Ascendant Solutions Announces Fourth Quarter and Fiscal 2000 Results; Year of Transition Leaves Company Well Positioned for 2001

Apr 02, 2001, 01:00 ET from Ascendant Solutions, Inc.

    DALLAS, April 2 /PRNewswire/ -- Ascendant Solutions, Inc. (Nasdaq: ASDS)
 today released its results for the fourth quarter and fiscal year 2000.
     "We have started 2001 well positioned to implement our supply chain
 solution initiative largely as a result of the many strategic steps we took
 during 2000.  Through this initiative, we offer a hosted sell-side solution
 which automates and enables the interaction between buyers and sellers across
 electronic marketplaces," stated David Bowe, Ascendant Solutions' CEO and
 President.  "Although these transitioning steps were difficult, Ascendant
 Solutions is now in a marketplace that is anticipated by industry analysts to
 grow from $50 billion in 1998 to $1.5 trillion by 2003 -- a CAGR of
 97 percent.  Through our hosted Omnigy platform, we will be able to utilize
 our technical and business resources to provide products and services that are
 leveragable, scalable and repeatable."  Mr. Bowe continued, "The actions we
 took in 2000 significantly reduced our expenses and associated cash
 requirements; divested the Company of unprofitable operations that also had
 considerably less growth potential than our supply chain solution initiative;
 forged new industry alliances and strengthened existing relationships; and
 filled key management positions."
     Ascendant Solutions' list of strategic accomplishments during 2000 and
 early 2001 include the following:
     --  Changed the Company name from ASD Systems, Inc. to Ascendant
         Solutions, Inc. in May 2000;
     --  Significantly cut overhead costs and cash burn, including reducing
         headcount by approximately 80 percent;
     --  Announced and completed the exit from the fulfillment center and call
         center operations;
     --  Strengthened the relationship with OrderFusion, allowing for a hosted
         solution, becoming the preferred hosting partner of OrderFusion and an
         authorized reseller;
     --  Announced the launch of the Company's supply chain solutions
         initiative;
     --  Created a strategic marketing and co-development alliance with CCP
         global, a premier e-business consulting firm and Certified Ariba
         Systems Integrator (CASI) serving the Fortune 1000;
     --  Significantly consolidated the Company's various facilities,
         reflecting the Company's sole focus as a solutions provider.
 
     Financial Results
     For the fourth quarter 2000, the Company reported a decrease in revenue to
 $3.4 million from $4.4 million in the fourth quarter 1999.  During the
 quarter, gross profit increased from $1.0 million, or 23% of sales to
 $2.7 million, or 79% of sales.   This increase was largely a result of
 realizing higher margin systems revenues, the sale of the Company's lower
 margin fulfillment operations in December 2000 as well as other cost
 containment measures effected during the year.  Fourth quarter 2000 results
 were negatively impacted by a reserve against accounts receivable in the
 amount of $1.1 million relating to the Company's litigation with The Original
 Honey Baked Ham Co. of Georgia, Inc.  The net loss for the quarter decreased
 slightly to $3.4 million compared to $3.5 million in the fourth quarter of
 1999.  Net loss attributable to shareholders was ($0.16) per share compared to
 ($0.63) per share for the same period last year.  The 1999 fourth quarter
 results included non-recurring, non-cash charges of $6.5 million, or ($0.41)
 per share, relating to preferred stock accretion and dividend.
     For the full year 2000, the Company reported net revenues of $8.4 million
 compared to 1999 full-year revenues of $12.3 million.  The net loss for 2000
 was $19.5 million, or ($0.92) per basic and diluted common share compared to a
 net loss attributable to shareholders of $16.0 million or ($1.39) per share
 for the full-year 1999.  Included in the full year 2000 results are
 $2.5 million in restructuring costs resulting from the Company's termination
 of an internal software development effort.  Included in the 1999 results are
 non-recurring, non-cash charges of $7.1 million, or ($0.62) per share relating
 to preferred stock accretion and dividend.
     In other news, Ascendant Solutions stated its hearing with a Nasdaq
 Listing Qualifications Panel has been scheduled for May 11, 2001.  During this
 hearing, the Company will appeal the delisting of its common stock from the
 Nasdaq National Market.  There is an indeterminate time period after the
 hearing before the Listing Qualifications Panel grants or denies the appeal.
 During this process, the delisting is stayed and the Company's stock will
 continue to trade on the Nasdaq National Market.
     Ascendant Solutions provides supply chain solutions for three business
 process areas: Supplier Enablement (e-procurement environment), Sell-Side
 Demand Management and CommerceDirect.  The Company offers business process
 expertise and experience, professional services, and outsourced software
 solutions that are scalable, leveragable, and repeatable.  Omnigy delivers
 integrated customer relationship management (CRM), order management,
 fulfillment management, and e-procure supplier enablement in a cost effective,
 hosted environment.  Further information on Ascendant Solutions can be found
 at its web site, www.ascendantsolutions.com.
     This release includes forward-looking statements including statements
 concerning possible trends in our financial performance, our ability to
 successfully transition into a supply chain provider, the possible growth rate
 of our market segment, the possible effects of our strategic repositioning and
 other matters.  These statements are made under the "Safe Harbor" provisions
 of the Private Securities Litigation Reform Act of 1995 and involve risks and
 uncertainties that could cause actual results to differ materially from those
 in the forward-looking statements, including but not limited to, the
 following: our ability to achieve or sustain profitability; our limited
 operating history; the risks associated with the failure of our solutions to
 achieve widespread market acceptance or meet specific client needs;
 significant client concentration; the fact that our client contracts are
 either short-term or terminable with minimal notice; systems risks and
 uncertainties, including rapid technological change and those related
 integration and implementation of our solutions platform; the risks related to
 the possible inability of our system to connect to and manage a larger number
 of clients; business conditions in the software industry generally; the impact
 of market competitors and their product and service offerings; and such other
 factors that are more fully detailed in our filings with the Securities and
 Exchange Commission, including our Form 10-K for the fiscal year ended
 December 31, 2001.
 
 
                           ASCENDANT SOLUTIONS, INC.
                            STATEMENTS OF OPERATIONS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                   For the Quarter Ended    For the Year Ended
                                         December 31,          December 31,
                                       2000       1999       2000       1999
 
     Revenues                       $  3,368   $  4,419   $  8,405   $ 12,313
     Cost of revenues                    691      3,396      5,279      9,701
     Gross profit                      2,677      1,023      3,126      2,612
 
     Operating expenses:
       Selling, general
        and administrative             5,020      4,341     18,835     10,035
       Depreciation and amortization     846        468      2,473      1,482
         Reorganization charges          ---        ---      2,460        ---
          Total operating expenses     5,866      4,809     23,768     11,517
           Operating loss             (3,189)    (3,786)   (20,642)    (8,905)
 
     Loss on sale of assets             (481)       ---       (481)       ---
     Interest income, net                290        250      1,589         98
           Net loss                   (3,380)    (3,536)   (19,534)    (8,807)
 
     Preferred stock dividend            ---     (6,000)       ---     (6,000)
     Accretion and write-off
      of preferred stock discount        ---       (509)       ---     (1,145)
 
     Net loss attributable
      to common shareholders        $ (3,380)  $(10,045)  $(19,534)  $(15,952)
     Basic and diluted loss
      per share                     $  (0.16)  $  (0.63)  $  (0.92)  $  (1.39)
     Shares used in computing
      basic and diluted net loss
      per share                       21,231     15,839     21,173     11,464
 
 
                             ASCENDANT SOLUTIONS, INC.
                                   BALANCE SHEETS
                        (in thousands, except share amounts)
                                    (unaudited)
                                                             December 31,
                                                           2000         1999
 
     ASSETS
     Current assets:
         Cash and cash equivalents                      $  16,837    $  37,278
         Accounts receivable less allowance
          for doubtful accounts of
          $1,254 at December 31, 2000 and
          $100 at December 31, 1999                         1,376        2,378
         Prepaid expenses                                     440           64
                 Total current assets                      18,653       39,720
     Property and equipment, net                            5,781        4,680
     Assets held for sale                                   1,000          ---
     Other assets                                              48           53
                 Total assets                           $  25,482    $  44,453
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current liabilities:
         Accounts payable                               $   1,583    $   1,648
         Accrued liabilities                                1,211          737
         Deferred revenue                                     380          ---
         Current portion of long-term debt                    340          340
                 Total current liabilities                  3,514        2,725
 
     Long term debt                                           340          680
     Stockholders' equity (deficit)
         Preferred stock, $.0001 par value:
             Authorized shares - 7,500,000
             Issued and outstanding - none                    ---          ---
         Class A common stock, $.0001 par value:
             Authorized shares - 50,000,000
             Issued and outstanding shares -
                 21,230,900 at December 31, 2000 and
                 21,097,400 at December 31, 1999                2            2
         Class B common stock, $.0001 par value:
             Issued and outstanding shares - none             ---          ---
         Additional paid-in capital                        59,718       59,064
         Accumulated deficit                              (38,092)     (18,558)
                 Total stockholders' equity                21,628       41,048
                 Total liabilities
                  and stockholders' equity            $    25,482    $  44,453
 
 

SOURCE Ascendant Solutions, Inc.
    DALLAS, April 2 /PRNewswire/ -- Ascendant Solutions, Inc. (Nasdaq: ASDS)
 today released its results for the fourth quarter and fiscal year 2000.
     "We have started 2001 well positioned to implement our supply chain
 solution initiative largely as a result of the many strategic steps we took
 during 2000.  Through this initiative, we offer a hosted sell-side solution
 which automates and enables the interaction between buyers and sellers across
 electronic marketplaces," stated David Bowe, Ascendant Solutions' CEO and
 President.  "Although these transitioning steps were difficult, Ascendant
 Solutions is now in a marketplace that is anticipated by industry analysts to
 grow from $50 billion in 1998 to $1.5 trillion by 2003 -- a CAGR of
 97 percent.  Through our hosted Omnigy platform, we will be able to utilize
 our technical and business resources to provide products and services that are
 leveragable, scalable and repeatable."  Mr. Bowe continued, "The actions we
 took in 2000 significantly reduced our expenses and associated cash
 requirements; divested the Company of unprofitable operations that also had
 considerably less growth potential than our supply chain solution initiative;
 forged new industry alliances and strengthened existing relationships; and
 filled key management positions."
     Ascendant Solutions' list of strategic accomplishments during 2000 and
 early 2001 include the following:
     --  Changed the Company name from ASD Systems, Inc. to Ascendant
         Solutions, Inc. in May 2000;
     --  Significantly cut overhead costs and cash burn, including reducing
         headcount by approximately 80 percent;
     --  Announced and completed the exit from the fulfillment center and call
         center operations;
     --  Strengthened the relationship with OrderFusion, allowing for a hosted
         solution, becoming the preferred hosting partner of OrderFusion and an
         authorized reseller;
     --  Announced the launch of the Company's supply chain solutions
         initiative;
     --  Created a strategic marketing and co-development alliance with CCP
         global, a premier e-business consulting firm and Certified Ariba
         Systems Integrator (CASI) serving the Fortune 1000;
     --  Significantly consolidated the Company's various facilities,
         reflecting the Company's sole focus as a solutions provider.
 
     Financial Results
     For the fourth quarter 2000, the Company reported a decrease in revenue to
 $3.4 million from $4.4 million in the fourth quarter 1999.  During the
 quarter, gross profit increased from $1.0 million, or 23% of sales to
 $2.7 million, or 79% of sales.   This increase was largely a result of
 realizing higher margin systems revenues, the sale of the Company's lower
 margin fulfillment operations in December 2000 as well as other cost
 containment measures effected during the year.  Fourth quarter 2000 results
 were negatively impacted by a reserve against accounts receivable in the
 amount of $1.1 million relating to the Company's litigation with The Original
 Honey Baked Ham Co. of Georgia, Inc.  The net loss for the quarter decreased
 slightly to $3.4 million compared to $3.5 million in the fourth quarter of
 1999.  Net loss attributable to shareholders was ($0.16) per share compared to
 ($0.63) per share for the same period last year.  The 1999 fourth quarter
 results included non-recurring, non-cash charges of $6.5 million, or ($0.41)
 per share, relating to preferred stock accretion and dividend.
     For the full year 2000, the Company reported net revenues of $8.4 million
 compared to 1999 full-year revenues of $12.3 million.  The net loss for 2000
 was $19.5 million, or ($0.92) per basic and diluted common share compared to a
 net loss attributable to shareholders of $16.0 million or ($1.39) per share
 for the full-year 1999.  Included in the full year 2000 results are
 $2.5 million in restructuring costs resulting from the Company's termination
 of an internal software development effort.  Included in the 1999 results are
 non-recurring, non-cash charges of $7.1 million, or ($0.62) per share relating
 to preferred stock accretion and dividend.
     In other news, Ascendant Solutions stated its hearing with a Nasdaq
 Listing Qualifications Panel has been scheduled for May 11, 2001.  During this
 hearing, the Company will appeal the delisting of its common stock from the
 Nasdaq National Market.  There is an indeterminate time period after the
 hearing before the Listing Qualifications Panel grants or denies the appeal.
 During this process, the delisting is stayed and the Company's stock will
 continue to trade on the Nasdaq National Market.
     Ascendant Solutions provides supply chain solutions for three business
 process areas: Supplier Enablement (e-procurement environment), Sell-Side
 Demand Management and CommerceDirect.  The Company offers business process
 expertise and experience, professional services, and outsourced software
 solutions that are scalable, leveragable, and repeatable.  Omnigy delivers
 integrated customer relationship management (CRM), order management,
 fulfillment management, and e-procure supplier enablement in a cost effective,
 hosted environment.  Further information on Ascendant Solutions can be found
 at its web site, www.ascendantsolutions.com.
     This release includes forward-looking statements including statements
 concerning possible trends in our financial performance, our ability to
 successfully transition into a supply chain provider, the possible growth rate
 of our market segment, the possible effects of our strategic repositioning and
 other matters.  These statements are made under the "Safe Harbor" provisions
 of the Private Securities Litigation Reform Act of 1995 and involve risks and
 uncertainties that could cause actual results to differ materially from those
 in the forward-looking statements, including but not limited to, the
 following: our ability to achieve or sustain profitability; our limited
 operating history; the risks associated with the failure of our solutions to
 achieve widespread market acceptance or meet specific client needs;
 significant client concentration; the fact that our client contracts are
 either short-term or terminable with minimal notice; systems risks and
 uncertainties, including rapid technological change and those related
 integration and implementation of our solutions platform; the risks related to
 the possible inability of our system to connect to and manage a larger number
 of clients; business conditions in the software industry generally; the impact
 of market competitors and their product and service offerings; and such other
 factors that are more fully detailed in our filings with the Securities and
 Exchange Commission, including our Form 10-K for the fiscal year ended
 December 31, 2001.
 
 
                           ASCENDANT SOLUTIONS, INC.
                            STATEMENTS OF OPERATIONS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                   For the Quarter Ended    For the Year Ended
                                         December 31,          December 31,
                                       2000       1999       2000       1999
 
     Revenues                       $  3,368   $  4,419   $  8,405   $ 12,313
     Cost of revenues                    691      3,396      5,279      9,701
     Gross profit                      2,677      1,023      3,126      2,612
 
     Operating expenses:
       Selling, general
        and administrative             5,020      4,341     18,835     10,035
       Depreciation and amortization     846        468      2,473      1,482
         Reorganization charges          ---        ---      2,460        ---
          Total operating expenses     5,866      4,809     23,768     11,517
           Operating loss             (3,189)    (3,786)   (20,642)    (8,905)
 
     Loss on sale of assets             (481)       ---       (481)       ---
     Interest income, net                290        250      1,589         98
           Net loss                   (3,380)    (3,536)   (19,534)    (8,807)
 
     Preferred stock dividend            ---     (6,000)       ---     (6,000)
     Accretion and write-off
      of preferred stock discount        ---       (509)       ---     (1,145)
 
     Net loss attributable
      to common shareholders        $ (3,380)  $(10,045)  $(19,534)  $(15,952)
     Basic and diluted loss
      per share                     $  (0.16)  $  (0.63)  $  (0.92)  $  (1.39)
     Shares used in computing
      basic and diluted net loss
      per share                       21,231     15,839     21,173     11,464
 
 
                             ASCENDANT SOLUTIONS, INC.
                                   BALANCE SHEETS
                        (in thousands, except share amounts)
                                    (unaudited)
                                                             December 31,
                                                           2000         1999
 
     ASSETS
     Current assets:
         Cash and cash equivalents                      $  16,837    $  37,278
         Accounts receivable less allowance
          for doubtful accounts of
          $1,254 at December 31, 2000 and
          $100 at December 31, 1999                         1,376        2,378
         Prepaid expenses                                     440           64
                 Total current assets                      18,653       39,720
     Property and equipment, net                            5,781        4,680
     Assets held for sale                                   1,000          ---
     Other assets                                              48           53
                 Total assets                           $  25,482    $  44,453
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current liabilities:
         Accounts payable                               $   1,583    $   1,648
         Accrued liabilities                                1,211          737
         Deferred revenue                                     380          ---
         Current portion of long-term debt                    340          340
                 Total current liabilities                  3,514        2,725
 
     Long term debt                                           340          680
     Stockholders' equity (deficit)
         Preferred stock, $.0001 par value:
             Authorized shares - 7,500,000
             Issued and outstanding - none                    ---          ---
         Class A common stock, $.0001 par value:
             Authorized shares - 50,000,000
             Issued and outstanding shares -
                 21,230,900 at December 31, 2000 and
                 21,097,400 at December 31, 1999                2            2
         Class B common stock, $.0001 par value:
             Issued and outstanding shares - none             ---          ---
         Additional paid-in capital                        59,718       59,064
         Accumulated deficit                              (38,092)     (18,558)
                 Total stockholders' equity                21,628       41,048
                 Total liabilities
                  and stockholders' equity            $    25,482    $  44,453
 
 SOURCE  Ascendant Solutions, Inc.