Forecross Ceases Migration Project.Business Editors Forecross(R) Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FRXX), a legacy to web and XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. implementation solution company, announced today that it has ceased work on a contract that had been under way since March 2001 for an IDMS See CA-IDMS and IDMSX. 1. (language, database) IDMS - A pictorial query language, an extension of Sequel2. ["A Management System for an Integrated Database of Pictures and Alphanumeric Data", G.Y. Tang, Computer Graphics Image Processing 16:270-286 (1981)]. to DB2 legacy migration. The previously announced total value of the contract through a future completion date was $3,500,000. Of this sum, approximately $1.2 million has been received by Forecross, and the Company is seeking an additional payment for work performed prior to termination. "Fortunately, we commenced work on two new projects in this quarter which almost entirely offset the effect on our backlog of the termination of the contract noted above," said Bernadette C. Castello, chief financial officer. Before giving effect to the termination of this contract, revenue for the quarter ended June 30, 2002 is expected to be substantially similar to that of the March 31, 2002 quarter, but significantly less than the $1.7 million reported for the same period last year. "Although we commenced two new projects in this quarter, under the Company's revenue recognition policy, revenue in excess of costs is not recognized until a project is at least 25% complete. Unfortunately, this means that the two new contracts will not make a significant contribution to revenue in this quarter," said Castello. "In addition, we expect to recognize a charge against earnings of approximately $300,000 in this quarter as a result of terminating the contract mentioned above. We do not anticipate recognizing any other charges in connection with the termination of that contract." Management anticipates that the Company will report a net loss for the current quarter that will be similar to the net loss reported for the quarter ended March 31, 2002. This compares with a nearly break-even performance for the quarter ended June 30, 2001, before giving effect to that quarter's extraordinary revenue based on accelerated recognition of over $500,000 of Year 2000 revenue. Management presently anticipates increasing revenues in the coming quarter based on the progress of the two new contracts as well as contribution from other contracts that management hopes to sign and commence work on during that quarter. "We are disappointed that we felt compelled to stop work on a contract, a step we have never before taken in our 20 year history," commented Castello. "We are achieving additional process efficiencies and otherwise seeking to manage costs to improve results while we continue to pursue additional contracts." About Forecross -- Founded in 1982 as a high-technology software development laboratory, Forecross Corporation is dedicated to the design and development of innovative conversion software to re-deploy and integrate legacy applications using Internet technologies. Clients have included such leading corporations as Aetna Life Insurance Company, Brown Brothers Harriman & Company, Charles Schwab & Co., BDM BDM Black Divorced Male BDM Business Development Manager BDM Background Debug(ger) Mode BDM Bund Deutscher Mädel (League of German Girls during the Third Reich, akin to Hitler Youth) Technologies, Inc., IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Corporation and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. NTSA NTSA National Training Systems Association NTSA National Tuberous Sclerosis Association NTSA National Technical Services Association NTSA National Training and Simulation Association NTSA National Traffic Safety Administration for its migration software services. Teaming partners of Forecross Corporation include Allen Systems Group, Inc., CIBER CIBER Center for International Business Education and Research (various locations) CIBER Center for International Business and Research (Michigan State University) CIBER Cellular Inter-Carrier Billing Exchange Record , Inc., U.S. Technology Resources and SCB ScB abbr. Latin Scientiae Baccalaureus (Bachelor of Science) Computer Technology. On Behalf of the Board of Directors, FORECROSS CORPORATION Bernadette C. Castello Senior Vice-President and CFO See Chief Financial Officer. Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the company's accounting policies and other risk factors detailed in the Company's SEC and BCSC BCSC British Columbia Securities Commission BCSC British Columbia Supreme Court BCSC British Council of Shopping Centres BCSC Breast Cancer Society of Canada BCSC Breast Cancer Surveillance Consortium BCSC British Columbia Safety Council filings. The U.S. Securities and Exchange Commission has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release, which has been prepared by the Company. Note to Editors: Forecross is a registered trademark of Forecross Corporation. |
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