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Enron Mail |
INVESTNEWSWIRE WEEK IN REVIEW -
Week Ending June 1, 2001 IN THIS ISSUE: * Company Highlight : DXStorm.com (CDNX - DXS) * News Links : This Week's Small-Cap Highlights COMPANY SPOTLIGHT : DXStorm.com (CDNX - DXS) In October and November of 2000, InvestNewswire sent you information on DXStorm.com, an up-and-coming e-commerce Application Service Provider (ASP). This week, DXStorm's president, Mr. Gregory Lowes, included a special message with their third quarter results. We have attached it for your benefit. I am pleased to report that the company's third quarter has yielded positive results. Operating revenues for the quarter ended March 31, 2001 decreased approximately 10% over the prior quarter to $178,000 as compared to $198,000 for the quarter ended December 31, 2000. Operating revenues are all revenues for e-commerce service packages and related revenues, and other revenues from custom development, collocation, hosting and other service fees. In the second quarterly report, I stated that management expected a reduction in monthly operating expenses of 50% to be achieved by the end of the quarter ended March 31, 2001. I am pleased to report that the monthly target has been achieved, and further that expenditures for the entire quarter decreased to $647,000, a reduction of 48% from the previous quarter. The loss for the quarter of $464,000, or $0.02 per share, reflects a 54% reduction of the loss over the previous quarter. The company has taken extensive measures to manage costs and expenditures without compromising its ability to operate or fulfill its obligations to its clients and partners. DXStorm remains capable of attracting, and is prepared to take on, further major Brand Partners. As reported previously, DXStorm remains focused on its partners, past and upcoming, as the most predominant source of new subscribers and revenues. The management of DXStorm was introduced to the management of Peachtree Network Inc. in early April of this year. Through the course of many discussions and meetings, both management teams recognized what we believe to be strong synergies and opportunities between the companies. On April 23, 2001, Peachtree Network Inc. announced that it had entered into an agreement to acquire all the outstanding shares of DXStorm. Further, through a secured, convertible debenture, Peachtree would provide $750,000 in funds to DXStorm in installments until June 30, 2001. The transaction to acquire the shares of DXStorm is subject to the completion of due diligence by both companies, final board approvals, and approval by regulatory authorities. Peachtree is an e-commerce ASP similar in many ways to DXStorm. Peachtree has focused on the grocery sector, and specifically on the larger businesses out of reach of DXStorm (Sobeys, and Intermarche as examples). Peachtree is now migrating their solutions to address the other 'large surface' retail sectors. By combining the strengths of both companies, management believes the opportunities for growth far exceeds those of the two companies standing alone. Specifically, management has identified several driving factors for the proposed acquisition of DXStorm by Peachtree: ** Wider product / services base (all retailers from very small through DXStorm's Partners, to very large multinational retailers with thousands of stores - the products / services, personnel, and strategy of each of DXStorm and Peachtree are expected to remain as the companies join their operations). ** Collectively reduced costs in the short and long terms. ** Increased global market access for DXStorm products through Peachtree's global network and relationships. ** Increased collective marketing and sales capabilities. ** More rapid deployment and development of services through technology and expertise exchange. ** Stronger management to further increase sales and business development activities. ** Synergies and opportunities through a number of mutual relationships. The recent 'dot-com melt down' has confirmed to management that the focus on serving 'bricks and mortar' businesses is correct and is, in fact, critical to growth. While the state of the public markets has contributed to removing many competitors from our sector, the embrace of e-commerce and ASP delivered Information Technology services continues to expand rapidly. The management of both companies believes that our growth opportunities are far greater as a joint force with merged strategy and execution in this growing market. Our joint business plan anticipates profitability in less than 18 months based on a conservative three-year deployment of existing contracts only (Sympatico-Lycos, Sobeys, Intermarche, and others). However, continued sales and business development efforts, driving factors in the union of the two companies, are expected to shorten that path to profitability while dramatically increasing value for shareholders of both companies. For more information please visit www.dxstorm.com NEWS LINKS - THIS WEEK'S SMALL-CAP HIGHLIGHTS Fonix Selected in Compaq's TrailBlazer Program for Further Integration Of FAAST Framework http://www.investnewswire.com/articles.php?entryID2=422 Unigene Successfully Delivers Oral Insulin http://www.investnewswire.com/articles.php?entryID2=423 eNetpc, Inc. 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Signs an Agreement with Omomia Associates of Nigeria http://www.investnewswire.com/articles.php?entryID2=417 Ravenwood Resources Inc: Record Quarterly Results http://www.investnewswire.com/articles.php?entryID2=413 DISCLAIMER: This is a free publication provided to the subscribers of InvestNewswire. The words contained within this email are those of the noted contributors, and not those of InvestNewswire. This publication shall not constitute an offer to sell or the solicitation of an offer to buy. Please check with your broker or with the companies mentioned to determine whether the securities of said companies may be purchased or sold in your state of residence prior to effecting a transaction. --- You are currently subscribed to investnewswire as: alewis@ect.enron.com To unsubscribe send a blank email to leave-investnewswire-36864D@utarget.sparklist.com
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