Troubled Web advertising site Hitsgalore.com in Rancho Cucamonga,CAissued a three paragraph press release saying that it posted first quarter1999 earnings before income taxes of approximately $207,000 on grossrevenuesof $463,000.
Troubled Web advertising site Hitsgalore.com in Rancho Cucamonga, CA issued a three paragraph press release saying that it posted first quarter 1999 earnings before income taxes of approximately $207,000 on gross revenues of $463,000.
Steve Bradford, CEO of Hitsgalore.com, said in the release: “As a new Internet company, we are very pleased to be one of the few Internet companies that reports profitability. Judging from the initial response to our national radio ads, which only began to air this week, we expect to show dramatic increases in the second quarter in both revenues and profits.”
No other financial figures were included in the release. Hitsgalore.com’s site claims customers can earn 400 percent returns.
Hitsgalore.com, which “strives to provide porn-free searching,” said its “profitability arises from its unique business model of giving away free lifetime banner placements, and generating sales from its sponsorships and Keyword Bid & Rank program.”
The company’s stock tanked recently after it was reported that the founder and majority shareholder of Hitsgalore.com, Dorian Reed, spent 10 months in a federal prison after being convicted of wire fraud in 1992. Earlier this month it was reported that a federal judge ordered Reed and his wife Audrey to pay $613,110 to 100 customers they defrauded at another Internet company two years ago. The Reeds were sued by the Federal Trade Commission.
Reed has left the company, but not before the stock took a steep nosedive. The stock closed Friday at $5.50; at one time it had traded in the $20 range.
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