SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number: 000-29204
NOTIFICATION OF LATE FILING
(Check one):
[X] Form 10-K [ ] Form 11-K [ ] Form 20-F [ ] Form 10-Q [ ] Form N-SAR
For Period Ended: December 31, 2000
[ ] Transition Report on Form 10-K [ ] Transition Report on Form 10-Q
[ ] Transition Report on Form 20-F [ ] Transition Report on Form N-SAR
[ ] Transition Report on Form 11-K
For the Transition Period Ended:
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Read attached instruction sheet before preparing form. Please print or
type.
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates:
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PART I
REGISTRANT INFORMATION
Full name of registrant: HomeCom Communications, Inc.
Former name if applicable: Not applicable
Address of principal executive office: Building 12, Suite 110
3495 Piedmont Road
City, state and zip code: Atlanta, Georgia 30305
PART II
RULES 12b-25 (b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate.)
(a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
(b) The subject annual report, semi-annual report, transition report on
Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof, will be filed
on or before the 15th calendar day following the prescribed due date;
or the subject quarterly report or transition report on Form 10-Q, or
[X] portion thereof, will be filed on or before the fifth calendar day
following the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule 12b-25(c)
has been attached if applicable.
PART III
NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 11-K, 20-F,
10-Q, N-SAR or the transition report or portion thereof could not be filed
within the prescribed time period. (Attach extra sheets if needed.)
HomeCom Communications, Inc. (the "Corporation" or "we") is unable, without
unreasonable effort or expense, to complete and file its Annual Report on Form
10-K for the year ended December 31, 2000 (the "Annual Report") by April 2,
2001, the prescribed deadline for filing, because the Corporation and its new
accountants were not able to complete the required financial statements without
unreasonable effort or expense.
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification:
Timothy R. Robinson (404) 237-4646
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(Name) (Area Code) (Telephone number)
(2) Have all other periodic reports required under Section 13 or 15(d) of
the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act
of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed? If the answer is no,
identify report(s).
Yes [ ] No [X]
The Corporation did not timely file a Form 8-K to report the sale of
certain assets on January 31, 2001.
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be reflected by the
earnings statements to be included in the subject report or portion thereof?
Yes [X] No [ ]
If so: attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
The Corporation will report the following changes, among others, in its
results of operations for the year ended December 31, 2000 as compared to the
year ended December 31, 1999:
Revenues. Revenues increased 15.4% from $3,907,282 in 1999 to $4,509,977 in
2000. This increase of $602,695 is primarily attributable to growth in, and
increased reliance upon revenue from the Website Development portion of our
business.
Cost of Revenues. Cost of revenues includes commissions for financial
institutions and agents, salaries for programmers, technical staff, sales staff
and customer support, as well as a pro-rata allocation of telecommunications,
facilities and data center costs. Cost of revenues increased from $951,406, or
24.3% of revenues in 1999 to $2,722,309, or 60.4% of revenues in 2000. This
increase reflects greater costs associated with an increase in technical
personnel as a percentage of employees and, more significantly, an increase in
the pro-rata carrying portion of center operating costs due to reductions in
Sales and Marketing and General and Administrative costs.
Gross Profit. Gross profits decreased by $1,168,208 from $2,955,876 in 1999
to $1,787,668 in 2000. Gross profit margins also decreased from 75.7% during
1999 to 39.6% during 2000. The primary cause for the reduction was an increased
allocation of pro-rata costs to Cost of Revenues, due to reductions in General
and Administrative and Sales and Marketing expenditures.
Sales and Marketing. Sales and Marketing expenses include salaries,
variable commissions, and bonuses for the sales force, advertising and
promotional marketing materials, and a pro-rata allocation of
telecommunications, facilities and data center costs. Sales and Marketing
expenses decreased $934,283 from $2,878,303 in 1999 to $1,944,020 in 2000. This
decrease was primarily attributable to undertaking a more targeted marketing
approach concentrating on obtaining Website Development work as opposed to
previous efforts at product marketing. Additionally, we placed our reliance upon
individual sales contacts and dramatically reduced our previous expenditures on
general advertising. As a percentage of net sales, these expenses decreased from
73.7% in 1999 to 43.1% in 2000.
Product Development. Product development costs consist of personnel costs
required to conduct our product development efforts, and a pro-rata allocation
of telecommunications, facilities and data center costs. Total expenditures for
product development were $321,259, or 7.1% of net sales in 2000. This compares
to total product development expenditures of $315,809, or 8.1% of net sales in
1999.
General and Administrative. General and administrative expenses include
salaries for administrative personnel, insurance and other administrative
expenses, as well as a pro-rata allocation of telecommunications, and facilities
and data center costs. General and administrative expenses decreased from
$3,765,514 in 1999 to $1,182,192 in 2000. This decrease is due to significant
efforts to cut overhead costs including stringent scrutiny of all non-production
expenses, greater usage of internal resources and reduced outsourcing costs
associated with legal, accounting, and printing. Additionally, we shut down our
operations in the Chicago regional office and reduced administrative personnel
in the corporate office. As a percentage of net sales, these expenses decreased
from 96.4% in 1999 to 26.2% in 2000.
Depreciation and Amortization. Depreciation and amortization includes
depreciation and amortization of computers, network equipment, office equipment,
equipment under capital leases, and intangible assets. Depreciation and
amortization decreased from $1,757,124, or 45.0% of net sales in 1999 to
$1,605,345, or 35.6% in 2000, primarily reflecting the discontinuation of
amortization of intangible assets associated with the Ganymede acquisition, as
these intangibles were written off.
Asset Impairment Charge. We incurred an asset impairment charge of
$1,436,078 consisting of: $831,310 to write off the remaining Ganymede goodwill,
$329,270 to reduce the carrying value of the investment in iDefense and $275,498
to reduce the value of fixed assets to an estimated realizable value.
Discontinued Operations. We recorded a loss of $3,000,377 on the sale of
our FIMI division, which closed on January 31, 2001. In addition, FIMI incurred
operating losses of $2,736,678 and $1,970,584 for the years ended December 31,
1999 and 2000, respectively. We also sold our Software Products segment for a
gain of $262,940. Software Products incurred operating losses of $443,166 and
$1,396,004 for the years ended December 31, 1998 and 1999 respectively. Business
unit net income of $214,686 was realized for the year 2000. This can be
attributed to the sale of a licensing agreement for the usage of the PIB
product.
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HOMECOM COMMUNICATIONS, INC.
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(Name of registrant as specified in charter)
Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: April 3, 2001 By: /s/ TIMOTHY R. ROBINSON
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Timothy R. Robinson
Vice President and Chief
Financial Officer