eNetpc, Inc. Announces 190.4% Revenue Growth for Third Quarter 2000.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Jan. 17, 2001 eNetpc, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ETPC ETPC Engineering Technology Projects Center ), an Application Service Provider (ASP) specializing in e-commerce PC assembly, delivery and virtual distribution, announced today sales and earnings for its third quarter ended November 30, 2000. Sales increased $2.4 million, or 190.4%, to $3.6 million in the three months ended November 30, 2000 compared to $1.2 million for the same period last year. The increase in sales is attributable to the Virtual Distribution division, which had sales of $3.1 million for the third quarter of fiscal 2001. eNetpc reported that gross profit for the three months ended November 30, 2000 was $133,050, or 3.7% of sales, a decrease of $93,299 from gross profit of $226,349, or 18.3% of sales, in the prior year. The decrease in gross profit is due primarily to lower gross profit margins 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. on sales in the Virtual Distribution division which is becoming a larger percentage of the overall volume, and one time charges due to obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. . 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, "While we are pleased with our third consecutive quarter of triple digit revenue growth, we are even more excited about the prospect of our future. Our eSelect v2.0 software has proven to be more popular than originally anticipated. We surpassed our internal goal of 50 contracts by year-end with 62 and 40 of the e-commerce sites are now live. This truly demonstrates the enterprise reliability of our 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 application." eNetpc Announces 3rd Quarter Results January 15, 2000 page 2 of 3 General and administrative expenses decreased from 22.7% of sales in the third quarter of fiscal 2000 to 12.6% of sales in the third quarter of fiscal 2001. General and administrative expenses increased $172,239 to $452,343 in the three months ended November 30, 2000, from $280,104 in the three months ended November 30, 1999. $61,679 of general and administrative expenses was attributable 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. The lower percentage of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight is due to the increase in sales volume. The net loss for the third quarter ended November 30, 2000 was $447,178, or $(0.10) per share, compared to a net loss of $44,063, or $(0.01) per share, for the same period last year. Of the $447,178 loss for the three months ended November 30, 2000, $61,679 was due to amortization of non-cash expenses related to deferred option compensation. Also contributing to the net loss for the third quarter in fiscal 2001 were increased investments in the development of the company's ASP software eNetpc(TM), and one-time charges due to obsolete inventory.
Results for the Three Months ended November 30, 2000 and 1999
FY 2001 FY2000 Percent Change
------- ------ --------------
Net Sales $3,587,011 $1,235,027 190.4%
Net Earnings (Loss) $ (447,178) $ (44,063)
(Loss) as a Percentage of Sales (12.5)% (3.6)%
Basic and Diluted Earnings
(Loss) per Share $ (0.10) $ (0.01)
Results for the Nine Months ended November 30, 2000 and 1999
FY 2001 FY2000 Percent Change
------- ------ --------------
Net Sales $10,167,654 $3,350,049 303.5%
Net Earnings (Loss) $ (839,058) $ (209,392)
(Loss) as a Percentage of Sales (8.2)% (6.2)%
Basic and Diluted Earnings
(Loss) per Share $ (0.19) $ (0.05)
Selected Balance Sheet Items
Nov 30, 2000 Feb 29, 2000
------------ ------------
Cash $ 419,150 $ 496,486
Accounts Receivable, net $1,421,296 $ 574,506
Total Current Assets $2,126,383 $1,396,719
Total Assets $2,398,330 $1,519,197
Total Current Liabilities $ 795,653 $ 317,379
Total Shareholders' Equity $1,602,677 $1,201,818
Total Liabilities and Equity $2,398,330 $1,519,197
About eNetpc, Inc. Traded on the OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :BB (ETPC), eNetpc, Inc. 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.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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