eNetpc, Inc. Announces 229.7% Revenue Growth for Second Quarter, 2000.Business EditorsMINNEAPOLIS--(BUSINESS WIRE)--Oct. 13, 2000 eNetpc, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ETPC ETPC Engineering Technology Projects Center ), an Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) specializing in e-commerce PC assembly, delivery and virtual distribution, announced today sales and earnings for its second quarter ended August 31, 2000. Sales increased $2.3 million, or 229.7%, to $3.3 million in the three months ended August 31, 2000 compared to $1.0 million for the same period last year. The increase in sales is attributable to the Virtual Distribution division with sales of $2.7 million for the second quarter of fiscal 2001. eNetpc reported that gross profit for the three months ended August 31, 2000 was $388,943, or 11.7% of sales, an increase of $211,765 over gross profits of $177,178, or 17.6% of sales, in the prior year. The increase in gross profit is due primarily to increased sales volume, while the decrease in the gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. results from lower gross profit margins on sales in the Virtual Distribution division. Jonathan Bumba, President 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. stated, "We are very pleased with the progress of our Maximum-Choice business model." " By offering complete e-commerce B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business solutions, we continue to help our partners move from innovation to implementation." Bumba continued to say, "eNetpc will continue to invest in the technology the new world economy demands. Our exclusive B2B software, eSelect 2.0, has shown its ability to provide unique technology for any e-commerce company of any size." General and administrative expenses decreased from 26.7% of sales in the second quarter of fiscal 2000 to 14.3% of sales in the second quarter of fiscal 2001. This represents an increase of $206,026 from $267,896 in the three months ended August 31, 1999 to $473,922 in the three months ended August 31, 2000. The net loss for the second quarter ended August 31, 2000 was $208,053, or $(0.05) per share, compared to a net loss of $94,942, or $(0.02) per share, for the same period last year. Of the $208,053 loss for the three months ended August 31, 2000, $64,919 was due to amortization of non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to deferred option compensation. Also contributing to the net loss for the second quarter in fiscal 2001 were increased investments in staff and continued development of the company's ASP software eNetpc(TM). Results for the Three Months ended August 31, 2000 and 1999 2nd Quarter Ended 08/31 FY 2001 FY 2000 Percent Change ----------------------- ------- ------- -------------- Net Sales $3,313,280 $1,004,822 229.7% Net Earnings (Loss) $ (208,053) $ (94,942) (Loss) as a Percentage of Sales (6.3)% (9.4)% Basic and Diluted Earnings (Loss) per Share $ (0.05) $ (0.02) Results for the Six Months ended August 31, 2000 and 1999 2nd Quarter Ended 08/31 FY 2001 FY 2000 Percent Change ----------------------- ------- ------- -------------- Net Sales $6,570,701 $2,156,292 204.7% Net Earnings (Loss) $ (391,881) $ (165,415) (Loss) as a Percentage of Sales (6.0)% (7.7)% Basic and Diluted Earnings (Loss) per Share $ (0.09) $ (0.04) Selected Balance Sheet Items as of August 31, 2000 and 1999 2nd Quarter Ended 08/31 FY 2001 FY 2000 ----------------------- ------- ------- Cash $ 766,871 $ 496,486 Accounts Receivable $ 893,191 $ 574,506 Total Current Assets $2,165,490 $1,396,719 Total Assets $2,413,774 $1,519,197 Total Current Liabilities $ 425,597 $ 317,379 Total Shareholders' Equity $1,988,177 $1,201,818 Total Liabilities and Equity $2,413,774 $1,519,197 About eNetpc Traded on the OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :BB (ETPC.OB), eNetpc specializes in e-commerce software for B2B online PC configuration, delivery and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. on the internet. More company information can be found at www.cyberstarpc.com or www.enetpc.com. Any statements contained herein related to future events are 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. and are made pursuant to 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 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 upon eNetpc's current expectations and judgments about future developments in eNetpc's business and may be affected by several factors, including, without limitation, delays in or increased costs of production, delays in or lower than anticipated sales of eNetpc's products and general conditions in the computer industry. Readers are cautioned not to place undue reliance on forward-looking statements. eNetpc undertakes no obligation to update any such statements to reflect actual events. |
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