ALISO VIEJO, Calif., Jan. 16, 2003 (PRIMEZONE) -- Myrient(TM) (OTCBB:MYNTE) an outsourced IT solutions provider that specializes in delivering managed services, today reported year end revenues of $5,715,811, and a year end net loss of $7,301,521, representing a 10.4% decrease in net loss over the year ended 2001, and resulting in a decrease in per share loss by $0.08, from $0.22 to $0.14. The decrease in net loss occurred even though the Company wrote off nearly $1.6 million of impaired assets and over $3.0 million of expenses triggered by its discontinued DSL services. This was largely possible by shrinking general and administrative expenses by over $3.0 million and negotiating debt reductions of over $3.4 million. Additionally, the Company reported an increase in its gross profit margin by 30.2 percentage points, from 26.3% to 56.4%.
"By focusing exclusively on our high-margin products and services, we have accomplished the goal of eliminating our dependence on broadband Internet related business with its attendant long term financial commitments, infrastructure overhead, personnel costs and decaying vendor relationships that have resulted in so many failures in our industry," said Bryan Turbow, President and CTO of Myrient. "Now, we have the opportunity to grow our customer base in a profitable manner without the burden of having to increase our liabilities each time we add a new account. Our significant increase in gross profit margins is indicative of our focus on high-value added services, and our ability to execute toward this objective," he said.
Mr. Turbow added, "However, our ability to continue this improvement trend will be greatly dependent on our creditors' continued willingness to reduce and restructure our debt, an effort that has met with gratifying cooperation from most of our creditors to date. The Company's immediate focus is to emphasize high margin revenue growth, further reduce general and administrative expenses, and significantly reduce and restructure its substantial debt load."
Please review the Company's most recent 10-KSB annual report for further details.
Consolidated Statements of Operations
For The Year Ended August 31,
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2002 2001
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Net sales $ 5,715,811 $ 14,554,970
Cost of goods sold 2,490,353 10,733,755
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Gross profit 3,225,458 3,821,215
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Operating expenses:
Selling 1,350,898 1,484,162
General and administrative 6,723,358 9,785,897
Loss on impairment of
long-lived assets 1,593,007 100,171
Loss on disposal of property
and equipment 170,001 106,280
Settlement expense 3,048,192 --
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Total operating expenses 12,885,456 11,476,510
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Loss from operations (9,659,998) (7,655,295)
Other income (expense):
Interest expense (1,061,853) (494,552)
Gain on settlement of debt and
other obligations 2,965,761 --
Other income, net 454,569 --
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Total other income
(expense) 2,358,477 (494,552)
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Loss before provision for
income taxes (7,301,521) (8,149,847)
Provision for income taxes -- (2,400)
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Net loss $ (7,301,521) $ (8,152,247)
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Net loss available to common
stockholders per share $ (0.14) $ (0.22)
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Basic/diluted weighted average
common shares outstanding 52,814,597 37,793,222
About Myrient
Myrient is an outsourced IT solutions provider that delivers managed services that allow enterprises to conduct secure communications with remote offices, partners and customers worldwide. Myrient's predecessor, Mobilenetics, which was founded in 1986, was a successful and profitable IT consulting and systems integration company that reverse merged into the public shell that is now Myrient in June of 1999.
Myrient enables customers to outsource key areas of their Information Technology needs while ensuring the highest level of security and reliability. Myrient's solutions offer unparalleled value through a proprietary network design and enabling technologies. Founded on the principles of integrity and excellence, Myrient has developed a reputation for uncompromising quality and service. By focusing on solving real business problems, Myrient believes our success is dependent on helping clients become more successful. This ongoing commitment to the business needs of their clients, along with strategic alliances, has forged a new standard in Managed Services and Outsourced IT solutions.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release may be forward-looking statements subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal, success of marketing efforts and other risks detailed in the company's SEC reports. The company assumes no obligation to update the information in this release.