INTAC International, Inc.
INTAC Continues Improved Operating Results and Maintains Its Growth in 2003
Corporate-news announcement sent by DGAP.
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INTAC International Continues Improved Operating Results and Maintains Its
Growth in 2003
HONG KONG, March 30 — INTAC International, Inc. (Nasdaq: INTN – News; FSE: WKN
805768), a 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 results
of operations for the year ended December 31, 2003.
Revenue increased by $6.6 million, or 7.7%, to $91.4 million for the year ended
December 31, 2003, from $84.8 million for the same period in 2002. Gross profit
increased by $1.8 million to $3.5 million for the year ended December 31, 2003,
from $1.7 million for the same period in 2002. The gross margin increased by
1.8% to 3.8% for the year ended December 31, 2003 from 2.0% for the same period
in 2002.
Loss from operations was $282,797 ($0.01 per share) for year ended December 31,
2003, as compared to a loss from operations of $1 million ($0.05 per share) for
the same period in 2002. Net loss was $239,196 ($0.01 per share) for year ended
December 31, 2003, as compared to a net loss of $776,755 ($0.04 per share) for
the same period in 2002.
The increased sales were achieved despite the negative impact of the SARS virus
in the Asia-Pacific Rim experienced in the first half of 2003 and the negative
impact of the increasing strength of the Euro with which the majority of
inventory purchases are made.
The main reasons for the operating loss and net loss in 2003 were the start-up
costs associated with our Internet portal business without accompanying
revenues, non-recurring fees related to the Company’s Nasdaq listing, and non-
recurring promotion and business development costs. Our operating loss for the
year ended December 31, 2003 included costs of approximately $132,000 relating
to the Internet portal business, costs of approximately $59,000 related to our
Nasdaq listing, and costs of approximately $69,000 relating to promotion and
business development.
“We are very pleased to have secured the necessary licenses to take advantage of
the business prospects and opportunities afforded by our unique database of
graduate students and our strategic relationship with the MOE,” said Wei Zhou,
Chairman and CEO of INTAC. “We anticipate launching our Internet portal in April
of 2004 and expect a positive impact on our operations in 2004.”
“We have been able to absorb our Internet portal start-up costs and certain non-
recurring other costs without substantially impacting our bottom line,” said J.
David Darnell, Senior Vice President and Chief Financial Officer. “Having
sustained our growth and improved on our losses from the prior year, we fully
expect to build and drive our Internet portal business forward.”
The Company’s annual report on Form 10-KSB for the year ended December 31, 2003
may be viewed at the SEC’s website http://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 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-asia.com
end of message, (c)DGAP 31.03.2004
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WKN: 805768; ISIN: US45811T1007; Index:
Listed: Freiverkehr in Berlin-Bremen, Frankfurt und Stuttgart; NASDAQ
311148 Mär 04
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