658 A21 SECOND QUARTER RESULTS
August 16, 2004
a21, Inc. reported gross revenue for the second quarter of 2004 was $2.5 million. A21 completed its acquisition of SuperStock on February 29, 2004 so this is the first full quarter that they have owned the company. They had $797,868 in revenue from SuperStock in March giving them revenue of $3,325,165 for the first half of 2004. SuperStock generated gross revenue of $2.3 million for the second quarter of 2003.
Net loss for the second quarter of 2004 was $194,000 or $0.01 per share, versus net loss of $357,000 or $0.02 per share, for the same period in 2003. Earnings per share for the second quarter of 2004 is calculated on the basis of 38.1 million weighted average shares outstanding, compared to 15.2 million weighted average shares outstanding for the same period last year.
Had the acquisition of SuperStock occurred at the beginning of fiscal 2004, revenue for the six-months ended June 30, 2004 would have been $4.8 million. Net loss for the first half of 2004 was $794,000 or $0.02 per share, versus net loss of $623,000 or $0.04 per share, for the same period in 2003. Earnings per share for the first half of 2004 is calculated on the basis of 31.9 million weighted average shares outstanding, compared to 14.7 million weighted average shares outstanding for the same period last year.
According to Albert H. Pleus, Chairman and CEO of a21 they have, "an archive exceeding 900,000 images. Since the acquisition, we have taken aggressive steps to improve the business, including streamlining processes, re-engineering technology, adding content, expanding marketing, and driving traffic to our web-sites. During the second quarter of 2004, we completed the $7.68 million sale and leaseback of our Jacksonville, Florida headquarters, reducing existing debt by approximately $5.6 million and providing additional capital for growth and acquisitions."
Mr. Pleus continued, "We have also assembled an impressive leadership team to bring an excellent balance of industry, strategic, operational and financial experience to a21. Thomas Butta, a long-time advisor and member of the Board of Directors, was recently named Vice Chairman and Chief Strategic Officer. He brings over 20 years of experience in positioning high growth companies in changing industries. Tom was formerly the chief Marketing Officer of Red Hat and Chief Marketing Officer and Executive Vice President of Parametric Technology Corporation. Additionally, we hired Bruce Haertlein as Vice President, Sales. Bruce brings over 20 years of industry sales experience. Most recently, Bruce served as Vice President of sales at Panurgy, LLC, and spent more than 15 years at AT&T building sales and marketing teams. Finally, we promoted Ian Lishman to Vice President, Visual Content. Ian has over 20 years of creative industry experience, and formerly served as Managing Director of Powerstock--SuperStock's UK subsidiary."