I-Link Reports Financial Results for the Second Quarter 2000; I-Link Executes Strategic Partnerships and Global Expansion.Business/Technology Editors DRAPER drap·er n. Chiefly British A dealer in cloth or clothing and dry goods. [Middle English, weaver or seller of cloth, from Old French drapier, from drap, cloth; see , Utah--BUSINESS WIRE)--Aug. 10, 2000--I-Link Inc. (Nasdaq: ILNK), an enhanced Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP) voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. company, today announced financial results for the three- and six-month periods ended June 30, 2000. Total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the second quarter 2000 were $7.3 million compared to $8.5 million for the second quarter 1999. Revenues for the six months ended June 30, 2000 were $18.3 million, compared to $15.7 million in 1999, an increase of 17%. For the second quarter, revenues from telecommunication services decreased to $4.6 million compared to $6.2 million in the same period of 1999. The decrease was primarily due to the conversion of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. revenue from retail subscriptions to wholesale revenue. "Fiscal 2000 continues to be a transitional year for I-Link and I am encouraged by our accomplishments over the first half of the year," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of I-Link John Edwards  This article or section contains information about one or more candidates in an upcoming or ongoing election.Content may change as the election approaches. . "Early in the year we successfully transitioned our business from a retail focused model to wholesale, as well as expanded our network globally, which will provide future leverage in expanding our user base for our solutions and enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; ." Technology licensing and development revenues increased 131% to $1.7 million in the second quarter from $755,000 in the second quarter of 1999, due primarily to revenue of $833,000 resulting from the Red Cube relationship. Red Cube paid the company a non-refundable $10 million licensing and consulting fee in May 2000, which is being amortized evenly over a twenty four month period. In the second quarter, I-Link recorded an additional $10 million in non-refundable prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. service revenue. The company anticipates that the $10 million in prepaid
service revenue will begin to be recognized as revenue in the third
quarter of 2000 as services are rendered.
"The second quarter also brought sound developments in establishing strategic partnerships," continued Edwards. "Through our relationship with Red Cube, I-Link has successfully expanded the availability of its enhanced telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. on a global scale. In addition, we have enhanced our product value through our new relationship with 3Com and established the value of the GateLink technology through contracts with five companies that are now hosting and running voice applications on the I-Link network. Strategic partnerships will continue to be a focus of our growth initiatives through this year as we position ourselves to emerge as the industry leader." Net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter of 2000 was $5.9 million, comparable to the $5.8 million for the same period in 1999. The net loss per common share for the second quarter of 2000 was $0.25 as compared to $0.30 for the same period in 1999. For the six months ended June 30, 2000, net loss from continuing operations was $9.7 million, versus $12.7 million for the same period in 1999. Net loss per common share for the six months ended June 30, 2000 was $0.41, compared to a net loss per common share of $0.70 for the same period in 1999. "As a result of the agreement with Red Cube, I-Link has received an aggregate $20 million for prepaid revenue, technology licensing, and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" ," said I-Link CFO See Chief Financial Officer. John Ames. " With the integration of the new global IP network completed ahead of schedule in the second quarter, Red Cube was obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to pay the company an additional $10 million in prepaid service revenue, which was received in July of 2000. Going forward, we look to establish additional strategic partnerships as we continue our initiatives to strengthen our financial profile." About I-Link Headquartered in Draper, Utah Draper is a city in Salt Lake County and Utah County, Utah, United States, located about 20 miles south of Salt Lake City along the Wasatch Front. Between 1990 and 2000 Draper was Utah's fastest-growing city over 5,000 people (as of 2000). , I-Link (Nasdaq: ILNK) is an enhanced voice/data service provider. With its software defined network architecture, I-Link simplifies the delivery of unified communications The real time redirection of a voice, text or e-mail message to the device closest to the intended recipient at any given time. For example, voice calls to desk phones could be routed to the user's cellphone when required. today. I-Link offers a full range of enhanced services such as one-number call routing, caller screening, unified voice, fax, pager and e-mail messaging, voice-and fax-on-demand, conference calling and seamless call transfer from cell phone to land-line and vice-versa via a direct connection to its nationally deployed Internet Protocol telephony network. For further information visit I-Link's Web site at http://www.i-link.net.
I-Link Incorporated
Selected Financial Data
Three months ended June 30, Six months ended June 30,
2000 1999 2000 1999
Net operating
revenue $ 7,337,581 $ 8,456,199 $18,296,746 $15,693,185
Operating loss (6,381,767) (4,112,350) (8,451,303) (9,921,675)
Total other
income (expense) 482,873 (1,709,371) (1,283,092) (2,811,681)
Loss from
continuing
operations (5,898,894) (5,821,721) (9,734,395) (12,733,356)
Loss from
discontinued
operations - - - (350,000)
Net loss (5,898,894) (5,821,721) (9,734,395) (13,083,356)
Net loss per
common share
after preferred
dividends $ (.25) $ (.30) $ (.41) $ (.70)
Weighted average
shares
outstanding 24,901,536 20,799,250 26,026,948 20,037,109
Selected Balance Sheet Information
June 30, 2000 December 31, 1999
Total current assets $ 22,254,657 $ 7,657,327
Total assets 36,336,149 21,658,199
Redeemable preferred stock and
common stock to be issued 11,734,820 14,073,604
Total stockholders' deficit (13,790,784) (11,049,897)
Total liabilities and
stockholders' deficit 36,336,149 21,658,199
The statements made in this release that are not historical facts
contain forward-looking information that involves risks and
uncertainties. Important factors that may cause actual results to
differ include, but are not limited to, the impact of competitive
products and services, the company's ability to manage growth and
acquisitions of technology or businesses, the effect of economic and
business conditions, and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission.
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