.com's reports from time to time filed with the Securities and Exchange Commission, including the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 30, 2000, for a further discussion of risk factors that may affect the Company's operating and financial results. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. |
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