MINNEAPOLIS--(BUSINESS WIRE)--July 24, 2003--Net Perceptions, Inc.
(Nasdaq:NETP) today reported revenue of $913 thousand for the quarter
ended June 30, 2003 and loss of $216 thousand, or ($0.01) per share.
Based on events during the quarter and recent operating history, the
Company recorded one-time accrual reversals benefiting results by
approximately $460 thousand. The adjustments, primarily related to
accrued but unpaid 2002 bonuses and reductions to certain customer
reserves, reduced expense in all operating categories and provided for
$126 thousand in other income. In the same period last year the
Company reported $1.6 million in revenue and a loss of $4.3 million,
or ($0.16) per share.
Commenting on the results, Don Peterson, President and CEO of Net
Perceptions said, "We closed three license transactions during the
quarter and experienced a moderate increase in overall customer
activity. At the same time we have continued to reduce our operating
expenses. However, Net Perceptions, together with its financial and
legal advisors, are working diligently to resolve the company's future
as soon as possible in the interests of all stockholders."
Net Perceptions completed the quarter with approximately $59.6
million in cash and short-term investments. The Company is not
providing revenue guidance for the third quarter of 2003 but
anticipates total operating expenses of approximately $1.4 million.
Conference Call
There will be a conference call to discuss Net Perceptions'
financial results for the quarter ended June 30, 2003 on Thursday July
24, 2003 beginning at 4:00 pm (CST). The call will be broadcast live
over the Internet at http://www.netperceptions.com under "Investor
Relations." The call will also be available for replay on Net
Perceptions' Web site under "Investor Relations - Audio Archives". The
press release is also available on the Net Perceptions Web site under
"News Releases."
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, Minnesota.
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)
----------------------------------------------------------------------
June 30, December 31,
2003 2002
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Assets
Current assets:
Cash and cash equivalents $44,462 $39,729
Short-term investments 15,146 23,230
Accounts receivable, net 394 389
Prepaid expenses and other current assets 1,088 627
----------------------------------------------------------------------
Total current assets 61,090 63,975
Property and equipment, net 252 1,096
Other assets 620 725
----------------------------------------------------------------------
Total assets $61,962 $65,796
----------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $576 $1,522
Deferred revenue 572 750
Accrued restructuring costs 4,843 4,672
----------------------------------------------------------------------
Total current liabilities 5,991 6,944
Deferred Rent 161 510
----------------------------------------------------------------------
Total liabilities 6,152 7,454
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 275,168 275,053
Accumulated other comprehensive income 90 122
Accumulated deficit (219,450) (216,835)
----------------------------------------------------------------------
Total stockholders' equity 55,810 58,342
----------------------------------------------------------------------
Total liabilities and stockholders'
equity $61,962 $65,796
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------------------------------------------------
2003 2002 2003 2002
----------------------------------------------------------------------
Revenues:
Product $343 $902 $481 $945
Service and maintenance 570 697 1,048 1,794
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Total revenues 913 1,599 1,529 2,739
Cost of revenues:
Product 8 63 8 186
Service and maintenance 255 539 471 1,309
----------------------------------------------------------------------
Total cost of revenues 263 602 479 1,495
Gross Margin 650 997 1,050 1,244
Operating Expenses:
Sales and marketing 481 1,376 1,187 2,857
Research and development 524 1,624 1,189 3,584
General and administrative 276 935 712 1,677
Restructuring related charges - 401 1,200 768
Amortization of intangibles - 27 - 55
----------------------------------------------------------------------
Total operating expenses 1,281 4,363 4,288 8,941
----------------------------------------------------------------------
Loss from operations (631) (3,366) (3,238) (7,697)
Other income (expense):
Interest income 279 566 495 1,347
Interest expense - (2) - (13)
Other income (expense) 136 (1,536) 128 (1,447)
----------------------------------------------------------------------
Total other income
(expense), net 415 (972) 623 (113)
----------------------------------------------------------------------
Net loss $(216) $(4,338) $(2,615) $(7,810)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.01) $(0.16) $(0.10) $(0.29)
Shares used in computing basic
and diluted net loss per share 27,429 27,257 27,389 27,200
----------------------------------------------------------------------
CONTACT: Net Perceptions, Inc., Minneapolis Tom Donnelly, 952-842-5400
tdonnelly@netperceptions.com
or
Terri Reden, 952-842-5067
treden@netperceptions.com
SOURCE: Net Perceptions, Inc.
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