Worlds.com Reports Revenue For First Quarter 2000.Business Editors/Technology Writers NEW YORK--(BUSINESS WIRE)--May 15, 2000 Worlds.com (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :WDDD), the premier three-dimensional (3D) entertainment portal on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , today reported revenue of $180,023, and a loss of $2,008,495, or $.11 per share, for the first quarter of 2000, ending March 31. This compares to revenue of $35,177 and a loss of $628,238, or $.04 per share, for the corresponding quarter in 1999. The company said that its first advertising campaign, conducted in Boston, New York Boston is a town in Erie County, New York, United States. The population was 7,897 at the 2000 census. The town is named after Boston, Massachusetts. The Town of Boston is an interior town of the county and one of the county's "Southtowns. and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden during the quarter, produced significant and continuing growth in visitor traffic. Total log-ins increased 53 percent from the week prior to the introduction of the advertising to end of the campaign, one month later. "We are extremely pleased with the response to our radio and billboard advertising campaign," said Steven G. Chrust, chairman. "While we advertised in just three markets, we registered increases in all of our key measurement areas: unique users; hours on-line; minutes per log-in, and average log-ins per user. This activity preceded our successful Hanson Concert and 3D chat on May 6. The Chat was particularly significant because it was the first ever 3D Chat utilizing Avatars to ask and respond to questions." Referring to a long-term contract with e-NewMedia, an ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. in Asia, Chrust said, "As a practice, we negotiate upfront payments for development costs of certain Worlds. Even though the development may be complete the revenue is spread over the estimated useful life of the project. "The company received $500,000 in 1999 which is shown as deferred income on the balance sheet," he said. "Such amounts will be recognized into income over 24 months." For the quarter reported today, Chrust said that revenue was affected by the "seasonal" drop-off in e-Commerce as well as "our decision to update our retail systems in order to ensure that they will be able to efficiently transact An earlier e-commerce system for the Web from Open Market that included order capture and secure order fulfillment using credit cards, ecash and other payment systems. It included customer service and subscription administration capabilities as well as an integrated database for reporting our e-Commerce operations as they grow. In the short term, this meant reducing our e-Commerce activity and revenue." Worlds.com also completed a private placement during the quarter that netted $3.7 million to the company. The company's contract with Road Runner road runner: see cuckoo. Road Runner thrives on outwitting Wile E. Coyote. [Comics: “Beep Beep the Road Runner” in Horn, 105] See : Cunning Road Runner , the cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. Internet site jointly-owned by TimeWarner, Microsoft, Compaq, Advance/Newhouse and MediaOne Group MediaOne Group, Inc. was a media/cable TV company that was formed in 1995 as U S WEST Media Group. It was created to eliminate competition between U S WEST's telephone service and cable TV businesses. , was extended during the quarter and a new agreement was signed with Powernet, an ISP in the United Kingdom. "In the first 45 days of the second quarter, we have introduced a new design for our homepage and additional design enhancements to our entertainment portal," Chrust said. "We have more events planned in the coming months and will be opening new e-Commerce stores to take advantage of systems' upgrades." About Worlds.com Worlds.com, the Internet's original 3D entertainment portal, leverages its proprietary technology to offer visitors a network of virtual, multi-user environments that have rich media graphics, text chat, voice-to-voice chat, streaming video A one-way video transmission over a data network. It is widely used on the Web as well as company networks to play video clips and video broadcasts. Computers in home networks stream video to digital media hubs connected to a home theater. and e-commerce. The environments are focused around entertainment interests and targeted communities such as music, sports, and general entertainment environments. In the Worlds' Avatar Gallery, visitors select an avatar (3D character), and customize it into a personal virtual representation of themselves. The avatar is used to travel in and through the various virtual environments and participate in interactive activities involving entertainment, promotions, or e-commerce. Avatars can chat with one another, dance in a nightclub, e-shop, watch video clips A short video presentation. and participate in other activities. Worlds.com is headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . For more information on Worlds.com, please contact Andrew Silver Andrew George Silver (born 13 January 1967 in London, England) is a former international motorcycle speedway rider who represented England at test level. His father is former rider and current speedway promoter Len Silver. &/or Rebecca Fitts, Middleberg & Associates, (212) 699-2589/2663, andys@middleberg.com / rebecca@middleberg.com. Forward Looking Statements. Except for any historical information contained herein, the matters discussed in this news release contain 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. that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. These risks and uncertainties are described in the company's filings with the SEC. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.
Worlds.com First Quarter Results Comparison
(Quarter ending March 31, 2000)
3 Mos. Ending 3 Mos. Ending Change
March 31, 2000 March 31, 1999 From 1999
Revenue $180,023 $35,177 $144,846
Cost
of Revenue 69,951 21,464 48,487
SG&A 2,091,689 615,815 1,475,874
Operating Loss ($1,981,617) ($602,102) ($1,379,515)
Interest Inc 15,751 12,786 2,965
Interest Exp 42,629 38,922 3,707
Net Loss ($2,008,495) ($628,238) ($1,380,257)
Loss per share ($.11) ($0.04) ($.07)
Weighted avg.
common shares
outstanding 17,776,845 17,918,531 (141,686)
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