Joseph Naughton, Chairman and CEO of Go Online Networks Corp. (OTCBB:GONT), today announced that the company recorded income from operations of $69,370 for the second quarter of 2002 compared to a loss of $160,212 for the second quarter of 2001.
Sales for the period were $2,741,575, an approximate 60 percent increase from $1,656,782 in revenues from the same period last year. Year-to-date revenues exceeded $6.5 million, a 37 percent increase from 2001 first and second quarter revenue figures. Gross margins for the period were $420,075, or 15 percent, compared to 3.9 percent gross margins for the same period in 2001. Net income was ($3,461) after $72,000 in interest expense was charged. During the second quarter of 2002, Digital West Marketing, GONT's factory authorized computer services division, refurbished 4,300 PC systems, 2,100 notebooks and 350 PDAs.
Naughton has submitted his unqualified certification today with the U.S. Securities and Exchange Commission attesting to the accuracy of the company's filings.
"$6.5 million in revenues for the first half of 2002 exceeds revenues for the all of 2001," stated Naughton. "The company continued operational profitability for the second consecutive quarter. Additionally, our financials reflect the expensing of stock options for the seventh consecutive quarter which is becoming more and more prevalent in today's accounting environment."
About Go Online Networks Corp.
Go Online Networks Corp. is a Southern California-based technology holding company. Currently, its major operating subsidiary Digital West Marketing Services Inc. is an emerging player in the $100 billion electronic manufacturing services (EMS) sector. 2001 revenues exceeded $6 million. The core of Digital West's revenue is derived from acquiring personal computers from retailers and manufacturers, then refurbishing the product to manufacturers' specifications, and then reselling the products to the secondary markets.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.