Vizacom Announces 2000 Annual Results

Restructured Company Strives For Cash Flow Positive Operations



Apr 03, 2001, 01:00 ET from Vizacom Inc.

    BOHEMIA, N.Y., April 3 /PRNewswire/ -- Vizacom Inc. (Nasdaq:   VIZY) has
 announced its financial results for the fiscal year ended December 31, 2000.
     During 2000, the Company became a provider of professional internet and
 technology solutions and continued to operate its historical software and
 contact center business. The Company's professional solutions business
 consists of two companies Vizacom acquired in early 2000:  Renaissance
 Multimedia and PWR Systems. These two companies now operate as Vizy
 Interactive. In March 2001, the Company sold its software and contact center
 business. The Company also placed two London-based internet service firms it
 acquired in 2000 into liquidation in the United Kingdom and entered into an
 agreement to sell its German contact center operation. As a result of these
 events, the Company's software and overseas operations have been classified as
 discontinued operations as of December 31, 2000, and the Company's 1999
 statement of operations has been reclassified accordingly to eliminate the
 results of these discontinued operations. The results of continuing operations
 reflect the approximate ten and nine-month periods of operations for
 Renaissance Multimedia and PWR Systems, respectively, under the Company's
 ownership in 2000.
     Continuing Operations: Net sales for the Company's continuing operations
 for the year ended December 31, 2000 were $13,457,629. Selling, general and
 administrative expenses increased to $6,487,496 in 2000 from $2,585,994 in
 1999. The Company attributes this increase primarily to costs associated with
 staffing increases and other expenses associated with operating its additional
 subsidiaries, including international operations, in 2000. For the 1999
 period, SGA refers to expenses associated with the Company's corporate
 administration and overhead activities. Net loss attributable to common
 stockholders from continuing operations was ($9,038,620) in 2000 as compared
 to ($1,572,007) in 1999.
     Discontinued Operations: Net sales for the Company's discontinued
 operations for the year ended December 31, 2000 were $14,422,305 compared to
 $19,891,357 in the comparable 1999 period. Net loss from discontinued
 operations was approximately ($10,051,643) for the year ended 2000 as compared
 to ($4,054,495) in the 1999 period.
     Net loss per common basic and diluted shares was ($1.65) for the year
 ended 2000 as compared to ($0.95) for the year ended 1999.
     "In 2000, we transformed our business from being a software publisher to
 being a provider of professional internet and technology solutions.  In light
 of the dramatic downturn in the financial markets and adverse conditions in
 the technology marketplace, we are disappointed by our results.  We believe
 the restructuring initiative we began in 2001 has laid the foundation on which
 to build competitive advantage for our domestic solutions business despite
 uncertain market conditions. Our cash burn rate for our continuing operating
 activities was only approximately $150,000 a month in 2000 (excluding net cash
 used in investing and financing activities). Thereafter, in early 2001, we
 restructured our operations to reduce expenses by approximately $750,000 per
 year.  Our Vizy Interactive - PWR Systems technology solutions business
 appears to be increasing its sales activity in late first quarter of 2001.
 Accordingly, we hope to achieve our goal of establishing positive cash flow
 from operations in the second half of the year, if we can overcome adverse
 economic and market conditions. We expect that reversing the recent decline in
 our Vizy Interactive New York internet solutions business will be critical to
 achieving this goal.  We believe that we will need to raise at least
 $1,500,000 in 2001 to finance our operations, and a significant portion of
 these funds are expected to come from note payments from our former Serif
 subsidiary," said Alan W. Schoenbart, chief financial officer.
     As part of its 2001 restructuring, the Company has closed its executive
 office in Teaneck, New Jersey. Vizacom's new executive offices are at the
 office of its Vizy Interactive-PWR Systems subsidiary, located at:
      3512 Veterans Memorial Highway
      Bohemia, New York 11716
      P: 631-981-5500
      F: 631-981-0099
 
      About Vizacom
      Vizacom Inc. (Nasdaq:   VIZY) is a provider of professional internet and
 technology solutions. Through its Vizy Interactive New York (f/k/a Renaissance
 Multimedia) and Vizy Interactive-PWR Systems subsidiaries, Vizacom develops
 and provides leading companies with a comprehensive range of service and
 product solutions, including: business strategy formation; web interface
 design and branding; e-commerce and web-content management applications;
 creative media solutions; systems planning, development and integration; and
 data center services. Vizacom's clients primarily consist of established
 companies that seek to leverage technology to build stronger and more
 profitable businesses. The Company has formed long-term client relationships
 with several of the world's foremost companies: Computer Associates, Martha
 Stewart Living, SoBe Beverage, MTV Networks, Bozell Group (a True North
 Company), Simon & Schuster, Avon Products, Petrossian Paris, Schering-Plough
 and Sony Music.  For more information, visit http://www.vizacom.com.
 
      Safe Harbor
      Matters set forth herein may include forward-looking statements involving
 risks and uncertainties that could cause actual results to differ. Potential
 risks and uncertainties include, but are not limited to, the market acceptance
 and amount of sales of the Company's Internet and technology solutions and
 computer products; the Company's ability to support the growth of its core
 businesses; the Company's ability to integrate or coordinate the operations of
 its businesses; the Company's ability to hire, train, motivate and retain
 employees; the competitive environment within the Company's industries;
 economic conditions; and the Company's ability to raise additional capital.
 Investors are directed to consider other risks and uncertainties as discussed
 in documents filed by the Company with the SEC.
 
                 Consolidated Balance Sheet Summary Information
                               December 31, 2000
 
     Total current assets                          $5,595,137
 
     Property and equipment, net                     $818,132
 
     Total assets                                 $14,082,197
     Total current liabilities                    $10,279,844
     Total stockholders' equity                    $3,753,636
 
                     Consolidated Statements of Operations
                                                             Year ended
                                                            December 31,
                                                         2000           1999
     Net loss from continuing operations         $(9,038,620)   $(1,572,007)
     Net loss from discontinued operations,
       less applicable income tax benefit of
       $53,116 in 2000 and $250,979 in 1999      (10,051,643)    (4,054,495)
 
     Net loss attributable to
       common stockholders                     $ (19,090,263)  $ (5,683,143)
     Net loss per common share:
       Continuing operations                          $(0.78)        $(0.27)
       Discontinued operations                        $(0.87)        $(0.68)
     Net loss per common share --
       basic and diluted                              $(1.65)        $(0.95)
     Weighted average number of common shares
       outstanding -- basic and diluted            11,556,760      5,996,507
 
 

SOURCE Vizacom Inc.
    BOHEMIA, N.Y., April 3 /PRNewswire/ -- Vizacom Inc. (Nasdaq:   VIZY) has
 announced its financial results for the fiscal year ended December 31, 2000.
     During 2000, the Company became a provider of professional internet and
 technology solutions and continued to operate its historical software and
 contact center business. The Company's professional solutions business
 consists of two companies Vizacom acquired in early 2000:  Renaissance
 Multimedia and PWR Systems. These two companies now operate as Vizy
 Interactive. In March 2001, the Company sold its software and contact center
 business. The Company also placed two London-based internet service firms it
 acquired in 2000 into liquidation in the United Kingdom and entered into an
 agreement to sell its German contact center operation. As a result of these
 events, the Company's software and overseas operations have been classified as
 discontinued operations as of December 31, 2000, and the Company's 1999
 statement of operations has been reclassified accordingly to eliminate the
 results of these discontinued operations. The results of continuing operations
 reflect the approximate ten and nine-month periods of operations for
 Renaissance Multimedia and PWR Systems, respectively, under the Company's
 ownership in 2000.
     Continuing Operations: Net sales for the Company's continuing operations
 for the year ended December 31, 2000 were $13,457,629. Selling, general and
 administrative expenses increased to $6,487,496 in 2000 from $2,585,994 in
 1999. The Company attributes this increase primarily to costs associated with
 staffing increases and other expenses associated with operating its additional
 subsidiaries, including international operations, in 2000. For the 1999
 period, SGA refers to expenses associated with the Company's corporate
 administration and overhead activities. Net loss attributable to common
 stockholders from continuing operations was ($9,038,620) in 2000 as compared
 to ($1,572,007) in 1999.
     Discontinued Operations: Net sales for the Company's discontinued
 operations for the year ended December 31, 2000 were $14,422,305 compared to
 $19,891,357 in the comparable 1999 period. Net loss from discontinued
 operations was approximately ($10,051,643) for the year ended 2000 as compared
 to ($4,054,495) in the 1999 period.
     Net loss per common basic and diluted shares was ($1.65) for the year
 ended 2000 as compared to ($0.95) for the year ended 1999.
     "In 2000, we transformed our business from being a software publisher to
 being a provider of professional internet and technology solutions.  In light
 of the dramatic downturn in the financial markets and adverse conditions in
 the technology marketplace, we are disappointed by our results.  We believe
 the restructuring initiative we began in 2001 has laid the foundation on which
 to build competitive advantage for our domestic solutions business despite
 uncertain market conditions. Our cash burn rate for our continuing operating
 activities was only approximately $150,000 a month in 2000 (excluding net cash
 used in investing and financing activities). Thereafter, in early 2001, we
 restructured our operations to reduce expenses by approximately $750,000 per
 year.  Our Vizy Interactive - PWR Systems technology solutions business
 appears to be increasing its sales activity in late first quarter of 2001.
 Accordingly, we hope to achieve our goal of establishing positive cash flow
 from operations in the second half of the year, if we can overcome adverse
 economic and market conditions. We expect that reversing the recent decline in
 our Vizy Interactive New York internet solutions business will be critical to
 achieving this goal.  We believe that we will need to raise at least
 $1,500,000 in 2001 to finance our operations, and a significant portion of
 these funds are expected to come from note payments from our former Serif
 subsidiary," said Alan W. Schoenbart, chief financial officer.
     As part of its 2001 restructuring, the Company has closed its executive
 office in Teaneck, New Jersey. Vizacom's new executive offices are at the
 office of its Vizy Interactive-PWR Systems subsidiary, located at:
      3512 Veterans Memorial Highway
      Bohemia, New York 11716
      P: 631-981-5500
      F: 631-981-0099
 
      About Vizacom
      Vizacom Inc. (Nasdaq:   VIZY) is a provider of professional internet and
 technology solutions. Through its Vizy Interactive New York (f/k/a Renaissance
 Multimedia) and Vizy Interactive-PWR Systems subsidiaries, Vizacom develops
 and provides leading companies with a comprehensive range of service and
 product solutions, including: business strategy formation; web interface
 design and branding; e-commerce and web-content management applications;
 creative media solutions; systems planning, development and integration; and
 data center services. Vizacom's clients primarily consist of established
 companies that seek to leverage technology to build stronger and more
 profitable businesses. The Company has formed long-term client relationships
 with several of the world's foremost companies: Computer Associates, Martha
 Stewart Living, SoBe Beverage, MTV Networks, Bozell Group (a True North
 Company), Simon & Schuster, Avon Products, Petrossian Paris, Schering-Plough
 and Sony Music.  For more information, visit http://www.vizacom.com.
 
      Safe Harbor
      Matters set forth herein may include forward-looking statements involving
 risks and uncertainties that could cause actual results to differ. Potential
 risks and uncertainties include, but are not limited to, the market acceptance
 and amount of sales of the Company's Internet and technology solutions and
 computer products; the Company's ability to support the growth of its core
 businesses; the Company's ability to integrate or coordinate the operations of
 its businesses; the Company's ability to hire, train, motivate and retain
 employees; the competitive environment within the Company's industries;
 economic conditions; and the Company's ability to raise additional capital.
 Investors are directed to consider other risks and uncertainties as discussed
 in documents filed by the Company with the SEC.
 
                 Consolidated Balance Sheet Summary Information
                               December 31, 2000
 
     Total current assets                          $5,595,137
 
     Property and equipment, net                     $818,132
 
     Total assets                                 $14,082,197
     Total current liabilities                    $10,279,844
     Total stockholders' equity                    $3,753,636
 
                     Consolidated Statements of Operations
                                                             Year ended
                                                            December 31,
                                                         2000           1999
     Net loss from continuing operations         $(9,038,620)   $(1,572,007)
     Net loss from discontinued operations,
       less applicable income tax benefit of
       $53,116 in 2000 and $250,979 in 1999      (10,051,643)    (4,054,495)
 
     Net loss attributable to
       common stockholders                     $ (19,090,263)  $ (5,683,143)
     Net loss per common share:
       Continuing operations                          $(0.78)        $(0.27)
       Discontinued operations                        $(0.87)        $(0.68)
     Net loss per common share --
       basic and diluted                              $(1.65)        $(0.95)
     Weighted average number of common shares
       outstanding -- basic and diluted            11,556,760      5,996,507
 
 SOURCE  Vizacom Inc.