Communicate.com Inc.
OTC Bulletin Board : CMNN

Communicate.com Inc.

August 15, 2005 17:46 ET

Communicate.com Announces Record Second Quarter Revenues and 10th Consecutive Profitable Quarter; First Half Product Sales Increase 139% Over First Half 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2005) - Communicate.com Inc. ("Communicate") (OTCBB:CMNN), a rapidly growing eCommerce company, today announced results for the second quarter and six months ended June 30, 2005. All dollar figures are expressed in U.S. dollars.

Q2 and First Half 2005 Financial Highlights:

- Tenth consecutive quarter of positive net income

- Record Q2 revenues of $1,050,055 compared to $733,107 for the same period of 2004, an increase of 43%

- Q2 net income of $115,670 compared to $120,908 for same period of 2004, a decrease of 4%

- Record Q2 product sales of $799,912 compared to $373,651 for the same period of 2004, an increase of 114%

- Record Q2 advertising revenues of $250,143 compared to $159,456 for the same period of 2004, an increase of 57%

- Record first half revenues of $2,028,381 million compared to $1,229,216 for the same period of 2004, an increase of 65%

- Record first half net income of $249,142 compared to $166,095 for the same period of 2004, an increase of 50%

- Record first half product sales of $1,440,901 compared to $603,212 for the same period of 2004, an increase of 139%

- Record first half advertising revenues of $587,480 compared to $226,004 for the same period of 2004, an increase of 160%

- Cash and cash equivalents increased 170% to $1,368,249 as of June 30, 2005 compared to $504,978 as of June 30, 2004

Q2 2005 Corporate Developments:

- Completed the acquisition of more than 700 domains, such as shoppingbound.com, resortbound.com and fitnessbound.com, now live on our advertising network

- Continued to invest in internal resources, enhancing our technology team and creating a new department to market the Company's core eTail sites

- Importers.com became the top North American-based Business/Trade site, launched "TradeSafe Verified" program

- Continued development of URLs from our web portfolio for future launch as revenue generating consumer goods and travel sales sites

"In the first half of 2005, our organic revenues increased 144% compared to the same period of 2004 which included domain name sales of $400,000 - $200,000 each in Q1 and Q2. In the first six months of 2005 we did not sell any domains, and in Q2 we completed the acquisition of more than 700 websites that are now part of our advertising network," commented David Jeffs, President of Communicate. "We maintained a profit in Q2 even as we invested in manpower, establishing an in-house marketing division to oversee the marketing initiatives for the Company's existing and planned online stores. As confirmed by our continued swift growth, strengthening cash position and our highest-ever first half revenues and net income, Communicate has emerged as a viable and successful eCommerce venture."

Second Half 2005 Outlook:

"We anticipate that the biggest half of the year is ahead of us, especially the fourth quarter. We recently re-launched our fast growing Perfume.com store with additional suppliers, which should help to improve our fragrance margins for the second half of 2005. Our advertising revenues should also increase, as advertisers are expected to spend record amounts online in the second half. Our travel subsidiary, FrequentTraveller.com, should also continue to have stronger travel bookings. We also plan to launch what we expect will be Communicate's biggest online store in the second half of 2005, ahead of the lucrative holiday shopping season. As a result of these factors, we are confident that Communicate will see brisk revenue growth and profitability for the second half of 2005."

Communicate.com's quarterly report on Form 10-QSB as filed with the U.S. Securities and Exchange Commission can be accessed via www.cmnn.com/investor.php.

About Communicate.com Inc.

Communicate.com is a rapidly evolving, debt-free, profitable eCommerce company that owns, develops and markets approximately 900 websites, including some of the best names on the net, such as PERFUME.COM, IMPORTERS.COM, KARATE.COM, BODY.COM, BOXING.COM and BRAZIL.COM. 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 www.CMNN.com.

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 Communicate.com Inc. is included in the Company's filings with the U.S. Securities and Exchange Commission.



Selected Income Statement Data (Unaudited):

Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues $1,050,055 $ 733,107 $2,028,381 $1,229,216
Gross Profit 384,312 327,486 809,522 569,156
Net Income 115,670 120,908 249,142 166,095
Earnings Per Share $ 0.01 $ 0.01 $ 0.02 $ 0.01
Weighted Average
Shares Outstanding 15,396,065 14,739,416 15,396,065 14,739,416

Selected Balance Sheet Data (Unaudited):

As of June 30,
2005 2004
---------- ----------
Cash and Cash Equivalents $1,368,249 $ 504,978


Contact Information

  • Communicate.com Inc.
    Adam Rabiner
    Communications Director
    (604) 648-0536 or 1-866-898-4354
    www.CMNN.com