Vsource Inc. Announces Financial Results for Fiscal Q3 Ended October 31, 2001; Revenues Increase By More Than Fifteen Fold Versus Similar Quarter Last Year.
Vsource Inc. (Nasdaq: VSRC), a market leader in providing customized Business Process Outsourcing (BPO) and Distribution Services into Asia-Pacific, today announced its financial results for the third quarter and nine months ended October 31, 2001.
Revenues for the third quarter and nine months totaled $2,400,600 and $3,548,600, respectively, compared to $151,500 and $214,000, respectively, for the same periods one year ago. Net loss before non cash interest charges relating to the beneficial conversion features of convertible securities and deemed dividends on preferred stock for the third quarter was $5,500,800 and for the nine months $12,926,700, compared to net losses before non cash interest charges of $5,827,200 and $18,537,700, respectively, for the same periods in the prior year. Net loss for the third quarter was $7,851,000 and for the nine months $19,467,600, compared to net losses of $5,838,200 and $18,537,700, respectively, for the same periods in the prior year. Net loss available to common shareholders was $7,851,000 for the third quarter and $21,563,000 for the nine months, compared to net losses available to common shareholders of $13,465,700 and $33,033,600, respectively, for the same periods one year ago. Net loss per common share was $0.37 for the third quarter and $1.09 for the nine months, compared to net losses per common share $0.78 and $2.02, respectively, for the same periods in the prior year.
A majority of the revenues recorded in the third quarter were derived from the company's resale of Gateway Inc.'s products in Hong Kong and Singapore. As announced in a separate press release, Gateway will cease future sales of its products in Asia-Pacific, effectively ending this agreement. However, Vsource recently announced that it has entered into a separate, three-year contract with Gateway appointing Vsource as the exclusive service and support provider for existing Gateway customers in Asia-Pacific, beginning on November 1, 2001. Revenues are expected to exceed more than $30 million over the life of the contract.
"The third quarter of Fiscal Year 2002 was a transformational one for our company," said Phil Kelly, chairman and chief executive officer of Vsource. "We made significant progress towards our goal of an increased client base of premier Fortune 500 and Global 500 companies. Additionally, we expanded upon existing relationships, as with our arrangement with Gateway, while simultaneously engaging in discussions with future clients; discussions expected to result in additional multi-year, multi-million dollar contracts for Vsource BPO Services in the Fourth Quarter."
Kelly added: "The Gateway contract combined with the prospects of new contracts are expected to have a material positive impact on our operating performance beginning in the Fourth Quarter of FY2001. Revenue in Q4 is forecast between $6 million to $8 million, representing a sequential quarterly revenue growth of 149.9 percent to 233.3 percent, compared to the company's performance in Q3. We expect operating income in the period to improve significantly as a result."
Vsource Inc., based in Ventura California, focuses on providing Business Process Outsourcing (BPO) and Distribution Services to Fortune 500 and Global 2000 organizations wanting to expand into or across Asia-Pacific or streamline their existing operations into the region. Vsource's range of services and infrastructure include traditional BPO services: Payroll and Financial Services, Customer Relationship Management (CRM) and Supply Chain Management (SCM), as well as Distribution Services, which include Sales and Marketing Services, Market Research and Operations Solutions. Vsource has offices in Hong Kong, Singapore, Malaysia (including a 39,000-square-foot-customer center), the United States and Japan. Vsource's customers include Gateway, AIG, EMC, Network Appliance, Cosine Communications, Credit Suisse First Boston, HSBC Investment Bank Asia, Miller Freeman, and other Fortune 500/Global 2000 companies.
For more information, visit the company's Web site: www.vsource.com .
Forward Looking Statements
Some of the statements in this document constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance and achievements expressed or implied by these forward-looking statements. Although management believes that the expectations reflected in the forward-looking statements are reasonable, there is no guarantee that future results, levels of activity, performance or achievements will be attained. Moreover, neither management nor any other person assumes responsibility for the accuracy and completeness of these statements.
For further information, please contact Paul Lieber, firstname.lastname@example.org, or Hilary Kaye, both of Hilary Kaye Associates, +1-714-426-0444, for Vsource Inc.
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|Date:||Nov 20, 2001|
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