Low Exports Halve Dot Com's Revenues
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[Sydney, AUSTRALIA] The directors of GPS Online.com Ltd have advised their shareholders that their revenue forecast has been revised to almost half the sum predicted in the company's prospectus. The geographical positioning technology company now estimates revenues of AUS $2.2 million (US $1.3 million) rather than the AUS $4.1 million (US $2.6 million) estimated for the financial year ending 30th June 2000.
Putting on a brave face, GPS Online.com announced that the new forecast represented three times more revenue than was earned from the previous financial year.
The company attributed the disappointing results to the lack of success in the export market. "As outlined in the risks factors of the prospectus the company remains reliant on export markets for a significant proportion of its revenues and brand profitability. With the recent acquisitions and the increased product range, the company is confident of significant overseas sales in the next 12 months," a statement to the ASX claimed.
A spending spree earlier in the year involving the acquisition of more than three companies including Custom Data Solutions Pty Ltd, Antron Communications Pty Ltd and Custom Call Communications Pty Ltd had not put the company in the red. According to a company representative, "GPS Online is in a strong financial position with substantial cash reserves. The directors are confident that the company is now cash flow positive."