| MINNEAPOLIS, Apr 23, 2002 (BUSINESS WIRE) -- Net Perceptions, Inc.
(Nasdaq:NETP) today reported revenue of $1.1 million for the quarter ended March
31, 2002 and a pro forma loss of $3.0 million, or ($0.11) per share. In the same
period last year the company reported $3.3 million in revenue and a pro forma
loss of $11.9 million, or ($0.44) per share. The company reported an actual
first quarter loss of $3.5 million, or ($0.13) per share, compared with an
actual loss of $108.8 million, or ($4.05) per share in the same period last
year. Pro forma information excludes restructuring activity, amortization and
impairment of goodwill and other intangibles and stock compensation expense for
all periods discussed. The Company ended the quarter with $69.3 million in cash
and short-term investments.
"While disappointed in our top line revenue results, we did see some positive
indicators during the quarter" said Don Peterson, Net Perceptions president and
CEO. "We signed two significant contracts, both of which require that revenue be
recognized ratably over the term of the agreements. We added new talent in our
sales organization and continue to build our 2002 pipeline."
Given the uncertainties of the IT spending environment, Net Perceptions will not
be providing specific financial guidance for the second quarter of 2002.
However, Net Perceptions is optimistic that second quarter financial performance
will improve over the first quarter of 2002.
About Net Perceptions
Net Perceptions (Nasdaq:NETP) is a software and services company that provides
solutions for intelligent customer interaction that drive demand, grow revenue
and increase profitability. Founded in 1996, Net Perceptions is headquartered in
Minneapolis and has offices in the United States and in Europe. Customers
include market leaders such as 3M, Brylane, GUS (Great Universal Stores), JC
Penney, J&L Industrial Supply, Meijer Stores and Palm. 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.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
----------------------------------------------------------------------
March 31, December 31,
2002 2001
----------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 9,415 $ 14,929
Short-term investments 59,926 58,676
Accounts receivable, net 541 1,309
Prepaid expenses and other current assets 2,302 2,301
----------------------------------------------------------------------
Total current assets 72,184 77,215
Property and equipment, net 2,787 3,679
Goodwill & other intangible assets, net 6,738 6,802
Other assets 1,251 1,182
----------------------------------------------------------------------
Total assets $ 82,960 $ 88,878
======================================================================
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 3,234 $ 3,529
Deferred revenue 1,659 1,835
Accrued restructuring costs 6,209 7,433
Current portion of long-term liabilities 25 97
----------------------------------------------------------------------
Total current liabilities 11,127 12,894
Long-term liabilities, net of current portion 560 577
----------------------------------------------------------------------
Total liabilities 11,687 13,471
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 274,911 274,869
Accumulated other comprehensive income (loss) (67) 637
Accumulated deficit (203,573) (200,101)
----------------------------------------------------------------------
Total stockholders' equity 71,273 75,407
----------------------------------------------------------------------
Total liabilities and stockholders' equity $ 82,960 $ 88,878
======================================================================
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
March 31,
----------------------------------------------------------------------
2002 2001
----------------------------------------------------------------------
(Unaudited)
Revenues:
Product $ 43 $ 1,008
Service and maintenance 1,097 2,327
----------------------------------------------------------------------
Total revenues 1,140 3,335
Cost of revenues:
Product 123 441
Service and maintenance 770 2,292
----------------------------------------------------------------------
Total cost of revenues 893 2,733
Gross margin 247 602
Operating expenses:
Sales and marketing 1,481 7,970
Research and development 1,960 4,033
General and administrative 742 2,287
Lease abandonment expense - 225
Restructuring related charges 367 13,920
Amortization of intangibles 28 7,256
Impairment of goodwill and other intangibles - 75,298
----------------------------------------------------------------------
Total operating expenses 4,578 110,989
----------------------------------------------------------------------
Loss from operations (4,331) (110,387)
Other income, net 859 1,593
----------------------------------------------------------------------
Net loss $ (3,472) $(108,794)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.13) $ (4.05)
Shares used in computing basic and diluted net
loss per share 27,161 26,844
----------------------------------------------------------------------
Supplemental Information of Pro Forma Results: Net loss and net loss
per basic and diluted share as reported excluding stock compensation
expense, restructuring charges, amortization of goodwill and other
intangibles and impairment of goodwill and other intangibles. Such
adjustments are unaudited and are not in accordance with generally
accepted accounting principles.
Net loss, as reported $ (3,472) $(108,794)
Adjusted for:
Stock compensation expense (1) 15 96
Restructuring related charges 367 13,920
Amortization of intangibles (2) 65 7,589
Impairment of goodwill and other intangibles - 75,298
----------------------------------------------------------------------
Pro forma net loss $ (3,025) $ (11,891)
----------------------------------------------------------------------
Pro forma net loss per share:
Basic and diluted $ (0.11) $ (0.44)
Shares used in computing basic and diluted net
loss per share 27,161 26,844
----------------------------------------------------------------------
(1) Amounts are included in the various line items within operating
expenses.
(2) Amounts are included in cost of revenues ($37 and $333,
respectively) and operating expenses ($28 and $7,256, respectively).
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except per share amounts)
Three Months Ended
March 31,
----------------------------------------------------------------------
2002 2001
----------------------------------------------------------------------
(Unaudited)
Revenues:
Product $ 43 $ 1,008
Service and maintenance 1,097 2,327
----------------------------------------------------------------------
Total revenues 1,140 3,335
Cost of revenues:
Product 86 108
Service and maintenance 770 2,292
----------------------------------------------------------------------
Total cost of revenues 856 2,400
Gross margin 284 935
Operating expenses:
Sales and marketing 1,473 7,958
Research and development 1,957 3,964
General and administrative 738 2,272
Lease abandonment expense - 225
----------------------------------------------------------------------
Total operating expenses 4,168 14,419
----------------------------------------------------------------------
Loss from operations (3,884) (13,484)
Other income, net 859 1,593
----------------------------------------------------------------------
Net loss $ (3,025) $ (11,891)
======================================================================
Net loss per share:
Basic and diluted $ (0.11) $ (0.44)
Shares used in computing basic and diluted net
loss per share 27,161 26,844
======================================================================
(a) See Condensed Statements of Operations (previous page) for
reconciliation of pro forma results to results in accordance with
generally accepted accounting principles.
CONTACT: Net Perceptions, Inc., Minneapolis
Sharri Major, 952/842-5402
smajor@netperceptions.com
or
Tom Donnelly, 952/842-5400
tdonnelly@netperceptions.com
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