NetNation Reports Fourth Quarter and Year End 2002 Financials.Business Editors/High-Tech Writers VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Feb. 11, 2003 Year end marks eighth consecutive quarter of profitability and seventh consecutive quarter of positive cash flow for the Company NetNation Communications, Inc. (Nasdaq:NNCI NNCI non-lamellar, non-erythrodermic congenital ichthyosis ), a global web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. provider and domain name registrar An organization that manages Internet domain names. Any person or company that wants a presence on the Internet must register a unique name with one of the many registrars, such as Network Solutions (www.netsol.com) or Go Daddy (www.godaddy.com). , announced today financial results for its fourth quarter and year ended December December: see month. 31, 2002. NetNation posted record yearly revenues for 2002. Annual revenues for the year were US$6,818,316, which was an increase of US$171,883 or approximately three per cent over 2001 revenues. Net earnings for the year were US$938,573 or earnings per share of approximately US$0.06, compared to net earnings of US$757,917 or earnings per share of approximately US$0.05 for 2001. The total cash balance for the year ended December 31, 2002 was US$3,334,561, compared to US$1,678,950 for the year ended December 31, 2001 - an increase of US$1,655,611 or approximately 99 per cent. This increase in cash was generated entirely through Company operations and not through external financing In the theory of capital structure, External financing is the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment. . Fourth Quarter 2002 Results Revenues for the fourth quarter ended December 31, 2002 were US$1,654,497, compared to revenues of US$1,764,324 in the same quarter of 2001 - a decrease of US$109,827 or approximately six per cent. Fourth quarter 2002 marked the eighth profitable quarter for the Company and seventh consecutive quarter of positive cash flow. Net earnings were US$366,106 or approximately US$0.02 per share for the fourth quarter, compared to net earnings of US$515,264 or earnings per share of approximately US$0.03 for the same period in 2001. NetNation's cash balance continued to increase. The cash balance increased to US$3,334,561 from US$2,860,790 at the end of the previous quarter - an increase of US$473,771 or approximately 17 per cent. Selected Financial Data Follows About NetNation Communications, Inc. NetNation Communications, Inc. (http://www.netnation.com) is a pioneer in web hosting and domain name registration. With more than six years in operation, the Company offers enhanced-dedicated servers, co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. , shared hosting and managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality to clients worldwide. NetNation is recognized by industry evaluators for its excellent customer service and support, as reflected by its frequent top web host rankings worldwide. The Company was recently ranked the fourth fastest growing company in British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography by Business in Vancouver magazine Vancouver Magazine is an English-language lifestyle magazine focused on Vancouver, British Columbia and the Lower Mainland. Vancouver Magazine describes its mission as informing, guiding and entertaining residents of a "dynamic, international city. , based on percentage revenue growth from 1997 to 2001. DomainPeople, Inc. (http://www.domainpeople.com), a wholly-owned subsidiary of NetNation Communications, Inc., was the eighth ICANN-accredited domain name registrar and offers registration for the most popular domain extensions - notably dot-com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or , dot-net, dot-org, dot-info, dot-biz, dot-name, dot-ca and dot-us. DomainPeople is a founding member of Afilias Limited, the registry The configuration database in all 32-bit versions of Windows that contains settings for the hardware and software in the PC it is installed in. The Registry is made up of the SYSTEM.DAT and USER.DAT files. Many settings previously stored in the WIN.INI and SYSTEM. selected to operate dot-info and dot-org.
Selected Financial Data
(Expressed in United States dollars)
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Years ended December 31,
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2002 2001 2000
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Sales $ 6,818,316 $ 6,646,433 $ 5,011,859
Cost of sales 2,286,311 2,079,702 1,812,256
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Gross profit 4,532,005 4,566,731 3,199,603
Expenses:
Sales and marketing 1,104,018 1,388,643 2,977,927
General and administration 1,956,629 2,037,689 3,352,296
Write-off of advance - - 500,000
Depreciation and amortization 682,785 632,482 340,977
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3,743,432 4,058,814 7,171,200
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Net earnings (loss) before
income taxes 788,573 507,917 (3,971,597)
Deferred income tax recovery 150,000 250,000 -
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Net earnings (loss)
for the year $ 938,573 $ 757,917 $ (3,971,597)
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Earnings (loss) per share,
basic and diluted $ 0.06 $ 0.05 $ (0.26)
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Weighted average number of
common shares 15,218,131 15,246,145 15,316,804
Total assets $ 5,459,424 $ 4,126,428 $ 3,130,828
Cash and cash equivalents $ 3,334,561 $ 1,678,950 $ 748,745
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This release contains 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. within the meaning of 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. " provisions of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include the following: (1) technological changes or changes in the competitive environment adversely affecting the service-packages, market share, revenues or margins of the combined business; (2) changes in general economic, financial or business conditions adversely affecting the combined business or the markets in which it operates and adversely affecting future revenues; (3) availability of financial resources to carry out plans; and (4) authorization The right or permission to use a system resource; the process of granting access. See access control. from third parties to carry out plans. The matters discussed in this news release also involved risks and uncertainties described from time to time in NetNation's filings with the Securities and Exchange Commission, including the most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on February 11, 2003. NetNation assumes no obligation to update any forward-looking information contained in this news release. NetNation is a registered trademark of NetNation Communications, Inc. and DomainPeople is a trademark of DomainPeople, Inc. All other products and company names are the trademarks or registered trademarks of their respective owners. |
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