NewsEdge Corporation Announces Second Quarter 1999 Results, Launches Internet Company, Completes New Management Team
BURLINGTON, Mass., July 15 /PRNewswire/ -- NewsEdge Corporation
(Nasdaq: NEWZ) today announced financial results for the second quarter of
1999. Revenue from Enterprise and NewsPage customers was $19.2 million for
the second quarter of 1999, an increase of 7% compared to the second quarter
in 1998. Total revenue for the three months ended June 30, 1999, including
the Company's Other revenue consisting of business lines that are being
terminated or harvested, was $19.6 million, an increase of 2% over total
revenue in the second quarter of 1998. The Company's net loss for the quarter
ended June 30, 1999 was $2.6 million, or a loss of $0.15 per share, compared
to a net loss of $1.5 million, or a loss of $0.09 per share, during the second
quarter of 1998.
For the first six months of 1999, revenue from Enterprise and NewsPage
customers was $37.9 million, an increase of 7% over the $35.4 million for the
same six-month period in 1998. Total revenues for the first six months of
1999 and 1998 were $39.0 million. The Company's net loss for the first six
months of 1999 was $5.8 million, or a loss of $0.33 per share, compared to a
net loss of $15.4 million, or a loss of $0.90 per share, including merger,
disposition and other charges of $11.1 million, during the six months ended
June 30, 1998.
"We have accomplished a great deal in the last 90 days and we have set the
stage for our future," said Don McLagan, Chairman and CEO of NewsEdge
Corporation and Chairman of NewsPage.com, Inc.
NewsEdge Corporation second quarter highlights included:
-- Completing the formation of a new management team with the appointments
of Cliff Pollan as NewsEdge Corporation President and COO, Ilene Lang
as NewsPage.com, Inc. President and CEO and Ron Benanto as NewsEdge
Corporation Vice President and CFO.
-- Segmenting the business between the premium service and solutions
oriented NewsEdge Enterprise business and the totally free, ad and e-
commerce supported NewsPage.com business.
-- Announcing the launch of its wholly owned subsidiary, NewsPage.com,
Inc.
-- Announcing new Enterprise relationships with Microsoft and KPMG.
-- Growing the total number of paid, registered or authorized users across
both business units to approximately 1.6 million readers, a 40%
increase over the level a year ago.
-- Levering the industry leading strength of the NewsEdge Refinery(TM) to
launch new services such as NewsEdge Insight and the new, totally free
NewsPage.com.
"The services of both NewsEdge Corporation and NewsPage.com, Inc. focus
their distinctive capabilities on the business Internet market," noted
McLagan. "With these moves, we believe that we are uniquely able to serve the
needs of business Internet users who want a competitive edge from global news
and current awareness -- whether they make their own Internet decisions as
single workers or whether their enterprises provide Intranet solutions for
them."
Business segment results
"We made substantial progress towards our Enterprise goal of profitability
by cutting our first quarter loss nearly in half," said Cliff Pollan, NewsEdge
Corporation President and COO. "We are working hard to grow profitably and to
gain share in the enterprise segment of the business Internet market."
"Today NewsPage.com is the only service on the Web that delivers a totally
personalized news experience tailored to the unique needs and interests of the
individual business person," said Ilene Lang, President and CEO of
NewsPage.com, Inc. "Launching NewsPage.com as a separate subsidiary allows us
to better address the needs of our users and the realities of running a
'dot.com' business." |
