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EXHIBIT 99.2
FUTURELINK CORP.
FUTURELINK CORP. ANNOUNCES THIRD QUARTER RESULTS
PRO FORMA REVENUES OF $11.4 MILLION, UP 34% SEQUENTIALLY;
CAPITAL STRUCTURE STRENGTHENED
IRVINE, CALIF - NOV. 18, 1999 - FutureLink Corp. (OTC: FLNK), the leading
Application Service Provider (ASP) with the largest installed base of
application hosting platforms, announced today unaudited financial results for
the third quarter ended September 30, 1999.
For the third quarter, FutureLink recorded revenues of $1.6 million compared to
$0.6 million for the same quarter last year. Net loss before interest, taxes,
depreciation and amortization was $4.8 million for the quarter, or $0.63 per
share, versus a loss of $2.1 million before interest, taxes, depreciation and
amortization for the same quarter last year, or $0.69 per share. Included in the
loss before interest, taxes, depreciation and amortization are non-cash charges
and provisions totaling $1.2 million. The net loss for the quarter was $7.6
million, or $1.00 per share compared to a net loss of $3.9 million, or $0.79 per
share, for the same period last year.
For the quarter ended September 30, 1999 the Company had $100,000 in application
hosting services (ASP revenues), and 11 installed ASP customers at the end of
the quarter.
Subsequent to the close of the quarter, FutureLink completed the acquisitions of
leading server-based computing integrators (application hosting platforms),
Executive LAN Management, Inc. ("Micro Visions") and Computer Networks, Inc. On
a pro forma basis, FutureLink recorded revenues for the third quarter of $11.4
million, which consisted of $9.8 million related to application hosting platform
integration revenues (server-based computing), $100,000 of application hosting
services (ASP revenues) and $1.5 million related to information technology
products and services. Third quarter pro forma revenues represent an increase of
34% over the previous quarter. For the nine months ended September 30, 1999, pro
forma revenues were $27.3 million.
Subsequent to the close of the quarter, the Company closed a $50 million equity
investment with a group led by Pequot Capital Management in connection with
which the Company issued 9.1 million shares of common stock. In addition, the
Company issued 8.4 million shares of common stock as part of the acquisitions of
Micro Visions and Computer Networks. Following the conversion of various
convertible debt instruments totaling over $20 million and the early exercise of
various warrants, all previously issued through Commonwealth Associates, LP, the
Company's shares outstanding increased by an additional 17.3 million. As a
result of these transactions, the Company's share capital has increased $70
million since September 30, 1999 and the Company's total number of shares
outstanding as of November 15, 1999 is approximately 44 million compared to 9.2
million, as of September 30, 1999. Fully diluted shares at November 15, 1999 are
approximately 60 million.
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The Company has strengthened its executive management team since the close of
the quarter with the promotion of Vincent L. Romano to the position of Executive
Vice President in charge of FutureLink's Application Hosting Services Division
(ASP), and the appointment of William Botti to the position of Senior Vice
President in charge of the Application Hosting Platforms Division (server-based
computing). FutureLink also named Philip R. Ladouceur Chief Executive Officer in
addition to his role as Chairman following his appointment as interim Chief
Executive Officer in August 1999. The Company also reincorporated in Delaware
from Colorado and relocated its headquarters to Irvine, CA.
On November 17, 1999 the board accepted the resignation of Robert J. Kubbernus
as a Director. Mr. Kubbernus will maintain his relationship with Futurelink as a
consultant to the Company's management.
Commenting on the results, Philip R. Ladouceur, Chairman and chief executive
officer said, "Today Futurelink is a significantly stronger company. We have
strengthened our balance sheet and our management team, and we continue to
execute on an acquisition strategy of adding top server-based computing
integrators. As a result, we are poised to exploit the vast growth opportunities
in the emerging markets for application hosting services and server-based
computing."
ABOUT FUTURELINK
FutureLink, The Computer Utility Company(TM), is a founder of the Application
Service Provider (ASP) industry and a founding member of the ASP Industry
Consortium. The company has the largest installed base of application hosting
platforms with thousands of customers worldwide.
FutureLink's Application Hosting Services Division provides businesses with
off-site, Internet-based computing, allowing subscribers to escape costly
hardware/software upgrade cycles, precisely control total cost of technology
ownership and focus on their core businesses. The division offers customers an
all-inclusive, trouble-free ASP service at a predictable price and provides
computing service as transparently and reliably as today's utilities deliver
electricity, water and telephone service.
The company's Application Hosting Platforms Division builds application server
farms and provides Citrix application server software integration services. With
Application Hosting Platform solutions, FutureLink customers manage their own
server farms, and provide ASP services to users with their own IT staff and
FutureLink consultants.
For more information, contact FutureLink toll-free at (877) 216-6001; e-mail:
sales@futurelink.net; or visit the FutureLink Web site at
http://www.futurelink.net.
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Forward-looking statements and comments in this news release are made pursuant
to safe harbor provisions of the Securities Exchange Act of 1934. Such
statements relating to, among other things, the prospects for the companies to
complete the transaction and enhance operating results, are necessarily subject
to risks and uncertainties, some of which are significant in scope and nature.
These risks may be further discussed in periodic reports and registration
statements to be filed by the company from time to time with the Securities and
Exchange Commission in the future.