Commerce Planet, Inc. What You Need to Know at CPNE Webcast!
Commerce Planet is a company with excellent shareholder communication. All you need to know to be an informed investor can be found at their website and webcast which provides a very clear and definitive Fourth Quarter and Full Year 2007 and Full Year 2008 Operational and Financial Outlook.
One very interesting fact is that during the question and answer session the first question was posed by an institutional investor!
This site is squarely in the sights of people that matter. You can link to the webcast or review the highlights here. CPNE’s guidance for its fourth quarter and fiscal year ending December 31, 2007, and fiscal year ending December 31, 2008 was strong:
“We believe our traditional online membership-based business is well positioned to provide healthy recurring cash flows as we expand our business and revenue streams in 2008,” stated Tony Roth, Chief Executive Officer. “We believe we have prepared the foundation for sustainable long-term growth by strategically realigning our management expertise, strengthening our balance sheet and making appropriate investments in sustainable products and services. Looking forward, we plan to leverage those assets and cash flows to transition into a service provider for fully integrated online marketing, media and e-commerce business.”
Mr. Roth continued, “In 2008 we will focus on strengthening our leadership in e-commerce through the development of our fully-integrated business model that combines our proven online marketing, sales and management systems, including our state of the art call center, and the marketing differentiation of Iventa Dashboard.”
2007 Outlook
The Company expects fourth quarter revenue in the range of $3.8 million to $4.0 million, Operating Loss in the range of $(1.0) million to $(1.3) million, and diluted loss per share in the range of $(0.02) to $(0.02). The fourth quarter operating results include non-recurring write-offs of $0.9 million in stock compensation expense, marketable securities and a convertible debenture. Excluding these write-offs, Operating Loss would have been $(0.1) million to $(0.4) million. Loss per diluted share would have been $(0.01) to $(0.01). Fourth quarter expectations are based on revenue from existing organic business.
As a result, for the fiscal year ending December 31, 2007, Commerce Planet expects revenue in the range of $32.5 million to $33.5 million, representing growth of between 18% and 22% over fiscal 2006. Operating Income is expected to be in the range of $2.2 million to $2.5 million, and diluted earnings per share in the range of $0.05 to $0.05. Operating results for the fiscal year 2007 include $3.6 million in non-recurring write-offs incurred in the third and fourth quarter related primarily to poor quality sign-ups the Company experienced earlier in the year, write-offs of stock compensation expense and marketable securities and a debenture, as well as the discontinuation of OS Imaging’s business. Excluding these write-offs, fiscal 2007 Operating Income would have been $5.8 million to $6.1 million. Fiscal 2007 earnings per diluted share would have been $0.10 to $0.10. These expectations are based on preliminary financial data and are subject to the final closing of our books and records for the fiscal year.
2008 Outlook
Fiscal year 2008 revenue is expected to be in the range of $24 million to $28 million, for a decrease of 16% to 26% compared to 2007. Mr. Roth stated, “The lower revenue forecast is primarily due to the diversification of sales and marketing efforts and the lead-time necessary for launching the Iventa E-Commerce Dashboard.” Operating Income is expected to be in the range of $3.0 million to $4.0 million, and diluted earnings per share in the range of $0.05 to $0.07. Mr. Roth further stated, “Our cash flow model combined with our strong balance sheet enable the Company to strategically grow its business in the e-commerce marketplace.”
This conference call was also a webcast which was live via the company’s website at www.commerceplanet.com ,
Iventa is an important part of CPNE’s new strategy. Here’s the skinny.
Iventa is a platform that allows small and medium enterprises to have a full sales presence online in turn key fashion!
This is NOT a website with a shopping cart. This platform interfaces with analytics, sales, customer care and accounting.
CPNE will create the opportunity for Iventa to have a sales and marketing push which they have never had.
There is NO small business person that does NOT understand the need for online turnkey sales that interface with accounting and is supported by online analytics and provides a call center for back end customer care service.
CPNE HAS NO DEBT — $5M to $5.5M CASH AND RESTRICTED CASH ON HAND.
Link here to hear CPNE’s quarterly report. CPNE is devoted to educating the public to who they are and what they are doing. They are doing this in spades! Be the first to listen. You will be glad you did.
SOURCE Commerce Planet, Inc., SEC Filings
Commerce Planet, Inc.
30 S. La Patera Lane
Suite 7
Goleta, CA 93117
Phone: 805-964-9126
Fax: 805-964-9232
Website: http://www.commerceplanet.com
About Commerce Planet, Inc. Commerce Planet, Inc. (OTC Bulletin Board: CPNE) is a publicly traded, internet-based media company. The Company offers online media products, lead generation services and direct marketing tools to its client partners. Commerce Planet offers an internet turnkey media solution through its network of wholly owned subsidiaries, which include Consumer Loyalty Group, Inc., Legacy Media Inc., OS Imaging, Inc. and Interaccurate, Inc. Each subsidiary of Commerce Planet specializes in a specific niche of the online media industry. Their combined services are designed to address the needs of client partners, including membership loyalty programs, direct response consumer marketing, affiliate list management, email deployment, live chat software-based services, direct phone sales and customer service, and printing services.
Forward Looking Statements: Except for the historical information contained herein, the matters set forth in this press release, including statements as to management’s intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements include that Commerce Planet believes its shares are undervalued in relation to other industry competitors, especially in light of its past three quarters of growth, the stock repurchase program provides a vehicle to deliver value to its existing shareholders, including the maximum amounts that may be purchased under the program, and the repurchase of shares is a sound use of operating capital. These statements are based on management’s current expectations, estimates and projections, are not guarantees of future performance, and are subject to certain risks, uncertainties and other factors, some of which are beyond Commerce Planet’s control and are difficult to predict, including, but not limited to, changes in the market price of Commerce Planet’s common stock, legal and regulatory, and changes in Commerce Planet’s financial results, financial condition and cash requirements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Commerce Planet, Inc. undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Various factors could cause actual results to differ materially, such as the risk factors listed from time to time in Commerce Planet’s filings with the Securities and Exchange Commission (”SEC”), including Forms 10-KSB and 10-QSB.
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