WORLDS.COM REPORTS RECORD REVENUES
FOR FOURTH QUARTER, FISCAL 2000
Stamford, CT, April 2, 2001 - Worlds.com (OTC/BB: WDDD), the leading three-dimensional (3D) virtual reality entertainment portal on the Internet, today announced record revenues for the fourth quarter ended December 31, 2000.
For the three months ended December 31, 2000, record revenues were $489,809, compared to revenues of $265,892 for the three months ended December 31, 1999, an increase of 84 percent, and up 21 percent as compared to the third quarter 2000 revenues of $404,946.
The loss for the three months ended December 31, 2000 was $ 2.60 million, compared to a loss of $495,414 for the three months ended December 31, 1999. This compares to a third quarter loss of $1.78 million. Over $500,000 was expensed in the quarter for the intangible asset relating to our Freeserve agreement. The asset was written down to match the expected remaining revenue from this agreement. At year-end, inventory and capitalized software development costs incurred during the year were written down by $100,000 and $137,000, respectively, to their net realizable value.
For the year ended December 31, 2000 revenues, also a record, were $1,408,518 compared to $507,499 posted for the year ended December 31, 1999, an increase of 177 percent.
Loss per share for the three months ended December 31, 2000 was $.14, compared to $.03 for the corresponding 1999 period. For the year ended December 31, 2000 the loss per share was $.47 compared to $.19 for the year 1999.
Recent Developments
- The Company signed a content and revenue sharing agreement with Digital Club Network (DCN) the world's largest aggregator of live music copyrights and the Internets premiere music channel.
- The Company raised aggregate proceeds of $1.88 million in January 2001 in a private placement, of which $1.345 million was paid in cash and $535,000 was paid by converting certain of our outstanding debt and other obligations.
- During the fourth quarter of 2000, the Company renegotiated outstanding short-term debt, which is now due in January 2002.
- The Company signed content and revenue sharing agreements with the World Wrestling Federation Entertainment and Aerosmith.
- The Company launched multi-faceted sites for British Telecom's Openworlds and Artisan Entertainment's Blair Witch WebFest for the 3D Blair Witch World.
- The Company renewed its revenue sharing contract with Time Warner Cable's Road Runner high speed Internet service.
"We believe that the British Telecom, Aerosmith, WWF and private label agreements can generate sufficient revenue to support our operations as the services contemplated by these agreements are deployed. Unfortunately, e-New Media (HKG:0128HK) has recently defaulted on its existing contractual obligations to us and we do not expect to generate any additional revenues from this relationship. If our new projects are not able to generate the level of revenue required within the next 60 days, we will have to seek additional sources of capital, through financing activities and the sale of assets. If we are unable to raise cash through additional financing or through the sale of assets as needed, we may have to severely diminish our operations or halt them entirely," said Steven G. Chrust, Chairman.
About Worlds.com
Worlds.com, the Internet's premier 3D virtual reality entertainment portal, leverages its proprietary technology to offer visitors a network of virtual, multi-user environments that have rich media graphics, text chat, voice-to-voice chat, streaming video and e-commerce. The environments are focused around entertainment interests and targeted communities such as music, sports, and general entertainment environments. In the Worlds' Avatar Gallery, visitors select an avatar (3D character), and customize it into a personal virtual representation of themselves. The avatar is used to travel in and through the various virtual environments and participate in interactive activities involving entertainment, promotions, or e-commerce. Avatars can chat with one another, dance in a nightclub, e-shop, watch video clips and participate in other activities. The Company has revenue sharing agreements with British Telecom and Freeserve (in the United Kingdom) as well as Road Runner and the World Wrestling Federation (in the U.S.), among others.
Worlds.com is headquartered in Stamford, CT. For more information on Worlds.com, please contact Gary P. Tobin, at 212-685-7077.
Forward Looking Statements.Statements in this release contain forward-looking information about management expectations, strategic plans, prospects, anticipated financial or operational performance, and other similar matters. These statements are based on the current expectations of Worlds and forecasts and assumptions that involve risks and uncertainties. A variety of factors, many of which are beyond Worlds control, could cause actual results to differ materially from the expectations expressed in these statements. These factors include, but are not limited to, the volatility of financial markets, actions and initiatives by our current and potential competitors, events or circumstances impacting our major customers or suppliers, our ability to access capital markets when and as needed, the effect of current and future legislation or regulation and additional factors described in the reports filed by Worlds with the Securities and Exchange Commission (SEC), including Worlds' Annual Report on Form 10-K for the year ended December 31, 1999, which is available on the SEC's Web site, at www.sec.gov. Worlds undertakes no responsibility to update or revise any statements in this presentation, whether as a result of new information, future events or otherwise.
Worlds.com Year-end 2000 Results Comparison
(Unaudited)
Fiscal year ended, Dec. 31, 2000
|
| |
Year Ended
December 31, 2000
|
Year Ended
December 31, 1999 |
Change
Inc/Dec
From 1999 |
| Revenue |
$ 1,408,518 |
$ 507,499 |
$ 901,019 |
| Cost
of Revenue
|
829,554 |
318,553 |
511,001 |
| SG&A |
9,434,609 |
3,428,236 |
6,006,373 |
| Operating Loss |
$8,855,645 |
$3,239,290 |
$5,616,355 |
| Interest Income |
84,973 |
56,945 |
28,028 |
| Interest Expense |
149,237 |
157,155 |
(7,918) |
| Net Loss |
$8,919,909 |
$3,339,500 |
$5,580,409 |
| Loss per share |
$0.47 |
$0.19 |
$0.28 |
Weighted average
common shares
outstanding |
18,819,829 |
17,377,808 |
1,442,021 |
| |
Worlds.com Fourth Quarter Results Comparison
(Unaudited)
Three Months Ended December 31, 2000
|
| |
3 Mos. Ended
December 31, 2000
|
3 Mos. Ended
December 31, 1999 |
Change
Inc/(Dec)
From 1999 |
| Revenue |
$ 489,809 |
$ 265,892 |
$ 223,917 |
| Cost
of Revenue
|
423,454 |
149,770 |
273,684 |
| SG&A |
2,683,274 |
575,513 |
2,107,761 |
| Operating Loss |
$2,616,919 |
$459,391 |
$2,157,528 |
| Interest Income |
1,928 |
18,926 |
(16,998) |
| Interest Expense |
18,978 |
54,949 |
(35,971) |
| Net Loss |
$2,633,969 |
$495,414 |
$2,138,555 |
| Loss per share |
$0.14 |
$0.03 |
$0.11 |
Weighted average
common shares
outstanding
|
19,204,177 |
17,377,808 |
1,826,369 |
|
