Cumetrix Data Systems Reports Year-End Results.Business Editors CITY OF INDUSTRY, Calif.--(BUSINESS WIRE)--July 17, 2000 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 systems configuration and distribution services, Monday Monday: see week. announced its year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results for the twelve month period ended March 31, 2000. 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 twelve months ended March 31, 2000 were $18,629,566 compared with $62,633,340 in the previous year. Net loss for the year was $3,971,935 or (0.54 per share) compared to a loss of $2,999,566 or (0.41 per share) for the year ended March 31, 1999. As previously reported, the reduction in revenues is attributable to the company's decision to substantially exit its hardware distribution business throughout the fiscal year. The increased loss is mainly attributable to additional legal and accounting costs incurred during the year as well as the company's ongoing internet related investments. Max Toghraie, chief executive officer of Cumetrix, noted, "As a result of the changes made during the year, we have reduced our 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. and have positioned the company for further investments in our current internet ventures and other potential high growth opportunities which we continue to explore." He concluded, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects as we continue to focus on creating increased efficiencies which have already contributed to a significant improvement in our gross margins across our product lines. In the Investment area of our business, we are working to support Online Transaction Technologies Inc. `OTT' and our latest investment `SalesCntrix.com' as they continue to experience rapid growth in their respective operations." 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 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 e-commerce 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 events and results may vary substantially due to 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 July July: see month. 13, 2000, and the reader is directed to these reports for a further discussion of important factors which could cause actual results to differ materially from the forward-looking statements set forth herein.
Cumetrix Data Systems
Statements of Operations Data:
Year ended Year ended
March 31, 2000 March 31, 1999
Net Sales $ 18,629,566 $ 62,633,340
Cost of Products 18,087,762 62,911,633
Gross Profit: 541,804 901,717
Selling, general and
administrative expenses 4,211,141 3,292,569
Write-off of capitalized
purchased software -- 1,100,000
Income (loss) from operations (3,669,337) (3,490,852)
Interest income (316,434) (514,345)
Interest expense 1,746 4,652
Loss on Equity investment 896,157 122,000
Other (income) expense, net -- (1,365)
Income (loss) before provision
for income taxes (4,250,806) (3,101,794)
Provision (benefit) for income
taxes (278,871) (102,228)
Net income (loss) $ (3,971,935) $ (2,999,566)
Basic earnings (loss) per share $ (0.54) $ (0.41)
Diluted earnings (loss) per share $ (0.54) $ (0.41)
Weighted average number of common
shares outstanding
--Basic 7,392,500 7,364,828
--Diluted 7,392,500 7,364,828
Balance Sheet Data:
Working capital $ 5,234,224 $ 8,420,382
Total assets 7,754,624 14,323,787
Total liabilities 1,789,195 4,511,423
Retained earnings
(deficit) (6,222,985) (2,251,050)
Shareholders' equity 5,965,429 9,812,364
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