NeTrue Communications Reports Third Quarter Year-to-Date Revenues and Financial Results.Business Editors LOS ANGELES--(BUSINESS WIRE)--Nov. 15, 2000 NeTrue Communications Inc. (CDNX CDNX See Canadian Venture Exchange (CDNX). :NTU NTU - Network Termination Unit .U) today reported September 30, 2000 year-to-date revenues of $3.923 million, an increase of $.283 million or 7.8% over revenue realized in the nine months ended September 30, 1999. Product and service revenues were $2.762 million and $1.161 million, respectively, for the nine months ended September 30, 2000. The Company reported a gross profit of $.571 million at September 30, 2000, a decrease of $.889 million, or 61% over gross profit realized in the prior period. 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. were $6.268 million or an increase of 92% over operating expenses reported in the prior period. Gross profit decreased as a result of lower margin integration sales in the first and second quarters and the higher cost of sales related to service revenues. Eric Gurr, Chief Executive Officer, NeTrue Communications said "to deliver value to our shareholders in the long term, NeTrue is investing in building the company's internal sales and marketing resources, and enhancing the business model to increase NeTrue's sales opportunities in the IP communications A general term for networks that use the IP protocol for voice (VoIP) and video traffic. See IP telephony. market." Operating expenses increased as a result of the company's investment in technology development and bringing products to market. Operating expenses also reflected an increase over 1999 due to the inclusion of 9 months of operating expenses from NeTrue Vipersat Networks division. Operating expenses from 1999 included only 4 months of Vipersat operating expenses, from June to September. The Company reported a net loss after non-controlling interest of $5.879 million, or 46 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. as at September 30, 2000 or 18 cents per share a year ago. The net loss includes a non-recurring re-structuring charge of $.909 million. Weighted average shares outstanding increased from 10,333,333 at September 30, 1999 to 12,780,434 at September 30, 2000 primarily as a result of the shares issued during the merger of NeTrue Communications, Inc. with Pickle pickle, general term for fruits or vegetables preserved in vinegar or brine, usually with spices or sugar or both. Vegetables commonly pickled include the beet, cabbage, cauliflower, cucumber, olive, onion, pepper, and tomato. Crow Resources, Inc. The Company reported cash and cash equivalents of $.643 million at September 30, 2000, a decrease of $2.424 million, or 79% over cash and cash equivalents at September 30, 1999. Working capital was $.989 million at September 30, 2000, a decrease of $3.415 million over working capital at September 30, 1999. During the third quarter, NeTrue implemented a plan for Senior Management that significantly strengthened the Company's management, sales and marketing teams with seasoned and experienced personnel, both domestically and overseas. Gurr added, "With the successful integration of the Company's IPT IPT - IP Telephony BackOffice(tm) application to Cisco's platform during the second quarter, the Company finalized its Value Added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. Partner agreement with Cisco during the third quarter. The agreement with Cisco provides facilitation Facilitation The process of providing a market for a security. Normally, this refers to bids and offers made for large blocks of securities, such as those traded by institutions. of the ordering process, joint marketing opportunities, priority support and sales referrals to NeTrue." "In Quarter 3 the NeTrue Vipersat Division finalized the joint venture agreement between the Company and Hutchison Corporate Access (HCA HCA, n.pr See acid, hydroxycitric. ), a subsidiary of the Hutchison Group of Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Telhope Satellite, a subsidiary of China Telecom, together with certain other investors. The NeTrue Vipersat Division shipped and installed our first two-way digital video broadcast over satellite solution. In addition, the Company invested in the formation of a new consulting group which will ensure delivery of higher-margin customer driven service and network management solutions to service providers and enterprises worldwide," concluded Gurr. About NeTrue Communications NeTrue Communications Inc., is a provider of intelligent, software-driven network management solutions for new generation, IP-based communications networks The transmission channels interconnecting all client and server stations as well as all supporting hardware and software. . NeTrue Vipersat Networks is a Satellite Network Solutions provider for private enterprise and public Internet applications utilizing advanced IP technology to support high quality switched multi-media wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. . NeTrue IPT BackOffice(tm) and NeTrueQoS(tm) provide operation and management support for IP voice networks. NeTrue's Global Network incorporates approximately 85 nodes and provides traffic management; clearinghouse and routing services to a global network of communications providers. To learn more about NeTrue and its technology, visit the Web site at www.netrue.com NeTrue, NeTrue Communications, NeTrueQoS, IPT BackOffice and IPT NCC NCC See National Clearing Corporation (NCC). are registered trademarks of NeTrue Communications Inc. NeTrue Communications Third Quarter 2000 Financial Results
NeTrue Communications, Inc.
Consolidated Summary of Operations
(Expressed in thousands of United States Dollars)
Nine months ended September 30
2000 1999
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Revenues
Products $2,762 $2,796
Services $1,161 $844
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$3,923 $3,640
Cost of Sales
Products $2,161 $1,434
Services $1,191 $746
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3,352 2,180
Gross Margin 571 1,460
Operating expenses 6,268 3,257
Other expenses net 182 63
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Net Loss 5,879 1,860
Loss per share .46 .18
NeTrue Communications can be found at www.netrue.com.
The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) Inc. Has Not Reviewed And Does Not Accept Responsibility For The Adequacy Or Accuracy Of This Release. |
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