MessageMedia Inc. Reports 498% Increase in Revenue Over Second Quarter 1998 and 73% Increase Over First Quarter 1999
Growth Fueled by Company's Success in Burgeoning E-Messaging Services Market
BOULDER, Colo.--(BUSINESS WIRE)--July 29, 1999-- MessageMedia Inc. (Nasdaq: MESG), a leading provider of e-mail-based customer relationship management and direct marketing services, today announced revenue of $1,302,117 for the quarter ended June 30, 1999. This represents an increase of 498% over revenue of $217,625 for the same quarter of last year, and a 73% increase over the prior quarter of 1999.
Net loss for the second quarter of 1999 was $6,152,171, or net loss per share of $0.14, based on weighted average shares outstanding of 43,971,636. These results compare to a net loss of $4,026,534 for the second quarter of 1998, or net loss per share of $0.32 based on weighted average shares outstanding of 12,763,183. The increase in the net loss was primarily attributable to the amortization of goodwill from prior acquisitions, which is a non-cash affecting item. Total operating expenses in the second quarter of 1999 were $3,861,051, compared to $3,695,477 in the second quarter of 1998. This controlled increase in operating expenses is directly correlated to revenue growth and the Company's increasing customer base. As of June 30, 1999, the Company had 44,277,201 shares outstanding.
MessageMedia attributed strong results to the continued growth of its Internet-based e-mail messaging business both in enhanced revenue and a broadening client base. New client contracts in the quarter include Yahoo!, CMP Media, Reader's Digest and GeoCities, among others. MessageMedia will provide Yahoo!, a global Internet company, with complete management of Yahoo!'s personalized permission-based direct marketing programs. CMP Media, a leading provider of high-tech media and information services, named MessageMedia a preferred messaging vendor for its e-mail messaging activities. Reader's Digest, a global publisher and marketer, has selected MessageMedia to provide services for its e-mail communications with customers and potential customers and its e-commerce database marketing. In addition, MessageMedia has been selected by GeoCities, one of the fastest growing communities of personal Web sites on the Internet, to deliver periodic messages, newsletters and other advisories.
''Our revenue growth and increasing roster of blue-chip clients is indicative of our value proposition to partner with companies in building their relationships online,'' said Larry Jones, president and chief executive officer of MessageMedia. During the second quarter we accomplished several strategic initiatives that brought us one step closer to becoming the one-stop-shop provider for e-mail services.''
During the second quarter the Company announced letters of intent to acquire Revnet Systems, Inc. and Decisive Technology, which were converted to definitive agreements in July. The Company also signed new strategic customers and partners, solidified an outstanding management team, and was included in the Russell 2000 and Russell 3000 Indices.
The move to acquire Revnet Systems Inc. will expand MessageMedia's product line with e-messaging software solutions. Decisive Technology enhances MessageMedia's offerings with services that continuously monitor and analyze customers' perceptions to improve business performance and build customer loyalty. Revnet Systems and Decisive Technology bring an impressive roster of blue chip clients, including EDS, Universal Studios, and the Wall Street Journal with Revnet, and America Online, Microsoft and Apple with Decisive.
In addition, MessageMedia has developed partnerships with VStream, for the inclusion of streaming voice communications to MessageMedia's robust suite of messaging services and with Peppers and Rogers Group, which will cooperate in a wide range of initiatives aimed at assisting companies with adoption of permission-based, one-to-one e-mail-marketing.
About MessageMedia Inc.
MessageMedia (Nasdaq: MESG - news) is a leading provider of e-mail-based customer relationship management and direct marketing services. The Company offers a comprehensive suite of outsource messaging services for information delivery, e-commerce services, permission-based direct marketing and ongoing customer communications using industry standard Internet protocols. MessageMedia's customer portfolio includes clients from the financial services, publishing, direct marketing, retailing and electronic commerce industries. Clients include E*TRADE, Reader's Digest, GeoCities, Intuit, CMP Media, Yahoo!, Barclays Bank and Bertelsmann.
SOFTBANK and its affiliates own approximately 49% of the outstanding common stock of MessageMedia Inc. Pequot Capital Management, a Connecticut-based research-intensive investment firm with more than $5 billion in assets under management, is also a major investor in MessageMedia.
''Safe Harbor'' Statement Under the Private Securities Litigation Reform Act: With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties. These risk factors include, but are not limited to, the integration of a new senior management team, MessageMedia's limited operating history, the integration of recent acquisitions, risks associated with pending and future acquisitions, the anticipated fluctuations in operating results, the uncertain acceptance of new services being offered, and undeveloped and rapidly changing market and other factors detailed in MessageMedia's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1998 and its most recent Quarterly Report on Form 10-Q. All companies and product names are trademarks of their respective owners. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. MessageMedia undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MessageMedia Inc.
6060 Spine Road, Boulder, Colo. 80301
Phone: (303) 440-7550; Fax: (303) 440-0303; messagemedia.com
financial statements follow #reply-10714307
|
