February 21, 2008 -- Santa Barbara, CA -- Warp 9, Inc. (OTCBB: WNYN), the premier provider of robust e-commerce platforms and services, announces financial results for its second fiscal quarter ended December 31, 2007.
In commenting on the quarter`s results, Harinder Dhillon, Warp 9`s CEO, expressed satisfaction over the progress made in the last year in turning around the company`s financial performance and positioning the company for future growth and continued profitability driven not only by the sale of it core products but also the potential development and sale of new high margin products which will broaden the company`s appeal in its core markets. Highlights of the quarterly results include:
• Five consecutive quarters of positive net income
• Increase in gross margins from 76.7% to 94.2% year-over-year
• The highest operating income in company history
• 163% increase in cash balances year-over-year
• Working capital improvement from a deficit of ($845,641) to a positive $210,193 year-over-year
• 34% reduction in total liabilities from $2,370,477 to $1,545,682 year-over-year
The quarter ending December 31, 2007 marked the fifth consecutive quarter of positive net income, evidence that the company`s restructuring efforts are paying off, with the company achieving stabilized positive cash flow and profitability.
While the company still faces challenges in its turnaround, notably the reduction of overall debt, Mr. Dhillon believes that the company`s efforts will continue to show progress. Mr. Dhillon concluded by commenting on the goals that lie ahead: "We will continue to look for ways to increase shareholder value, continue to execute operationally by selling our core products, and look to invest in research and development and other areas needed to accelerate new products to market."
About Warp 9
Warp 9, Inc. (www.warp9inc.com) is the premier provider of enterprise-class e-commerce platforms and services to mid-sized businesses in the catalog and retail industry. With a proven track record and years of experience in the industry, Warp 9 s comprehensive and scalable suite of software platforms and technologies for online catalogs, e-mail marketing, and interactive visual merchandising help businesses leverage the Internet to increase sales. Offered on a fully managed Software-as-a-Service model, Warp 9 products deliver unique benefits to its customers by reducing total cost of ownership, lowering upfront cost, providing faster time to market and being a one-stop-shop for all things e-commerce. Known for its outstanding customer service, Warp 9 powers some of the most successful e-commerce sites for companies like Magellan`s and Spiegel.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.
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