| MINNEAPOLIS, Feb 3, 2003 (BUSINESS WIRE) -- Net Perceptions, Inc. (Nasdaq:NETP)
today reported revenue of $893 thousand for the quarter ended December 31, 2002
and a pro forma loss of $1.7 million, or ($0.06) per share. In the same period
last year the Company reported $2.5 million in revenue and a pro forma loss of
$2.3 million, or ($0.08) per share. For the year ended December 31, 2002, the
company reported revenue of $5.2 million and a pro forma loss of $9.1 million,
or ($0.34) per share. In the same period last year the Company reported $10.5
million in revenue and a pro forma loss of $22.6 million, or ($0.84) per share.
The Company reported a GAAP fourth quarter loss of $8.3 million, or ($0.30) per
share, compared with a GAAP loss of $3.0 million, or ($0.11) per share in the
same period last year. For the year ended December 31, 2002, the Company
reported a GAAP loss of $16.7 million, or ($0.61) per share, compared with a
GAAP loss of $123.8 million, or ($4.59) per share in the same period last year.
Included in GAAP results for the period ended December 31, 2002 was a one-time
non-cash charge of $6.5 million reflecting a full impairment of goodwill and
other intangibles value. The charge was based on an impairment test of the
Company's February 2000 acquisition of Knowledge Discovery One, Inc. Pro forma
information excludes restructuring related activity, amortization and impairment
of goodwill and other intangibles and stock compensation expense for all periods
discussed.
Commenting on the results, Don Peterson, President and CEO of Net Perceptions
said, "Our license revenue results in the fourth quarter reflect the continued
difficult selling environment we have seen throughout 2002. Our prospects remain
very cautious about new capital spending influenced by continued economic and
political uncertainty. It is unclear when the market will rebound so we have
taken additional steps to reduce our expenses, including the closing of three
satellite offices and reducing headcount."
Net Perceptions completed the year with approximately $63.0 million in cash and
short-term investments and expects to use approximately $1.8 million in the
first quarter of 2003, including cash used for restructuring activities. The
Company is not providing revenue guidance for the first quarter of 2003 but
anticipates total pro forma operating expenses of approximately $1.9 million.
The Company also anticipates recording a $1.2 million restructuring charge
during the first quarter of 2003 related primarily to the closure of operations
in three satellite offices, of which $360 thousand is anticipated to be a
non-cash charge.
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)
----------------------------------------------------------------------
December 31, December 31,
2002 2001
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $39,729 $14,929
Short-term investments 23,230 58,676
Accounts receivable, net 389 1,309
Prepaid expenses and other current
assets 627 2,301
----------------------------------------------------------------------
Total current assets 63,975 77,215
Property and equipment, net 1,096 3,679
Goodwill and other intangible assets, net - 6,802
Other assets 725 1,182
----------------------------------------------------------------------
Total assets $65,796 $88,878
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $1,905 $3,529
Deferred revenue 750 1,835
Accrued restructuring costs 4,289 7,433
Current portion of long-term liabilities - 97
----------------------------------------------------------------------
Total current liabilities 6,944 12,894
Deferred Rent 510 577
----------------------------------------------------------------------
Total liabilities 7,454 13,471
----------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity:
Common stock 2 2
Additional paid-in capital 275,053 274,869
Accumulated other comprehensive income 122 637
Accumulated deficit (216,835) (200,101)
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Total stockholders' equity 58,342 75,407
----------------------------------------------------------------------
Total liabilities and
stockholders' equity $65,796 $88,878
----------------------------------------------------------------------
NET PERCEPTIONS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
Revenues:
Product $145 $911 $1,703 $2,979
Service and maintenance 748 1,587 3,541 7,535
----------------------------------------------------------------------
Total revenues 893 2,498 5,244 10,514
Cost of revenues:
Product 38 264 292 943
Service and maintenance 319 795 2,101 5,143
----------------------------------------------------------------------
Total cost of
revenues 357 1,059 2,393 6,086
Gross Margin 536 1,439 2,851 4,428
Operating Expenses:
Sales and marketing 940 1,750 4,550 15,215
Research and development 1,136 2,156 5,933 10,572
General and administrative 628 768 2,819 6,198
Lease abandonment expense - - - 225
Restructuring related
charges - (140) 768 15,551
Amortization of intangibles 27 798 110 9,650
Impairment of goodwill and
other intangibles 6,546 - 6,546 75,298
----------------------------------------------------------------------
Total operating
expenses 9,277 5,332 20,726 132,709
----------------------------------------------------------------------
Loss from operations (8,741) (3,893) (17,875) (128,281)
Other income (expense):
Interest income 267 843 2,108 4,494
Interest expense (6) (26) (24) (88)
Other income (expense) 182 64 (943) 77
----------------------------------------------------------------------
Total other income
(expense), net 443 881 1,141 4,483
----------------------------------------------------------------------
Net loss $(8,298) $(3,012) $(16,734)$(123,798)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.30) $(0.11) $(0.61) $(4.59)
Shares used in computing basic
and diluted net
loss per share 27,320 27,087 27,216 26,951
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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 $(8,298) $(3,012) $(16,734)$(123,798)
Adjusted for:
Stock Compensation expense
(1) 7 33 42 244
Restructuring related
charges - (140) 768 15,551
Amortization of goodwill
and other intangibles (2) 64 834 257 10,093
Impairment of goodwill and
other intangibles 6,546 - 6,546 75,298
----------------------------------------------------------------------
Pro forma net loss $(1,681) $(2,285) $(9,121) $(22,612)
----------------------------------------------------------------------
Pro forma net loss per share:
Basic and diluted $(0.06) $(0.08) $(0.34) $(0.84)
Shares used in computing basic
and diluted net loss per share 27,320 27,087 27,216 26,951
----------------------------------------------------------------------
(1) Amounts are included in the various line items within operating
expenses.
(2) Amounts are included in cost of revenues ($37, $36, $147 and $443,
respectively) and operating expenses ($27, $798, $110 and $9,650,
respectively).
NET PERCEPTIONS, INC.
PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (a)
(in thousands, except per share amounts)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------------------------------------------------
2002 2001 2002 2001
----------------------------------------------------------------------
Revenues:
Product $145 $911 $1,703 $2,979
Service and maintenance 748 1,587 3,541 7,535
----------------------------------------------------------------------
Total revenues 893 2,498 5,244 10,514
Cost of revenues:
Product 1 228 145 500
Service and maintenance 319 795 2,101 5,143
----------------------------------------------------------------------
Total cost of
revenues 320 1,023 2,246 5,643
Gross Margin 573 1,475 2,998 4,871
Operating Expenses:
Sales and marketing 939 1,743 4,526 15,175
Research and development 1,131 2,135 5,926 10,405
General and administrative 627 763 2,809 6,161
Lease abandonment expense - - - 225
----------------------------------------------------------------------
Total operating
expenses 2,697 4,641 13,260 31,966
----------------------------------------------------------------------
Loss from operations (2,124) (3,166) (10,262) (27,095)
Other income (expense):
Interest income 267 843 2,108 4,494
Interest expense (6) (26) (24) (88)
Other income (expense) 182 64 (943) 77
----------------------------------------------------------------------
Total other income
(expense), net 443 881 1,141 4,483
----------------------------------------------------------------------
Net loss $(1,681) $(2,285) $(9,121)$(22,612)
----------------------------------------------------------------------
Net loss per share:
Basic and diluted $(0.06) $(0.08) $(0.34) $(0.84)
Shares used in computing basic
and diluted loss per share 27,320 27,087 27,216 26,951
----------------------------------------------------------------------
(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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