ZAPWORLD.COM Reports Third Quarter Fiscal 2000 Results
15 November 2000
ZAPWORLD.COM Reports Third Quarter Fiscal 2000 Results
SEBASTOPOL, Calif.--Nov. 15, 2000--ZAPWORLD.COM today announced financial results for the three months ended September 30, 2000. Record revenues of $3,948,000 were recorded for the third quarter of fiscal 2000 compared to $1,767,000 in the prior year, an increase of $2,181,000 or 123%. For the same period, net loss shrunk to $54,000, compared with a loss of $323,000 in the third quarter of 1999. Sales for the nine months ended September 30, 2000 were $8,128,000 compared with $4,444,000 in the nine months ended September 30, 1999, an increase of $3,684,000 or 83%.The increase in sales for ZAPWORLD.COM (ZAP) in 2000 over the same period in 1999 was largely due to increased demand for the Company's products worldwide. ZAP improved its production flow and output to meet the greater demand for its products. Introduction of the new non-motorized KICK(TM) scooter and acquisition of the electric sea scooter company generated increased revenues.
According the ZAP President John Dabels, for the quarter ended September 30, 2000, expenses related to the acquisition of Aquatic Propulsion Technologies, maker of the Sea Scooter, as well as amortization of costs from previous acquisitions of companies and technologies totaled approximately $290,000, exceeding profit from direct operations of approximately $200,000. Operating profit associated with operations resulted primarily from increased production of ZAPPY(R), the Company's main product. Third quarter production for the ZAPPY was up 105% over last year.
"We are extremely pleased with the increase in production and the resulting contribution to earnings," said Dabels. "The Company intends to take the same approach to increasing production of our Sea Scooters."
"The improved third quarter results show our plans to build a sustainable electric vehicle company are beginning to gain positive momentum," said ZAP CEO Gary Starr. "Revenues for the third quarter are exceeding our earlier projections, and due to our partners in Asia, our cost of materials has decreased. Also, due to our preferred stock offerings, ZAP is in a strong cash position. ZAP's production in the fourth quarter is anticipated to increase as we enter the busy holiday season."
In October, ZAP announced that it has closed its agreement to acquire Electric Motor Bike, Inc., an electric motorcycle company based in Sebastopol, California. ZAP's Common shares are listed on Nasdaq SmallCap market under the trading symbol "ZAPP."
ZAPWORLD.COM AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter ended Nine Months ended
September 30, September 30,
2000 1999 2000 1999
NET SALES $ 3,948 $ 1,767 $ 8,128 $ 4,444
COST OF GOODS SOLD 2,532 1,379 5,190 2,978
GROSS PROFIT 1,416 388 2,938 1,466
OPERATING EXPENSES
Selling 579 280 1,327 729
General and
administrative 774 364 2,269 878
Research and
development 153 82 464 205
------ ------ ------ ------
1,506 726 4,060 1,812
LOSS FROM
OPERATIONS (90) (338) (1,122) (346)
OTHER INCOME
(EXPENSE)
Interest income 58 18 135 41
Other income
(expense) (22) (3) (27) (86)
------ ------ ------ ------
36 15 108 (45)
NET LOSS $ (54) $ (323) $ (1,014) $ (391)
NET LOSS
ATTRIBUTABLE TO
SHARES
Net Loss $ (54) $ (323) $ (1,014) $ (391)
Preferred
Dividend
(non-cash/a) (900) -- (900) --
------ ------ ------ ------
$ (954) $ (323) $ (1,914) $ (391)
NET LOSS PER
COMMON SHARE
BASIC AND DILUTED $ (0.18) $ (0.07) $ (0.37) $ (0.11)
WEIGHTED AVERAGE
OF COMMON SHARES
OUTSTANDING 5,265,100 4,416,200 5,213,000 3,668,000
/a The non-cash deemed dividend resulted from the calculated
conversion price of convertible preferred stock at a price less than
market price. All deemed dividends related to the transaction have
been recognized.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.