Correction from Source: First Ecom.com, Inc. Announces Year End Financial Results for 2000.Business Editors HONG n. 1. A mercantile establishment or factory for foreign trade in China, as formerly at Canton; a succession of offices connected by a common passage and used for business or storage. KONG--(BUSINESS WIRE)--April 11, 2001 First Ecom.com (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 :FECC FECC Far End Camera Control FECC Finnish Environmental Cluster for China FECC Federal Emergency Communications Coordinator FECC Fires and Effects Coordination Cell FECC Federal Electronic Commerce Coalition FECC Forward Error Correction Code )(BSX BSX Bermuda Stock Exchange BSX Bandai Satellaview-X BSX Bicycle Super-X (Cross) :FECC) Company Ends Second Full Year with a Strong Cash Position Focus on Sales in Asia, New Company Structure and Reduction of Burn Rate Position Company Well for Future Growth First Ecom.com, Inc., a global provider of electronic payment processing solutions, today announced the filing of its Form 10K and financial results for the year ended December December: see month. 31, 2000 and for the fourth quarter of the same year. First Ecom, which is still in development stage, posted revenues for the fiscal year 2000 of US$ 854,871 as compared with revenues for 1999 of US$2,634. The increase is attributable to an increase in revenues from payment processing and systems integration revenue contributed by Asia 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 Limited, a business acquired on March 31,2000. Net loss for the year 2000 after amortization, depreciation and non-cash compensation associated with stock options was $ 17,809,461 as compared to the year 1999 net loss of $ 6,788,885. The current year's loss includes one time non-recurring losses totaling US$4,038,182 for the write down of certain assets to their 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. . The Company also recognized a new expense relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc an additional imputed interest Imputed Interest A term used to describe interest considered to be paid, even through no interest payment has been made. Notes: Imputed interest is calculated based upon actual payments that are to be paid, but have not yet been paid. charge of US $380,000 for warrants issued with debt in 1999 due to the implementation of the Emerging Issues Task Force pronouncement (EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation ) 00-27. This is an accounting change that the Company was required to implement in the 2000 year. Net loss per share for the year 2000 was US$ 0.98 per share as compared to the net loss per share of US$ 0.56 for the year 1999. As at December 31, 2000 the company had in excess of US$ 31,000,000 cash on hand as compared to US $11,000,000 at December 31,1999. For the fourth quarter of 2000, the Company had revenues of $189,150 as compared to $2,634 in the fourth quarter of 1999 and a net loss of $7,227,060 as compared to $2,789,907 in 1999. The 2000 fourth quarter loss included $3,854,382 of one-time charges to write down assets to net realizable value and the accounting change charge of $380,000. The loss for the fourth quarter was $0.38 per share ($0.36 before the one-time write down and accounting change charge) as compared to $0.21 for the fourth quarter of 1999. "Our second full year of operations saw a dramatic change in the business environment," said Gregory Pek, president and Co-CEO of First Ecom.com. "This change plus some internal issues resulted in First Ecom having to change its business approach. During the last quarter of 2000 the board and management started to restructure and re-focus the Company in addition to significantly reducing the burn rate. These changes should be completed and start to bear fruit within the first half of 2001. The major changes made included a reduction in staff levels, which included the closing of Asia Internet Limited and the withdrawal from the business of systems integration as well as moving to smaller premises. The Company also formed First Ecom Data Services Asia Limited (FEDS Asia), which is primarily responsible for the selling of the newly productized First Ecom gateway to banks in Asia. Pek also announced the appointment of Steve Corbin as President of FEDS Asia. Mr. Corbin will be responsible for the day-to-day operations of FEDS Asia and the carrying out of the Company's new sales initiatives. Pek announced that the Board of Directors and management were studying other opportunities for the Company and had retained Bain & Company to provide strategic advice. Pek added, "With our new structure and focus plus our strong cash position the Company can build upon the successes it had during 2000. These included the raising and preserving of significant capital, listing on National Market of the NASDAQ in June, our listing on the Bermuda Stock Exchange The Bermuda Stock Exchange (BSX), established in 1971, is now the world’s leading fully electronic offshore securities market, with a current market capitalization (excluding mutual funds) in excess of US$300 billion. , the bringing on line of two banks in Hong Kong Hong Kong maintains a three-tier system of deposit-taking institutions, licensed banks, restricted licence banks and deposit-taking companies. They are collectively known as authorised institutions by the Hong Kong Monetary Authority, which is responsible for regulations. during September and December and the formation and start of operations of First Ecommerce Data Services (FEDS) our joint venture with the Bank of Bermuda The Bank of Bermuda Limited is a leading financial services company in Bermuda providing fund administration, trust, custody, asset management and banking services to institutions and individuals. . The Company's financial results for the year ended December 31, 2000 accompanied the filing of its 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. with the Securities & Exchange Commission on April 2, 2001, which is available on-line at the SEC's Edgar database at www.freeedgar.com.
Financial Summary
FIRST ECOM.COM, INC.
Financial Highlights (Unaudited)
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Year Ended Year Ended
December 31, 2000 December 31, 1999
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Revenues $854,871 $2,634
Net (Loss) $(17,809,461) $(6,788,885)
Basic and diluted net
loss per share $(0.98) $(0.56)
Shares used to compute
basic and diluted net
loss per share 18,064,980 12,043,662
Operating (loss) $(17,031,779) $(6,354,222)
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Fourth quarter results for First Ecom were also announced:
Financial Summary
FIRST ECOM.COM, INC.
Financial Highlights (Unaudited)
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Quarter Ended Quarter Ended
December 31, 2000 December 31, 1999
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Revenues $189,150 $2,634
Net (Loss) $7,227,060 $2,789,907
Basic and diluted net
loss per share $(0.38) $(0.21)
Shares used to compute
basic and diluted
net loss per share 19,210,037 13,220,254
Operating (loss) $(5,619,368) $(2,585,362)
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About First Ecom.com As a global provider of electronic payment processing, First Ecom.com provides secure, easy-to-implement and low-cost online payment processing services to banks and their merchants worldwide. Through strategic partnerships with banks, ISPs, 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. product suppliers, system integrators See systems integrator. and storefront solution providers, First Ecom.com will process credit card transactions made over the Internet in multiple currencies, either domestically or offshore in a tax-neutral jurisdiction. Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such 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. . |
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