a21 Second Quarter Results

Posted on 9/23/2005 by Jim Pickerell | Printable Version | Comments (0)



September 23, 2005

A21, Inc. has reported gross revenue for the second quarter of 2005 of $2,327,000, compared to $2,527,000 for the same period in 2004, an 8% decline year over year. There was a minimal increase of $15,000 compared with the first quarter of 2005. The revenue for the last five quarters are listed below.

Q2 2004


Q3 2004


Q4 2004


Q1 2005


Q2 2005


The total revenue for the last four quarters is $8,816,995. About 15% of the company's revenue comes from international sales and the rest from domestic.

Net loss for the second quarter of 2005 was $985,000 or $0.02 per share, versus a net loss of $312,000, or $0.01 per share, for the same period in 2004. Earnings per share for the second quarter of 2005 was calculated on the basis of 40,112,391 weighted average shares outstanding, compared to 38,095,001 weighted average shares outstanding for the same period in 2004. The second quarter 2005 results include non-cash charges of $511,000 primarily for compensation, depreciation and amortization expenses.

"Second quarter revenues are up ($15,000) over the first quarter of 2005," said Albert H. Pleus, Chairman and CEO of a21. "Additionally, revenues for the first two quarters of 2005 are up 12% sequentially over the prior six month period. With persistent focus on new product development, technology enhancements, broader distribution, and the leveraging of our core assets, we are making steady progress toward our long-term goals. Given these investments, we remain confident in our ability to capitalize on the market's overall growth. Also, to enhance our technology efforts, we added A.D. "Bud" Albers, Senior Vice President and Chief Technology Officer for MusicNet and former SVP and CTO of Getty Image, to our Board of Directors."

"Operationally, we made important strides toward positioning the Company in what is becoming a rapidly consolidating market," said Thomas V. Butta, Vice Chairman and President of a21 and CEO of SuperStock. "We aggregated and created new and compelling content in both our Rights-Managed and Royalty-Free collections, we continued to improve our customer-facing technology and we enhanced our distribution network globally."

"During the last quarter, we introduced "Purestock," a Royalty-Free brand designed to provide the professional creative community with quality images at the highest resolutions and at competitive pricing. The collection launched internationally in more than 100 countries, and the second wave of Purestock content will be available in September 2005, followed by a full schedule of releases in 2006," Butta added.

The company also announced that it has amended its Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004 and Quarterly Report on Form 10-QSB for the period ended March 31, 2005 to reflect additional debt discount and additional paid-in capital due to a beneficial conversion feature contained in the company's convertible notes issued in February 2004 in connection with the SuperStock acquisition and a loss on extinguishment when they were subsequently repaid in February 2005, and to reduce the amounts of deferred tax liability and goodwill recorded in connection with the SuperStock acquisition. Both adjustments are non-cash items. An additional deferred tax liability, which was previously reflected as income tax expense during the quarter ended March 31, 2005 has also been offset against the deferred tax assets.

The amendments reflect an increase of approximately $944,000 in debt discount and additional paid-in capital attributable to the convertible notes and result in a non-cash charge to earnings of approximately $393,000 for the year ended December 31, 2004 and $281,000 for the quarter ended March 31, 2005. The amendments also reflect a reduction of approximately $1,234,000 in deferred tax liability and goodwill.

Copyright © 2005 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


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