OTC Bulletin Board : CMNN Inc.

November 14, 2005 13:28 ET

Communicate Announces Third Quarter and Nine Month Results; Record Revenues, 11th Straight Profitable Quarter and Record Nine Month Net Income

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2005) - Inc. (OTCBB:CMNN), a rapidly growing eCommerce company, today announced results for the third quarter and nine months ended September 30, 2005. All dollar figures are expressed in U.S. dollars.

Financial Highlights, Nine Months and Third Quarter:

- Record nine month revenues of $3,046,040 million compared to $2,046,372 for the same period of 2004

- Record nine month net income of $365,751 compared to $303,352 for the same period of 2004

- Record nine month product sales of $2,201,855 compared to $1,048,483 for the same period of 2004

- Record third quarter revenues of $1,017,659 compared to $817,156 for the same period of 2004

- Eleventh-consecutive positive net income quarter

- Third quarter net income of $116,609 compared to $137,257 for same period of 2004

- Record third quarter product sales of $760,954 compared to $445,271 for the same period of 2004

- Cash and cash equivalents of $1,489,816 as of Sept. 30, 2005 compared to $585,576 as of Sept. 30, 2004

Third Quarter Corporate Developments:

- Launched new and improved fragrance and beauty superstore with more than 9000 skus

- continued to climb in web rankings and launched RSS feeds for Import/Export professionals

- Continued to invest in internal resources, enhancing our development team

- Communicate's travel subsidiary, Inc., filed a Form SB-2 registration statement with the U.S. Securities and Exchange Commission

David Jeffs, President of Communicate, commented: "I am thrilled with our progress through the third quarter and first nine months of 2005. We had our best-ever third quarter revenues as well as our eleventh straight profitable quarter, with organic revenues increasing 65% compared to the same period of 2004. Nine month organic revenues increased more than 100%, while net income increased 21%, compared to the same period of 2004. A very important gauge of our success is the fact that we had 23 employees at the end of the third quarter compared to 12 employees at the end of Q3 2004 - resulting in a stronger eCommerce company more capable of moving to the next level."

Year End Outlook:

"The fourth quarter accounted for 42% of our annual revenues in 2004. For 2005, I expect a similar percentage of revenues to come from the fourth quarter, which would make for the best sales quarter in company history and also our twelfth-consecutive profitable quarter. Our goal for the 2005 peak holiday shopping period is to attain as many new clients as possible and generate the most revenues as possible. To keep our efforts focused in this goal during this critical time, we have decided to launch the online store in the first quarter of 2006, when we can ensure that it receives the necessary level of customer service and marketing to facilitate its success."

Selected Income Statement Data (Unaudited):

Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
-------- -------- -------- --------
Advertising $ 256,705 $ 171,885 $ 844,185 $ 397,889
Domain name sales 0 200,000 0 600,000
eCommerce sales 760,954 445,271 2,201,855 1,048,483
TOTAL SALES $1,017,659 $ 817,156 $3,046,040 $2,046,372
Gross Profit 415,011 363,795 1,224,533 932,951
Net Income 116,609 137,257 365,751 303,352
Earnings Per Share $ 0.01 $ 0.01 $ 0.02 $ 0.02
Selected Balance Sheet Data (Unaudited):
As of September 30
2005 2004
-------- --------
Cash and Cash Equivalents $1,489,816 $ 585,576's quarterly report on Form 10-QSB as filed with the U.S. Securities and Exchange Commission can be accessed via

About Inc. is a rapidly evolving, debt-free, profitable eCommerce company that owns, develops and markets hundreds of websites, including some of the best names on the net, such as and Communicate generates revenues through the sale of consumer goods, advertising and travel products at its network of B2C and B2B sites. The Company's web portfolio intuitively attracts a high volume of targeted visitors and potential clients per month with no marketing costs, providing Communicate with a crucial competitive advantage in customer acquisition and price. Communicate is publicly traded on the NASD OTCBB under the symbol CMNN. For more information, visit

This news release contains "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because such statements include risks and uncertainties, actual results may differ from those expressed or implied herein. Further information on potential factors that could affect the financial results of Inc. is included in the Company's filings with the U.S. Securities and Exchange Commission.

Contact Information

  • Inc.
    Adam Rabiner
    Communications Director
    (604) 648-0536 or Toll Free: 1-866-898-4354