10/03/08

E-commerce vendor Warp 9 completes turnaround and posts $2.9 million profit

Warp 9 Inc., a provider of e-commerce platforms and services, reports record earnings and the end of a turnaround program that it undertook two years ago. Net income for the year reached $2.9 million vs. a loss of $13,500 a year earlier.

Katie Evans , Managing Editor, International Research

Warp 9 Inc., a provider of e-commerce platforms and services, reports record earnings and the completion of a turnaround program that it undertook two years ago.

Net income for its fiscal year, which ended June 30, reached $2.9 million, which the company notes includes recognition of a deferred tax benefit of $2 million. A year earlier, the company experienced a loss of $13,500. The company also reports seven consecutive quarters of positive net income.

Additionally, the company says it reduced long-term debt by 93% from $1.1 million to $82,000 and increased working capital to $650,000 from a deficit of $80,000 a year ago.

"We are pleased to announce the completion of the most important year in the company`s history,” says president and CEO Harinder Dhillon. “Not only did we achieve record earnings, we also successfully completed the turnaround program that we began implementing almost two years ago. By steadfastly reducing the company`s debt burden and working diligently to achieve profitability, we have greatly enhanced shareholder value and positioned the company for future growth and profitability."

Warp 9 powers e-commerce web sites for Spiegel Brands Inc., No. 56 in the Internet Retailer Top 500 Guide (Carabella.com, Ablambdin.com, and ShapeFX.com), Magellans’ International Travel Corp., No. 405 in the Internet Retailer Top 500 Guide, and Craft Supplies USA flagship site WoodTurnersCatalog.com.

Topics:

business finance, WARP

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