ICC Announces First Quarter Fiscal 2004 Financial Results NEW YORK, Dec. 11 /PRNewswire-FirstCall/ -- Internet Commerce Corporation ("ICC" or the "Company") , a leader in the e-commerce business-to-business communication services market, today announced financial results for its fiscal first quarter ended October 31, 2003. (Logo: http://www.newscom.com/cgi-bin/prnh/20030611/ICCALOGO ) G. Michael Cassidy, President and Chief Executive Officer of ICC, commented, "We are pleased that during the first quarter of fiscal 2004, our core VAN services revenue grew 20.9% compared to the first quarter in the year-ago period. Our operational leverage will improve as our network products and services grow and drive our bottom line results in the remainder of fiscal 2004." Consolidated Three-Month Results -- Consolidated revenue for the first quarter of fiscal 2004 remained relatively flat at $3.1 million. -- Gross margin for the first quarter of fiscal 2004 improved to 40.1% from 38.4% for the first quarter in the year-ago period. -- The Company narrowed its net loss to $818,000, or $0.07 per diluted share in the first quarter of fiscal 2004, from a net loss of $982,000, or $0.09 per diluted share, last year. Consolidated Three-Month Results - Earnings before interest, taxes, depreciation, amortization, impairment and non-cash charges (Adjusted EBITDA). Adjusted Gross Margin represents gross margin less depreciation and amortization. Refer to Supplemental Financial Data below for a reconciliation of Net Income to Adjusted EBITDA and Gross Margin to Adjusted Gross Margin. -- Adjusted EBITDA for the first quarter of fiscal 2004 improved 29.8% to a loss of $367,000 from a loss of $523,000 in the year-ago period. On a sequential basis, the adjusted EBITDA has been reduced from a loss of $873,000 in the second quarter of fiscal 2003 to $475,000 in the third quarter of fiscal 2003, $604,000 in the fourth quarter of fiscal 2003 and $367,000 in the first fiscal quarter of 2004. -- Adjusted gross margin for the first quarter of fiscal 2004 improved to 49.6% from 46.4% for the first quarter in the year-ago period. Walter M. Psztur, Chief Financial Officer of ICC, commented, "On a sequential basis we reduced our Adjusted EBITDA from a loss of $604,000 in the fourth quarter of fiscal 2003 to a loss of $367,000 in the first quarter of fiscal 2004 or 39.2%. The Adjusted EBITDA loss of approximately $125,000 per month in the first quarter of fiscal 2004 includes an increase in Selling and Marketing expenditures of 14% or approximately $100,000 from the fourth quarter of fiscal 2003." Segment Results - First Quarter Fiscal 2004 ICC.NET: For the first quarter of fiscal 2004, ICC.NET revenue, which includes VAN and Mapping Services, represented 79% of consolidated revenue compared to 69% of consolidated revenue in the year-ago period. Mr. Psztur continued, "For the first fiscal quarter 2004, our core VAN services had average Adjusted EBITDA loss of approximately $51,000 per month. This means that a large portion of any increase in revenue should fall directly to our bottom line as we will be able to capitalize on our recurring revenue stream and operational leverage." -- Adjusted gross margin for VAN Services for the first quarter of fiscal 2004 improved to 62.9 % from 53.3% for the first quarter in the year ago period. First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Fiscal Fiscal Fiscal Fiscal Fiscal (000's) 2004 2003 2003 2003 2003 ICC.NET Revenue $2,441 $2,406 $2,298 $2,044 $2,119 Core Van Services Revenue $2,356 $2,257 $2,205 $1,886 $1,949 Mapping Revenue $85 $150 $93 $158 $170 Service Bureau For the first quarter of fiscal 2004, Service Bureau revenue represented 10 % of consolidated revenue compared to 15 % of total revenue in the year-ago period. First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Fiscal Fiscal Fiscal Fiscal Fiscal (000's) 2004 2003 2003 2003 2003 Revenue $308 $291 $341 $390 $466 Professional Services For the first quarter of fiscal 2004, Professional Services revenue represented 11 % of consolidated revenue compared to 15 % of total revenue in the year-ago period. First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Fiscal Fiscal Fiscal Fiscal Fiscal (000's) 2004 2003 2003 2003 2003 Revenue $355 $404 $456 $404 $465 The Company will post its investor presentation and supplemental financial information on its website, http://www.icc.net/, in the afternoon of December 11, 2003, the date of its quarterly webcast. About Internet Commerce Corporation Internet Commerce Corporation (NASDAQ:ICCA) is a leader in the e-commerce business-to-business communication services market. ICC.NET, the company's global Internet-based value added network, provides complete supply chain connectivity solutions for EDI/EC while also offering users a sophisticated vehicle to securely transact files of any format and size. ICC offers a broad range of consulting services including, XML technologies, data transformation, custom application development, an EDI service bureau, as well as comprehensive e-commerce education. ICC uniquely bridges the legacy investments of yesterday to today's Internet technologies. For further information, visit us at http://www.icc.net/. Except for the historical information contained herein, this press release includes forward looking statements which are subject to a number of risks and uncertainties, including the risks and uncertainties associated with rapidly changing technologies such as the Internet, the risks of technology development and the risks of competition. Actual results could differ materially. For more information about these risks and uncertainties, see the SEC filings of Internet Commerce Corporation. INTERNET COMMERCE CORPORATION Consolidated Statements of Operations and Comprehensive Loss (unaudited) (in thousands, except for share and per share amounts) Three Months Ended October 31, 2003 2002 Revenues: Services $3,103 $3,050 Expenses: Cost of services 1,860 1,879 Product development and enhancement 225 260 Selling and marketing 826 764 General and administrative (excluding non-cash compensation of $53 for the three months ended October 31, 2003) 945 1,110 Non-cash charges for stock-based compensation and services 53 - 3,909 4,013 Operating loss (806) (963) Other income and (expense): Interest and investment income 1 5 Investment gain (loss) - (19) Interest expense (13) (5) (12) (19) Net loss $(818) $(982) Dividends on preferred stock (100) (100) Loss attributable to common stockholders $(918) $(1,082) Basic and diluted loss per common share $(0.07) $(0.09) Weighted average number of common shares outstanding - basic and diluted 13,797,567 11,679,964 COMPREHENSIVE LOSS: Net loss $(818) $(982) Other comprehensive loss: Unrealized gain - marketable securities 9 13 Comprehensive loss $(809) $(969) INTERNET COMMERCE CORPORATION Consolidated Balance Sheets (unaudited) (in thousands) October 31, July 31, 2003 2003 ASSETS Current assets: Cash and cash equivalents $1,097 $2,283 Marketable securities 101 92 Accounts receivable, net of allowance for doubtful accounts of $236 and $220, respectively 1,931 1,733 Prepaid expenses and other current assets 248 296 Total current assets 3,377 4,404 Restricted cash 129 128 Property and equipment, net 476 557 Software development costs, net 108 128 Goodwill 1,212 1,212 Other intangible assets, net 1,912 2,151 Other assets 15 18 Total assets $7,229 $8,598 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $654 $919 Accrued expenses 970 1,179 Accrued dividends - preferred stock 332 232 Deferred revenue 70 97 Capital lease obligation 136 148 Other liabilities 99 129 Total current liabilities 2,261 2,704 Capital lease obligation - less current portion 22 46 Other non-current liabilities - 8 Total liabilities 2,283 2,758 Commitments and contingencies Stockholders' Equity: Preferred stock * * Common stock 138 138 Additional paid-in capital 87,404 87,489 Accumulated deficit (82,631) (81,813) Accumulated other comprehensive income (loss) 35 26 Total stockholders' equity 4,946 5,840 Total liabilities and stockholders' equity $7,229 $8,598 * less than 1,000 INTERNET COMMERCE CORPORATION Supplementary Financial Data Reconciliation of Net Income to Adjusted EBITDA - Consolidated (000's) First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2003 2003 2003 2003 Net loss ($818) ($2,062) ($1,074) ($1,887) ($981) Less: Net interest and investment income 12 14 6 6 18 Depreciation and amortization 386 390 387 432 440 Non-cash charges for stock-based compensation 53 57 72 10 - Impairment of software inventory - - - 248 - Impairment of capitalized software - 15 134 - - Impairment of goodwill and acquired intangibles - 982 - - - Impairment of marketable securities - - - 318 - Adjusted EBITDA loss ($367) ($604) ($475) ($873) ($523) Reconciliation of Net Income to Adjusted EBITDA - ICC.NET, VAN Services Only First Quarter (000's) Fiscal 2004 Net loss ($315) Less: Net interest 9 Depreciation and amortization 99 Non-cash charges for stock-based compensation 53 Adjusted EBITDA loss ($154) Reconciliation of Gross Margin to Adjusted Gross Margin - ICC.NET, VAN Services Only First Quarter First Quarter (000's) Fiscal 2004 Fiscal 2003 Revenue $2,356 $1,949 Cost of services 907 915 Gross margin 1,449 1,034 Gross margin % 61.5% 53.0% Cost of services $907 $915 Less: Depreciation (32) (5) Adjusted cost of services $875 $910 Adjusted gross margin $1,481 $1,039 Adjusted gross margin % 62.9% 53.3% INTERNET COMMERCE CORPORATION Supplementary Financial Data Reconciliation of Gross Margin to Adjusted Gross Margin - Consolidated First Quarter First Quarter (000's) Fiscal 2004 Fiscal 2003 Revenue $3,104 $3,050 Cost of services 1,861 1,878 Gross margin 1,243 1,172 Gross margin % 40.1% 38.3% Cost of services $1,861 $1,878 Less: Depreciation and amortization (298) (244) Adjusted cost of services 1,563 1,634 Adjusted gross margin $1,541 $1,416 Adjusted gross margin % 49.6% 46.4% http://www.newscom.com/cgi-bin/prnh/20030611/ICCALOGODATASOURCE: Internet Commerce Corporation CONTACT: Victor Bjorge of Internet Commerce Corporation, +1-212-271-7618, Web site: http://www.icc.net/

Copyright

Internet Commerce (NASDAQ:ICCA)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Internet Commerce Charts.
Internet Commerce (NASDAQ:ICCA)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Internet Commerce Charts.