CeleXx Reports Strong Revenue Gains But Higher Net Loss Due to Securities Writeoff.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Feb. 27, 2001 CeleXx Corp., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CLXX), a rapidly growing e-business integrator, today said that its operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the second quarter and six months, ended Dec. 31, 2000, continued to grow strongly. It also said an investment in another company had been written off, resulting in a higher net loss compared with the second quarter of last year. Revenues for the quarter ended Dec. 31, 2000, totaled $5,698,946 compared with $185,000 in the same 1999 quarter. Revenues for the six months ended Dec. 31, 2000, were $10,933,598, approximately $10.5 million more than the same period last year, when revenues totaled $454,958. The company had a net loss of $3,334,606, or $.13 per share, for the quarter ended Dec. 31, 2000, compared with a loss in the prior 1999 period of $844,919, or $.08 per share. For the six months ended Dec. 31, 2000, the net loss was $3,577,542, or $.16 per share, up from $1,215,699, or $.12 per share, reported for the comparable 1999 period. "During the second fiscal quarter," explained CeleXx President & 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. Doug Forde, "the company determined that the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment in E-Pawn.Com, received in settlement of a lawsuit by that company, exceeded its net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. in the marketplace. As a result, we have written off the remainder of the investment, resulting in a non-recurring charge of $2,675,000, or approximately 11 cents per fully diluted share." "The increase in revenues, both for the quarter and six-month periods," Forde said, "are largely attributable to our Computer Marketplace division, which the company acquired last April. "During the quarter and six month period ended Dec. 31, 2000, computer network and related systems sales were buoyant," Forde noted, "despite a weakening economic outlook, and revenues from the sale of e-Learning systems and Web-based training solutions posted solid increases over prior periods. We expect this trend to continue." The CEO said the company's strategy is to continue to grow and expand by acquiring and commercially integrating additional companies with e-Business Integration competencies (such as systems design and engineering, interactive Web-centric training, software development and large scale database systems) and to achieve synergies and compatibilities that offer CeleXx customers an integrated, end-to-end suite of IT services and e-Business solutions. CeleXx's core competencies drive e-Business Integration, including: hardware and software integration, learning management integration, database engineering, custom e-learning development, e-learning help desk support, computer telephony See CTI, VoIP and IP telephony. Computer Telephony - Computer Telephone Integration and Call Center Solutions. This news 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. " 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. These statements refer to future events, company plans, management expectations and the like. The company wishes to caution readers not to place undue reliance on any such forward-looking statements. Risks and uncertainties such as general economic conditions, management's ability to carry out plans, market conditions, political climates, financing and many other factors exist that may cause actual results to differ materially. |
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