Firstwave Technologies, Inc. Releases Update on Earnings for the Fourth Quarter and Year Ended December 31, 2000

Apr 18, 2001, 01:00 ET from Firstwave Technologies, Inc.

    ATLANTA, April 18 /PRNewswire/ --
 Firstwave Technologies, Inc. (Nasdaq:   FSTW) today announced an update to the
 financial results for the Fourth Quarter and Year Ended December 31, 2000,
 that had previously been reported on February 13, 2001.
     Firstwave reported revised total software revenues of $2.7 million for
 2000, down slightly from the previously reported $2.8 million, due to revenue
 reversal from two unexpected customer situations, due to events arising
 subsequent to the earnings release that affected the accounting for these
 transactions in the fourth quarter of 2000.
     Total revenues for the year 2000 were $9.5 million, with a net loss of
 $6.1 million, or $1.02 per share, revised from the previously reported net
 loss of $3.1 million, or $0.52 per share.  The increase in net loss was
 substantially due to the increase in the Company's valuation allowance against
 the net deferred tax asset.  In the fourth quarter of 2000, the Company
 increased its valuation allowance by $2,821,000 to fully reserve its entire
 net deferred tax asset balance as a result of uncertainties regarding its
 realization.  The report of the Company's independent accountants on the
 December 31, 2000, consolidated financial statements includes a going concern
 explanatory paragraph indicating that there exists substantial doubt about the
 Company's ability to continue as a going concern.  Although the Company may
 return to profitability in the future and thereby begin to realize the benefit
 of its deferred tax assets, management does not believe that its operating
 history supports carrying the value of the deferred tax assets.  This non-cash
 charge increased the net loss for the fourth quarter and the full year of 2000
 by $2,821,000, or $0.46 per share.
     The Company has implemented several measures in an effort to reduce the
 Company's expenses and to help preserve cash.  The Company continues to pursue
 additional sources of capital.  In the event the Company is not able to obtain
 the necessary additional capital, it may be required to reduce the scope of
 planned product development and sales and marketing efforts, as well as reduce
 the size of current staff, all of which could impact the Company's financial
 condition and results of operations.
 
     About Firstwave
     Firstwave(R) (www.firstwave.net ) develops, markets and supports web-based
 eCRM solutions that automate and optimize the way companies get, keep and grow
 customer relationships.  Firstwave offers one of the only completely web-based
 CRM applications in the market today.  Originally founded in 1984 as Brock
 Control Systems, Firstwave maintains the depth and industry experience
 required to address unique business needs of mid-market companies.  With over
 16 years of experience in relationship management, Firstwave holds the
 distinction of being the Best Internet-Based CRM Solution for the past two
 consecutive years from the Denali Group, was selected as one of ISM's Top 30
 CRM Solutions for 2001 and has received the CRM Excellence Award by the
 Technology Marketing Corporation.
 
     NOTE: Except for historical information contained herein, the matters set
 forth in this news release are forward-looking statements.  The Company noted
 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 the Company's capital requirements and other
 liquidity concerns and related doubt as to the Company's ability to continue
 as a going concern, potential fluctuations in quarterly results due to market
 demand, competition, technological developments, 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 in
 the Company's Annual Report on Form 10-K for the year ended December 31, 2000,
 filed with the Securities and Exchange Commission, under the caption "Certain
 Factors Effecting Forward Looking Statements," which discussion is
 incorporated herein by this reference.
 
 

SOURCE Firstwave Technologies, Inc.
    ATLANTA, April 18 /PRNewswire/ --
 Firstwave Technologies, Inc. (Nasdaq:   FSTW) today announced an update to the
 financial results for the Fourth Quarter and Year Ended December 31, 2000,
 that had previously been reported on February 13, 2001.
     Firstwave reported revised total software revenues of $2.7 million for
 2000, down slightly from the previously reported $2.8 million, due to revenue
 reversal from two unexpected customer situations, due to events arising
 subsequent to the earnings release that affected the accounting for these
 transactions in the fourth quarter of 2000.
     Total revenues for the year 2000 were $9.5 million, with a net loss of
 $6.1 million, or $1.02 per share, revised from the previously reported net
 loss of $3.1 million, or $0.52 per share.  The increase in net loss was
 substantially due to the increase in the Company's valuation allowance against
 the net deferred tax asset.  In the fourth quarter of 2000, the Company
 increased its valuation allowance by $2,821,000 to fully reserve its entire
 net deferred tax asset balance as a result of uncertainties regarding its
 realization.  The report of the Company's independent accountants on the
 December 31, 2000, consolidated financial statements includes a going concern
 explanatory paragraph indicating that there exists substantial doubt about the
 Company's ability to continue as a going concern.  Although the Company may
 return to profitability in the future and thereby begin to realize the benefit
 of its deferred tax assets, management does not believe that its operating
 history supports carrying the value of the deferred tax assets.  This non-cash
 charge increased the net loss for the fourth quarter and the full year of 2000
 by $2,821,000, or $0.46 per share.
     The Company has implemented several measures in an effort to reduce the
 Company's expenses and to help preserve cash.  The Company continues to pursue
 additional sources of capital.  In the event the Company is not able to obtain
 the necessary additional capital, it may be required to reduce the scope of
 planned product development and sales and marketing efforts, as well as reduce
 the size of current staff, all of which could impact the Company's financial
 condition and results of operations.
 
     About Firstwave
     Firstwave(R) (www.firstwave.net ) develops, markets and supports web-based
 eCRM solutions that automate and optimize the way companies get, keep and grow
 customer relationships.  Firstwave offers one of the only completely web-based
 CRM applications in the market today.  Originally founded in 1984 as Brock
 Control Systems, Firstwave maintains the depth and industry experience
 required to address unique business needs of mid-market companies.  With over
 16 years of experience in relationship management, Firstwave holds the
 distinction of being the Best Internet-Based CRM Solution for the past two
 consecutive years from the Denali Group, was selected as one of ISM's Top 30
 CRM Solutions for 2001 and has received the CRM Excellence Award by the
 Technology Marketing Corporation.
 
     NOTE: Except for historical information contained herein, the matters set
 forth in this news release are forward-looking statements.  The Company noted
 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 the Company's capital requirements and other
 liquidity concerns and related doubt as to the Company's ability to continue
 as a going concern, potential fluctuations in quarterly results due to market
 demand, competition, technological developments, 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 in
 the Company's Annual Report on Form 10-K for the year ended December 31, 2000,
 filed with the Securities and Exchange Commission, under the caption "Certain
 Factors Effecting Forward Looking Statements," which discussion is
 incorporated herein by this reference.
 
 SOURCE  Firstwave Technologies, Inc.