Lightspan, Inc. Reports Third-Quarter Financial Results
SAN DIEGO--(BUSINESS WIRE)--Nov. 15, 2000--Lightspan, Inc. (NASDAQ: LSPN), a provider of curriculum-based educational software and Internet products and services, today announced results for the third fiscal quarter ended October 31, 2000.
Revenues for the third quarter were $11.1 million. The net loss for the quarter totaled $15.3 million, or $0.34 per basic and diluted common share.
"Lightspan's business in both the K-12 and higher education markets continues to transition from primarily software sales to a mix of software and Internet revenue," said John Kernan, the Chairman and CEO of Lightspan, Inc. "The impact of this transition has resulted in an increase in revenues to be reported in future periods, strengthening our long range picture. Lightspan did experience some delays in new software orders this quarter. This was mainly due to delays in distribution of Federal Title I funding to schools. Additionally, our successful management of operating expenses has resulted in significant cost reductions over previous periods," concluded Kernan.
During the quarter, the company signed a $1.5 million K-3 reading development and Internet contract with the Allen Independent School District in the state of Texas. When completed, this product will provide a foundational platform for K-3 reading on the Internet. Based on market research, the company believes that K-3 reading on the Internet will be highly desirable in today's educational environment. In addition, the company signed a $1.1 million licensing agreement, comprised of both The Lightspan Network(R) and Lightspan Achieve Now (TM), with Granite School District in the state of Utah.
Lightspan Achieve Now K-8 curriculum products, which have been shown to increase overall student performance, are now being used in 3,037 schools, an increase of 34% compared to October 1999. Academic Systems' higher education curriculum products are now being used on 287 college campuses, an increase of 27% compared to last year at this time. Schools subscribing to The Lightspan Network and eduTest.com total 2,690, an increase of 161% compared to the October 31, 1999 installed base.
Total Internet revenues for the quarter were $2.4 million, an increase of 488% compared to $0.4 million for the same period last year, and were comprised of $1.6 million from Lightspan's K-12 offerings and $0.8 million from Academic Systems' higher education Internet-based products.
Business Outlook
The following statements are based on current projections. These statements are forward-looking, and actual results may dibfer materially.
-- Current year revenues are expected to be approximately $98 million
including $48 million of deferred license revenue from prior
years. Software license and service revenues are expected to be
approximately $36 million, hardware revenue approximately $5
million, and Internet revenue approximately $9 million.
-- The loss for the current year is expected to be approximately
1.62 per basic and diluted common share based on approximately
44.0 million weighted average common shares outstanding during the
year.
-- The company expects growth in revenue for next fiscal year to be
approximately 20% to 25% when compared to current fiscal year
revenues, excluding $48 million of deferred revenue recognized in
the current year. Internet revenues will continue to represent a
larger portion of total revenues reaching approximately 25%.
-- Losses for next fiscal year are expected to be reduced to
approximately $1.33 per basic and diluted common share based on
approximately 46.2 million weighted average common shares
outstanding.
-- Effective February 1, 2001, Greg Gardner will be promoted to
President of Academic Systems, Inc., Lightspan's higher education
division. Mr. Gardner, the current Vice-President of sales and
support, has been with Academic Systems for three years during
which time he has played a key role in the growth and success of
the Company. John Brandon, the current President of Academic
Systems, Inc., will be leaving the company and his board position
to pursue other interests. |
