C-bridge -- CBIS -- Reports Second Quarter 2001 Results; Results Meet Revised Estimate; Conference Call Scheduled.Business/Technology Editors BOSTON--(BUSINESS WIRE)--July 26, 2001 C-bridge (Nasdaq: CBIS CBIS Computer Based Information System CBIS Christian Brothers Investment Services CBIS Cincinnati Bell Information Systems CBIS Chinese Biodiversity Information System CBIS Certified Brain Injury Specialist ) a premier provider of industry technology that powers Enterprise Commerce, today reported results for its second quarter ended June June: see month. 30, 2001. Total revenues for the second quarter of 2001 were in line with the company's revised estimate Revised estimate The third estimate of GDP released about three months after the measurement period. for the quarter at $10.0 million, a decrease of 47% from total revenues of $18.8 million for the second quarter of 2000. C-bridge's gross margin was 17% for the second quarter of 2001. Gross margin was 51% for the second quarter of 2000. The Company's cash position (including restricted cash) as of June 30, 2001 was $44.3 million, $2.3 million above the $42 million projected. The cash position (including restricted cash) as of March 31, 2001 was $49.6 million. C-bridge's billable headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. was 229 on June 30, 2001, as compared to billable headcount of 314 on March 31, 2001. Billable headcount was 324 on June 30, 2000. The Company's current total and billable headcount are 358 and 221 respectively as of July July: see month. 25, 2001. As a result of its previously announced plans to merge with eXcelon Corporation, the Company incurred non-recurring costs of approximately $797,000, which have been expensed in the second quarter of 2001. C-bridge also previously announced cost-related measures, which included reducing headcount by approximately 90 employees, resulted in non-recurring 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). costs of approximately $660,000, which have been expensed in the second quarter of 2001. "Economic conditions and a soft market for e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. services continue to negatively impact results across our sector," said Joe Bellini Bellini (bĕl-lē`nē), illustrious family of Venetian painters of the Renaissance. Jacopo Bellini (yä`kōpō), c.1400–1470, was a pupil of Gentile da Fabriano. , C-bridge 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. . "While we are disappointed by our second quarter, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the prospects presented by our merger with eXcelon. The XML based XML Base is a W3C recommendation, that proposes a facility for defining base URIs for parts of XML documents. XML Base recommendation was adopted on 2001-06-27. External links
business solutions and information management capabilities we will deploy as a merged company will enable our clients to drive increased benefits across their value chain while leveraging investments they have made in their current information architecture." For the second quarter of 2001, C-bridge's 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 net loss (excluding stock compensation expense, goodwill amortization expense, merger-related expenses and restructuring costs) was $7.9 million, representing a net loss per share of $0.37. For the preceding quarter ended March 31, 2001, C-bridge's pro forma net loss (excluding stock compensation, goodwill amortization expense, and restructuring costs) was $7.9 million, representing a net loss per share of $0.37. For the quarter ended June 30, 2000, C-bridge's pro forma net loss (excluding stock compensation expense) was $115 thousand, or a net loss per share of $0.01. Net loss (including stock compensation expense, goodwill amortization expense, merger related expenses and restructuring costs) for the second quarter of 2001 was $10.3 million, or a net loss per share of $0.48, as compared to a net loss of $380 thousand, or a net loss of $0.02 per share for the second quarter of 2000. For the six months ended June 30, 2001, C-Bridge's pro forma net loss (excluding stock compensation expense, goodwill amortization, merger-related expenses and restructuring costs) was $15.8 million, representing a net loss per share of $0.74. For the six months ended June 30, 2000, C-bridge's pro forma net loss (excluding stock compensation expense) was $351,000, representing a net loss per share of $0.02. Net loss (including stock compensation expense, goodwill amortization, merger-related expenses and restructuring costs) for the six months ended June 30, 2001 was $22.7 million, or a net loss per share of $1.06. Conference Call C-bridge's second quarter earnings conference call is scheduled for today, Thursday Thursday: see week. , July 26, 2001 at 5:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . This call is open to all parties. Joe Bellini, C-bridge chairman and CEO and Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a C. Putz, chief strategy & financial officer will lead the conference call. To participate, please dial 1-888-855-5428 (Domestic) or 1-719-457-2665 (International). The conference ID number for this call is 539949. A Webcast of the call can also be accessed via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of C-bridge's Web site at www.c-bridge.com. A replay will be available two hours after completion of the call by dialing 1-888-203-1112 (Domestic) or 1-719-457-0820 (International). The replay conference ID number is 539949. The replay will be available for seven days. An archived recording of this call will also be available on C-bridge's Web site in its Investors' section for seven days. About C-bridge C-bridge(R) (NASDAQ: CBIS) provides high return, industry-specific solutions delivered on a service-based architecture that directly enables Enterprise Commerce Management. C-bridge combines strategic business consulting, diagnostic services diagnostic services, n.pl the imaging and laboratory capabilities available for determining the cause of an illness. and deep vertical industry expertise with award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. technology to deliver business solutions to our clients in unprecedented timeframes. Headquartered in Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New , C-bridge works continuously to ensure the success of its clients by providing mentoring, knowledge transfer and executive education to thousands of industry leaders per year. More information about C-bridge can be found at www.c-bridge.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 information about future expectations, plans, and prospects of C-bridge's management that 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. for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the profitability of the Company's contracts, the Company's ability to retain existing clients and attract new clients, the Company's ability to hire, train, and retain qualified employees, the Company's ability to continue to develop effective sales and marketing capabilities, the Company's ability to keep pace with the Internet's rapid technological changes, evolving industry standards and changing client requirements, worldwide business use of the Internet, the Internet, the, international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises growth in the number of web access devices per user, the occurrence of any failure of the Internet, the continued improvement of security on the 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 , general economic and industry conditions, costs related to the proposed merger, the possibility of substantial delay in the expected closing of the merger and the risk that the businesses of eXcelon and C-bridge will not be integrated successfully, any of which may cause actual results to differ materially from those described in the statements, as well as other factors reflected in the Company's filings with the Securities and Exchange Commission from time to time, including the Company's Annual Report on 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. for the year ended December December: see month. 31, 2000. WHERE YOU CAN FIND ADDITIONAL INFORMATION Investors and security holders of both eXcelon and C-bridge are urged to read the proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus regarding the merger described above and any other documents to be filed with the Securities and Exchange Commission, when they become available, because THEY will contain important information. eXcelon and C-bridge expect to mail a proxy statement/prospectus about the merger to their respective stockholders. Investors and security holders may obtain a free copy of the proxy statement/prospectus (when available) and other documents filed by the companies at the Securities and Exchange Commission's web site at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . The proxy statement/prospectus and such other documents may also be obtained free of charge from eXcelon or C-bridge. INVESTORS AND STOCKHOLDERS SHOULD READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING A DECISION CONCERNING THE MERGER. eXcelon and its officers and directors may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from C-bridge's stockholders with respect to the transactions contemplated by the merger agreement. Information regarding such officers and directors is included in eXcelon's Annual Report on Form 10-K for the year ended December 31, 2000, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , as filed with the Securities and Exchange Commission. This document is available free of charge at the Securities and Exchange Commission's Web site at http://www.sec.gov and from eXcelon. C-bridge and its officers and directors may be deemed to be participants in the solicitation of proxies from stockholders of eXcelon with respect to the transactions contemplated by the merger agreement. Information regarding such officers and directors is included in C-bridge's Annual Report on Form 10-K for the year ended December 31, 2000, as amended, as filed with the Securities and Exchange Commission. This document is available free of charge at the Securities and Exchange Commission's Web site at http://www.sec.gov and from C-bridge. C-bridge is a trademark of C-bridge Internet Solutions, Inc. All other trademarks are the property of their respective companies. EDITORS' NOTE: This and other information about C-bridge is available on the company Web site (www.c-bridge.com).
C-BRIDGE INTERNET SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2001 2000
Assets (unaudited)
Current Assets:
Cash and cash
equivalents $ 41,160,255 $ 48,999,076
Accounts
receivable,
net 5,383,822 16,838,654
Unbilled
receivables 3,171,391 7,508,262
Other current
assets 1,409,661 1,512,668
Total Current Assets 51,125,129 74,858,660
Property and
equipment, net 8,904,943 10,423,068
Restricted cash
equivalents 3,166,386 3,166,386
Goodwill and
other assets 10,321,259 10,012,318
Total Assets $ 73,517,717 $ 98,460,432
Liabilities and
Stockholders' Equity
Current Liabilities:
Short-term debt $ 149,621 $ 220,438
Accounts payable 2,425,311 5,521,718
Accrued expenses 4,275,033 4,874,301
Deferred revenue 4,995,447 4,598,415
Total Current
Liabilities 11,845,412 15,214,872
Long-term debt 6,052 44,089
Total Liabilities 11,851,464 15,258,961
Stockholders' Equity:
Common stock,
$.01 par value 220,683 216,883
Additional
paid-in capital 98,918,555 100,889,335
Deferred
compensation (579,249) (3,668,495)
Cumulative
translation
adjustment 45,658 --
Accumulated deficit (36,786,394) (14,083,252)
Treasury stock,
at cost (153,000) (153,000)
Total Stockholders'
Equity 61,666,253 83,201,471
Total Liabilities
and Stockholders'
Equity $ 73,517,717 $ 98,460,432
C-BRIDGE INTERNET SOLUTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the Three Months Ended For the Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
Actual Actual Actual Actual
(unaudited) (unaudited)
Service revenues $ 10,038,469 $ 18,787,333 $ 28,083,861 $ 30,960,236
Costs and
expenses
Direct costs
of services 8,364,883 9,200,817 20,733,617 15,246,944
Selling and
marketing 3,666,362 4,567,294 8,905,803 7,714,875
General and
administrative 6,261,435 6,248,274 15,294,908 10,521,065
Amortization of
intangible
assets 463,851 -- 927,702 --
Compensation
expense
related to
stock options
and warrants 448,344 265,526 821,956 1,019,294
Merger related
expenses 797,304 -- 797,304 --
Restructuring
costs 660,051 -- 4,353,749 --
Total
operating
expenses 20,662,230 20,281,911 51,835,039 34,502,178
Loss from
operations (10,623,761) (1,494,578) (23,751,178) (3,541,942)
Interest
expense (16,497) -- (30,147) --
Interest
income 350,022 907,654 1,006,302 1,809,735
Other Income 4,585 206,481 71,881 362,032
Net loss $(10,285,651)$ (380,443)$(22,703,142) $ (1,370,175)
Basic and
diluted
net loss per
share $ (0.48)$ (0.02)$ (1.06) $ (0.07)
Basic and
diluted
weighted
average
shares
outstanding 21,528,504 19,875,316 21,476,683 19,696,401
Pro forma net
loss
(excluding
compensation
expense
related to
stock options
and warrants,
amortization
of goodwill,
merger related
expenses and
restructuring
costs) $ (7,916,101)$ (114,917)$(15,802,431) $ (350,881)
Pro forma basic
and diluted
net loss
per share $ (0.37)$ (0.01)$ (0.74) $ (0.02)
Basic and
diluted
weighted
average
shares
outstanding 21,528,504 19,875,316 21,476,683 19,696,401
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