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Exhibit
99.1
 |
For
more information,
|
|
|
contact:
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Richard
Brock
President
and CEO
rbrock@firstwave.net
770-250-0351
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Firstwave
Reports Fourth Quarter and Year-ended Results for 2005
Company
reports positive outlook from the sale of the UK Subsidiary
and
the relationship with M1 Global
ATLANTA
(February 6, 2006) - Firstwave Technologies, Inc. (NASDAQ: FSTW), a web-based,
CRM solutions provider, today announced financial results for the fourth
quarter
and year ended December 31, 2005.
Continuing
Operations
The
loss
from continuing operations for the fourth quarter of 2005 decreased 92% to
$230,000, including dividends, or $0.08 per fully diluted share, from a loss
of
$2.9 million in the fourth quarter of 2004, or $1.08 per fully diluted share.
For the full year of 2005, the loss from continuing operations decreased
65% to
$1.86 million, including dividends, or $0.68 per fully diluted share, from
a
loss of $5.3 million, or $1.97 per fully diluted share, in 2004.
Software
license revenues decreased 27% to $137,000 in the fourth quarter of 2005
from
$187,000 in the fourth quarter of 2004. Services revenues decreased 81% to
$47,000 in the fourth quarter of 2005 as compared to $244,000 in the same
quarter a year ago. Maintenance revenues decreased 23% to $436,000 in fourth
quarter of 2005 from $566,000 in the fourth quarter of 2004. Total revenues
for
the fourth quarter of 2005 were $622,000, a 38% decrease from the fourth
quarter
of 2004 revenues of $1.0 million. $110,000 of the total revenue decrease
in the
fourth quarter of 2005 relates to the fact that Firstwave began receiving
a
percentage of revenues from M1 Global’s sales (33% of license revenues and 20%
of services revenues); however, the costs relating to making such sales are
borne entirely by M1 Global so the amounts received by Firstwave from these
revenues totally benefit the bottom line.
For
the
full year of 2005, the Company reported a decrease in software license revenues
of 37% to $551,000 from $876,000 in 2004, and a decrease in services revenues
of
46% to $623,000 from $1.1 million in 2004. Maintenance revenues decreased
19% to
$2.0 million in 2005 from $2.5 million in 2004, and total revenues decreased
29%
to $3.2 million in 2005 from $4.5 million in 2004.
As
more
fully explained above, the decreases in license and services revenue is in
part
the result of a shift in the product marketing approach from a direct model
to a
channel model as reflected in the relationship with M1 Global. Maintenance
revenues, however, fell at a much lesser rate than the other revenues, which
stems from a high level of maintenance renewals from existing customers.
Although
revenues decreased during the fourth quarter and for the full year of 2005,
the
bottom line improved primarily due to the M1 Global relationship, which results
in Firstwave receiving 33%
of
license revenues and 20% of services revenues
without
incurring any of the associated expenses, rather than receiving 100% of the
revenues and carrying 100% of the related costs.
Discontinued
Operations
On
June
3, 2005, Firstwave entered into the Stock Purchase Agreement with AllAboutTickets
LLC
to sell
its UK Subsidiary. As a result of this sale, there were no discontinued
operations results during the fourth quarter of 2005 compared to net income
of
$213,000 in the fourth quarter of 2004. For the full year 2005, the Company
reported a loss from the discontinued operations of $457,000 prior to the
sale
compared to earnings of $410,000 for all of 2004. The $457,000 loss from
discontinued operations in 2005 was partially offset by a gain on the sale
of
the UK subsidiary of $327,000.
Other
Firstwave
reported a cash balance of $360,000 at December 31, 2005, and continues to
carry
no debt. This was the first increase in quarter-over-quarter cash flows from
operations since the fourth quarter of 2004.
“As
explained in my letter filed with this announcement and available on our
web
site, both the sale of the UK Subsidiary and the outsourcing agreement with
M1
Global have had positive impacts on Firstwave,” commented Richard Brock,
President and CEO of Firstwave. “Operating at a greatly reduced expense level,
we anticipate seeing movement toward profitability and continuing positive
cash
flows in the future.”
Firstwave
will hold its fourth quarter earnings conference call on Thursday, February
9,
2006, at 4:00 P.M. EST. To participate in the call from the United States
or
Canada, please dial 866-256-3815
approximately five minutes prior to the start time. To participate in the
call
from outside the United States or Canada, please dial 703-639-1212
five
minutes prior to the start time.
ABOUT
FIRSTWAVE
Firstwave®
Technologies, Inc. is a global provider of strategic CRM solutions specifically
designed for “capturing the story so far” in sales and customer support
applications. Firstwave’s solutions provide companies with fit-to-purpose
features that optimize how companies win, maintain and grow customer and
organizational relationships while improving the overall customer experience.
With 20 years of experience in CRM, Firstwave’s legacy of CRM best practices and
Customer-First Commitment has earned the Company numerous industry awards
and
accolades. Firstwave is headquartered in Atlanta, Georgia. For more information,
visit the Company's web site at www.firstwave.net or call
1-800-540-6061.
###
###
NOTE: Except for historical information contained herein, the matters set
forth
in this communication are “forward-looking statements” within the meaning of
various provisions of the Securities Act of 1933 and the Securities Exchange
Act
of 1934. Such forward-looking statements can generally be identified by words
such as will, expect, intends, believe, anticipates, should and words of
similar
meaning. Firstwave Technologies, Inc. (the “Company”) notes that the
forward-looking statements set forth above involve a number of risks and
uncertainties that could cause actual results to differ materially from any
such
statement, such as potential fluctuations in quarterly results due to delays
in
purchase decisions and other adverse market conditions, whether the parties
will
be able to successfully launch a combined product offering and develop any
significant customer following from the transactions described in this release,
the Company's dependence on other parties to continue to perform under the
agreements described in this release, whether the Company will be able to
continue diversification of its revenues, competition and technological
developments, the Company’s capital requirements and other liquidity concerns,
the Company's ability to continue to comply with NASDAQ listing requirements,
and the size, timing, and contractual terms of orders, and also the risks
and
uncertainties discussed under the caption “Certain Factors Affecting
Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2004, as filed with the Securities and Exchange
Commission (“SEC”), which discussions are incorporated herein by this reference.
The information set forth herein is provided as of the date hereof. The Company
does not assume, and expressly disclaims, any duty or obligation to update
any
of the information presented herein with respect to its consolidated operations
or anticipated performance in 2006 or beyond.
Firstwave
Technologies, Inc.
Selected
Financial Information
(in
thousands; except per share data)
|
Consolidated
Statement of Operations
|
For
the
|
For
the
|
|||||||||||
|
|
Three
Months Ended
|
Twelve
Months Ended
|
|||||||||||
|
|
Dec
31,
|
Dec
31,
|
|||||||||||
|
|
(unaudited)
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||||||||||||
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2004
|
2005
|
2004
|
2005
|
||||||||||
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Revenues
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$
|
1,006
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$
|
622
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$
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4,526
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$
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3,224
|
|||||
|
Loss
from continuing operations before tax
|
(2,860
|
)
|
(159
|
)
|
(5,048
|
)
|
(1,578
|
)
|
|||||
|
Loss
from continuing operations after tax
|
(2,860
|
)
|
(159
|
)
|
(5,048
|
)
|
(1,578
|
)
|
|||||
|
Income/(loss)
from discontinued operations
|
213
|
0
|
410
|
(457
|
)
|
||||||||
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Gain
on sale of discontinued operations
|
0
|
0
|
0
|
327
|
|||||||||
|
Net
Loss
|
(2,647
|
)
|
(159
|
)
|
(4,638
|
)
|
(1,708
|
)
|
|||||
|
Dividends
on preferred stock
|
(71
|
)
|
(71
|
)
|
(255
|
)
|
(284
|
)
|
|||||
|
Net
loss applicable to common shareholders
|
$
|
(2,718
|
)
|
$
|
(230
|
)
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$
|
(4,893
|
)
|
$
|
(1,992
|
)
|
|
|
Basic
and diluted per share data:
|
|||||||||||||
|
Earnings/(Loss)
from continuing operations
|
$
|
(1.08
|
)
|
$
|
(0.08
|
)
|
$
|
(1.97
|
)
|
$
|
(0.68
|
)
|
|
|
Earnings/(Loss)
from discontinued operations
|
0.08
|
-
|
0.15
|
(0.05
|
)
|
||||||||
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Net
Income/(Loss) per common share
|
$
|
(1.00
|
)
|
$
|
(0.08
|
)
|
$
|
(1.82
|
)
|
$
|
(0.73
|
)
|
|
|
Weighted
average shares
|
2,694
|
2,729
|
2,682
|
2,709
|
|||||||||
|
Consolidated
Balance Sheet
|
Dec
31,
|
Dec
31,
|
|||||
|
2004
|
2005
|
||||||
|
Cash
|
$
|
1,286
|
$
|
360
|
|||
|
AR
and other current assets
|
1,170
|
1,174
|
|||||
|
Total
current assets
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$
|
2,456
|
$
|
1,534
|
|||
|
Long
term assets
|
3,817
|
2,725
|
|||||
|
Total
assets
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$
|
6,273
|
$
|
4,259
|
|||
|
Current
liabilities
|
$
|
2,424
|
$
|
1,596
|
|||
|
Shareholders'
equity
|
3,849
|
2,663
|
|||||
|
|
|||||||
|
Total
liabilities and shareholders' equity
|
$
|
6,273
|
$
|
4,259
|
|||
The following information was filed by Textmunication Holdings, Inc. (TXHD) on Monday, February 6, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one year to another to evaluate Textmunication Holdings, Inc.'s financial trajectory
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Textmunication Holdings, Inc. provided additional information to their SEC Filing as exhibits
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Ticker: TXHD
CIK: 897078
Form Type: 10-K Annual Report
Accession Number: 0001188112-06-000872
Submitted to the SEC: Wed Mar 29 2006 8:25:09 PM EST
Accepted by the SEC: Thu Mar 30 2006
Period: Saturday, December 31, 2005
Industry: Prepackaged Software
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