Inforte Corp. First Quarter Results Meet Guidance

Revenue and Profit Meet Company's Expectations for 5th Consecutive Quarter



Apr 12, 2001, 01:00 ET from Inforte Corp.

    CHICAGO, April 12 /PRNewswire/ -- Strategic technology consultancy Inforte
 Corp. (Nasdaq: INFT), today announced revenue growth, profit and positive cash
 flow from operations for the March 31, 2001 quarter.  Revenue for the March
 2001 quarter was $14.1 million, up 14% from $12.3 million in the March 2000
 quarter.  Operating income was $0.4 million in the March 2001 quarter,
 compared to $1.5 million in the March 2000 quarter.  Earnings per diluted
 share were $0.07 per diluted share, compared to $0.08 per diluted share in the
 March 2000 quarter.  Cash flow from operations was $1.3 million.
     During the March 2001 quarter, Inforte repurchased 58,500 shares of stock
 for a total cost of $472,406.  As of March 31, 2001, Inforte had 12.7 million
 shares outstanding and $84.1 million in cash and marketable securities,
 resulting in $6.60 in cash and marketable securities per share.
     "I am very pleased with our performance given the challenging economic
 environment.  The entire organization has demonstrated extraordinary business
 development and cost control resourcefulness that has provided the bottom line
 profitability and cash flow generation that Inforte is known for.
 Additionally, our consultants earned perfect client satisfaction scores from
 five different clients in the March quarter -- matching the company's prior
 record high," said Phil Bligh, chief executive officer, chairman and president
 of Inforte.  "I am confident that our team can continue to lead the industry
 in client service and financial performance."
     According to Nick Padgett, Inforte's chief financial officer, "Our first
 quarter results met our revenue and earnings per share expectations and
 exceeded our cash flow expectations.  We are pleased to continue to be one of
 the few companies in our sector who has consistently delivered results that
 match the expectations we set.  We attribute this to our revenue and expense
 forecasting systems, controls and processes that we have honed and refined
 over many years.  At present, the macroeconomic environment is the primary
 factor influencing our results.  Nevertheless, despite this current
 environment we remain confident that we can continue our record of relative
 outperformance, and we expect that revenue in future quarters can approach or
 equal the first quarter results.  Accordingly, we believe that appropriate
 guidance for each quarter going forward is revenue of $12.5 million to
 $14.0 million and EPS of $0.00 to $0.05.  Therefore, we expect our full year
 2001 to result in revenue of $51.5 million to $56.0 million and EPS of
 $0.07 to $0.22.  In addition to being profitable in 2001, we presently expect
 2001 cash flow from operations to be positive.
     "We believe the outlook for 2002 will again rely heavily on the economy,
 and frankly no one knows what the economy will be like next year.  In the
 absence of economic certainty, we believe the only prudent course is to expect
 a similar outlook each quarter until there are clear signs of a sustained,
 definite turn in the economy.  Thus, extrapolating our current quarterly
 forecast into next year, we are currently forecasting 2002 revenue of
 $50.0 million to $56.0 million and EPS of $0.00 and $0.20.  To conclude, while
 we wish that our results and outlook were higher on an absolute basis, we are
 comfortable that we can continue our relative outperformance with
 profitability and cash generation intact."
 
     Highlights during the March 2001 quarter include the following:
     -- Profits and cash flow remained healthy amidst a challenging economic
        environment.  In the March 2001 quarter Inforte posted a 47.4% gross
        margin, a 6.1% EBITDA (earnings before interest, taxes, depreciation
        and amortization) margin, a 3.0% operating margin, days sales
        outstanding of negative 5, and $1.3 million in cash flow from
        operations.  Total cash and marketable securities increased to
        $84.1 million at March 31, 2001 from $83.0 million at December 31,
        2000.  As of March 31, 2001, employees totaled 428, of which 324 were
        billable, compared to 442 total employees and 340 billable employees as
        of December 31, 2000.
     -- Inforte earned perfect client satisfaction scores from five of its
        clients.
     -- Inforte debuted its European presence with the announcement of its
        London office.
     -- Inforte delivered an eCRM solution to Meriwest that personalizes member
        information and enhances staff efficiency.
     -- Inforte hired George Sisak to lead the Marketplace Transaction
        Management practice.  George's expertise will help clients rigorously
        define their business cases and quantify the benefits of a implementing
        a value chain wide solution.
 
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Actual results may differ from forward-looking results for
 a number of reasons, including but not limited to, Inforte's ability to: (i)
 effectively forecast demand and profitably match our resources with the
 demand; (ii) attract and retain clients and satisfy our clients' expectations;
 (iii) recruit and retain qualified professionals; (iv) reliably forecast
 revenue when information technology services spending is less certain (v)
 accurately estimate the time and resources necessary for the delivery of our
 services; and (vi) build and maintain marketing relationships with leading
 software vendors, as well as other factors discussed from time to time in our
 SEC filings.  Should one or more of these risks or uncertainties materialize,
 or should underlying assumptions prove incorrect, actual results may vary
 materially from those anticipated, estimated, or projected.  All
 forward-looking statements included in this document are made as of the date
 hereof, based on information available to Inforte on the date thereof, and
 Inforte assumes no obligation to update any forward-looking statements.
 
     About Inforte Corporation
     Strategic technology consultancy Inforte Corp. (Nasdaq: INFT) creates
 competitive advantage for clients by optimizing their strategic use of
 technology across their value chains.  These solutions involve the delivery of
 technology strategy, comprehensive demand chain management solutions, together
 with solutions to optimize supply chain integration.  Inforte's client
 advocacy approach and rigorous delivery methodologies have garnered the trust
 of Global 2000 clients, produced industry-leading project-efficiency metrics
 and helped Inforte earn 100 percent referenceability among its client base.
 Founded in 1993, Inforte is headquartered in Chicago and has offices in
 Dallas, London, Los Angeles and San Francisco. For more information, contact
 Inforte at 800-340-0200 or visit their Web sites at www.inforte.com and
 www.eStrategy.com .
 
 
     PRELIMINARY
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
 
                                                     THREE MONTHS ENDED
                                                          MARCH 31,
 
                                                     2000           2001
                                                  (Unaudited)    (Unaudited)
 
     Revenues                                     $12,290,000    $14,051,153
 
     Operating expenses:
       Project personnel and related expenses       5,408,772      7,396,824
       Sales and marketing                          1,561,941      1,858,591
       Recruiting, retention and training           1,406,296        924,081
       Management and administrative                2,443,543      3,447,453
 
         Total operating expenses                  10,820,552     13,626,949
 
     Operating income                               1,469,448        424,204
 
     Interest income, net and other                   340,501      1,013,331
 
     Income before income taxes                     1,809,949      1,437,535
     Income tax expense                               778,344        503,134
 
         Net income                                $1,031,605       $934,401
 
 
     Earnings per share:
       -Basic                                           $0.10          $0.07
       -Diluted                                         $0.08          $0.07
 
     Weighted average common shares outstanding:
       -Basic                                      10,767,891     12,719,821
       -Diluted                                    12,431,917     13,699,582
 
     Expense percentages
       Project personnel and related expenses           44.0%          52.6%
       Sales and marketing                              12.7%          13.2%
       Recruiting, retention, and training              11.4%           6.6%
       Management and administrative                    19.9%          24.5%
       Income tax rate                                  43.0%          35.0%
 
     Margins
       Gross income                                     56.0%          47.4%
       Operating income                                 12.0%           3.0%
       Pretax income                                    14.7%          10.2%
       Net income                                        8.4%           6.6%
 
 
     PRELIMINARY
                                INFORTE CORP.
                               BALANCE SHEETS
 
 
                                  MARCH 31,        JUNE 30,      SEPT. 30,
                                    2000            2000           2000
                                 (Unaudited)     (Unaudited)   (Unaudited)
 
     ASSETS
     Current assets:
     Cash and cash
      equivalents                $55,513,303     $52,896,329   $38,226,516
     Short-term
      marketable
      securities                  16,535,070       7,650,000    27,167,323
     Accounts
      receivable                  10,966,546      12,290,131    13,606,517
     Allowance
      for doubtful
      accounts                      (750,000)     (1,150,000)   (1,150,000)
 
     Accounts
      receivable,
      net                         10,216,546      11,140,131    12,456,517
     Prepaid
      expenses and
      other current
      assets                       1,242,262       1,415,523     1,668,845
     Income taxes
      recoverable                          -               -             -
     Deferred
      income taxes                   706,449         853,297       841,171
 
     Total current
      assets                      84,213,630      73,955,280    80,360,372
 
     Computers,
      purchased
      software, and
      property                     2,661,595       3,013,126     3,844,265
     Less
      accumulated
      depreciation
      and amortization               902,303       1,103,074     1,204,195
 
     Computers,
      purchased
      software,
      and property,
      net                          1,759,292       1,910,052     2,640,070
 
     Long-term
      marketable
      securities                           -      15,819,306    14,442,823
     Deferred
      income taxes                     2,003          49,145        77,166
 
     Total
      assets                     $85,974,925     $91,733,783   $97,520,431
 
 
     LIABILITIES AND STOCKHOLDERS'EQUITY
     Current liabilities:
     Accounts
      payable                     $2,076,938      $1,028,738      $325,319
     Income
      taxes payable                  839,309         562,039       677,837
     Accrued
     expenses                      4,120,660       5,672,792     7,045,741
     Deferred
     revenue                       8,080,343      10,388,090    11,899,327
 
     Total current
     liabilities                  15,117,250      17,651,659    19,948,224
 
     Stockholders' equity:
     Common stock, $0.001
      par value
      authorized-
      50,000,000 shares;
      issued and
      outstanding-
      12,320,981 as of
      March 31, 2000
      12,734,028 as of
      March 31, 2001                  12,321          12,397        12,570
     Additional
      paid-in
     capital                      67,937,212      69,322,014    70,732,687
     Treasury
      stock
      (58,500 shares
      as of March 31,
      2001)                                -               -             -
     Retained
      earnings                     2,910,662       4,740,081     6,812,981
     Accumulated
      other
      comprehensive
      income                          (2,520)          7,632        13,969
 
     Total
      stockholders'
      equity                      70,857,675      74,082,124    77,572,207
 
     Total
      liabilities
      and
      stockholders'
      equity                     $85,974,925     $91,733,783   $97,520,431
 
 
 
     PRELIMINARY
                                 INFORTE CORP.
                                 BALANCE SHEETS
 
 
 
                                                    DEC. 31,      MARCH 31,
                                                      2000          2001
                                                                 (Unaudited)
 
     ASSETS
     Current assets:
     Cash and cash
      equivalents                                 $42,391,880    $44,122,977
     Short-term
      marketable
      securities                                   26,220,945     34,684,374
     Accounts
      receivable                                   10,385,795      7,684,129
     Allowance
      for doubtful
      accounts                                     (1,150,000)    (1,150,000)
 
     Accounts
      receivable,
      net                                           9,235,795      6,534,129
     Prepaid
      expenses
      and other
      current
      assets                                        1,905,936      2,171,259
     Income taxes
      recoverable                                   1,545,769              -
     Deferred
      income
      taxes                                           876,581        908,537
 
     Total current
      assets                                       82,176,906     88,421,276
 
     Computers,
      purchased
      software,
      and property                                  4,535,670      4,599,496
     Less
      accumulated
      depreciation
      and amortization                              1,558,503      1,830,949
 
     Computers,
      purchased
      software,
      and property,
      net                                           2,977,167      2,768,547
 
     Long-term
      marketable
      securities                                   14,383,998      5,292,945
     Deferred
      income
      taxes                                           364,905        503,820
 
     Total assets                                 $99,902,976     96,986,588
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
     Accounts
      payable                                        $582,591       $534,134
     Income
      taxes
      payable                                               -        454,451
     Accrued
      expenses                                      7,702,466      4,600,253
     Deferred
      revenue                                       8,574,055      7,316,310
 
     Total current
      liabilities                                  16,859,112     12,905,148
 
     Stockholders' equity:
     Common stock,
      $0.001 par
      value authorized-
      50,000,000
      shares; issued
      and outstanding-
      12,320,981 as of
      March 31, 2000
      12,734,028 as of
      March 31, 2001                                   12,703         12,734
     Additional
      paid-in capital                              74,192,205     74,717,495
     Treasury stock
      (58,500 shares
      as of March 31,
      2001)                                                 -       (472,406)
     Retained
      earnings                                      8,753,017      9,687,418
     Accumulated
      other
      comprehensive
      income                                           85,939        136,199
 
     Total
      stockholders'
      equity                                       83,043,864     84,081,440
 
     Total
      liabilities
      and stockholders'
      equity                                      $99,902,976    $96,986,588
 
 
 
     PRELIMINARY
                                   INFORTE CORP.
                              STATEMENTS OF CASH FLOWS
                                    (Unaudited)
 
 
                                                      THREE MONTHS ENDED
                                                           MARCH 31,
                                                      2000            2001
                                                   (Unaudited)(Unaudited)
 
     Cash flows from operating activities
     Net income                                   $ 1,031,605       $934,401
 
     Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation and amortization                 229,612        431,561
        Non-cash compensation                               -         75,000
        Deferred income taxes                         (36,393)      (170,871)
     Changes in operating assets and liabilities
        Accounts receivable                        (3,892,296)     2,701,666
        Prepaid expenses and other current assets    (560,699)      (265,323)
        Accounts payable                              724,466        (48,457)
        Income taxes                                  527,797      2,000,220
        Accrued expenses and other                     (1,515)    (3,102,213)
        Deferred revenue                            3,209,764     (1,257,745)
 
     Net cash provided by operating activities      1,232,341      1,298,239
 
     Cash flows from operating activities
 
     (Increase)/Decrease in marketable
       securities                                 (16,542,418)       652,415
     Purchases of property and equipment             (496,573)      (201,007)
 
     Net cash provided by (used in) investing
       activities                                 (17,038,991)       451,408
 
     Cash flows from financing activities
 
        Proceeds from issuance of common stock     66,860,251              -
        Stock option and purchase plans               667,675        450,321
        Purchase of treasury stock                          -      (472,406)
 
     Net cash provided by (used in) financing
       activities                                  67,527,926        (22,085)
 
     Effect of changes in exchange rates on cash            -          3,535
     Net increase in cash and cash equivalents     51,721,276      1,731,097
     Cash and cash equivalents, beg. of period      3,792,027     42,391,880
 
     Cash and cash equivalents, end of period     $55,513,303    $44,122,977
 
 
     For more information, contact: Investor Relations, Katie Spring, Managing
 Director of Hill and Knowlton, for Inforte Corp., 312-475-5987,
 kspring@hillandknowlton.com ; or Media, Maurissa Kanter, Director of Public
 Relations of Inforte Corporation, 312-540-0900, Maurissa.Kanter@Inforte.com .
 Go to www.inforte.com to access 4-12-01 Investor Conference Call Webcast,
 which begins at 5:30pm Eastern.
 
 

SOURCE Inforte Corp.
    CHICAGO, April 12 /PRNewswire/ -- Strategic technology consultancy Inforte
 Corp. (Nasdaq: INFT), today announced revenue growth, profit and positive cash
 flow from operations for the March 31, 2001 quarter.  Revenue for the March
 2001 quarter was $14.1 million, up 14% from $12.3 million in the March 2000
 quarter.  Operating income was $0.4 million in the March 2001 quarter,
 compared to $1.5 million in the March 2000 quarter.  Earnings per diluted
 share were $0.07 per diluted share, compared to $0.08 per diluted share in the
 March 2000 quarter.  Cash flow from operations was $1.3 million.
     During the March 2001 quarter, Inforte repurchased 58,500 shares of stock
 for a total cost of $472,406.  As of March 31, 2001, Inforte had 12.7 million
 shares outstanding and $84.1 million in cash and marketable securities,
 resulting in $6.60 in cash and marketable securities per share.
     "I am very pleased with our performance given the challenging economic
 environment.  The entire organization has demonstrated extraordinary business
 development and cost control resourcefulness that has provided the bottom line
 profitability and cash flow generation that Inforte is known for.
 Additionally, our consultants earned perfect client satisfaction scores from
 five different clients in the March quarter -- matching the company's prior
 record high," said Phil Bligh, chief executive officer, chairman and president
 of Inforte.  "I am confident that our team can continue to lead the industry
 in client service and financial performance."
     According to Nick Padgett, Inforte's chief financial officer, "Our first
 quarter results met our revenue and earnings per share expectations and
 exceeded our cash flow expectations.  We are pleased to continue to be one of
 the few companies in our sector who has consistently delivered results that
 match the expectations we set.  We attribute this to our revenue and expense
 forecasting systems, controls and processes that we have honed and refined
 over many years.  At present, the macroeconomic environment is the primary
 factor influencing our results.  Nevertheless, despite this current
 environment we remain confident that we can continue our record of relative
 outperformance, and we expect that revenue in future quarters can approach or
 equal the first quarter results.  Accordingly, we believe that appropriate
 guidance for each quarter going forward is revenue of $12.5 million to
 $14.0 million and EPS of $0.00 to $0.05.  Therefore, we expect our full year
 2001 to result in revenue of $51.5 million to $56.0 million and EPS of
 $0.07 to $0.22.  In addition to being profitable in 2001, we presently expect
 2001 cash flow from operations to be positive.
     "We believe the outlook for 2002 will again rely heavily on the economy,
 and frankly no one knows what the economy will be like next year.  In the
 absence of economic certainty, we believe the only prudent course is to expect
 a similar outlook each quarter until there are clear signs of a sustained,
 definite turn in the economy.  Thus, extrapolating our current quarterly
 forecast into next year, we are currently forecasting 2002 revenue of
 $50.0 million to $56.0 million and EPS of $0.00 and $0.20.  To conclude, while
 we wish that our results and outlook were higher on an absolute basis, we are
 comfortable that we can continue our relative outperformance with
 profitability and cash generation intact."
 
     Highlights during the March 2001 quarter include the following:
     -- Profits and cash flow remained healthy amidst a challenging economic
        environment.  In the March 2001 quarter Inforte posted a 47.4% gross
        margin, a 6.1% EBITDA (earnings before interest, taxes, depreciation
        and amortization) margin, a 3.0% operating margin, days sales
        outstanding of negative 5, and $1.3 million in cash flow from
        operations.  Total cash and marketable securities increased to
        $84.1 million at March 31, 2001 from $83.0 million at December 31,
        2000.  As of March 31, 2001, employees totaled 428, of which 324 were
        billable, compared to 442 total employees and 340 billable employees as
        of December 31, 2000.
     -- Inforte earned perfect client satisfaction scores from five of its
        clients.
     -- Inforte debuted its European presence with the announcement of its
        London office.
     -- Inforte delivered an eCRM solution to Meriwest that personalizes member
        information and enhances staff efficiency.
     -- Inforte hired George Sisak to lead the Marketplace Transaction
        Management practice.  George's expertise will help clients rigorously
        define their business cases and quantify the benefits of a implementing
        a value chain wide solution.
 
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Actual results may differ from forward-looking results for
 a number of reasons, including but not limited to, Inforte's ability to: (i)
 effectively forecast demand and profitably match our resources with the
 demand; (ii) attract and retain clients and satisfy our clients' expectations;
 (iii) recruit and retain qualified professionals; (iv) reliably forecast
 revenue when information technology services spending is less certain (v)
 accurately estimate the time and resources necessary for the delivery of our
 services; and (vi) build and maintain marketing relationships with leading
 software vendors, as well as other factors discussed from time to time in our
 SEC filings.  Should one or more of these risks or uncertainties materialize,
 or should underlying assumptions prove incorrect, actual results may vary
 materially from those anticipated, estimated, or projected.  All
 forward-looking statements included in this document are made as of the date
 hereof, based on information available to Inforte on the date thereof, and
 Inforte assumes no obligation to update any forward-looking statements.
 
     About Inforte Corporation
     Strategic technology consultancy Inforte Corp. (Nasdaq: INFT) creates
 competitive advantage for clients by optimizing their strategic use of
 technology across their value chains.  These solutions involve the delivery of
 technology strategy, comprehensive demand chain management solutions, together
 with solutions to optimize supply chain integration.  Inforte's client
 advocacy approach and rigorous delivery methodologies have garnered the trust
 of Global 2000 clients, produced industry-leading project-efficiency metrics
 and helped Inforte earn 100 percent referenceability among its client base.
 Founded in 1993, Inforte is headquartered in Chicago and has offices in
 Dallas, London, Los Angeles and San Francisco. For more information, contact
 Inforte at 800-340-0200 or visit their Web sites at www.inforte.com and
 www.eStrategy.com .
 
 
     PRELIMINARY
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
 
                                                     THREE MONTHS ENDED
                                                          MARCH 31,
 
                                                     2000           2001
                                                  (Unaudited)    (Unaudited)
 
     Revenues                                     $12,290,000    $14,051,153
 
     Operating expenses:
       Project personnel and related expenses       5,408,772      7,396,824
       Sales and marketing                          1,561,941      1,858,591
       Recruiting, retention and training           1,406,296        924,081
       Management and administrative                2,443,543      3,447,453
 
         Total operating expenses                  10,820,552     13,626,949
 
     Operating income                               1,469,448        424,204
 
     Interest income, net and other                   340,501      1,013,331
 
     Income before income taxes                     1,809,949      1,437,535
     Income tax expense                               778,344        503,134
 
         Net income                                $1,031,605       $934,401
 
 
     Earnings per share:
       -Basic                                           $0.10          $0.07
       -Diluted                                         $0.08          $0.07
 
     Weighted average common shares outstanding:
       -Basic                                      10,767,891     12,719,821
       -Diluted                                    12,431,917     13,699,582
 
     Expense percentages
       Project personnel and related expenses           44.0%          52.6%
       Sales and marketing                              12.7%          13.2%
       Recruiting, retention, and training              11.4%           6.6%
       Management and administrative                    19.9%          24.5%
       Income tax rate                                  43.0%          35.0%
 
     Margins
       Gross income                                     56.0%          47.4%
       Operating income                                 12.0%           3.0%
       Pretax income                                    14.7%          10.2%
       Net income                                        8.4%           6.6%
 
 
     PRELIMINARY
                                INFORTE CORP.
                               BALANCE SHEETS
 
 
                                  MARCH 31,        JUNE 30,      SEPT. 30,
                                    2000            2000           2000
                                 (Unaudited)     (Unaudited)   (Unaudited)
 
     ASSETS
     Current assets:
     Cash and cash
      equivalents                $55,513,303     $52,896,329   $38,226,516
     Short-term
      marketable
      securities                  16,535,070       7,650,000    27,167,323
     Accounts
      receivable                  10,966,546      12,290,131    13,606,517
     Allowance
      for doubtful
      accounts                      (750,000)     (1,150,000)   (1,150,000)
 
     Accounts
      receivable,
      net                         10,216,546      11,140,131    12,456,517
     Prepaid
      expenses and
      other current
      assets                       1,242,262       1,415,523     1,668,845
     Income taxes
      recoverable                          -               -             -
     Deferred
      income taxes                   706,449         853,297       841,171
 
     Total current
      assets                      84,213,630      73,955,280    80,360,372
 
     Computers,
      purchased
      software, and
      property                     2,661,595       3,013,126     3,844,265
     Less
      accumulated
      depreciation
      and amortization               902,303       1,103,074     1,204,195
 
     Computers,
      purchased
      software,
      and property,
      net                          1,759,292       1,910,052     2,640,070
 
     Long-term
      marketable
      securities                           -      15,819,306    14,442,823
     Deferred
      income taxes                     2,003          49,145        77,166
 
     Total
      assets                     $85,974,925     $91,733,783   $97,520,431
 
 
     LIABILITIES AND STOCKHOLDERS'EQUITY
     Current liabilities:
     Accounts
      payable                     $2,076,938      $1,028,738      $325,319
     Income
      taxes payable                  839,309         562,039       677,837
     Accrued
     expenses                      4,120,660       5,672,792     7,045,741
     Deferred
     revenue                       8,080,343      10,388,090    11,899,327
 
     Total current
     liabilities                  15,117,250      17,651,659    19,948,224
 
     Stockholders' equity:
     Common stock, $0.001
      par value
      authorized-
      50,000,000 shares;
      issued and
      outstanding-
      12,320,981 as of
      March 31, 2000
      12,734,028 as of
      March 31, 2001                  12,321          12,397        12,570
     Additional
      paid-in
     capital                      67,937,212      69,322,014    70,732,687
     Treasury
      stock
      (58,500 shares
      as of March 31,
      2001)                                -               -             -
     Retained
      earnings                     2,910,662       4,740,081     6,812,981
     Accumulated
      other
      comprehensive
      income                          (2,520)          7,632        13,969
 
     Total
      stockholders'
      equity                      70,857,675      74,082,124    77,572,207
 
     Total
      liabilities
      and
      stockholders'
      equity                     $85,974,925     $91,733,783   $97,520,431
 
 
 
     PRELIMINARY
                                 INFORTE CORP.
                                 BALANCE SHEETS
 
 
 
                                                    DEC. 31,      MARCH 31,
                                                      2000          2001
                                                                 (Unaudited)
 
     ASSETS
     Current assets:
     Cash and cash
      equivalents                                 $42,391,880    $44,122,977
     Short-term
      marketable
      securities                                   26,220,945     34,684,374
     Accounts
      receivable                                   10,385,795      7,684,129
     Allowance
      for doubtful
      accounts                                     (1,150,000)    (1,150,000)
 
     Accounts
      receivable,
      net                                           9,235,795      6,534,129
     Prepaid
      expenses
      and other
      current
      assets                                        1,905,936      2,171,259
     Income taxes
      recoverable                                   1,545,769              -
     Deferred
      income
      taxes                                           876,581        908,537
 
     Total current
      assets                                       82,176,906     88,421,276
 
     Computers,
      purchased
      software,
      and property                                  4,535,670      4,599,496
     Less
      accumulated
      depreciation
      and amortization                              1,558,503      1,830,949
 
     Computers,
      purchased
      software,
      and property,
      net                                           2,977,167      2,768,547
 
     Long-term
      marketable
      securities                                   14,383,998      5,292,945
     Deferred
      income
      taxes                                           364,905        503,820
 
     Total assets                                 $99,902,976     96,986,588
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
     Accounts
      payable                                        $582,591       $534,134
     Income
      taxes
      payable                                               -        454,451
     Accrued
      expenses                                      7,702,466      4,600,253
     Deferred
      revenue                                       8,574,055      7,316,310
 
     Total current
      liabilities                                  16,859,112     12,905,148
 
     Stockholders' equity:
     Common stock,
      $0.001 par
      value authorized-
      50,000,000
      shares; issued
      and outstanding-
      12,320,981 as of
      March 31, 2000
      12,734,028 as of
      March 31, 2001                                   12,703         12,734
     Additional
      paid-in capital                              74,192,205     74,717,495
     Treasury stock
      (58,500 shares
      as of March 31,
      2001)                                                 -       (472,406)
     Retained
      earnings                                      8,753,017      9,687,418
     Accumulated
      other
      comprehensive
      income                                           85,939        136,199
 
     Total
      stockholders'
      equity                                       83,043,864     84,081,440
 
     Total
      liabilities
      and stockholders'
      equity                                      $99,902,976    $96,986,588
 
 
 
     PRELIMINARY
                                   INFORTE CORP.
                              STATEMENTS OF CASH FLOWS
                                    (Unaudited)
 
 
                                                      THREE MONTHS ENDED
                                                           MARCH 31,
                                                      2000            2001
                                                   (Unaudited)(Unaudited)
 
     Cash flows from operating activities
     Net income                                   $ 1,031,605       $934,401
 
     Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation and amortization                 229,612        431,561
        Non-cash compensation                               -         75,000
        Deferred income taxes                         (36,393)      (170,871)
     Changes in operating assets and liabilities
        Accounts receivable                        (3,892,296)     2,701,666
        Prepaid expenses and other current assets    (560,699)      (265,323)
        Accounts payable                              724,466        (48,457)
        Income taxes                                  527,797      2,000,220
        Accrued expenses and other                     (1,515)    (3,102,213)
        Deferred revenue                            3,209,764     (1,257,745)
 
     Net cash provided by operating activities      1,232,341      1,298,239
 
     Cash flows from operating activities
 
     (Increase)/Decrease in marketable
       securities                                 (16,542,418)       652,415
     Purchases of property and equipment             (496,573)      (201,007)
 
     Net cash provided by (used in) investing
       activities                                 (17,038,991)       451,408
 
     Cash flows from financing activities
 
        Proceeds from issuance of common stock     66,860,251              -
        Stock option and purchase plans               667,675        450,321
        Purchase of treasury stock                          -      (472,406)
 
     Net cash provided by (used in) financing
       activities                                  67,527,926        (22,085)
 
     Effect of changes in exchange rates on cash            -          3,535
     Net increase in cash and cash equivalents     51,721,276      1,731,097
     Cash and cash equivalents, beg. of period      3,792,027     42,391,880
 
     Cash and cash equivalents, end of period     $55,513,303    $44,122,977
 
 
     For more information, contact: Investor Relations, Katie Spring, Managing
 Director of Hill and Knowlton, for Inforte Corp., 312-475-5987,
 kspring@hillandknowlton.com ; or Media, Maurissa Kanter, Director of Public
 Relations of Inforte Corporation, 312-540-0900, Maurissa.Kanter@Inforte.com .
 Go to www.inforte.com to access 4-12-01 Investor Conference Call Webcast,
 which begins at 5:30pm Eastern.
 
 SOURCE  Inforte Corp.