BarPoint.com Announces Results for Third Quarter Ended September 30, 2002
FORT LAUDERDALE, Fla--Nov. 15, 2002-- BarPoint.com (Nasdaq:BPNT), an online and wireless product information and shopping service provider and applications developer, today announced results for the third quarter ended September 30, 2002. During the quarter, the Company was issued U.S. Patent No. 6,430,554 for its "INTERACTIVE SYSTEM FOR INVESTIGATING PRODUCTS ON A NETWORK." The issued patent protects technology related to the utilization of unique identifiers such as UPC numbers, barcodes, manufacturers` codes and other coded input to gather product-related information from a database and the Internet from both wired and wireless devices. The Company has begun to actively explore options and strategies with regard to the exploitation and enforcement of its intellectual property rights.
For the quarter ended September 30, 2002, net revenue was $14,969, a decrease of 95% as compared to revenue of $309,811 for the same quarter last year. All of the revenues for the quarter came from sales of software applications. During the same quarter last year, approximately 74% of revenue was from sales of BarPoint services and related sales of scanning devices with the remaining 26% of revenue resulting from sales of software applications. During the quarter ending September 30, 2002, cash and cash equivalents decreased by approximately $868,000, resulting from the Company`s reduced expenses and cash burn rate in accordance with its restructuring plans.
According to BarPoint President and CEO Jeffrey W. Sass, "We have not experienced any improvement in the wireless commerce marketplace and there has been no improvement in the revenue picture from our core product information and shopping service application. With that in mind, in addition to continuing to pursue strategic opportunities, including the possible sale of some or all of our principal operating assets, we are also actively seeking ways to leverage our recently issued patent and intellectual property to the benefit of our Company and shareholders."
The loss from operations for the third quarter ended September 30, 2002 was $1,576,175. The loss from operations for the same quarter last year was $4,043,892. The net loss for the third quarter ended September 30, 2002, was $1,322,745, or $0.07 per share basic and diluted. For the quarter ended September 30, 2001, the Company had a net loss of $3,898,558, or $0.23 per share basic and diluted.
For the nine-month period ended September 30, 2002, revenues were $449,776 a decrease of 69% from the comparable 2001 period revenues of $1,459,210. The loss from operations for the nine months ended September 30, 2002 was $7,267,889 as compared to $13,406,949 for the same period in 2001. The loss from operations for the nine months ended September 30, 2002 includes approximately $2.9 million in non-cash charges consisting of depreciation and losses on the disposition of fixed assets of approximately $1.9 million, goodwill impairment of $325,000 and software inventory write downs of approximately $123,000. In the comparable nine month period ended September 30, 2001 there were approximately $2.5 million of non-cash charges consisting of depreciation of approximately $1.7 million and the amortization of warrants issued in exchange for services of approximately $517,000 as well as inventory write-downs totaling approximately $249,000. Additionally, the loss from operations for the nine-months ended September 30, 2002 includes a lease termination fee of $585,000 and goodwill impairment of $325,000, which are non-recurring charges. The net loss for the nine months ended September 30, 2002 was $6,630,513 or $0.36 per share basic and diluted as compared to a net loss of $10,290,537 or $0.60 per share basic and diluted for the comparable 2001 period.
The Company reiterates that business conditions in its primary markets continue to be soft, and visibility regarding the near-term and long-term opportunities in key areas such as wireless Internet adoption, mobile commerce, handheld software applications, consumer scanning, and Internet advertising and promotion remains limited. In addition, there continues to be significant uncertainty regarding prospects for revenue growth in the current environment. The Company continues to explore various alternatives to maximize shareholder value, including the active pursuit of the sale of certain or all of the Company`s principal operating assets.
About BarPoint.com
BarPoint.com is an online and wireless product information and commerce platform as well as an applications developer and a pioneer in the use of unique product identifiers, such as the UPC barcode number, and patented "reverse-search" technology to simplify the process of finding meaningful product information. As a technology service provider, retail sales facilitator, and applications developer, BarPoint is dedicated to helping businesses and consumers make better buying decisions. Through its proprietary data aggregation and integration processes and a device-independent platform for secure mobile commerce, BarPoint provides cost-effective turnkey solutions for retail partners who want to enable their customers to shop anytime, anywhere, from any mobile device. The Company has previously announced strategic alliances with companies such as Verizon Wireless (VZ), Cingular Wireless, AT&T Wireless (AWE), Sprint PCS (PCS), Office Depot (ODP), The Sharper Image and Symbol Technologies (SBL) and in 1999 acquired Synergy Solutions, acting as BarPoint`s application development division. BarPoint.com is located at: 800 Corporate Drive, Suite 600, Fort Lauderdale, FL 33334. For information, contact BarPoint.com at: 954/492-4003 or via the web: http://www.barpoint.com. BarPoint.com`s common stock is traded on NASDAQ under the symbol BPNT.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company`s business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including the Company`s ability to find acceptable strategic opportunities, sell certain or all of its principal operating assets, attract new customers, maintain the Company`s relationships with strategic partners and acquire new strategic partners, the Company`s ability to raise additional capital and other factors mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company`s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company`s expectations or future events.
BarPoint, BarPoint.com and My BarPoint are trademarks or registered trademarks of BarPoint.com, Inc.
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