MINNEAPOLIS--(BUSINESS WIRE)--Oct. 24, 2000--Net Perceptions, Inc.
(Nasdaq:NETP) today announced revenue of $7.7 million for the quarter
ended Sept. 30, 2000, and a loss of $8.0 million, or ($0.30) per share
before the amortization of intangibles and stock compensation expense.
These results compare with revenues of $12.4 million for the second
quarter ended June 30, 2000, and a net loss of ($0.15) per share,
before the amortization of intangibles and stock compensation expense.
In the same period last year the company reported $4.1 million in
revenue and a net loss of ($0.13) per share before stock compensation
expense.
For the nine months ended Sept. 30, 2000, the company reported
$29.6 million in revenue and a loss of $15.5 million, or ($0.62) per
share before amortization of intangibles and stock compensation
expense, compared with $8.8 million in revenue, and a loss of $7.8
million, or ($0.59) per share, in the first nine months of 1999.
Including the amortization of intangibles and stock compensation
expense, the company reported a loss of ($0.60) per share for the
third quarter ended Sept. 30, 2000, compared to ($0.15) per share for
the same period last year. For the nine months ended Sept. 30, 2000,
the loss including amortization of intangibles and stock compensation
expense was ($1.41) per share, compared to ($0.68) for the same period
last year.
"We believe we have the right ingredients for success," Snyder
said. "We have the right people, great technology and blue-chip
customers. We're committed to leveraging these assets to build on the
success we've already achieved in four short years as a company."
Snyder said while disappointed by third quarter results, the
company has taken decisive action to refine its near-term focus and to
ensure significant improvement in both its near- and long-term
performance. Among measures taken, the company has recently
reorganized to improve sales and customer management, streamlined
decision-making and aligned its internal skill mix and spending
directly with the strategic objectives to serve the needs of large
multi-channel retailers and Fortune 1000 companies. Specific actions
include:
-
Net Perceptions has combined its Network and Commerce
Solutions business units to align its resources more
strategically around the multi-channel retailer. Knowledge
Solutions will maintain its focus on serving Fortune 1000
companies. In addition, the company will allocate resources
selectively to market initiatives where it sees potential for
extending its core technologies.
-
Steve Jacob will now head the company's worldwide sales and
customer solutions organization. Jacob brings extensive
experience in running large, enterprise-focused sales and
consulting efforts to this new role.
-
Trimming the workforce by approximately 17 percent, or 65
employees, to align the cost structure and skill sets more
closely with the strategic direction. Of the 65, 16 of the
eliminations were in sales, primarily from the telemarketing
organization. This also reflects the transition from a
coverage sales model to a targeted enterprise approach.
Sixteen positions were eliminated from the consulting
organization - an action to align skill sets in this group
with the company's backlog and sales pipeline - five positions
were eliminated from the marketing organization, eight from
the general and administrative group and 20 from research and
development. The company does not believe that the
eliminations in research and development will adversely impact
any current product development efforts.
-
The company is training and integrating its sales and
consulting resources to more effectively focus on its core
markets. Instead of assigning one sales person to cover 10 to
15 accounts, Net Perceptions will reorganize its field
organization into teams of two to three people covering only
three to four active accounts.
-
The company's business alliances team has tightened its focus
on cultivating partnerships with key industry players in Net
Perceptions' strategic sweet spot - including both software
companies that play in the retail and knowledge management
spaces as well as Big 5 systems integrators.
-
The company is revamping its pipeline management process to
more accurately assess visibility.
-
Steve Larsen will transition from Net Perceptions to head up
the Personalization Summits, its interest in the
personalization magazine published by Peppers and Rogers and
www.personalization.com, which will become an independent
entity. From its start, the company envisioned the Summits as
a vendor-neutral industry event. The growth of these assets is
now at a point where they are best managed as a separate
business and the company is evaluating its options for making
this change.
About Net Perceptions
Net Perceptions, a leading provider of precision merchandising and
personalization infrastructure software, is the innovator and
preeminent supplier of software solutions that allow companies to
translate knowledge into profitable business action. Its Commerce
Solutions and Knowledge Solutions products enable companies to
capitalize on business information and optimize product assortments,
pricing, customer relationships and intellectual capital. Customers
include market leaders such as Best Buy, Hudson's Bay, JC Penney, J.P.
Morgan, Kmart, Procter and Gamble and Walgreen's. The company is based
in the U.S. and has offices in six other countries. For more visit
http://www.netperceptions.com or call 800-466-0711.
Net Perceptions and the Net Perceptions logo are registered trademarks
of Net Perceptions, Inc. 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.
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except share and per share amounts)
======================================================================
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $ 4,424 $ 3,035 $ 21,456 $ 6,700
Service and
maintenance 3,301 1,079 8,162 2,123
----------------------------------------------------------------------
Total revenues 7,725 4,114 29,618 8,823
Cost of revenues:
Product 193 32 520 127
Service and
maintenance 3,019 782 7,552 1,586
----------------------------------------------------------------------
Total cost of
revenues 3,212 814 8,072 1,713
Gross margin 4,513 3,300 21,546 7,110
Operating expenses:
Sales and marketing 6,311 3,275 18,490 7,570
Research and
development 5,464 2,270 13,974 5,839
General and
administrative 2,628 1,169 7,637 2,556
Lease abandonment
expense - - 800 -
----------------------------------------------------------------------
Total operating
expenses 14,403 6,714 40,901 15,965
----------------------------------------------------------------------
Loss from operations (9,890) (3,414) (19,355) (8,855)
Other income, net 1,907 735 3,812 1,044
----------------------------------------------------------------------
Net loss $(7,983) $(2,679) $(15,543) $(7,811)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.30) $(0.13) $(0.62) $(0.59)
Shares used in
computing basic and
diluted net loss per
share 26,339,150 20,587,072 24,892,510 13,281,169
----------------------------------------------------------------------
Pro forma basic and
diluted net loss
per share $(0.30) $(0.13) $(0.62) $(0.44)
Shares used in
computing pro forma
basic and diluted net
loss per share 26,339,150 20,587,072 24,892,510 17,892,549
----------------------------------------------------------------------
(a) For the three and nine months ended September 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 $7,786 and
$19,536 respectively. For the three and nine months ended September
30, 1999, this Pro Forma Statement of Operations excludes stock
compensation expense of $339 and $1,206, respectively.
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
======================================================================
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $ 4,424 $ 3,035 $ 21,456 $ 6,700
Service and
maintenance 3,301 1,079 8,162 2,123
----------------------------------------------------------------------
Total revenues 7,725 4,114 29,618 8,823
Cost of revenues:
Product 526 32 1,354 127
Service and
maintenance 3,019 782 7,551 1,586
----------------------------------------------------------------------
Total cost of
revenues 3,545 814 8,905 1,713
Gross margin 4,180 3,300 20,713 7,110
Operating expenses:
Sales and marketing 6,311 3,275 18,490 7,570
Research and
development 5,464 2,270 13,974 5,839
General and
administrative 2,628 1,169 7,637 2,556
Lease abandonment
expense - - 800 -
Amortization of
intangibles 7,255 - 18,139 -
Stock compensation
expense 198 339 564 1,206
----------------------------------------------------------------------
Total operating
expenses 21,856 7,053 59,604 17,171
----------------------------------------------------------------------
Loss from operations (17,676) (3,753) (38,891) (10,061)
Other income, net 1,907 735 3,812 1,044
----------------------------------------------------------------------
Net loss $(15,769) $(3,018) $(35,079) $(9,017)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.60) $(0.15) $(1.41) $(0.68)
Shares used in
computing basic and
diluted net loss per
share 26,339,150 20,587,072 24,892,510 13,281,169
----------------------------------------------------------------------
Pro forma basic and
diluted net loss
per share $(0.60) $(0.15) $(1.41) $(0.50)
Shares used in
computing pro forma
basic and diluted net
loss per share 26,339,150 20,587,072 24,892,510 17,892,549
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
=====================================================================
Sept. 30, Dec. 31,
2000 1999
---------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 16,609 $ 17,457
Short-term investments 50,737 19,397
Accounts receivable, net 5,943 7,663
Royalties receivable 518 1,135
Prepaid expenses and other current assets 2,261 1,373
---------------------------------------------------------------------
Total current assets 76,068
Marketable securities 41,793 6,317
Property and equipment, net 13,064 4,749
Goodwill & other intangible assets, net 99,782 -
Other assets 1,375 657
---------------------------------------------------------------------
Total assets $ 232,082 $ 58,748
---------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 8,400 $ 5,846
Deferred revenue 4,871 3,336
Current portion of long-term liabilities 576 471
---------------------------------------------------------------------
Total current liabilities 13,847 9,653
Long-term liabilities, net of current portion 2,205 707
---------------------------------------------------------------------
Total liabilities 16,052 10,360
---------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 273,541 71,231
Other comprehensive income (loss) 322 (89)
Accumulated deficit (57,835) (22,756)
---------------------------------------------------------------------
Total stockholders' equity 216,030 48,388
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 232,082 $ 58,748
---------------------------------------------------------------------
--30--cr/ms*
| CONTACT: |
Net Perceptions, Inc., Minneapolis |
| |
Tom Donnelly |
| |
Chief Financial Officer |
| |
952-842-5400 |
| |
tdonnelly@netperceptions.com |
| |
or |
| |
Anthony Carideo |
| |
Director, Investor Relations |
| |
952-842-5454 |
| |
tcarideo@netperceptions.com |
|
|
|
