| MINNEAPOLIS, Feb 5, 2002 (BUSINESS WIRE) -- Net Perceptions, Inc. (Nasdaq:NETP)
today reported revenue of $2.3 million for the quarter ended December 31, 2001
and a pro forma loss of $2.3 million, or ($0.08) per share. In the same period
last year the company reported $7.0 million in revenue and a pro forma loss of
$10.4 million, or ($0.39) per share. The company reported an actual fourth
quarter loss of $3.0 million, or ($0.11) per share, compared with an actual loss
of $18.5 million, or ($0.69) per share in the same period last year.
For the year ended December 31, 2001, the company reported $10.2 million in
revenue and a pro forma loss of $22.6 million, or ($0.84) per share, compared
with $36.6 million in revenue and a pro forma loss of $25.9 million, or ($1.03)
per share for the year ended December 31, 2000. The company reported an actual
full year loss of $123.8 million, or ($4.59) per share, compared with an actual
loss of $53.4 million, or ($2.12) per share in the previous year.
Pro forma information excludes restructuring activity, amortization and
impairment of goodwill and other intangibles and stock compensation expense for
all periods discussed.
"I'm pleased with our progress in the fourth quarter," said Don Peterson, Net
Perceptions president and CEO. "We added several new customers, substantiated
our ROI in controlled customer tests, expanded our reach beyond the retail
sector and improved our 2002 pipeline. We also strengthened our leadership team
and made significant progress in refining our strategy - all while maintaining
our commitment to balance our business model."
Outlook
Net Perceptions anticipates revenues for the first quarter of 2002 of $1.8
million to $2.8 million and a pro forma net loss per share of ($.08) to ($.11)
cents per share. In addition, the company expects to record a restructuring
charge during the first quarter of approximately $400,000 related to severance
payments for terminated employees.
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, Palm and Smith & Hawken. 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)
======================================================================
December 31, December 31,
2001 2000
----------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 14,929 $ 16,396
Short-term investments 58,676 52,484
Accounts receivable, net 1,309 6,339
Royalties receivable - 671
Prepaid expenses and other current assets 2,301 1,839
----------------------------------------------------------------------
Total current assets 77,215 77,729
Marketable securities - 27,356
Property and equipment, net 3,679 12,760
Goodwill & other intangible assets, net 6,802 92,194
Other assets 1,182 1,795
----------------------------------------------------------------------
Total assets $ 88,878 $ 211,834
----------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 3,529 $ 7,040
Deferred revenue 1,835 3,743
Accrued restructuring costs 7,433 -
Current portion of long-term liabilities 97 582
----------------------------------------------------------------------
Total current liabilities 12,894 11,365
Long-term liabilities, net of current portion 577 1,951
----------------------------------------------------------------------
Total liabilities 13,471 13,316
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 274,869 274,458
Accumulated other comprehensive income 637 361
Accumulated deficit (200,101) (76,303)
----------------------------------------------------------------------
Total stockholders' equity 75,407 198,518
----------------------------------------------------------------------
Total liabilities and stockholders' equity $ 88,878 $ 211,834
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
======================================================================
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
2001 2000 2001 2000
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $911 $3,631 $2,979 $25,087
Service and maintenance 1,431 3,338 7,184 11,501
----------------------------------------------------------------------
Total revenues 2,342 6,969 10,163 36,588
Cost of revenues:
Product 264 454 943 1,807
Service and maintenance 639 3,139 4,792 10,691
----------------------------------------------------------------------
Total cost of revenues 903 3,593 5,735 12,498
Gross margin 1,439 3,376 4,428 24,090
Operating expenses:
Sales and marketing 1,750 6,852 15,215 25,589
Research and development 2,156 5,125 10,572 19,354
General and administrative 768 3,446 6,198 11,146
Lease abandonment expense - 450 225 1,250
Restructuring charges (140) - 15,551 -
Amortization of goodwill and
other intangibles 798 7,255 9,650 25,394
Impairment of goodwill and
other intangibles - - 75,298 -
----------------------------------------------------------------------
Total operating expenses 5,332 23,128 132,709 82,733
----------------------------------------------------------------------
Loss from operations (3,893) (19,752) (128,281) (58,643)
Other income, net 881 1,285 4,483 5,096
----------------------------------------------------------------------
Net loss $(3,012)$(18,467)$(123,798) $(53,547)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.11) $(0.69) $(4.59) $(2.12)
Shares used in computing basic
and diluted net loss per share 27,087 26,649 26,951 25,209
----------------------------------------------------------------------
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 $(3,012)$(18,467)$(123,798) $(53,547)
Adjusted for:
Stock compensation expense (1) 33 487 244 1,052
Restructuring charges (140) - 15,551 -
Amortization of goodwill and
other intangibles (2) 834 7,590 10,093 26,561
Impairment of goodwill and other
intangibles - - 75,298 -
----------------------------------------------------------------------
Pro forma net loss $(2,285)$(10,390) $(22,612) $(25,934)
----------------------------------------------------------------------
Pro forma net loss per share:
Basic and diluted $(0.08) $(0.39) $(0.84) $(1.03)
Shares used in computing basic
and diluted net loss per share 27,087 26,649 26,951 25,209
----------------------------------------------------------------------
(1) Amounts are included in the various line items within operating
expenses.
(2) Amounts are included in cost of revenues ($36, $335, $443 and
$1,167, respectively) and operating expenses ($798, $7,255, $9,650 and
$25,394, respectively).
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except per share amounts)
======================================================================
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
2001 2000 2001 2000
----------------------------------------------------------------------
(Unaudited) (Unaudited)
Revenues:
Product $911 $3,631 $2,979 $25,087
Service and maintenance 1,431 3,338 7,184 11,501
----------------------------------------------------------------------
Total revenues 2,342 6,969 10,163 36,588
Cost of revenues:
Product 228 119 500 640
Service and maintenance 639 3,139 4,792 10,691
----------------------------------------------------------------------
Total cost of revenues 867 3,258 5,292 11,331
Gross margin 1,475 3,711 4,871 25,257
Operating expenses:
Sales and marketing 1,743 6,583 15,175 25,073
Research and development 2,135 4,921 10,405 18,895
General and administrative 763 3,432 6,161 11,069
Lease abandonment expense - 450 225 1,250
----------------------------------------------------------------------
Total operating expenses 4,641 15,386 31,966 56,287
----------------------------------------------------------------------
Loss from operations (3,166) (11,675) (27,095) (31,030)
Other income, net 881 1,285 4,483 5,096
----------------------------------------------------------------------
Net loss $(2,285) $(10,390) $(22,612) $(25,934)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.08) $(0.39) $(0.84) $(1.03)
Shares used in computing basic
and diluted net loss per share 27,087 26,649 26,951 25,209
----------------------------------------------------------------------
(a) See Condensed Statements of Operations (previous page) for
reconciliation of pro form results to results in accordance with
generally accepted accounting principles.
CONTACT: Net Perceptions, Inc., Minneapolis
Kelly Evavold, 952/842-5455
kevavold@netperceptions.com
or
Tom Donnelly, 952/842-5400
tdonnelly@netperceptions.com
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