June 4, 2003 – Andromeda Media Capital Corporation reports that while they now have nine channel partners, and their partner growth is ahead of plan, the company’s year-end and first quarter earnings fell significantly short of expectations.
Second quarter revenues are reported at $48,636. During this quarter losses of $49,614 were incurred. Several factors influenced Andromeda’s weak performance this quarter. Firstly, Andromeda was unable to raise enough capital in 2002 to properly develop and implement a global marketing campaign for sales.
As a result, management chose to focus its working capital reserves on building the channel partner network as a way to leverage the sales and marketing budgets of many partner enterprises to promote and exploit the e-commatrix.com® suite of products. Secondly, the company experienced a longer than expected training period for channel partners, which has delayed their ability to drive revenues.
Thirdly, the company found that the market has not adopted the e-commatrix.com® suite of products as quickly as anticipated. And lastly, while Andromeda was shortlisted for a number of revenue generating projects, that were expected to commence in 2002, many were either delayed or cancelled or materially altered for reasons beyond the client’s control, and unrelated to the company’s performance or its products.
“Andromeda recognizes these issues and has been quick to adapt our training program, marketing materials and strategies to face these issues head on,” said Albert Iannantuono, President, Andromeda Media Capital Corporation. “We are confident that our marketing will drive product adoption, will continually increase our base of channel partners, and our channel partners will now be in a position to effectively sell our products and generate an ever increasing revenue base for us as 2003 progresses.” Complete annual and quarterly financial reports are available at www.sedar.com.
Andromeda, through its wholly owned subsidiary, e-commatrix.comâ inc., is focused on providing breakthrough eBusiness and eCommerce proprietary products and services. These products are introduced to market through an international network of licensed partners as complimentary product lines to their existing solutions, and under a progressive revenue-sharing model. e-commatrix.com® inc. aggressively sources new partners worldwide.
Issued and outstanding capitalization as at April 25, 2003 – 29,681,000 common shares.
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