The Company reported revenues for the three months ended March 31, 2001 of $12,535,464, an increase of 67.7% over revenues of $7,473,000 for the three months ended March 31, 2000, and a sequential increase of 24% over revenues of $10,110,000 reported for the three months ended December 31, 2000. The Company’s management attributes the increase in revenues, in part, to a rise in proprietary product sales, increases in commissions and royalties issued to the Company in conjunction with the sales of third-party products and increasingly significant contributions from its subsidiaries.
Sequentially, the net loss during first quarter 2001 was 54% lower than the fourth quarter 2000 net loss of $16,811,000. Expenses related to the expansion of the Centerlinq network, as well as higher promotional costs related to securing awareness and market share for new products and programs, contributed to the Company’s net loss of $7,672,000, or $(0.36) a share, for the three months ended March 31, 2001. The Company reported a net loss of $5,133,000, or $(0.32) a share, for the three months ended March 31, 2000. The Company expects future quarterly losses to narrow, and is working aggressively to get back to profitability.
According to Ramy El-Batrawi, Chairman and Chief Executive Officer of GenesisIntermedia, Overall, the Company expects an improvement in 2001 over our 2000 results. We expect to achieve these improved results and decrease our losses due to lower investment costs associated with the Centerlinq network, and a wider source of revenues as Centerlinq and Car Rental Direct continue to flourish, and as our media unit continues to sell products that gain wide consumer acceptance. We anticipate that each of our subsidiaries will generate solid growth during the year, and new acquisitions, joint ventures and partnerships will prove rewarding to consumers, employees and of course, shareholders.
This year, continued El-Batrawi, we have already focused our attention toward building additional market share for Centerlinq and CRD. We’ve done so by increasing the functionality and number of locations of the Centerlinq network, and by opening additional CRD locations. We are pleased with the progress made during the first quarter, and have continued the push into the second quarter.
