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MINNEAPOLIS, Oct 23, 2002 (BUSINESS WIRE) -- Net Perceptions, Inc.
(Nasdaq:NETP) today reported revenue of $1.6 million for the quarter ended
September 30, 2002 and a pro forma loss of $552,000, or ($0.02) per share. In
the same period last year the Company reported $2.2 million in revenue and a pro
forma loss of $3.5 million, or ($0.13) per share. The Company reported a GAAP
third quarter loss of $626,000, or ($0.02) per share, compared with a GAAP loss
of $6.2 million, or ($0.23) 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.
"We are very pleased with the progress of our cost control measures. We've been
able to remain very focused on that process without sacrificing efforts in
product development and sales," said Don Peterson, Net Perceptions president and
CEO. "NetP 7 continues to be well-received by customers and prospects, and we've
proven that it drives hard ROI with a low-risk, rapid implementation. Our focus
now is on continuing to enhance NetP 7 with more features that our customers
need, and on shortening the sales cycle - to close more deals faster."
Outlook
The Company is not providing financial guidance for the fourth quarter of 2002
due to uncertain revenue predictability in the current spending environment. The
Company expects total pro forma operating expenses for the fourth quarter of
approximately $2.5 million. Net Perceptions completed the third quarter with
$64.6 million in cash and short-term investments. The Company believes that its
cash use for the remaining three months of 2002 will not exceed $2.0 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, Great Universal Stores, J.C. 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)
----------------------------------------------------------------------
Sept. 30, Dec. 31,
2002 2001
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(Unaudited)
Assets
Current assets:
Cash and cash equivalents $35,140 $14,929
Short-term investments 29,507 58,676
Accounts receivable, net 564 1,309
Prepaid expenses and other current assets 1,517 2,301
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Total current assets 66,728 77,215
Property and equipment, net 1,474 3,679
Goodwill and other intangible assets, net 6,610 6,802
Other assets 811 1,182
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Total assets $75,623 $88,878
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $2,367 $3,529
Deferred revenue 1,254 1,835
Accrued restructuring costs 4,880 7,433
Current portion of long-term liabilities 0 97
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Total current liabilities 8,501 12,894
Long-term liabilities, net of current portion 526 577
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Total liabilities 9,027 13,471
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Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 275,017 274,869
Accumulated other comprehensive income 114 637
Accumulated deficit (208,537) (200,101)
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Total stockholders' equity 66,596 75,407
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Total liabilities and stockholders' equity $75,623 $88,878
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NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
----------------------------------------------------------------------
3 Months Ended 9 Months Ended
September 30, September 30,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $613 $674 $1,558 $2,068
Service and maintenance 999 1,525 2,793 5,948
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Total revenues 1,612 2,199 4,351 8,016
Cost of revenues:
Product 68 158 254 679
Service and maintenance 473 755 1,782 4,348
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Total cost of revenues 541 913 2,036 5,027
Gross Margin 1,071 1,286 2,315 2,989
Operating Expenses:
Sales and marketing 753 2,454 3,610 13,465
Research and development 1,213 2,121 4,797 8,416
General and administrative 514 1,014 2,191 5,430
Lease abandonment expense - - - 225
Restructuring related charges - 1,771 768 15,691
Amortization of intangibles 28 798 83 8,852
Impairment of goodwill and
other intangibles - - - 75,298
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Total operating expenses 2,508 8,158 11,449 127,377
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Loss from operations (1,437) (6,872) (9,134) (124,388)
Other income (expense):
Interest income 494 871 1,841 3,651
Interest expense (4) (11) (17) (62)
Other income (expense) 321 (146) (1,126) 13
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Total other income
(expense), net 811 714 698 3,602
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Net loss $(626) $(6,158) $(8,436) $(120,786)
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Net loss per share:
Basic and diluted $(0.02) $(0.23) $(0.31) $(4.49)
Shares used in computing basic
and diluted net loss per share 27,298 27,037 27,211 26,917
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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 $(626) $(6,158) $(8,436) $(120,786)
Adjusted for:
Stock Compensation expense (1) 9 53 35 211
Restructuring related charges - 1,771 768 15,691
Amortization of goodwill and
other intangibles (2) 65 835 193 9,259
Impairment of goodwill and
other intangibles - - - 75,298
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Pro forma net loss $(552) $(3,499) $(7,440) $(20,327)
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Pro forma net loss per share:
Basic and diluted $(0.02) $(0.13) $(0.27) $(0.76)
Shares used in computing basic
and diluted net loss per share 27,298 27,037 27,211 26,917
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(1) Amounts are included in the various line items within
operating expenses.
(2) Amounts are included in cost of revenues ($37, $37, $110 and
$407, respectively) and operating expenses ($28, $798, $83 and
$8,852, respectively).
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except per share amounts)
----------------------------------------------------------------------
3 Months Ended 9 Months Ended
September 30, September 30,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $613 $674 $1,558 $2,068
Service and maintenance 999 1,525 2,793 5,948
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Total revenues 1,612 2,199 4,351 8,016
Cost of revenues:
Product 31 121 144 272
Service and maintenance 473 755 1,782 4,348
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Total cost of revenues 504 876 1,926 4,620
Gross Margin 1,108 1,323 2,425 3,396
Operating Expenses:
Sales and marketing 746 2,446 3,587 13,432
Research and development 1,213 2,084 4,794 8,270
General and administrative 512 1,006 2,182 5,398
Lease abandonment expense - - - 225
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Total operating expenses 2,471 5,536 10,563 27,325
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Loss from operations (1,363) (4,213) (8,138) (23,929)
Other income (expense):
Interest income 494 871 1,841 3,651
Interest expense (4) (11) (17) (62)
Other income (expense) 321 (146) (1,126) 13
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Total other income
(expense), net 811 714 698 3,602
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Net loss $(552) $(3,499) $(7,440) $(20,327)
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Net loss per share:
Basic and diluted $(0.02) $(0.13) $(0.27) $(0.76)
Shares used in computing basic and
diluted loss per share 27,298 27,037 27,211 26,917
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(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
Tom Donnelly, 952/842-5400
tdonnelly@netperceptions.com
or
Terri Reden, 952/842-5067
treden@netperceptions.com
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