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MINNEAPOLIS, Jul 30, 2002 (BUSINESS WIRE) -- Net Perceptions, Inc.
(Nasdaq:NETP) today reported revenue of $1.6 million for the quarter ended June
30, 2002 and a pro forma loss of $3.9 million, or ($0.14) per share.
In the same period last year the Company reported $2.5 million in revenue and a
pro forma loss of $4.9 million, or ($0.18) per share. The Company reported an
actual second quarter loss of $4.3 million, or ($0.16) per share, compared with
an actual loss of $5.8 million, or ($0.22) per share in the same period last
year. Pro forma information excludes restructuring related activity,
amortization and impairment of goodwill and other intangibles and stock
compensation expense for all periods discussed.
"During the second quarter, we announced and shipped NetP 7.0(TM), and signed
several NetP 7.0 license deals. I am very pleased with the way this product is
being received in the marketplace," said Don Peterson, Net Perceptions president
and CEO. "This is a major new release that combines, and improves upon, our best
capabilities and technologies. We've proven "hard ROI" with this product--
enabling our catalog retail/e-tail and industrial distribution customers to sell
measurably more to their customers."
"In less than three months from the decision to proceed, we were achieving
profitable results," said Chuck Moyer, vice president of marketing and supply
chain management for J&L Industrial Supply. "To my knowledge, there isn't
another solution of this type available in the industrial space."
As previously announced, the Company recorded a $1.6 million loss on investment
during the second quarter ended June 30, 2002 and a $1.4 million reduction in
cash and investments, resulting from its sale of $2.1 million in face amount
bonds held in the Company's investment portfolio. Excluding this charge, the
Company would have reported a pro forma loss of $2.3 million, or ($0.08) per
share.
Outlook
The Company anticipates that revenues for the third quarter will meet or exceed
second quarter revenues, and that pro forma net loss per share will be ($0.05)
to ($0.07) cents per share. Net Perceptions completed the quarter with $64.6
million in cash and short-term investments. The Company believes that its cash
use for the remaining six months of 2002 will range from $4.0 million to $5.0
million.
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 and half.com. 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)
----------------------------------------------------------------------
June 30, December 31,
2002 2001
----------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 13,116 $ 14,929
Short-term investments 51,504 58,676
Accounts receivable, net 1,768 1,309
Prepaid expenses and other current assets 2,316 2,301
----------------------------------------------------------------------
Total current assets 68,704 77,215
Property and equipment, net 1,902 3,679
Goodwill and other intangible assets, net 6,674 6,802
Other assets 1,004 1,182
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Total assets $ 78,284 $ 88,878
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 2,987 $ 3,529
Deferred revenue 1,790 1,835
Accrued restructuring costs 5,534 7,433
Current portion of long-term liabilities 8 97
----------------------------------------------------------------------
Total current liabilities 10,319 12,894
Long-term liabilities, net of current portion 543 577
----------------------------------------------------------------------
Total liabilities 10,862 13,471
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 275,008 274,869
Accumulated other comprehensive income 323 637
Accumulated deficit (207,911) (200,101)
----------------------------------------------------------------------
Total stockholders' equity 67,422 75,407
----------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 78,284 $ 88,878
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $ 902 $ 386 $ 945 $ 1,394
Service and maintenance 697 2,096 1,794 4,423
----------------------------------------------------------------------
Total revenues 1,599 2,482 2,739 5,817
Cost of revenues:
Product 63 80 186 521
Service and maintenance 539 1,301 1,309 3,593
----------------------------------------------------------------------
Total cost of revenues 602 1,381 1,495 4,114
Gross Margin 997 1,101 1,244 1,703
Operating Expenses:
Sales and marketing 1,376 3,041 2,857 11,011
Research and development 1,624 2,262 3,584 6,295
General and administrative 935 2,129 1,677 4,416
Lease abandonment expense - - - 225
Restructuring related charges 401 - 768 13,920
Amortization of goodwill and
other intangibles 27 798 55 8,054
Impairment of goodwill and
other intangibles - - - 75,298
----------------------------------------------------------------------
Total operating expenses 4,363 8,230 8,941 119,219
----------------------------------------------------------------------
Loss from operations (3,366) (7,129) (7,697) (117,516)
Other income (expense):
Interest income 566 1,208 1,347 2,780
Interest expense (2) (22) (13) (51)
Other income (expense) (1,536) 109 (1,447) 159
----------------------------------------------------------------------
Total other income
(expense), net (972) 1,295 (113) 2,888
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Net loss $(4,338) $(5,834) $(7,810) $(114,628)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.16) $ (0.22) $ (0.29) $ (4.26)
Shares used in computing basic
and diluted net loss per share 27,257 26,986 27,200 26,892
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Supplemental Information of Pro Forma Results: Net loss and net loss
per basic and diluted share as reported excluding stock compensation
expense, restructuring related 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 $(4,338) $(5,834) $(7,810) $(114,628)
Adjusted for:
Stock Compensation expense (1) 11 62 26 158
Restructuring related charges 401 - 768 13,920
Amortization of goodwill and
other intangibles (2) 63 835 128 8,424
Impairment of goodwill and
other intangibles - - - 75,298
----------------------------------------------------------------------
Pro forma net loss $(3,863) $(4,937) $(6,888) $(16,828)
----------------------------------------------------------------------
Pro forma net loss per share:
Basic and diluted $ (0.14) $ (0.18) $ (0.25) $ (0.63)
Shares used in computing basic
and diluted net
loss per share 27,257 26,986 27,200 26,892
----------------------------------------------------------------------
(1) Amounts are included in the various line items within operating
expenses.
(2) Amounts are included in cost of revenues ($36, $37, $73 and $370,
respectively) and operating expenses ($27, $798, $55 and $8,054,
respectively).
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS(a)
(in thousands, except per share amounts)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $ 902 $ 386 $ 945 $ 1,394
Service and maintenance 697 2,096 1,794 4,423
----------------------------------------------------------------------
Total revenues 1,599 2,482 2,739 5,817
Cost of revenues:
Product 27 43 113 151
Service and maintenance 539 1,301 1,309 3,593
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Total cost of revenues 566 1,344 1,422 3,744
Gross Margin 1,033 1,138 1,317 2,073
Operating Expenses:
Sales and marketing 1,368 3,028 2,841 10,986
Research and development 1,624 2,222 3,581 6,186
General and administrative 932 2,120 1,670 4,392
Lease abandonment expense - - - 225
----------------------------------------------------------------------
Total operating expenses 3,924 7,370 8,092 21,789
----------------------------------------------------------------------
Loss from operations (2,891) (6,232) (6,775) (19,716)
Other income (expense):
Interest income 566 1,208 1,347 2,780
Interest expense (2) (22) (13) (51)
Other income (expense) (1,536) 109 (1,447) 159
----------------------------------------------------------------------
Total other income
(expense), net (972) 1,295 (113) 2,888
----------------------------------------------------------------------
Net loss $(3,863) $(4,937) $(6,888) $(16,828)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $ (0.14) $ (0.18) $ (0.25) $ (0.63)
Shares used in computing basic
and diluted net
loss per share 27,257 26,986 27,200 26,892
----------------------------------------------------------------------
(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.
Sharri Major, 952/842-5402
smajor@netperceptions.com
or
Net Perceptions, Inc.
Tom Donnelly, 952/842-5400
tdonnelly@netperceptions.com
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