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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 10, 2000
MUSTANG.COM, INC.
(Exact name of registrant as specified in its charter)
California 0-25678 77-0204718
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
6200 Lake Ming Road, Bakersfield, CA 93306
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (661) 873-2500
(Former name or former address, if changed since last report)
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Item 5. Other Events
On February 10, 2000, registrant issued a press release announcing its
unaudited financial results at, and for the three and twelve months ended,
December 31, 1999. A copy of that press release is attached as Exhibit 99.1 to
this Form 8-K and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99.1 Press release of February 10, 2000.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MUSTANG.COM, INC.
MUSTANG.COM, INC.
By:__/S/__ Donald M. Leonard
Vice President of Finance and
Chief Financial Officer
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EXHIBIT 99.1
Mustang.com, Inc. Reports Revenues Up 85% for Fiscal Year 1999 Compared
to Fiscal Year 1998
BAKERSFIELD, Calif., Feb. 10, 2000
Mustang.com Continues Aggressive Growth Plans, Increasing Headcount by
45% Over Last Quarter
Mustang.com, Inc. (Nasdaq:MSTG), a leader in the eBusiness and eService
infrastructure markets, today reported results for its fourth quarter and
year ended December 31, 1999. These results reflect eight consecutive
quarters of revenue growth -- at a compounded rate of 17% -- as well as a
rapid expansion of the company's engineering, sales and marketing
efforts.
Revenues for the fourth quarter ended December 31, 1999 increased 57% to
$1,106,278 as compared to $706,120 reported for the prior year period.
The net loss for the quarter was $574,039, or ($0.10) per basic and
diluted share, as compared to the net loss of $146,718, or ($0.04) per
basic and diluted share, reported a year ago.
Revenues for the year ended December 31, 1999 increased 85% to $3,710,935
as compared to $2,010,721 reported for the prior year period. The net
loss for the period was $906,276, or ($0.19) per basic and diluted share,
as compared to a net loss of $1,156,515, or ($0.31) per basic and diluted
share, reported a year ago.
Commenting on the results, President and Chief Executive Officer Jim
Harrer said, "I'm very pleased with the number of hurdles we cleared in
1999 as we completed our turn-around strategy to emerge as a leading
provider of trusted eService solutions. Fiscal 1999 was spent working
with hundreds of customers and prospects to develop cutting edge
technology to meet their demanding electronic support demands. Our focus
was on building a product line that would be in demand. Accomplishing
this during the first half of the year represented a major challenge and
outstanding efforts by the entire team."
Continued Harrer, "In Q4, on the success of our private financing, we
began an aggressive growth strategy, doubling our headcount and finishing
the year with 58 employees, up from 25 (132%) from the start of the year.
Our plan is to continue this aggressive growth strategy through 2000,
focusing most of our attention in the area of sales, marketing, research
and development and Mustang Services -- our Professional Services
division. We believe it is imperative to build the infrastructure to
support the customer demands through our current and future growth."
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1999 Highlights
Over 11,000 Mustang Message Center Agent Seats Licensed. The total number
of Agent Licenses for Mustang Message Center at the end of 1999 was
11,192 adding 5,629 agents in 1999 alone making it one of the most widely
used email management applications in the world.
Mustang.com Successfully Raised $5.6 Million To Fuel Growth in Sales and
Marketing. Mustang.com, Inc. ended the year with $8.8 million in cash and
equivalents, up from $1.8 million a year ago enabling the company to
invest in expanding its engineering, sales, marketing and services
organizations.
Mustang.com, Inc., completed re-branding efforts to focus on delivering
trusted eService solutions. Shedding its image as developer of online
retail software, the market welcomed the change from Mustang Software,
Inc. to Mustang.com, Inc. -- Trusted eService Solutions for the
Enterprise.
Mustang Message Center 3.0 Released. Mustang's fourth generation email
management solutions are built on scalability and flexibility working
with the most widely used enterprise email platforms today including
Microsoft Exchange, Lotus Notes and Novell GroupWise.
Mustang.com's customers use the Mustang Message Center platform and suite
of applications to deliver world-class, trusted eService solutions and
self-service help to enhance customer loyalty, generate additional sales
revenue and reduce the cost of electronic communication.
Mustang.com Extends Message Center Platform. Mustang.com announced the
availability of a host of applications for the Message Center platform
including KnowledgeLink (web-based self-help), AgentPro (dedicated
message management client), TeleAgent (seamless integration with third-
party CRM solutions) and Notify (real-time paging and alarm
notification).
Mustang.com, Inc., Ends 1999 with 335 Customers. Mustang.com signed more
than 180 in 1999, up from 153, the number signed as of year end 1998, an
increase of 119%. Our customers span Fortune 500 customers and leading
.com companies including: Barclay's Bank, Costco, Dow Jones, eOffering,
eStamp.com, GTE, iPrint.com, Lucent, Mail.com, NORDSTROM.com, Progressive
Insurance, 3COM and Zdnet.
Mustang.com wins Eight Awards in 1999. Mustang Message Center received
eight industry awards in 1999 bringing the total to 20 since the
product's launch in 1997. The awards bridge multiple markets including
customer service, computer telephony integration and the general computer
industry and networking audiences.
Mustang.com, Inc., Partnered with Leading Technology Partners. Mustang
Message Center is designed as the premiere e-mail management engine for
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third-party technology partners. Leveraging the company's expanded
strategic focus on indirect channel development Mustang.com is pleased to
announce the addition of leading technology partners including FaceTime
Communications; Government Technology Services, Inc.; NexCen
Technologies; Pipkins, Inc.; Quintus Corporation; TCS Management
Corporation; Witness Systems, Inc.
About Mustang.com and Mustang Message Center
Mustang.com enables loyal, high quality customer relationships through
the design, development and support of Internet and e-mail based customer
management software applications. Mustang Message Center is an award-
winning eService solution that improves e-mail management in mission-
critical, high-volume customer service operations. Hundreds of companies
worldwide actively utilize the Mustang Message Center for 24x7, mission-
critical customer service, supporting hundreds of thousands of
transactions every day. Corporate headquarters are located at 6200 Lake
Ming Road, Bakersfield, CA 93306; with offices in Chicago, IL; Ft.
Lauderdale, FL; Los Angeles, CA; New York, NY; Phoenix, AZ; Seattle, WA;
and Washington, D.C. Inquiries can be addressed via voice, 661-873-2500;
fax, 661-873-2499; or e-mail, info@mustang.com. Additional information is
available from Mustang.com on the Web at http://www.mustang.com.
Cautionary Note Regarding Forward-looking Statements Under the Private
Securities Litigation Reform Act of 1995: Information in this release
that involves Mustang.com's expectations, beliefs, hopes, plans,
intentions or strategies regarding the future are forward-looking
statements that involve risks and uncertainties. These statements include
statements about Mustang.com's strategies in the marketplace, its market
position and its relationship with customers. All forward-looking
statements included in this release are based upon information available
to Mustang.com as of the date of the release, and we assume no obligation
to update any such forward-looking statement. These statements are not
guarantees of future performance and actual results could differ
materially from our current expectations. Factors that could cause or
contribute to such differences include, but are not limited to,
competition, increased competition due to Mustang.com's expanded product
offering, risks associated with the evolving and varying demand for
customer communication software, our ability to expand our operations,
acceptance of email and the Internet as a communications medium,
litigation over property rights, and general economic factors. These and
other factors are risks associated with our business that may affect our
operating results are discussed in the Company's most recently filed
annual 10k and our quarterly reports on Form 10-Q filed with the SEC.
Mustang.com, Inc., Mustang Message Center and the Mustang.com's logo are
trademarks of Mustang.com, Inc.
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Mustang.com, Inc.
Unaudited Condensed Balance Sheets
December 31
1999 1998
ASSETS
Current Assets:
Cash & cash equivalents $ 8,847,602 $ 1,849,700
Accounts Receivable, net 693,739 409,077
Inventory and other current assets 17,123 28,856
Total Current Assets 9,558,464 2,287,633
Fixed Assets, net 628,078 592,855
Other Assets 2,485 11,183
- - ---------------------------------------------------------------------------
Total Assets $ 10,189,027 $ 2,891,671
= ===========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 492,942 $ 233,854
Accrued liabilities 424,781 214,157
Deferred revenues 250,000 125,000
Current portion of Capital Lease 9,111 8,259
- - ---------------------------------------------------------------------------
Total Current Liabilities 1,176,834 581,270
- - ---------------------------------------------------------------------------
Capital lease, less current portion 251,636 260,747
- - ---------------------------------------------------------------------------
Total Liabilities 1,428,470 842,017
= ===========================================================================
Stockholders' Equity
Preferred stock -- 730,229
Common stock 15,966,363 7,618,954
Accumulated deficit (7,205,806) (6,299,529)
- - ---------------------------------------------------------------------------
Total Stockholders' Equity 8,760,557 2,049,654
- - ---------------------------------------------------------------------------
Total Liabilities and Stockholders'
Equity $ 10,189,027 $ 2,891,671
= ===========================================================================
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Mustang.com, Inc.
Unaudited Condensed Statement of Operations
Three Months Ended Twelve Months Ended
December 31 December 31
1999 1998 1999 1998
Revenue $ 1,106,278 $ 706,120 $ 3,710,935 $ 2,010,721
Costs of revenue 150,423 36,503 441,386 177,928
- - - - --------------------------------------------------------------------------
Gross profit 955,855 669,617 3,269,549 1,832,793
- - - - --------------------------------------------------------------------------
OPERATING EXPENSES
Research &
development 333,636 162,358 820,554 611,990
Selling &
marketing 658,938 264,168 1,638,298 974,525
General &
administrative 606,420 404,897 1,853,730 1,430,335
- - - - --------------------------------------------------------------------------
Total Operating expenses 1,598,994 831,423 4,312,582 3,016,850
- - - - --------------------------------------------------------------------------
Income (loss)
from operations (643,139) (161,806) (1,043,033) (1,184,057)
Other income
(expenses), net 69,100 15,088 137,557 28,342
- - - - --------------------------------------------------------------------------
Income (loss) before
provision for
income taxes (574,039) (146,718) (905,476) (1,155,715)
- - - - --------------------------------------------------------------------------
Provision (benefit)
for income taxes -- -- 800 800
- - - - --------------------------------------------------------------------------
Net income (loss) $ (574,039) $ (146,718) $ (906,276) $(1,156,515)
= = = ===========================================================================
Net income (loss)
per common share $ (0.10) $ (0.04) $ (0.19) $ (0.31)
= = = ===========================================================================
Weighted average
number of shares
outstanding 5,756,666 4,098,845 4,821,680 3,707,334
= = = ===========================================================================
CONTACT: Mustang.com, Inc.
Don Leonard, 661/873-2580
investor@mustang.com