UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number: 000-29204
NOTIFICATION OF LATE FILING
(Check one):
[ ] Form 10-K [ ] Form 11-K [ ] Form 20-F [X] Form 10-Q [ ] Form N-SAR
For Period Ended: March 31, 2001
[ ] 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.
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If the notification relates to a portion of the filing checked above, identify
the item(s) to which the notification relates:
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;
/X/ (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 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 Quarterly Report on
Form 10-Q for the quarter ended March 31, 2001 (the "Quarterly Report") by May
15, 2001, the prescribed deadline for filing, because the Corporation was 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 Current Report on 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 quarter ended March 31, 2001 as compared to
the quarter ended March 31, 2000:
THREE MONTHS ENDED MARCH 31, 2001 COMPARED TO THREE MONTHS ENDED MARCH 31,
2000
NET SALES. Net sales decreased 82.9% from $1,921,471 in the first quarter
of 2000 to $329,812 in the first quarter of 2001. This decrease of $1,591,659 is
primarily attributable to the absence of any Web Development work. Revenues now
consist exclusively of Hosting and Site Maintenance work.
COST OF SALES. Cost of sales includes salaries for programmers, technical
staff and customer support, as well as a pro-rata allocation of
telecommunications, facilities and data center costs. Cost of sales decreased
from $988,396, or 51.4% of revenues in the first quarter of 2000, to $326,064,
or 98.9% of revenues in the first quarter of 2001. The increase in the
percentage of cost of sales is due to the lack of Wweb development work and the
fact that, at the new reduced manpower levels, production now accounts for a
much higher portion of the cost ratios used to calculate pro-rata distributions.
GROSS PROFIT. Gross profit decreased by $929,327 from $933,075 in the first
quarter of 2000 to $3,748 in the first quarter of 2001. Gross profit margins
declined from 48.6% during the first quarter of 2000 to 1.1% during the first
quarter of 2001. This erosion in gross profit is primarily related to a less
profitable product mix and the dramatic decline in revenue.
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. The cost of sales
decreased from $869,491, or 45.3% of revenues in the first quarter of 2000, to
$0 in the first quarter of 2001. The Corporation has discontinued all sales and
marketing efforts at this time.
PRODUCT DEVELOPMENT. Product development costs consist of personnel costs
required to conduct the Corporation's product development efforts, and a
pro-rata allocation of telecommunications, facilities and data center costs.
Management believes that continuing investment in product development is
required to compete effectively in the Corporation's industry. Total
expenditures for product development decreased from $209,230, or 9% of net sales
in the first quarter of 2000, to $0 in the first quarter of 2001. The
Corporation has discontinued all product development efforts at this time.
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
$1,257,516 in the first quarter of 2000 to $238,621 in the first quarter of 2001
due to the reductions in overhead begun in the fourth quarter of 2000 and
continued in the first quarter of 2001. As a percentage of net sales, these
expenses increased from 65.4% in the first quarter of 2000 to 72.4% in the first
quarter of 2001, due to revenues decreasing at a higher rate than the reduction
in expenses.
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 was $495,757, or 21% of revenues in the first quarter of 2000. With
the reduction of the carrying value of all fixed assets at the conclusion of
2000 the company has suspended depreciation of its remaining assets in
anticipation of a sale.
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: May 15, 2001
By: /s/ TIMOTHY R. ROBINSON
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Timothy R. Robinson
Vice President and Chief
Financial Officer