INTAC International, Inc.
INTAC Announces Outlook for Fiscal 2004 and Results of Operations for Q1 2004
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INTAC International Announces Outlook for Fiscal 2004 and Results of Operations
for First Quarter of 2004
Monday May 17, 8:19 pm ET
HONG KONG, May 17 /PRNewswire-FirstCall/ — INTAC International, Inc. (Nasdaq:
INTN – News; FSE: WKN 805768), an Internet content provider in China providing
Chinese students exclusively with a full-range of career development services
through its Internet portal, supported by China’s Ministry of Education (“MOE”),
today announced its outlook for fiscal 2004 and results of operations for the
three months ended March 31, 2004.
Revenues for the year ending December 31, 2004 are expected to exceed $120
million, an increase of 32% over 2003, and net income is expected to be at least
$5 million for fiscal 2004. Wei Zhou, Chairman and CEO of INTAC stated that
“with the expectation of our career development services Internet portal,
Beijing Intac Purun Educational Services Ltd. (“Intac Purun”), starting to
generate revenue in the second quarter of 2004 plus improved volume and profit
margins from our distribution business, we feel confident that we can achieve
these results in 2004.”
Revenue increased by $423,000, or 5.3%, to $8.4 million for the three months
ended March 31, 2004, from $8.0 million for the same quarter in 2003. Gross
profit increased by $132,000 to $359,000 for the three months ended March 31,
2004, from $227,000 for the same quarter in 2003. The gross margin increased by
1.5% to 4.3% for the three months ended March 31, 2004 from 2.8% for the same
period in 2003.
Loss from operations was $642,000 ($0.03 per share) for three months ended March
31, 2004, as compared to a loss from operations of $493,000 ($0.03 per share)
for the same quarter in 2003. Net loss was $519,000 ($0.03 per share) for three
months ended March 31, 2004, as compared to a net loss of $492,000 ($0.03 per
share) for the same quarter in 2003.
The increases in revenues are due to an increase in sales volume and no material
increase in sales prices. The main reason for the decline in operating results
and net loss in the three months ended March 31, 2004, as compared to the same
period in 2003, has been the formation of our new Internet joint venture, Intac
Purun, in October 2003, without accompanying revenues. Our operating loss for
the three months March 31, 2004 included costs of approximately $227,000
relating to the Internet portal business. Excluding these additional costs,
operating results would have improved for the three months ended March 31, 2004
by approximately $78,000, as compared to the same quarter in 2003. Also,
excluding these additional costs related to Intac Purun, net loss would have
improved for the three months ended March 31, 2004 by approximately $87,000, as
compared to the same quarter in 2003.
“The first quarter is typically seasonal,” said J. David Darnell, Senior Vice
President and Chief Financial Officer. “Even with this overall seasonal slow
down in business in China, we were still able to increase revenues over 2003 and
improve our operating loss and net loss, excluding the $227,000 of operating
expenses related to the Intac Purun operations.”
The Company’s annual report on Form 10-KSB for the year ended December 31, 2003
and quarterly report on Form 10-Q for the quarter ended March 31, 2004 may be
viewed at the SEC’s website www.sec.gov .
About INTAC International, Inc.
INTAC International, Inc. is focused on the exploitation of strategic business
opportunities available in China and the Asia-Pacific Rim. INTAC is refocusing
its business plan from the traditional distribution of premium brand wireless
handsets to Beijing Intac Purun Educational Development Ltd., its new Internet
portal business in mainland China. INTAC maintains offices in China (Hong Kong,
Beijing and Tianjin), Germany (Frankfurt) and the United States (Dallas).
Forward-Looking Statements
This press release contains certain “forward-looking statements.” Such forward-
looking statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results, performance or achievements expressed
or implied by such forward-looking statements to differ materially from those
projected or implied. Factors that could cause or contribute to such differences
include, among other things: changes in general business conditions; the impact
of competition in our industry, especially in the Asia- Pacific Rim; the fact
that we are an early stage company with an unproven business model; our need for
additional working capital, particularly to the extent that we are able to
locate a suitable business opportunity; the added expense structure assumed by
us as a U.S. public company; political and economic events and conditions in
jurisdictions in which we operate; PRC Internet laws and regulations that are
unclear and will likely change in the near future; restrictions on foreign
investment in the PRC Internet sector that are imposed by the PRC government;
the PRC government that may prevent us from distributing; regulation and
censorship of information distribution in China which may adversely affect our
business; political and economic policies of the PRC government; the risk of the
loss of the agreements, or the exclusivity terms, with the Education Management
Information Center; the high cost of Internet access that may limit the growth
of the Internet in China and impede our growth; advertising and e-commerce
customers that have only limited experience using the Internet for advertising
or commerce purposes; the acceptance of the Internet as a commerce platform in
China which depends on the resolution of problems relating to fulfillment and
electronic payment; concerns about security of e-commerce transactions and
confidentiality of information on the Internet that may increase our costs,
reduce the use of our Internet portal and impede our growth; our network
operations that may be vulnerable to hacking, viruses and other disruptions,
which may make our products and services less attractive and reliable; changes
in interest rates, foreign currency fluctuations and capital market conditions;
and other factors including those detailed under the heading “Business Risk
Factors” and elsewhere in the Company’s annual report on Form 10-KSB for the
year ended December 31, 2003 and quarterly report on Form 10-Q for the quarter
ended March 31, 2004 as filed with the Securities and Exchange Commission. We
disclaim any intention or obligation to revise any forward-looking statements
whether as a result of new information, future events or otherwise. INTAC
undertakes no obligation to update any forward-looking statements made in this
media release.
Contact: J. David Darnell, Senior Vice President and Chief Financial Officer,
469-916-9891, for further information.
Internet: http://www.intac-international.com
end of message, (c)DGAP 18.05.2004
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WKN: 805768; ISIN: US45811T1007; Index:
Listed: Freiverkehr in Berlin-Bremen, Frankfurt und Stuttgart; NASDAQ
181110 Mai 04
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