The extraordinary stock market volume and price movement in ePlus Inc., (Nasdaq: PLUS) during the last two trading days, reflects investor reconsideration of the value of ePlus as a long-term investment option.
Management has no knowledge of the source of this buying interest or other outside influences that resulted in this increased market activity in PLUS on Friday, November 26th, or in today's trading session.
In recent months, ePlus has made several strategic acquisitions, extended its product offering, made several executive changes, and expanded its services more fully into business-to-business e-commerce applications. We have also begun to do a better job in recent months explaining the company's strategic vision and underlying financial strength to analysts and investors.
We believe the cumulative effect of those enhancements is starting to be recognized by investors seeking long-term value in the business-to-business e-commerce sector, as reflected in our recent quarterly financial results.
On November 15th, e-Plus announced record net income of $2.1-Million, an increase of 27% on revenues of $61.2-Million, up 61%, for the three months ending September 30, 1999. For the six-month period ending in September, total revenues increased 45% to $115.6 Million, while net income was up 16% to $3.6-million for the same period.
Also on September 30th, ePlus purchased CLG, Inc. a wholly owned subsidiary of Centura Banks. As a result, total assets increased 109% to $322.2 Million and assets under lease increased 135% to $204.5 Million as compared to March 31, 1999, the company's fiscal year-end. Without the acquired assets of CLG, on a pro-forma basis, total assets as of September 30, 1999 would have increased 50% to $231.0 Million and assets under lease would have increased 38% to $119.6 Million, as compared to March 31, 1999.
With more than 1,500 customers, ePlus Inc., is a leading e-procurement, asset management, and financing e-commerce solutions provider. Our hosted application covers the customer's total ownership experience, beginning with the end-user order and ending with the equipment disposal transaction.
In recent months, we have retained an strategic Internet marketing firm that has assisted us in the branding and repositioning of our online solution, ePlusSuite, reposition the company, and to create an enhanced web and online procurement presence. The firm, Solven.com, is helping us do a better job sharing our strategic direction and explaining our underlying financial strength to the market.
Based on the last two trading days, it appears the market is beginning to fully value a business-to-business e-commerce company with real customers, real revenues, and real profits in a growing market segment.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements. Actual results may vary due to the following risks and uncertainties, including, without limitation, demand and competition for the Company's lease financing and equipment sales and asset management services, and the products to be leased or sold by the Company, the continued availability to the Company of adequate financing, the ability of the Company to recover its investment in equipment through remarketing, the successful execution of its e-commerce strategy, and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings. Investors are cautioned that current financial results may not be indicative of future results.
Contacts:
Kley Parkhurst, SVP
ePlus Investor Relations
Tel: 703-709-1924
kparkhurst@eplus.com
