EBIZ Enterprises Announces Record Revenue in First Quarter; Company in Transitioning into New Markets with a Dedicated Linux Focus.SCOTTSDALE Scottsdale, city (1990 pop. 130,069), Maricopa co., central Ariz.; settled in 1895 by Winfield Scott, inc. 1951. It is a resort and retirement center in the Phoenix metropolitan area. , Ariz.--(BUSINESS WIRE)--Nov. 15, 1999-- EBIZ EBIZ Electronic Business Enterprises, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:EBIZ), a leading developer and operator of Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. Vertical Service Portals (VSPs) and designer of Linux-based computer systems, announced record revenue for the first-quarter of their fiscal-year 2000, which ended Sept. 30, 1999. The Company's revenue for the first quarter of fiscal 2000 was $5,638,628, a $1,051,875, or 23%, increase over the first quarter fiscal 1999 revenue of $4,586,753. The net loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stockholders for the quarter increased to $1,240,289 or $.17 per share, up from $463,371, or $.07 per share, for the first quarter of fiscal 1999. "We are excited to announce such positive revenue growth. However, our focused Linux strategy will evolve Evolve may refer to several terms:
See product mix. away from high volume, low margin revenue to higher margin business," explained Jeffrey Rassas, chief executive officer of EBIZ Enterprises. "We have made a strategic business decision to transition our organization and to concentrate our focus on developing our Linux business initiatives. Executing this strategy will have the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. effect of slowing our sales growth." "The company has engaged in a period of transition away from our legacy business of being a 'white-box' PC manufacturer," added Rassas. "We have recently streamlined the organization, eliminating positions and activities that are not within our primary strategic direction. This has enabled us to focus on developing and growing our core Linux business activities." "The Linux market is in its early development stage," said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Herman Herman only goal in life becomes winning at cards. [Russ. Opera: Tchaikovsky, Queen of Spades, Westerman, 401] See : Obsessiveness , president of EBIZ. "We have a near-term near-term adj. Of, for, or involving a short period of time in the near future. opportunity to capture a dominant position within this market, and that is the direction we are aggressively pursuing. While we are focused on growing our Linux-related revenue, this is a process that will take more than a couple of quarters to accomplish." About EBIZ Enterprises EBIZ Enterprises is a leader in the Linux market providing community resources and services, technology expertise and a comprehensive line of Linux-based product solutions. The Company owns and operates one of the leading Linux-based Web sites, www.TheLinuxStore.com, home to one of the largest selections of Linux-compatible technical products and related items, including desktop and notebook computers A laptop computer that weighs in a range from five to seven pounds. The term originated when laptops were routinely more than 10 pounds, and those that became lighter were placed in a special "notebook" category. In practice, notebook computer and laptop computer are synonymous. , workstations, servers, hardware components, peripherals, software books and apparel. TheLinuxStore.com is the value leader in the Linux market, furthering the vision of Linux being a low-cost, high-performance computing High-speed computing, which typically refers to supercomputers used in scientific research. alternative. The statements in this press release may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are subject 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. created by these sections. Actual results could differ materially from those described herein as a result of certain factors and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Note to Editors: TheLinuxStore.com, PIA pi·a n. The pia mater. pi  al adj. and Element-L Systems are
trademarks of EBIZ Enterprises, Inc. Linux is a trademark of Linus
Torvalds Linus Benedict Torvalds (born December 28 1969 in Helsinki, Finland) is a Finnish software engineer best known for initiating the development of the Linux kernel. .-0-
EBIZ ENTERPRISES, Inc.
Statements of Operations
Three Months ended September 30,
1999 1998
(unaudited)
Sales $ 5,638,628 $ 4,586,753
Cost of sales 5,346,605 4,575,720
Gross profit 292,023 11,033
Selling, general and administration
expenses 1,268,908 410,188
Depreciation and Amortization 40,628 16,149
Loss from operations (1,017,513) (415,304)
Other income (expense):
Interest expense (216,794) (52,919)
Interest income 21,256 4,852
Total other (195,538) (48,067)
Net loss (1,213,051) (463,371)
Dividends on preferred stock 27,238 --
Net loss attributable to common
stockholders ($1,240,289) ($ 463,371)
Loss per share:
Basic ($ 0.17) ($ 0.07)
Diluted ($ 0.17) ($ 0.07)
Weighted average number of
common shares:
Basic 7,319,972 6,301,885
Diluted 7,319,972 6,301,885
Additional data and the notes to these financial statements are
available on the Financial Information pages of the company's website
www.ebizmart.com.
EBIZ ENTERPRISES, Inc.
Balance Sheets
ASSETS
Sept 30., 1999 June 30, 1999
-------------- -------------
unaudited
Current assets:
Cash and cash equivalents $ 484,402 $ 76,366
Accounts receivable, net of allowance
for doubtful accounts of $30,000 and
$40,000, respectively 1,719,167 1,669,816
Inventory, net of allowances of
$82,936 and $10,000, respectively 1,427,676 1,568,148
Prepaid expenses and deposits 89,995 128,184
Total current assets 3,721,240 3,442,514
Property and Equipment, net 514,316 474,778
Deferred Loan Fees, net 190,056 --
Restricted Cash 5,000,000 --
Note Receivable 50,000 --
Total assets $ 9,475,612 $ 3,917,292
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,875,247 $ 1,423,178
Accrued expenses 338,473 468,549
Line of credit -- 350,000
Notes payable 210,100 610,000
Total current liabilities 2,423,820 2,851,727
Convertible Debenture, net of
discount of $769,678 6,330,322 --
Total liabilities 8,754,142 2,851,727
Stockholders' equity:
Preferred stock, par value $.001;
5,000,000 shares authorized;
10,895 shares issued and outstanding,
liquidation value $100 per share 866,449 868,599
Common stock; par value $.001;
70,000,000 shares authorized,
7,364,115 and 7,261,715 shares issued
and outstanding, respectively 7,364 7,262
Additional paid-in capital 3,220,949 2,315,832
Accumulated deficit (3,373,292) (2,126,128)
Total stockholders' equity 721,470 1,065,565
Total liabilities and stockholders'
equity $ 9,475,612 $ 3,917,292
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