MINNEAPOLIS--(BUSINESS WIRE)--July 24, 2001--Net Perceptions, Inc.
(Nasdaq:NETP) today announced revenue of $2.4 million for the quarter
ended June 30, 2001, and a loss of $4.9 million, or ($0.18) per share
before amortization of goodwill and other intangibles and stock
compensation expense. In the same period last year the company
reported $12.4 million in revenue and a loss of $4.0 million, or
($0.15) per share. Including amortization of goodwill and other
intangibles and stock compensation expense, the company reported a
loss of $5.8 million, or ($0.22) per share, compared with a loss of
$11.7 million, or ($0.46) per share in the same period last year.
"In my first eight weeks at Net Perceptions, I've met with many
customers, prospects and strategic partners. Based on their feedback,
it is evident to me that our solutions are delivering significant
value to our customers," said Don Peterson, recently appointed Net
Perceptions president and CEO. "We clearly need to better leverage
this value, and are now aggressively re-examining our business model
to address current market conditions and improve our go-to-market
strategy. Our objective is a clear path to profitability with an
underlying business model that is scalable."
The company anticipates that revenues for the third quarter will
be $1.5 to $2.5 million dollars and that pro forma net loss per share
will be $0.18 to $0.21 cents per share. Net Perceptions completed the
quarter with $81 million in cash and short-term investments. The
company maintains its cash use guidance for 2001 at $25 to $30
million, inclusive of payments related to the first quarter
restructuring.
About Net Perceptions
Net Perceptions (Nasdaq:NETP) provides intelligent demand
generation solutions to multi-channel retailers. Its Retail
Revelations suite of software and services measurably improves
merchandising, marketing and advertising effectiveness by providing
actionable insight into product, promotion and customer interactions.
Founded in 1996, Net Perceptions is headquartered in Minneapolis and
has offices throughout the United States and in Europe. Customers
include market leaders such as Best Buy, Brylane, GUS (Great Universal
Stores), JC Penney, Kmart and Tesco. For more information 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 press release contains "forward-looking
statements" within the meaning of the federal securities laws,
including statements concerning business strategies and their intended
results, and similar statements concerning anticipated future events
and expectations that are not historical facts. The forward-looking
statements in this press release reflect management's best judgment at
the time they are made, but all such statements are subject to
numerous risks and uncertainties, which could cause actual results to
differ materially from those expressed in or implied by the statements
herein. Additional information concerning potential factors that could
effect future financial results are detailed from time to time in the
company's filings 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 Six Months Ended
June 30, June 30,
----------------------------------------------------------------------
2001 2000 2001 2000
----------------------------------------------------------------------
Revenues:
Product $ 386 $ 9,508 $ 1,394 $17,032
Service and maintenance 2,011 2,894 4,244 4,862
----------------------------------------------------------------------
Total revenues 2,397 12,402 5,638 21,894
Cost of revenues:
Product 43 220 151 328
Service and maintenance 1,216 2,724 3,414 4,533
----------------------------------------------------------------------
Total cost of revenues 1,259 2,944 3,565 4,861
Gross margin 1,138 9,458 2,073 17,033
Operating expenses:
Sales and marketing 3,028 6,278 10,986 12,179
Research and
development 2,222 4,852 6,186 8,510
General and
administrative 2,120 2,750 4,392 5,009
Lease abandonment
expense - 800 225 800
----------------------------------------------------------------------
Total operating
expenses 7,370 14,680 21,789 26,498
----------------------------------------------------------------------
Loss from operations (6,232) (5,222) (19,716) (9,465)
Other income, net 1,295 1,255 2,888 1,905
----------------------------------------------------------------------
Net loss $(4,937) $(3,967) $(16,828) $(7,560)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.18) $ (0.15) $ (0.63) $ (0.31)
Shares used in computing
basic and diluted net
loss per share 26,986,256 25,744,809 26,891,652 24,151,681
----------------------------------------------------------------------
(a) Pro Forma Consolidated 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 (KD1) of $897 and $8,582 for the three and six months ended June
30, 2001, respectively. In addition, restructuring charges of $13,920
and a $75,298 charge for the impairment of KD1 goodwill and other
intangibles were excluded from the six months ended June 30, 2001. 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 of $7,763 and $11,750, respectively.
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
======================================================================
June 30, Dec. 31,
2001 2000
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 24,447 $ 16,396
Short-term investments 56,581 52,484
Accounts receivable, net 936 6,339
Royalties receivable - 671
Prepaid expenses and other current assets 3,379 1,839
----------------------------------------------------------------------
Total current assets 85,343 77,729
Marketable securities - 27,356
Property and equipment, net 6,529 12,760
Goodwill & other intangible assets, net 8,472 92,194
Other assets 1,363 1,795
----------------------------------------------------------------------
Total assets $ 101,707 $ 211,834
----------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 5,264 $ 7,040
Deferred revenue 2,434 3,743
Accrued restructuring costs 8,926 -
Current portion of long-term liabilities 432 582
----------------------------------------------------------------------
Total current liabilities 17,056 11,365
Long-term liabilities, net of current portion 635 1,951
----------------------------------------------------------------------
Total liabilities 17,691 13,316
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 274,725 274,458
Accumulated other comprehensive income 220 361
Accumulated deficit (190,931) (76,303)
----------------------------------------------------------------------
Total stockholders' equity 84,016 198,518
----------------------------------------------------------------------
Total liabilities and stockholders'
equity $ 101,707 $ 211,834
----------------------------------------------------------------------
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,
----------------------------------------------------------------------
2001 2000 2001 2000
----------------------------------------------------------------------
Revenues:
Product $ 386 $ 9,508 $ 1,394 $ 17,032
Service and
maintenance 2,011 2,894 4,244 4,862
----------------------------------------------------------------------
Total revenues 2,397 12,402 5,638 21,894
Cost of revenues:
Product 80 553 521 828
Service and
maintenance 1,216 2,724 3,414 4,533
----------------------------------------------------------------------
Total cost of
revenues 1,296 3,277 3,935 5,361
Gross margin 1,101 9,125 1,703 16,533
Operating expenses:
Sales and marketing 3,041 6,354 11,011 12,365
Research and
development 2,262 4,928 6,295 8,647
General and
administrative 2,129 2,772 4,416 5,053
Lease abandonment
expense - 800 225 800
Restructuring charges - - 13,920 -
Amortization of
goodwill and other
intangibles 798 7,256 8,054 10,883
Impairment of
goodwill and other
intangibles - - 75,298 -
----------------------------------------------------------------------
Total operating
expenses 8,230 22,110 119,219 37,748
----------------------------------------------------------------------
Loss from operations (7,129) (12,985) (117,516) (21,215)
Other income, net 1,295 1,255 2,888 1,905
----------------------------------------------------------------------
Net loss $ (5,834) $ (11,730) $ (114,628) $ (19,310)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.22) $ (0.46) $ (4.26) $ (0.80)
Shares used in
computing basic and
diluted net loss per
share 26,986,256 25,744,809 26,891,652 24,151,681
----------------------------------------------------------------------
| CONTACT: |
Net Perceptions, Inc., Minneapolis |
| |
Corporate Communications: |
| |
Jacqueline Hanson, 952/842-5063 |
| |
jhanson@netperceptions.com |
| |
or |
| |
Chief Financial Officer: |
| |
Tom Donnelly, 952/842-5400 |
| |
tdonnelly@netperceptions.com |
|
|
|
