VCampus Announces First Quarter Financial Results.RESTON Reston, uninc. city (1990 pop. 48,556), Fairfax co., N Va., a planned community established in 1961. A suburb of Washington, D.C., Reston is organized in a series of residential villages and commercial areas. , Va. -- Revenue grows more than 14% from the fourth quarter of 2004 driven by 200% quarter over quarter growth in Select Partner(TM) course registrations VCampus VCampus Corporation, once known as University Online (UOL), specializes in providing certification offerings for non-profit, government and profit-based certifications. As University Online, the company was involved in the historically significant PLATO project. Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :VCMP VCMP Vice City Multi-Player (gaming, Grand Theft Auto Online Mod) VCMP Voice Call Management Protocol ), a provider of comprehensive e-Learning (Electronic-LEARNING) An umbrella term for providing computer instruction (courseware) online over the public Internet, private distance learning networks or inhouse via an intranet. See CBT. publishing and hosting services to corporations, government agencies, associations and credentialing Credentialing is the administrative process for validating the qualifications of licensed professionals, organizational members or organizations, and assessing their background and legitimacy. organizations, today announced its financial results for the first quarter ended March 31, 2005. The company reported revenue of $1,128,582 compared to revenue of $987,228 in the fourth quarter of 2004 and $1,494,052 in the same period a year earlier. These total revenue amounts include online tuition For tuition fees in the United Kingdom, see . Tuition means instruction, teaching or a fee charged for educational instruction especially at a formal institution of learning or by a private tutor usually in the form of one-to-one tuition. revenue of $1,023,095 compared to $852,389 in the fourth quarter of 2004 and $1,409,503 in the same period a year earlier. During the first quarter, the company recorded a non-cash charge 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. of approximately $447,000, which represents amortization of debt discount and deferred debt offering costs related to the issuance of $3,649,625 (March 31, 2005 principal amount $1,833,182) of convertible promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. in March 2004. Including this non-cash charge, VCampus reported a net loss in the first quarter of $1,902,673, or $0.22 per share, compared to a net loss of $789,205 or $0.15 per share, for the first quarter of 2004 and $1,723,863, or $0.22 per share, for the fourth quarter of 2004. The company ended the quarter with $2.70 million in cash compared to $2.63 million at the end of 2004. First quarter enrollment in the previously released security courses offered in preparation for the (ISC (1) (Internet Systems Consortium, Redwood City, CA www.isc.org) An organization founded by Paul Vixie, Carl Malamud and Rick Adams in 1994 and later sponsored by UUNET and other Internet companies. )2 CISSP (Certified Information Systems Security Professional) The award for successful completion of an examination in computer security administered by the International Information Systems Security Certification Consortium (ISC)2. (R) and SSCP (1) (System Services Control Point) A controlling program in an SNA domain. It resides in the host and is a component within VTAM. See also SCCP. (R) exams increased more than 200% from the fourth quarter of 2004. In addition, during the first quarter, the company continued the rollout of Select Partner courses with the release of: End of Life Pain Management (for the National Council of State Boards state boards Examinations administered by a US state board of medical examiners to license a physician in a particular state; these examinations play an ever-decreasing role in state medical licensure, as these bodies now rely on standardized national examinations of Nursing), a continuing education continuing education: see adult education. continuing education or adult education Any form of learning provided for adults. In the U.S. the University of Wisconsin was the first academic institution to offer such programs (1904). course for nurses; and the Series 86 and Series 87 Exam Preparation Courses (for FT Knowledge). Each FT Knowledge course is in preparation for separate required certifications for financial analysts. "We expect the healthy growth in Select Partner course revenue to continue in the second quarter driven not only by the current library, which includes, the recent release of the Certified See certification. Federal Contracts Manager Certification Preparation Course, but also the upcoming release of the Fundamentals of Working Capital, a continuing education course for corporate treasurers and Derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. : Debunking de·bunk tr.v. de·bunked, de·bunk·ing, de·bunks To expose or ridicule the falseness, sham, or exaggerated claims of: debunk a supposed miracle drug. Myths and Building Boardroom Support," said Nat Kannan, 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 VCampus Corporation. "We see growth in the demand for high quality, media rich courses to prepare professionals for must-have credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. and continuing education," continued Mr. Kannan. "By partnering with brand name institutions with deep subject matter expertise, the Select Partner program addresses the needs of over 20 million professionals in the US, including information security practitioners, project managers, financial service professionals and health care workers, which collectively represent a huge opportunity for VCampus." "Our financial performance in the last two quarters confirms our belief that the third quarter of 2004 represents the trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. in the transition from our old legacy model to our new Select Partner model," said Christopher Nelson, Chief Financial Officer of VCampus Corporation. "Our solid balance sheet will provide us with the means to further develop and market Select Partner courses and continue this transition." Conference Call and Webcast Mr. Kannan and Mr. Nelson will hold a conference call to discuss the third quarter financial results and business outlook. The call is scheduled for 4:30 pm Eastern Time today. Interested parties may participate by dialing (888) 396-2369. International callers may dial (617) 847-8710. Please enter the passcode 18001679. This call is also being webcast by Thomson/CCBN and can be accessed at the VCampus web site at www.vcampus.com. The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com). A replay of the call will be available via telephone from approximately 6:30 pm Eastern Time on May 4, 2005 until 6:30 pm Eastern Time on May 9, 2005. To listen to the replay, participants in the U.S. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of should dial (888) 286-8010, and international participants should dial (617) 801-6888. The conference ID for the replay is 41668299. About VCampus(R) VCampus Corporation (NASDAQ:VCMP), a provider of comprehensive e-Learning services, helps organizations that offer professional certifications Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure that he/she is qualified to perform a job or task. and credentials unlock the value of their traditional branded course content. Through its innovative Select Partner(TM) Program, VCampus repurposes value-added training content for online delivery to enhance and support professional development programs. The Select Partner Program provides custom course development, publishing, hosting, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , reporting, account support and marketing services. With over a decade of e-Learning experience, VCampus has delivered 2.9 million courses to 920,000 desktops/users in associations, non-profits, corporations, government agencies and higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. institutions. VCampus distributes a courseware Educational software. See CBT and OpenCourseWare. (application) courseware - Programs and data used in Computer-Based Training. library of more than 5,000 web-based courses. VCampus Corporation is headquartered in Reston, VA. For more information, call 800-915-9298, or visit the VCampus Web site at www.vcampus.com. "VCampus" is a registered trademark and "Select Partner" is a trademark of VCampus Corporation. This press 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 federal 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. Statements contained herein that are not statements of historical fact are forward-looking. Without limiting the foregoing, references to future growth or expansion or scheduled product launch dates are forward-looking, and words such as "anticipates," "believes," "could," "estimate," "expect," "intend," "may," "might," "should," "will," and "would" and other forms of these words or similar words are intended to identify forward-looking information. You should read statements that contain these words carefully because they discuss our future expectations contain projections of our future results of operations or of our financial position or state other forward-looking information. There might be events in the future that we are not able to predict accurately or control, and any forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially. These risks and uncertainties include: (1) our history of losses, projection of future losses and our need to raise additional capital; (2) market acceptance of our new and future products; (3) uncertainties regarding the successful implementation of our Select Partner Program or the timely release of products; (4) growing competition; and (5) our ability to maintain and manage our growth. For additional information regarding risk factors that could affect our future results, please refer to the discussions of "Risk and Uncertainties" in our Annual Report on 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. for the year ended December 31, 2004 and other SEC filings.
VCampus Corporation
Consolidated Statements of Operations
Three Months Ended
March 31, December 31, March 31,
----------- ------------ ------------
2004 2004 2005
----------- ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Revenues:
Online tuition revenues $1,409,503 $ 852,389 $ 1,023,095
Development and other revenues 53,614 134,839 105,487
Other service revenues 30,935 -- --
----------- ------------ ------------
Net revenues 1,494,052 987,228 1,128,582
Costs and expenses:
Cost of revenues 364,803 325,186 459,468
Sales and marketing 586,902 471,234 518,409
Product development and
operations 580,251 647,270 712,732
General and administrative 446,177 384,344 442,570
Depreciation and amortization 248,934 323,961 368,626
Stock-based compensation 29,478 46,499 48,995
----------- ------------ ------------
Total costs and expenses 2,256,545 2,198,494 2,550,800
----------- ------------ ------------
Loss from operations (762,493) (1,211,266) (1,422,218)
Other income -- 9,311 --
Interest expense and
amortization of debt discount
and debt offering costs, net (26,712) (521,908) (480,455)
----------- ------------ ------------
Net loss attributable to common
stockholders $ (789,205) $(1,723,863) $(1,902,673)
=========== ============ ============
Net loss per share to common
stockholders,
basic and diluted $ (0.15) $ (0.22) $ (0.22)
=========== ============ ============
Weighted average number of
shares outstanding, basic and
diluted 5,272,587 7,748,578 8,518,708
=========== ============ ============
VCampus Corporation
Consolidated Balance Sheets
December 31, March 31,
------------ ------------
Assets 2004 2005
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 2,632,504 $ 2,700,010
Accounts receivable, net 283,101 294,219
Loans receivable from related parties 49,783 41,375
Prepaid expenses and other current assets 665,663 437,279
------------ ------------
Total current assets 3,631,051 3,472,883
Property and equipment, net 523,662 469,418
Capitalized software costs and courseware
development costs, net 1,826,745 1,786,568
Other assets 418,684 357,942
Other intangible assets, net 390,502 345,754
Goodwill, net 328,317 328,317
------------ ------------
Total assets $ 7,118,961 $ 6,760,882
============ ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 575,183 $ 701,757
Accrued expenses 318,478 593,042
Notes payable -- current portion 66,207 112,387
Deferred revenues 851,118 625,837
------------ ------------
Total current liabilities 1,810,986 2,033,023
Long-term liabilities
Notes payable -- less discount and current
portion 463,446 487,010
------------ ------------
Total liabilities 2,274,432 2,520,033
Commitments and contingencies: -- --
Stockholders' equity:
Common Stock 84,611 93,411
Additional paid-in capital 101,732,238 103,022,431
Accumulated deficit (96,972,320) (98,874,993)
------------ ------------
Total stockholders' equity 4,844,529 4,240,849
------------ ------------
Total liabilities and stockholders'
equity $ 7,118,961 $ 6,760,882
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion