CHICAGO--(BUSINESS WIRE)--July 19, 1999--
Sonoma Financial Corporation/VictorMaxx Technologies, Inc. (OTCBB: VMAX) today announced unaudited results for fiscal 1998. The Company reported revenues of approximately $1.6 million and a Loss of $289 thousand. VictorMaxx Technologies Inc. discontinued operations after year ending December 1996 with revenues of $750,000 and a Loss of $3 million; the Company had no operations in 1997 merging with Sonoma Financial Corp. VictorMaxx went public in June of 1995 as a developer of virtual reality "head gear", by the end of 1996 the company had accumulated approximately $20 million in losses.
The company's investor information can be viewed at http://www.virtualir.com/vmax
Sonoma Financial and VictorMaxx Technologies completed a merger in 1997 at which point Sonoma's management assumed control of the Company. Sonoma was a holding company managing several small growth companies in numerous industries. The Company quickly identified the success of one such company in the financial services industry, providing short term consumer loans commonly referred to as "Payday Advances". The Company spent 1998 focusing the majority of its resources on the growth and development of Payday Check Advance Inc. Management also divested itself of the other business entities and operations to grow the lucrative consumer lending subsidiary. As a result the Company was forced to liquidate several small companies below market valuations, causing the Company to show a loss for the year.
Sonoma Financial Corporation/VictorMaxx Technologies, Inc.
Year End Financial Highlights
(In thousands)
1998(unaudited) 1997(unaudited) 1996(unaudited)
Revenues $1,594 $0 $750
Net Income ($289) $0 ($3,015)
"It was a sound business decision to liquidate our portfolio of growth companies to further finance the opportunity of Payday Check Advance Inc. Sonoma Financial Corp. has a sole focus on developing a national chain of 'payday advance' stores in the years to come", said Frank Anthony Contaldo, CEO.
Sonoma Financial Corporation is a financial services company that owns and operates a chain of stores devoted to providing low documentation, short term consumer loans. The company intends to become the national leader in the "Payday Loan" market by strategically opening new stores, penetrating new markets and by chain acquisition. Sonoma Financial is currently the only publicly traded company with a sole focus on 'payday advances'. Ace (NASDAQ:AACE) and First Cash Financial Services (NASDAQ:FCFS), have proven the viability of the concept in other markets, but are not specifically focused in this area. A complete investor package is available at http://www.virtualir.com/vmax.
Safe Harbor Disclaimer:
This release may contain certain forward-looking statements regarding the Company's expected performance for future periods, and actual results for such periods may materially differ. Such forward-looking statements involve certain risks and uncertainties, including but not limited to risks of changing market conditions in the overall economy and the industry, consumer demand, additional financing requirements, the opening of new stores, the success of the Company's acquisition strategy and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
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