CyberStar Computer Corporation Announces Fiscal 2000 Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--June 1, 2000 CyberStar Computer Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CYSR.OB), a PC manufacturer specializing in e-commerce PC delivery, announced today that 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 fiscal year ended February 29, 2000, decreased by 9%, or $461,231 to $4,393,068 as compared to fiscal year 1999. The Company incurred a net loss of $467,173 for fiscal 2000, as compared to a net loss of $920,057 for fiscal 1999. The $452,884 reduction in the net loss was due to increased gross profit and a reduction 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. . The increase in gross profit was primarily due to lower cost of computer hardware components used in the manufacturing process, and reductions in the cost of consumables, warehouse supplies and freight expenses In accounting, the concept of a freight expense account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of Expenses and is treated like other expense accounts in relation to the accounting equation. . The decrease in expenses was primarily due to decreases in advertising, promotion and employee-related expenses. The Company's cash position at February 29, 2000 was $496,486, an increase of $423,295 from $73,191 at February 28, 1999. The increase was due to financing activities. During the fourth quarter of fiscal 2000, the Company introduced its eNetpc.com website. eNetpc is an on-line configuration package that enables any computer reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. to offer custom-built CyberStar PCs, notebooks, and fileservers to their customers on the Internet. CyberStar intends to license eNetpc to web retailers, mail order houses, value-added resellers A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. , retailers, and computer dealers. Upon final design, the software will provide eNetpc licensees and their customers an easy to use method of configuring, ordering, and tracking customized CyberStar PCs, notebooks, and fileservers. The Company has signed over 25 license agreements to provide the eNetpc system.
Statements of Operations
Percent
Year ended February 29 & 28 FY 2000 FY 1999 Change
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Net sales $4,393,068 $4,854,299 (9.5%)
Cost of Sales 3,622,580 4,215,840
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Gross Profit 770,488 638,459 20.7%
Operating Expenses
General and administrative 1,206,150 1,412,754
Sales and marketing 39,289 154,400
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1,245,439 1,567,154 20.5%
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Loss from operations (474,951) (928,695) 48.8%
Other income (expense)
Interest income 2,369 17,824
Interest expense (14,001) (5,759)
Other (expense) income 19,410 (3,427)
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7,778 8,638
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Net loss ($467,173) ($920,057) 49.2%
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Basic and diluted net
loss per share ($.12) ($.24)
Weighted average shares
outstanding 3,964,300 3,880,083
About CyberStar Traded on the OTC:BB (CYSR), CyberStar(R) Computer Corporation specializes in e-commerce software for B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business online PC configuration, delivery, and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. on the internet. More company information can be found at www.cyberstarpc.com or www.enetpc.com. Any statements contained herein related to future events are 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. and are made pursuant to the 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. provisions 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 are based upon CyberStar's current expectations and judgments about future developments in CyberStar's business and may be affected by several factors, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of CyberStar's products, general conditions in the computer industry. Readers are cautioned not to place undue reliance on forward-looking statements. CyberStar undertakes no obligation to update any such statements to reflect actual events. |
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