Cumetrix Data Systems Corp. Announces Second-Quarter Results.CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--Nov. 16, 1999-- Cumetrix Data Systems Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CDSC See Contingent deferred sales charge. ), an 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. retailer and national provider of distribution and systems configuration services, today announced its second-quarter results for the period ended Sept. 30, 1999. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter were $4,055,896 compared with $19,418,109 in the previous year. Net income for the second quarter ended Sept. 30, 1999, was a loss of $1,121,863 (15 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) compared with net income of $86,493 (1 cent per share) for the second quarter ended Sept. 30, 1998. The decrease in revenues and net income is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to several factors including lower sales resulting from the company's decision to discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: a substantial part of its hardware distribution business, as well as a significant increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. attributable to additional legal and auditing fees incurred during the quarter. Commenting on the second quarter results, Max Toghraie, chief executive officer of Cumetrix, noted: "As we emerge from two extremely difficult and challenging quarters, we are pleased to report that we have substantially completed our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. plan, which has, to date, resulted in a significant reduction in our operating expenses. "Furthermore, we continue to make progress in our previously announced transition, which has greatly reduced our reliance on the component distribution business. We remain committed to continued development and further expansion of our e-commerce operations, and are encouraged as we pursue what we believe to be promising opportunities and prospects. "Additionally, We intend to re-establish re-establish Verb to create or set up (an organization, link, etc.) again re-establishment n our relationship with strategic partners in the investor relations Investor relations The process by which the corporation communicates with its investors. community to properly communicate our message and progress going forward," Toghraie concluded. Cumetrix Data Systems is an online retailer and a national provider of fully configured con·fig·ure tr.v. con·fig·ured, con·fig·ur·ing, con·fig·ures To design, arrange, set up, or shape with a view to specific applications or uses: computer systems and peripherals. Through its 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 subsidiary, The company operates an e-commerce and auction Web site at www.suredeals.com and www.sureauctions.com. The company has investments in other Internet-related ventures. With the exception of historical information, the matters discussed above include numerous 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 involve risks and uncertainties. Actual results may vary substantially as a result of a variety of factors. These and other risk factors are discussed in the company's recent filings with the Securities and Exchange Commission 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. , filed on Oct. 15, 1999, and the reader is directed to these reports for a further discussion of important factors that could cause actual results to differ materially from the forward-looking statements set forth herein. -0-
CUMETRIX DATA SYSTEMS CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
1999 1998
SALES $ 4,055,896 $ 19,418,109
COST OF SALES 3,920,060 18,868,874
GROSS PROFIT 135,836 549,235
OPERATING EXPENSES 1,136,391 572,843
OPERATING LOSS (1,000,555) (23,608)
OTHER INCOME (LOSS) (121,308) 173,018
INCOME (LOSS) BEFORE INCOME TAXES (1,121,863) 148,764
PROVISION FOR INCOME TAXES -- 62,271
NET INCOME (LOSS) $ (1,121,863) $ 86,493
BASIC AND DILUTED EARNINGS PER SHARE $ (0.15) $ 0.01
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 7,392,500 7,704,521
CUMETRIX DATA SYSTEMS CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended
September 30,
1999 1998
SALES $ 11,112,570 $ 37,832,635
COST OF SALES 10,829,998 36,851,490
GROSS PROFIT 282,572 981,145
OPERATING EXPENSES 1,998,394 1,101,695
OPERATING LOSS (1,715,822) (120,550)
OTHER INCOME (LOSS) (198,088) 322,869
INCOME (LOSS) BEFORE INCOME TAXES (1,913,910) 197,913
PROVISION FOR INCOME TAXES -- 82,771
NET INCOME (LOSS) $ (1,913,910) $ 115,142
BASIC AND DILUTED EARNINGS PER SHARE $ (0.26) $ 0.02
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 7,392,500 7,537,865
CUMETRIX DATA SYSTEMS CORP.
CONDENSED BALANCE SHEETS
September 30, March 31,
1999 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents & time deposits $ 6,310,813 $ 8,243,198
Other current assets 1,951,363 4,683,797
Total current assets 8,262,176 12,926,995
FIXED ASSETS, net 423,956 504,363
OTHER ASSETS 527,822 892,429
TOTAL ASSETS $ 9,213,954 $14,323,787
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES $ 1,313,432 $ 4,506,613
LONG-TERM DEBT, net of current portion 2,068 4,810
SHAREHOLDERS' EQUITY 7,898,454 9,812,364
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 9,213,954 $14,323,787
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