Net revenues for the three months ended
AdStar reported a net loss applicable to common shareholders of
"Newspaper print advertising has undergone unprecedented declines that are
beyond analyst expectations for the industry," stated
As a part of the Company's current efforts to conserve cash, AdStar has determined that it will suspend its quarterly filings on Form 10-Q. The Company intends to continue to report to its stockholders its quarterly and annual financial results in press releases and to maintain the corporate governance improvements the Company has made in recent years.
About AdStar, Inc.
AdStar, Inc. is a leading provider of e-commerce transaction services and
payment processing solutions for the digital and print advertising and
publishing industries. AdStar's proprietary suite of e-commerce services
includes remote ad-entry software, web-based ad transaction and campaign
management services, and payment processing and content processing solutions.
AdStar is headquartered in Marina del Rey, Calif. and its Edgil Associates
subsidiary is located in
Forward Looking Statements
This release contains forward-looking statements concerning the business and products of the Company. Actual results may differ from those projected or implied by such forward-looking statements depending on a number of risks and uncertainties including, but not limited to, the following: historical business has already matured, new online business is unproven and may not generate expected revenues, and Internet security risks. Other risks inherent in the business of the Company are described in Securities and Exchange Commission filings, including the Company's annual report on Form 10-KSB. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
AdStar Company Contact: Jeff Baudo, 760-308-0423, jbaudo@adstar.com Financial Tables to Follow AdStar, Inc. and Subsidiary Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2008 and 2007 Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 ASP, net $401,000 $492,000 $822,000 $951,000 Licensing and software 550,000 554,000 1,101,000 1,188,000 Customization and other 87,000 122,000 167,000 394,000 Net revenues 1,038,000 1,168,000 2,090,000 2,533,000 Total cost of revenues 322,000 528,000 757,000 1,107,000 Gross profit 716,000 640,000 1,333,000 1,426,000 General and administrative expense 481,000 518,000 1,126,000 1,082,000 Product maintenance and development costs 249,000 286,000 636,000 604,000 Selling and marketing expense 181,000 468,000 523,000 1,353,000 Amortization of customer list 22,000 22,000 44,000 44,000 Loss from operations (217,000) (654,000) (996,000) (1,657,000) Interest income 4,000 28,000 10,000 38,000 Interest expense (2,000) (1,000) (3,000) (3,000) Loss before income taxes (215,000) (627,000) (989,000) (1,622,000) Provision for income taxes 2,000 3,000 5,000 6,000 Net loss applicable to common stockholders $(217,000) $(630,000) $(994,000) $(1,628,000) Loss per share - basic and diluted $(0.01) $(0.03) $(0.05) $(0.08) Weighted average number of shares - basic and diluted 20,468,882 20,208,714 20,377,726 20,169,644 AdStar, Inc. and Subsidiary Calculation of Margin on Operations Six Months Quarter ended Quarter ended ended March 30, 2008 June 30, 2008 June 30, 2008 ASP, net $421,000 $401,000 $822,000 Licensing and software 551,000 550,000 1,101,000 Customization and other 80,000 87,000 167,000 Net revenues 1,052,000 1,038,000 2,090,000 Total Cost of Revenues * 345,000 272,000 617,000 General and administrative expense * 463,000 336,000 799,000 Development and maintenance costs * 377,000 247,000 624,000 Selling and marketing expense * 201,000 136,000 337,000 Total Direct Costs * 1,386,000 991,000 2,377,000 Margin on operations (334,000) 47,000 (287,000) Depreciation & amortization 101,000 72,000 173,000 Stock based charges 279,000 56,000 335,000 Abandoned acquisition costs 65,000 136,000 201,000 Income (loss) from operations (779,000) (217,000) (996,000) Interest income 6,000 4,000 10,000 Interest expense (1,000) (2,000) (3,000) Net income (loss) before taxes (774,000) (215,000) (989,000) Provision for income taxes 3,000 2,000 5,000 Net income (loss) $(777,000) $(217,000) $(994,000) * non-GAAP presentation excluding depreciation, amortization, stock-based charges, and abandoned acquisition costs; shown separately
The Company defines margin on operations as net loss before interest, taxes, depreciation and amortization, non-cash expense for securities, and direct abandoned acquisition costs. Other companies may calculate margin on operations differently. Management believes that the presentation of margin on operations provides a meaningful measure of performance that approximates cash flow before interest expense and one-time costs, and is meaningful to investors.
AdStar, Inc. and Subsidiary Consolidated Balance Sheets June 30, December 31, 2008 2007 Assets Current assets: Cash and cash equivalents $357,000 $717,000 Accounts receivable, net of allowance for doubtful accounts of $71,000 for both periods 467,000 571,000 Notes receivable from officers - current portion 10,000 9,000 Prepaid and other current assets 94,000 126,000 Total current assets 928,000 1,423,000 Notes receivable from officers, net of current portion 193,000 197,000 Property and equipment, net 84,000 109,000 Capitalized and purchased software, net 130,000 261,000 Intangible assets, net 1,088,000 1,133,000 Goodwill 2,132,000 2,132,000 Other assets 35,000 40,000 Total assets $4,590,000 $5,295,000 Liabilities and Stockholders' Equity Current liabilities: Due to publications $1,192,000 $1,223,000 Accounts payable and accrued expenses 586,000 630,000 Deferred revenue and customer deposits - current portion 145,000 113,000 Capital lease obligations - current portion 7,000 6,000 Total current liabilities 1,930,000 1,972,000 Deferred revenues, net of current portion 23,000 24,000 Capital lease obligations, net of current portion 17,000 20,000 Total liabilities 1,970,000 2,016,000 Commitments and contingencies Stockholders' equity: Preferred Stock, par value $0.0001; authorized 5,000,000 shares; 0 issued and outstanding - - Common Stock, par value $0.0001; authorized 40,000,000 shares; 20,543,675 and 20,209,648 issued and outstanding, respectively 2,000 2,000 Additional paid-in capital 27,386,000 27,051,000 Treasury stock; 67,796 shares, at cost, respectively (68,000) (68,000) Accumulated deficit (24,700,000) (23,706,000) Total stockholders' equity 2,620,000 3,279,000 Total liabilities and stockholders' equity $4,590,000 $5,295,000
SOURCE AdStar, Inc.