Vsource Attributes Loss to Product Development

Vsource Inc. in Ventura said revenues for the fiscal year ended Jan. 31 were $3,500, compared with $60,527 a year earlier.

Revenues for both years came from the discontinued software-based Virtual Source Network product. No revenues from the new Internet-based VSN product were recorded in the 2000 fiscal year.

The company reported a net loss of $5.5 million for fiscal year 2000, compared with a loss of $1.7 million for the previous year. The net loss per share in the most recent year was 40 cents, compared with 17 cents in fiscal year 1999.

The company said the larger net loss reflects increased research and development expense, marketing and sales costs, and general and administrative expenses associated with bringing VSN to market.

“These results reflect a year of focused product development and marketing activities that were required to introduce Virtual Source Network to the marketplace,” said Robert “Jay” McShirley, CEO and chairman. “We have now moved into a new phase of company growth, in which we are pursuing a variety of business relationships and customer development activities to position ourselves as the leading pure Internet procurement provider.”

Vsource’s main product, VSN, allows companies to create an Internet-based procurement system to automate all aspects of corporate purchasing, including material requisitions, proposal requests and direct order from supplier catalogs or contracts at substantial savings.