MINNEAPOLIS--(BUSINESS WIRE)--Jan. 30, 2001--
Company reports significant progress in multi-channel retailing
market; cash reserves of more than $96 million at year-end
Net Perceptions, Inc. (Nasdaq:NETP) today announced revenue of
$7.0 million for the quarter ended Dec. 31, 2000, and a loss of $10.4
million, or ($0.39) per share before the amortization of intangibles
and stock compensation expense. These results compare with revenues of
$7.7 million for the third quarter ended Sept. 30, 2000, and a net
loss of ($0.30) per share before the amortization of intangibles and
stock compensation expense. In the same period last year, the company
reported $6.3 million in revenue and a net loss of $2.7 million or
($0.13) per share before stock compensation expense.
For the full year ended Dec. 31, 2000, the company reported $36.6
million in revenue and a loss of $25.9 million, or ($1.03) per share
before amortization of intangibles and stock compensation expense,
compared with $15.1 million in revenue and a loss of $10.5 million, or
($0.68) per share before stock compensation expense, in the same
period in 1999.
Including the amortization of intangibles and stock compensation
expense, the company reported a loss of ($0.69) per share for the
fourth quarter ended Dec. 31, 2000, compared to ($0.14) per share for
the same period last year. For the year ended Dec. 31, 2000, the loss
including amortization of intangibles and stock compensation expense
was ($2.12) per share, versus full-year results of ($0.78) in 1999,
which included only stock compensation expense.
"We made significant strides forward in reorienting our company
during the last quarter, specifically our sales and marketing teams,
around opportunities within the multi-channel retail market," said
Steven Snyder, Net Perceptions' president and CEO. "While we were
disappointed that we fell short of our fourth quarter revenue target,
we have gained significant momentum toward achieving our 2001
financial objectives."
During the quarter, Net Perceptions made significant progress in
several areas, including:
-
A multi-million dollar contract with Brylane, the
third-largest U.S. catalog retailer, to purchase both Net
Perceptions call center and e-commerce solutions. Of
particular significance are the results Brylane achieved
during a 13-week study comparing Net Perceptions'
recommendation software with Brylane's traditional
recommendation strategy in its call center. Conducted in a
controlled environment, Brylane experienced a substantial lift
in overall sales using Net Perceptions' software compared to
its own cross-selling techniques.
-
Net Perceptions received renewal orders from Lowe's Companies,
Hudson's Bay Co. and Walgreen Co., and upgrade orders from
-
The company announced the general availability of a new
version of its flagship commerce product, E-commerce 6.0
Personalization Manager. Personalization Manager marries Net
Perceptions' award-winning real-time personalization
technology seamlessly to the rule-building capabilities needed
to deliver individually tailored online shopping experiences
for each consumer while ensuring that the retailer is meeting
key merchandising objectives such as selling higher margin
products and clearing overstocks.
-
Net Perceptions also recently launched its new "Retail
Revelations," a suite of products and services representing a
re-branded and renamed product line that reflects the
company's core business focus on multi-channel retailers.
Retail Revelations combines retail solutions that cover
critical merchandising and marketing performance issues. These
include providing precise insight into what products to
advertise to generate the most traffic, recommendations for
how to liquidate overstocks on the Web while optimizing profit
margins, and increasing overall promotional effectiveness and
sales.
-
The company also continued to take measures to size its
business to reflect the current realities of the market. Total
headcount as of Jan. 29, 2001 was 290, down significantly from
its peak employment of 392 in mid-October 2000.
"This has been a challenging economic environment for most, if not
all, technology companies." Snyder said. "Net Perceptions has
responded to these new realities and is making rapid adjustments to
reorient our business and build toward profitability."
Outlook
Net Perceptions currently anticipates that revenues for the first
quarter will be up modestly from the fourth quarter of 2000 to $7.5
million and that net loss per share will be approximately ($.30). It
is currently projecting full year revenues of approximately $43
million and a loss of approximately ($0.60) cents per share. Net loss
per share excludes amortization of intangibles and stock compensation
expense. The company completed the quarter with $96.2 million in cash
and investments, and expects to use $23 to $25 million of its cash
reserves for operations and capital expenditures during 2001.
About Net Perceptions
Net Perceptions, a leading provider of precision merchandising and
personalization 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, J.P. Morgan, JC Penney, Kmart, Brylane,
BassPro and Tesco. The company is based in the U.S. and has offices in
four other countries. 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. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. 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 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 Year Ended
December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $ 3,631 $ 4,708 $ 25,087 $ 11,408
Service and
maintenance 3,338 1,598 11,501 3,721
----------------------------------------------------------------------
Total revenues 6,969 6,306 36,588 15,129
Cost of revenues:
Product 119 159 640 286
Service and
maintenance 3,139 1,149 10,691 2,735
----------------------------------------------------------------------
Total cost of
revenues 3,258 1,308 11,331 3,021
Gross margin 3,711 4,998 25,257 12,108
Operating expenses:
Sales and marketing 6,583 4,529 25,073 12,099
Research and
development 4,921 2,355 18,895 8,194
General and
administrative 3,432 1,169 11,069 3,725
Lease abandonment
expense 450 - 1,250 -
----------------------------------------------------------------------
Total operating
expenses 15,386 8,053 56,287 24,018
----------------------------------------------------------------------
Loss from operations (11,675) (3,055) (31,030) (11,910)
Other income, net 1,285 322 5,096 1,366
----------------------------------------------------------------------
Net loss $ (10,390) $ (2,733) $(25,934) $(10,544)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.39) $ (0.13) $ (1.03) $ (0.68)
Shares used in
computing basic and
diluted net loss per
share 26,648,811 20,964,818 25,209,152 15,402,419
----------------------------------------------------------------------
(a) For the three months and year ended December 31, 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 $8,077 and
$27,613, respectively. For the three months and year ended December
31, 1999, this Pro Forma Statement of Operations excludes stock
compensation expense of $289 and $1,495, respectively.
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
======================================================================
Dec. 31, Dec. 31,
2000 1999
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 16,396 $17,457
Short-term investments 52,484 19,397
Accounts receivable, net 6,449 7,663
Royalties receivable 671 1,135
Prepaid expenses and other current assets 1,729 1,373
----------------------------------------------------------------------
Total current assets 77,729 47,025
Marketable securities 27,356 6,317
Property and equipment, net 12,760 4,749
Goodwill & other intangible assets, net 92,194 -
Other assets 1,795 657
----------------------------------------------------------------------
Total assets $211,834 $58,748
----------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 7,040 $ 5,846
Deferred revenue 3,743 3,336
Current portion of long-term liabilities 582 471
----------------------------------------------------------------------
Total current liabilities 11,365 9,653
Long-term liabilities, net of current portion 1,951 707
----------------------------------------------------------------------
Total liabilities 13,316 10,360
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 274,458 71,231
Other comprehensive income (loss) 361 (89)
Accumulated deficit (76,303) (22,756)
----------------------------------------------------------------------
Total stockholders' equity 198,518 48,388
----------------------------------------------------------------------
Total liabilities and stockholders' equity $211,834 $58,748
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
======================================================================
Three Months Ended Year Ended
December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Revenues:
Product $ 3,631 $ 4,708 $ 25,087 $ 11,408
Service and
maintenance 3,338 1,598 11,501 3,721
----------------------------------------------------------------------
Total revenues 6,969 6,306 36,588 15,129
Cost of revenues:
Product 454 159 1,807 286
Service and
maintenance 3,139 1,149 10,691 2,735
----------------------------------------------------------------------
Total cost of
revenues 3,593 1,308 12,498 3,021
Gross margin 3,376 4,998 24,090 12,108
Operating expenses:
Sales and marketing 6,583 4,529 25,073 12,099
Research and
development 4,921 2,355 18,895 8,194
General and
administrative 3,432 1,169 11,069 3,725
Lease abandonment
expense 450 - 1,250 -
Amortization of
intangibles 7,255 - 25,394 -
Stock compensation
expense 487 289 1,052 1,495
----------------------------------------------------------------------
Total operating
expenses 23,128 8,342 82,733 25,513
----------------------------------------------------------------------
Loss from operations (19,752) (3,344) (58,643) (13,405)
Other income, net 1,285 322 5,096 1,366
----------------------------------------------------------------------
Net loss $ (18,467) $ (3,022) $ (53,547) $ (12,039)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.69) $ (0.14) $ (2.12) $ (0.78)
Shares used in
computing basic and
diluted net loss per
share 26,648,811 20,964,818 25,209,152 15,402,419
----------------------------------------------------------------------
--30--cr/ms*
| CONTACT: |
Net Perceptions, Inc., Minneapolis |
| |
Jacqueline Hanson |
| |
Director, Corporate Communications |
| |
952-842-5063 |
| |
jhanson@netperceptions.com |
| |
or |
| |
Tom Donnelly |
| |
Chief Financial Officer |
| |
952-842-5400 |
| |
tdonnelly@netperceptions.com |
|
|
|
