Compass Knowledge Announces Year-End 2000 Financial Results
OCOEE, Fla. — Compass Knowledge Holdings, Inc. (OTC Bulletin Board: CKNO), a leading provider of e-learning and distance education for working professionals, announced today that revenue for 2000 increased 27% to $3,381,359 compared with revenue of $2,659,306 for 1999. Gross profit rose 18% from $2,418,381 for 2000 as compared to $2,043,205 for the prior year.
The net loss for 2000 was $1,299,335 or $0.087 per share, compared to a profit of $137,932 for 1999 or $0.011 per share. This loss is primarily due to the investment in infrastructure and personnel build-up the Company has undertaken as it prepares for strong program and revenue growth in 2001.
“Our year 2000 results reflect strong growth in our core degree business as well as the contributions of the two acquisitions we made in August of 2000,” said Rogers Kirven, Chairman and CEO. “In our chosen market niches, we have been able to respond to the demands of the student and the workplace and we have been able to do so using a proven business model that is able to identify educational products that are in high demand and generate significant gross profit margins.”
“Last year we strengthened our infrastructure, increased staffing, launched new programs, successfully completed two acquisitions, and expanded marketing and sales — and in so doing positioned the Company for future growth,” said Rogers Kirven. “In the past year, through our relationship with the University of Florida, we have been able to establish ourselves as the undisputed leader in providing distance education to doctoral students in Pharmacy and Audiology. In addition, the recent announcement of our co- marketing agreement with GE Medical Systems gives Compass the unique opportunity to access GE’s customers and health care professionals worldwide.”
The information provided through this press release is excerpted from documents filed with the Securities and Exchange Commission (SEC) on Form 10-QSB and should not be relied upon without review of the full documents.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking forward statements which are generally preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” or similar expressions are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to management. A variety of factors could cause actual results to differ materially from those anticipated in Compass’ forward-looking statements, including the following factors: Recent acquisitions involve products and services in areas in which Compass does not currently operate; these acquisitions will require management to develop expertise in new areas and to attract new customers, both of which may be difficult to do; likewise, Compass might experience slower than expected integration efforts and increased costs with respect to these and other acquisitions; Compass’ operating results could be materially impaired if the revenue splits with its Knowledge Partners are deemed to be “incentive payments” under Title IV or Compass becomes subject to burdensome government regulation and legal uncertainties; Compass’ ability to attract new knowledge partners and alliances, Compass’ ability to manage its growth and to respond to rapid technological change; market acceptance of new products and services, including education programs; continued development of effective marketing, pricing and distribution strategies; competitive pressures among distance education providers may increase significantly; costs or difficulties related to the integration of businesses, if any, acquired or that may be acquired by Compass may be greater than expected; operating costs or customer loss and business disruption following future mergers and acquisitions may be greater than expected; possible adverse results of future litigation; general economic or business conditions; legislative or regulatory changes may adversely affect the business in which Compass is engaged; changes in the securities markets may negatively impact Compass; and the inability to raise additional capital for acquisitions and business expansion will have negative consequences. For a detailed discussion of cautionary statements and factors that could cause actual results to differ from the Company’s forward-looking statements, please refer to the Company’s filings with the Securities and Exchange Commission, especially in the “Risk Factors” section of the Company’s Form 10Q and Form10-SB and in subsequent filings filed with the Securities Exchange Commission.
Chief Information and Marketing Officer
Compass Knowledge Holdings
407-573-2000, or e-mail, email@example.com