MINNEAPOLIS--(BUSINESS WIRE)--July 24, 2000--
Net Perceptions Reports Q2 Revenues Up 341% Year-Over-Year Key
Customer Wins Include Best Buy.com, Palm Inc., Warner Music Group,
Samsung Corp., Williams-Sonoma, and Cabelas.com
NETP ends quarter with $115+ million in cash;
Operating margin continues to improve
Net Perceptions, Inc. (Nasdaq: NETP) today announced record revenues of $12.4 million for the second quarter ended June 30, 2000, the 12th consecutive quarter of strong revenue growth. Second quarter revenues were up 341% over the $2.8 million reported in the same period last year and up 31% from the $9.5 million reported in the first quarter of 2000. The company reported a pro forma net loss for the quarter of $4.0 million, or ($0.15) per share, before the amortization of intangibles and stock compensation expense, compared with a loss of $2.8 million, or ($0.18) per share, in the same period in 1999. The company's loss including the amortization of intangibles was $11.7 million, or ($0.46) per share. For the six-month period ending June 30, 2000, the company reported $21.9 million in revenue and a pro forma loss of $7.6 million, or ($0.31) per share, compared with $4.7 million in revenue, and a loss of $5.1 million, or ($0.51) per share, in the first six months of 1999.
"During the quarter we signed significant deals with enterprise class multi-channel retailers and successfully launched our ASP business with six customers signed up to date demonstrating the solid demand for the Company's product offerings," said Steven Snyder, President and CEO of Net Perceptions "We continued to diversify our license revenue mix, expanded distribution through channel partners, and broadened our market opportunity through ASP delivery capabilities."
Key highlights of the quarter include:
-- Net Perceptions continued to diversify its license revenue
mix. Revenues were recognized from all software products
during the quarter, with only 24% of reported revenues
attributable to pure "dot.com" companies. New software
customers included BestBuy.com, Palm Inc., Warner Music Group,
Samsung Corp., and Williams-Sonoma.
-- Net Perceptions launched its Application Service Provider
(ASP) platform for e-marketing, in which certain capabilities
are delivered over the web from our Dallas data center. Five
customers were added to the platform during the quarter -
Cabelas.com, Williams-Sonoma, Dean & Deluca, Firstsource and
Express.com. Currently, Net Perceptions has four service
offerings designed to help e-merchants attract, retain and
enhance relationships with their most profitable customers.
-- Net Perceptions and i2 Technologies, Inc. (Nasdaq: ITWO)
announced plans to license Net Perceptions' Knowledge Refinery
product for integration into i2's
TradeMatrix(TM)business-to-business (B2B) and
business-to-consumer (B2C) marketing, commerce, fulfillment,
and customer care solutions.
-- Net Perceptions and Hewlett-Packard Company (NYSE: HWP)
announced a reseller agreement that will allow HP to offer Net
Perceptions' products with HP's worldwide e-services
offerings.
-- Net Perceptions and Xchange, Inc., (Nasdaq: EXAP) announced an
agreement to co-market each other's products. The relationship
will provide customers with the first ASP-delivered email
marketing solution that combines Net Perceptions' individually
personalized recommendations and Xchange's targeted email
delivery system.
-- Net Perceptions and Interelate, the leading customer
intelligence application service provider (ASP), announced an
agreement under which Interelate will host and deploy Net
Perceptions' software offerings. The companies also will
cooperate on marketing and sales efforts.
-- Net Perceptions and Documentum (Nasdaq: DCTM), the leading
provider of Internet-scale content management solutions for
powering e-business applications announced an agreement to
integrate Documentum 4i eBusiness Edition with Net Perceptions
for Knowledge Management. Through this integration, the
companies will provide a dynamic and personalized end-user
experience through e-business Web sites.
-- Net Perceptions released new product return on investment data
with The Children's Place (Nasdaq: PLCE). The Net Perceptions
one-to-one email-marketing product delivered more than 10
times the industry purchase rate and more than two times the
industry click-through rate.
"This quarter's results continue to reinforce strong execution," Mr. Snyder said. "We now have over 210 customers, over 360 employees and are well positioned for continued growth and future profitability."
About Net Perceptions
Net Perceptions is a leading provider of one-to-one realtime personalization and merchandising software solutions. Net Perceptions' software is designed to drive the earnings and revenues of its customers through a better understanding of its customers, employees and products, enabling businesses to optimize information and product assortments, prices and inventories and to offer the right product to the right customer at the right price. Net Perceptions' customers include many of the world's best-known brands including: J.C. Penney, Williams-Sonoma, Bertelsmann, The Children's Place, Egghead.com, Procter & Gamble, eToys.com, Fingerhut, CDNOW, Hudson's Bay Company, Tower Records and Walgreens. Headquartered in Minneapolis, the company has offices in San Francisco; New York; Austin, Texas; Richardson, Texas; Berkshire, U.K.; Hong Kong; Singapore; Frankfurt, Germany and a joint venture operation in Japan. For more information about Net Perceptions products visit http://www.netperceptions.com or call 800-466-0711.
KEYWORDS: Analytic Applications, CRM, Customer Relationship Management, Database Marketing, data warehouse, Web, one-to-one-marketing, data mining, marketing campaigns, campaign management, E-commerce, Sales, Marketing, Customer Service, Support, Enterprise Information Portals, E-Business, Personalization, E-Mail, Collaborative Filtering, customer-centric, customer.
Net Perceptions is a registered trademark of Net Perceptions. All other trademarks are the property of their respective owners. This news release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the company's limited operating history, delays in product development, development of the Internet market, changes in product pricing policies, competitive pressures, and the risk factors detailed from time to time in the company's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission. -0-
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NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except share and per share amounts)
======================================================================
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $9,508 $2,104 $17,032 $3,665
Service and
maintenance 2,894 710 4,862 1,044
----------------------------------------------------------------------
Total revenues 12,402 2,814 21,894 4,709
Cost of revenues:
Product 220 59 328 95
Service and
maintenance 2,724 491 4,533 804
----------------------------------------------------------------------
Total cost of
revenues 2,944 550 4,861 899
Gross margin 9,458 2,264 17,033 3,810
Operating expenses:
Sales and
marketing 6,278 2,558 12,179 4,295
Research and
development 4,852 2,033 8,510 3,569
General and
administrative 2,750 813 5,009 1,387
Lease abandonment
expense 800 - 800 -
----------------------------------------------------------------------
Total operating
expenses 14,680 5,404 26,498 9,251
----------------------------------------------------------------------
Loss from operations (5,222) (3,140) (9,465) (5,441)
Other income, net 1,255 381 1,905 309
----------------------------------------------------------------------
Net loss $(3,967) $(2,759) $(7,560) $(5,132)
======================================================================
Net loss per share:
Basic and diluted $(0.15) $(0.18) $(0.31) $(0.51)
Shares used in
computing basic and
diluted net loss
per share 25,744,809 15,476,110 24,151,681 10,007,654
======================================================================
Pro forma basic and
diluted net loss
per share $(0.15) $(0.15) $(0.31) $(0.30)
Shares used in computing
pro forma
basic and diluted net
loss per share 25,744,809 18,676,720 24,151,681 16,942,309
======================================================================
(a) For the three and six months ended June 30, 2000, this Pro Forma Statement of Operations excludes stock compensation expense and amortization of acquired intangibles related to the company's first quarter 2000 acquisition of Knowledge Discovery One of $7,763 and $11,750, respectively. For the three and six months ended June 30, 1999, this Pro Forma Statement of Operations excludes stock compensation expense of $364 and $867, respectively.
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
======================================================================
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $9,508 $2,104 $17,032 $3,665
Service and
maintenance 2,894 710 4,862 1,044
----------------------------------------------------------------------
Total revenues 12,402 2,814 21,894 4,709
Cost of revenues:
Product 553 59 828 95
Service and
maintenance 2,724 491 4,533 804
----------------------------------------------------------------------
Total cost
of revenues 3,277 550 5,361 899
Gross margin 9,125 2,264 16,533 3,810
Operating expenses:
Sales and
marketing 6,278 2,558 12,179 4,295
Research and
development 4,852 2,033 8,510 3,569
General and
administrative 2,750 813 5,009 1,387
Lease abandonment
expense 800 - 800 -
Amortization of
intangibles 7,256 - 10,883 -
Stock compensation
expense 174 364 367 867
----------------------------------------------------------------------
Total operating
expenses 22,110 5,768 37,748 10,118
----------------------------------------------------------------------
Loss from operations (12,985) (3,504) (21,215) (6,308)
Other income, net 1,255 381 1,905 309
----------------------------------------------------------------------
Net loss $(11,730) $(3,123) $(19,310) $(5,999)
======================================================================
Net loss per share:
Basic and diluted $(0.46) $(0.20) $(0.80) $(0.60)
Shares used in
computing basic and
diluted net
loss per share 25,744,809 15,476,110 24,151,681 10,007,654
======================================================================
Pro forma basic and
diluted net loss
per share $(0.46) $(0.17) $(0.80) $(0.35)
Shares used in
computing pro forma
basic and diluted net
loss per share 25,744,809 18,676,720 24,151,681 16,942,309
======================================================================
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
=====================================================================
June 30, Dec. 31,
2000 1999
---------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 47,431 $ 17,457
Short-term investments 34,778 19,397
Accounts receivable, net 10,058 7,663
Royalties receivable 1,702 1,135
Prepaid expenses and other current assets 2,279 1,373
---------------------------------------------------------------------
Total current assets 96,248
Marketable securities 33,329 6,317
Property and equipment, net 8,075 4,749
Goodwill & other intangible assets 107,371 -
Other assets 644 657
---------------------------------------------------------------------
Total assets $245,667 $ 58,748
---------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 7,507 $ 5,846
Deferred revenue 5,476 3,336
Current portion of long-term liabilities 663 471
---------------------------------------------------------------------
Total current liabilities 13,646 9,653
Long-term liabilities, net of current portion 840 707
---------------------------------------------------------------------
Total liabilities 14,486 10,360
---------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 273,209 71,231
Other comprehensive income (loss) 36 (89)
Accumulated deficit (42,066) (22,756)
---------------------------------------------------------------------
Total stockholders' equity 231,181 48,388
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $245,667 $ 58,748
---------------------------------------------------------------------
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CONTACT: Net Perceptions, Inc., Minneapolis
Tony Carideo
Investor Relations
612-833-9618
tcarideo@netperceptions.com
or
Tom Donnelly
Chief Financial Officer
612-903-1270
tdonnelly@netperceptions.com
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