[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.”
GPS said it is now finalizing its end of year reports and anticipates that
the loss for the second half of the financial year “will be less than the
loss incurred for the period ending 31st December 1999.”