FutureLink Corp. Announces First Quarter 2000 Results.Business EditorsIRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--May 10, 2000 - Revenue of $22.6 Million, Up 1229% Year-Over-Year - - First Quarter Revenue Up 163% Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen - - Loss Per Share of $0.20 Excluding Goodwill Amortization - - 26 New ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). Customers Signed In Quarter - FutureLink Corp. (Nasdaq: FTRL), The Application Utility Company(tm), today announced revenue of $22.6 million for the quarter ended March 31, 2000, a 1229% increase as compared to $1.7 million for the same period last year. This also represents a 163% sequential One after the other in some consecutive order such as by name or number. increase in revenue from the $8.6 million reported for the quarter ending December December: see month. 31, 1999. FutureLink's pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenue for the first quarter of 2000 was $27.1 million compared to pro forma revenue of $20.8 million in the first quarter of 1999. Pro forma revenue assumes that the acquisitions of Micro Visions, CNI (1) (Certified NetWare Instructor) See Novell certification. (2) (Coalition for Networked Information, Washington, DC, www.cni.org) A partnership of the Association of Research Libraries, CAUSE and EDUCOM, founded in 1990. , Async, KNS KNS Knoxville News-Sentinel (Knoxville, Tennessee) KNS Korea News Service KNS King Island, Tasmania, Australia - King Island (Airport Code) Holdings, Madison Madison, cities, United States Madison. 1 City (1990 pop. 12,006), seat of Jefferson co., SE Ind., on the Ohio River; settled c.1806, inc. 1838. It is a port of entry and a tobacco marketing center. Group and VSI VSI Vinyl Siding Institute VSI Voltage Source Inverter VSI Virtual Switch Interface VSI Vertical Speed Indicator VSI Voluntary Separation Incentive VSI Virtual Socket Interface VSI Vision Systems International VSI Vertical Shaft Impactor had been completed on January January: see month. 1, 1999. For the quarter ending March 31, 2000, the Company reported $536,000 in ASP revenues with 49 ASP customers under contract, representing a 114% increase in ASP revenues over the prior quarter ended December 31, 1999. FutureLink's ASP contract value, defined as the unbilled un·billed adj. 1. Not having been billed or charged for: unbilled medical charges. 2. Appearing, as in a movie, without being credited: an unbilled walk-on. value of recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue service contracts and excluding hardware and software sales, was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.1 million, a 58% sequential increase over the quarter ended December 31, 1999. The average monthly recurring revenue per customer for ASP customers under contract as of March 31, 2000 was $5,245 per customer. FutureLink's server-based computing Refers to applications that run in a server. Also known as "thin client computing," it may refer to a browser-based environment that uses a Web browser as the client with all applications running on a Web server on the Internet or in an intranet on the LAN. business reported revenues of $14.2 million for the quarter ended March 31, 2000, compared with $6.3 million in the quarter ended December 31, 1999, representing a 125% sequential increase. FutureLink's international consulting and distribution businesses reported revenues of $7.9 million for the quarter ended March 31, 2000 as compared with $2.0 million in the quarter ended December 31, 1999, representing a 295 % sequential increase. For the quarter ended March 31, 2000, FutureLink reported EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of negative $8.3 million and a net loss of $23.1 million, or $0.42 per share, compared to an EBITDA of negative $1.4 million and a net loss of $3.1 million, or $0.53 per share, for the same period last year. Included in the net loss for the quarter ended March 31, 2000 were non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and provisions of $13.3 million for depreciation and amortization and $1.2 million for non-cash stock and warrant compensation costs. Earnings per share for the quarter ended March 31, 2000, excluding goodwill amortization, was a loss of $0.20. "We are extremely pleased with our performance this quarter," said Philip Philip, tetrarch of Ituraea Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. R. Ladouceur, chairman and chief executive officer of FutureLink Corp. "We signed 26 new ASP customers and expanded and deepened our strategic alliances and software vendor relationships. In addition, subsequent to the close of the quarter, we opened a new data center in the United Kingdom which is the next step in our global expansion and marks the availability of our application hosting services for the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. ASP marketplace." "The integration of the six acquisitions we have completed in the last six months are proceeding as planned. Our integration teams have already determined roles for the acquired company's management within the FutureLink organization and we are well on our way toward completing a sales program to educate the staff at our acquired companies on the opportunities in the ASP market," continued Mr. Ladouceur. "We are executing on our overall strategy model of leveraging our server-based computing expertise to build our ASP business, reflected in the rapid quarter over quarter growth in ASP. We will continue to follow our business model to be a leading ASP provider." "Since January 1st, Pequot Pequot (pē`kwŏt), Native North Americans whose language belongs to the Algonquian branch of the Algonquian-Wakashan linguistic stock (see Native American languages). Capital has continued to support us through additional cash infusions totaling over $33 million dollars, which includes $15 million received subsequent to March 31st," concluded Mr. Ladouceur. "This gives us a strong cash position as we move forward." Significant corporate events include: - FutureLink opened its first European data center, based in the United Kingdom. As the next step in FutureLink's ongoing global expansion plans, FutureLink will leverage this data center to provide European customers with server-based computing (SBC) solutions. - FutureLink announced a three year contract with Gold's Gym to provide application hosting services. Gold's will outsource the hosting and maintenance of several business-critical applications, including Microsoft Office, Microsoft Exchange and Legend, a health club management application. - FutureLink launched WorkForceIQ.com. WorkForceIQ.com provides companies with a turnkey business productivity solution enabling small and medium-sized businesses to offer any or all of their employees convenient, low-cost access to the same productivity-enhancing training materials available in Fortune 2000 companies. WorkForceIQ.com aggregates more than 1000 interactive courses from e-Learning content providers such as Ziff-Davis Education/element K, SkillSoft and NETg, among others. - FutureLink partnered with Packeteer to create new service-quality options for ASP customers. FutureLink is to use Packeteer's AppVantage product to allocate customer bandwidth proactively by managing the performance, provisioning, validation, service levels and billing for an extensive portfolio of application services. This allows FutureLink to exert proactive control over a customer's quality of service. - FutureLink announced an agreement to add Panorama Business Views' PBViews, a suite of powerful business management tools, to its portfolio of managed applications. - FutureLink announced a partnership with Merisel to provide U.S. resellers with an ASP offering through Merisel's North American Distribution business. - FutureLink introduced three standardized ASP product offerings. The standardized offerings will make it easier for FutureLink's channel partners to sell and price its ASP services as well as improve prospective customers' understanding of its ASP service options. - FutureLink launched its new website, complete with an entirely new corporate logo, new design and content, and new collateral. The website can be found at http://www.futurelink.net. - FutureLink announced new ASP channel programs. The two new programs, designed to provide support to the channel partners through which it sells ASP services, will provide education and pricing guidelines designed to help the channel partners sell ASP services more easily and knowledgeably. Subsequent to the quarter: - FutureLink opened its first European data center, based in the United Kingdom. As the next step in FutureLink's ongoing global expansion plans, FutureLink will leverage this data center to provide European customers with server-based computing (SBC) solutions. - FutureLink announced a three year contract with Gold's Gym to provide application hosting services. Gold's will outsource the hosting and maintenance of several business-critical applications, including Microsoft Office, Microsoft Exchange and Legend, a health club management application. - FutureLink launched WorkForceIQ.com. WorkForceIQ.com provides companies with a turnkey business productivity solution enabling small and medium-sized businesses to offer any or all of their employees convenient, low-cost access to the same productivity-enhancing training materials available in Fortune 2000 companies. WorkForceIQ.com aggregates more than 1000 interactive courses from e-Learning content providers such as Ziff-Davis Education/element K, SkillSoft and NETg, among others. - FutureLink partnered with Packeteer to create new service-quality options for ASP customers. FutureLink is to use Packeteer's AppVantage product to allocate customer bandwidth proactively by managing the performance, provisioning, validation, service levels and billing for an extensive portfolio of application services. This allows FutureLink to exert proactive control over a customer's quality of service. - FutureLink announced an agreement to add Panorama Business Views' PBViews, a suite of powerful business management tools, to its portfolio of managed applications. - FutureLink announced a partnership with Merisel to provide U.S. resellers with an ASP offering through Merisel's North American Distribution business. - FutureLink introduced three standardized ASP product offerings. The standardized offerings will make it easier for FutureLink's channel partners to sell and price its ASP services as well as improve prospective customers' understanding of its ASP service options. - FutureLink launched its new website, complete with an entirely new corporate logo, new design and content, and new collateral. The website can be found at http://www.futurelink.net. - FutureLink announced new ASP channel programs. The two new programs, designed to provide support to the channel partners through which it sells ASP services, will provide education and pricing guidelines designed to help the channel partners sell ASP services more easily and knowledgeably. About FutureLink FutureLink, The Application Utility Company(tm), is one of the founders of the Application Service Provider (ASP) industry and a founding member of the ASP Industry Consortium (Application Service Provider Industry Consortium, Wakefield, MA) A now disbanded trade organization founded in 1999 dedicated to research and standards in the application service provider (ASP) industry. . FutureLink's ASP Division provides businesses with off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off , Internet-based computing computing - computer . The company's Server-Based Computing Division builds application server farms and provides Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. and Citrix (Citrix Systems, Inc., Ft. Lauderdale, FL, www.citrix.com) The leader in access infrastructure solutions, which includes network access, single sign-on, VPN capabilities, presentation services, remote control and remote support applications. application server software integration services. With server-based computing solutions, FutureLink's customers manage their own server farms while utilizing FutureLink's consulting expertise. For more information, contact FutureLink toll-free at (877) 216-6001; e-mail: sales@futurelink.net; or visit the FutureLink Web site at http://www.futurelink.net. (a) A registration statement relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful Contrary to or unauthorized by law; illegal. When applied to promises, agreements, or contracts, the term denotes that such agreements have no legal effect. The law disapproves of such conduct because it is immoral or contrary to public policy. prior to registration or qualification under the securities laws of any such State. These securities are not being offered in any jurisdiction where unlawful or not permitted. 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 comments in this news release are made pursuant to 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 Securities Exchange Act of 1934. Such statements relating to, among other things, the prospects for the company, including the completion of any acquisition transaction or the achievement of future operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These risks may be further discussed in periodic reports and registration statements to be filed by the company from time to time with the Securities and Exchange Commission in the future. FutureLink, the FutureLink logo and The Application Utility Company are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. registered trademarks of FutureLink, Inc. All other products and services are the trademarks and/or registered trademarks of their respective owners.
FutureLink Corp.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
UNAUDITED
For the three months ended
March 31,
----------
2000 1999
---- ----
Revenue $ 22,644 $ 1,744
---------- --------
Expenses
Cost of goods sold 14,074 353
Cost of service delivery 3,666 1,108
Selling, general and administration 13,211 1,720
Depreciation and other amortization 1,494 161
Goodwill amortization 11,783 500
Non cash stock and warrant
compensation expense 1,215 125
------- -----
45,443 3,967
------ ------
Loss from operations (22,799) (2,223)
Interest expense, net 203 998
---- ---
Loss before income taxes (23,002) (3,221)
Provision (benefit) for income taxes 118 (119)
------ ------
Net loss for the period $ (23,120) $ (3,102)
========== =========
Loss per share -- basic and diluted $ (0.42) $ (0.53)
========= =========
Loss per share -- basic and diluted,
excluding goodwill amortization $ (0.20) $ (0.45)
======== ========
Weighted average shares --
basic and diluted (1) 55,369,965 5,813,993
=========== =========
EBITDA Loss (2) $ (8,307) $ (1,437)
========= ==========
(1) Reflects the Company's June 1, 1999 5 for 1 reverse stock split of
its common stock.
(2) Defined as loss before interest, taxes, depreciation, amortization
and non cash stock and warrant expense.
FutureLink Corp.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
UNAUDITED
March 31, December 31,
2000 1999
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 3,395 $ 19,185
Restricted cash 2,138 3,099
Accounts receivable, net 22,230 14,284
Inventory 5,981 4,964
Prepaid expenses 1,628 536
Deferred offering and
acquisition costs 2,296 -
----- -----
Total current assets 37,668 42,068
Property and equipment 16,467 10,972
Goodwill and other
intangibles, net 262,687 186,866
Deposits for acquisitions 173 543
Other assets 374 229
---- ---
Total assets $ 317,369 $ 240,678
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Lines of credit $ 961 $ 1,657
Accounts payable and accrued
liabilities 24,693 15,811
Settlement payable - 5,000
Current portion of long-term debt 17,865 8,554
Deferred revenue 1,921 1,330
------ -----
Total current liabilities 45,440 32,352
Long term debt, less current portion 7,231 4,116
Convertible debentures, net 653 874
Deferred taxes 588 588
---- ---
Total liabilities 53,912 37,930
Total Stockholders Equity 236,457 202,748
Total liabilities and Stockholders'
equity $ 317,369 $ 240,678
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