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siehe Yahoo.com November 14, 2000 FIRSTQUOTE INC (FSQT.OB) Quarterly Report (SEC form 10QSB) Management`s Discussion And Analysis Or Plan Of Operation Background FirstQuote is a European technology provider of financial information and electronic brokerage solutions. The Company offers a comprehensive range of real-time market data and electronic brokerage systems for both the institutional and individual investor. The financial information systems are offered via the Internet or through virtual private networks using Internet technology. The Company also provides related network services to users of its financial information and electronic brokerage products. Further description of the Company`s activities and products can be found at www.firstquote.com or at ------------------ www.firstquote.net. ------------------ Effective May 7, 1999, the Company amended its Certificate of Incorporation to change its corporate name to FirstQuote Inc. Effective December 24,1999, the Company acquired 100% of Stockdata Amsterdam BV, a company located in Amsterdam, for a consideration of up to $3,750,000. Stockdata is engaged in the distribution of real-time market data products to the Benelux region, primarily through the use of datacast technologies via cable networks. The company`s name was changed to FirstQuote Stockdata BV upon acquisition. Regarding the Company`s plan of operations for the 2000 fiscal year, it will continue target strategic alliances in key European financial centers from which to leverage its growth. It plans to market its financial market information, analytical tools and electronic brokerage systems both under its own product names and as co-branded implementations with institutional clients. Currency Exchange Rates: Although the Company reports its results in US dollars, virtually all of its revenues and expenses are denominated in other currencies, primarily Swiss francs, Euros and Pounds sterling. Consequently, the Company`s net results are directly affected by changes in the exchange rate between the US dollar on the one hand, and the Swiss franc, Euros or Pounds sterling on the other. Transactions of the Company and its subsidiaries are recorded based on the functional currency of each particular company. The Company`s main operating subsidiary maintains a Swiss franc functional currency and has a US dollar denominated current account with its parent company. This results in foreign exchange differences being recorded based on variations in the USD/CHF rate of exchange, which are carried forward on consolidation. Assets and liabilities of the Company and its subsidiaries are translated at the exchange rate in effect at each year-end. Income statement accounts are translated at the average rate of exchange prevailing during the year. Translation adjustments arising from differences in exchange rates from period to period are included in the cumulative translation adjustment account in stockholders` equity. Results of Operations The Company acquired FirstQuote Stockdata on December 24,1999. FirstQuote Stockdata has been included in the consolidated operating results for all periods subsequent to December 24,1999. Revenue for the nine months ended September 30, 2000 was $4,262,503, an increase of 252% over that of $1,210,065 for the corresponding prior year period. Revenue is comprised primarily of the provision of financial market data services and related network services, the development and operation of market data enabled web-sites, as well as transaction related revenue linked to the provision of outsourced electronic brokerage services. Without giving effect to the consolidation of FirstQuote Stockdata, the Company had a 135% increase in revenue during the nine months ended September 30, 2000 over the prior year period. Revenue for the third quarter of 2000 increased 11% above that of the second quarter of 2000 and 177% over that for the three months ended September 30, 1999. Without giving effect to the consolidation of FirstQuote Stockdata, the Company had a 69% increase in revenue during the three month period ended September 30, 2000 over the prior year period. Cost of revenue for the nine months ended September 30, 2000 was $3,381,548, an increase of 111% above the amount of $1,599,416 for the corresponding prior year period. Cost of revenue as a percentage of revenue has decreased from 132% in the prior year to 79%, reflecting the economies of operation at a larger scale. Cost of revenue includes content acquisition costs, network expenses, and commissions. Cost of revenue for the three months ended September 30, 2000 has increased by 35% over that of the preceding calendar quarter, essentially as a result of a step expansion in the Company`s network infrastructure (including related set up costs), and ability to source market data content directly from source. These items have increased the percentage that cost of revenue is to sales to 86% from 71% in the preceding calendar quarter, and are aimed at improving the reliability of market data and being able to support increased levels of operations. Selling & Market Development expenses for the nine months ended September 30, 2000 were $597,122, an increase of 94% above the amount of $308,501 for the corresponding prior year period. Corporate and product marketing expenses have increased in conjunction with the corporate name change to FirstQuote and the continued rollout of the Company`s services in Europe. Selling and market development expenses for the three months ended September 30, 2000 have decreased by 38% from the preceding calendar quarter where specific marketing communications projects were conducted. General and administrative expenses for the nine months ended September 30, 2000 were $7,091,165, an increase of 111% from the amount of $3,356,281 for the corresponding prior year period. Staff costs represent the major component of this expense and have increased 96% from $1,691,811 to $3,321,443. Office expenses have increased 98% from $448,336 to $885,705, and depreciation charges (excluding amortisation of goodwill) have increased by 61% from $444,425 to $715,703. Amortization of goodwill related to the acquisition of FirstQuote Stockdata amounted to $832,111 for the nine months ended September 30, 2000. General and administrative expenses for the three months ended September 30, 2000 have increased by 10% from the preceding calendar quarter due to an increase in office accommodation expenses (partially due to the opening of an office in Frankfurt) as well as generally increased levels of staffing. Operating loss for the nine months ended September 30, 2000 was $6,807,332, an increase of 68% from the amount of $4,054,133 for the prior year period. Expressed as a percentage of revenue the operating loss has improved from 335% to 140% of revenue. Operating loss for the three months ended September 30, 2000 was $2,545,417, representing a 15% increase over that of the preceding calendar quarter. Foreign exchange gains and losses arise essentially from the revaluation of amounts due by FirstQuote SA to FirstQuote Inc., which are denominated in US dollars. The functional currency of FirstQuote SA is the Swiss Franc, and the resultant loss on revaluation in Swiss Francs is carried forward in consolidation. The USD/CHF rate of exchange was 1.3760 at December 31, 1998, 1.5915 at December 31, 1999 and 1.7241 at September 30, 2000. The continued increase in the value of the US Dollar against most European currencies has resulted in revenues and costs reported in US Dollars being lower than had the value of the USD remained more constant. Net loss for the nine months ended September 30, 2000 was $7,793,977, compared with $4,642,815 for the corresponding prior year period. Liquidity and Financial Condition As of September 30, 2000, the Company had negative working capital of $173,030 and stockholders` equity of $4,480,211. In January 2000 the Company obtained bridge financing of $510,000 from three of its existing financial investors, essentially to finance the acquisition of Stockdata, and pending the closing of a private placement of 1,061,057 of its common shares for a total amount of $7,155,180, which was concluded during March 2000. Two thirds of the bridge financing was converted to common shares as part of the private placement and the remaining $170,000 was repaid during April 2000 at the option of the Company. During the nine months ended September 30, 2000, the Company also received $488,250 following the exercise of 139,500 warrants at $3.50. As at August 7, 2000, a further 150,631 such warrants are in existence, all exercisable at $3.50. During the nine months ended September 30, 2000, the Company also received $155,000 following the exercise of 70,000 employee stock options at strike prices varying between $2.00 and $3.50. The Company continues to generate negative cashflows from operations since its cost base exceeds its revenues from operating activities. The negative cash flow from operations was approximately $613,000 per month during the third quarter of 2000, compared with $519,000 per month during the second quarter of 2000 and $490,000 per month during the first quarter of 2000. The Company will require, at least, $8,000,000 of capital over the next 12 months in order to fund the planned operating and capital expenditure. The Company intends to pursue the required capital through the sale of additional securities. However, there are no commitments or understandings on the part of any party to provide any additional debt or equity capital to the Company and there can be no assurance that the Company will be able to obtain additional capital. The Company`s inability to increase revenue or obtain additional debt or equity capital on a timely basis will, in all likelihood, materially adversely affect its future planned growth of operations and revenues. Safe Harbor This report contains various forward-looking statements that are based on the Company`s beliefs as well as assumptions made by and information currently available to the Company. When used in this report, the words "believe," "expect," "anticipate," "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions referred to herein, including, without limitation, the early stage nature of the Company`s operations and the risks and uncertainties concerning the market acceptance of its services and products; technological changes; increased competition; and general economic conditions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. The Company cautions potential investors not to place undue reliance on any such forward-looking statements, all of which speak only as of the date made. |
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| aus der Diskussion: | FIRSTQUOTE unbedingt beobachten. Die RIESENCHANCE !!!!!!!!!!!!! |
| Autor (Datum des Eintrages): | holgerkoenig (15.11.00 18:20:57) |
| Beitrag: | 8 von 15 (ID:2357349) |
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