INFO
Wednesday October 20, 5:01 pm Eastern Time
Company Press Release
SOURCE: Infonautics, Inc.
Infonautics, Inc. Reports Third Quarter Financial
Results; Company Generates Cash from Operations
WAYNE, Pa., Oct. 20 /PRNewswire/ -- Infonautics, Inc. (Nasdaq: INFO - news), a pioneering Internet information services
company, today reported financial results for the three and nine months ended September 30, 1999.
Infonautics generated $2.1 million of cash from operations during the third quarter, a seasonally strong quarter for cash
collections. ''Generating cash from operations for the first time in our company's history is an important milestone which
demonstrates that we have achieved the turnaround we sought,'' said Van Morris, president and chief executive officer of
Infonautics. ''This achievement comes as we are about to embark on an exciting strategic change for the company as a result of
our transaction with Bell & Howell announced earlier this year.''
Revenue for the quarter ended September 30, 1999, increased to $6.2 million, 49 percent greater than $4.1 million in the third
quarter of 1998. Revenue for the nine months ended September 30, 1999, was $17.4 million, 69 percent more than the $10.3
million during the same period last year. Revenue from Electric Library® increased 80 percent over the same quarter last year.
However, total revenue growth was offset by declines, primarily in knowledge management services, which the Company is no
longer pursuing.
Infonautics' third quarter loss from operations improved to $1.75 million, 59 percent lower than the $4.2 million reported in the
third quarter of last year. ''We continued to improve our operating fundamentals with our fifth consecutive quarter of lower net
loss and our eighth consecutive quarter of revenue growth,'' said Morris.
Infonautics' third quarter net loss was $2.0 million or $0.17 per share, compared with a net loss of $4.2 million or $0.44 per
share during the third quarter of 1998.
Operating costs were $6.2 million during the third quarter compared with $7.3 million in the third quarter of 1998.
Deferred revenue and backlog totaled a record $16.3 million on September 30, 1999, 36 percent higher than the $12.0 million
total on December 31, 1998.
New sales bookings were $6.9 million in this year's third quarter, an increase of 19 percent over last year's third quarter
performance. On a year-to-date basis, sales bookings were $21.6 million, up 40 percent over the first nine months of last year.
Sales bookings represent the value of firm, non-cancelable customer commitments that convert to revenue over the life of the
contract.
As of September 30, 1999, there were more than 315,000 Company Sleuth(TM) (http://www.companysleuth.com) registered
users, representing an increase of more than 45 percent over the second quarter of 1999. As of September 30, 1999,
Infonautics Sleuth services, consisting of Company Sleuth, Sports Sleuth(TM), Job Sleuth(TM) and Fantasy Sports
Sleuth(TM), had more than 350,000 registered users. At the same time, Electric Library (http://www.elibrary.com) was
licensed to more than 19,400 schools and libraries and had more than 83,000 paying individual subscribers. ''We are pleased
with the continued growth of the Company Sleuth user base and the initial customer reaction to Sports Sleuth
(http://www.sportssleuth.com),'' said Morris. ''We look forward to continuing to execute our Internet strategy of having the
best information on the Internet find the user.''
Commenting on the previously announced agreement to create a new company with Bell and Howell Company (NYSE: BHW
- news) Morris said, ''Upon completion of the deal, Infonautics will have capital to invest in our award-winning web properties
such as Company Sleuth, Sports Sleuth and the consumer version of Electric Library. Furthermore, we believe that Infonautics'
ownership interest in the new company can provide Infonautics with potentially significant value over time.''
Infonautics' Chairman, Lloyd Morrisett, and Van Morris have recently been named to the board of the new, yet-to-be-named
Internet education company. ''I am very pleased to report that Jack Lynch has been appointed chief executive officer of the
new company,'' said Morris. ''I will continue my role of integrating the contributed business units while Jack will spend time on
corporate strategy, acquisitions, and building out the K-12 portal. Over the last several months, I have gotten to know Jack,
and I am convinced he is the right person to lead the new company.''
The company will have a conference call Thursday, October 21, 1999, at 1:00 p.m. ET. The call will be available on the
Internet through V-call at vcall.com. To listen to the call, please go to the v-call web site at least fifteen minutes
early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a
replay will be available shortly after the call.
ABOUT INFONAUTICS
Infonautics, Inc. (Nasdaq: INFO - news) is a pioneering provider of Internet information services to schools, libraries,
consumers and businesses. The Infonautics Network of web properties includes the award-winning Company Sleuth, Electric
Library, Sports Sleuth, Job Sleuth, Fantasy Sports Sleuth, Encyclopedia.com and Researchpaper.com. Company Sleuth is the
Internet's leading source of free, legal, inside information about publicly traded companies and has recently been selected by
PC Magazine as one of the ''Top 100 Web Sites'' on the Internet. Electric Library was the first reference service of its type on
the Internet, and today is one of the fastest growing electronic reference products for schools and libraries, serving more than
19,400 institutions in all 50 states. Electric Library is also one of the largest paid subscription sites on the Web with more than
83,000 paying subscribers. The Company also provides e-commerce online archive services to major publishers and other
content creators. Infonautics was founded in November 1992, and is headquartered in Wayne, PA.
To view Infonautics financial charts, go to: infonautics.com - click on Financials, then click on
Business Trends
INFONAUTICS and ELECTRIC LIBRARY are registered trademarks of Infonautics, Inc. or its subsidiaries. COMPANY
SLEUTH, SPORTS SLEUTH, JOB SLEUTH, FANTASY SPORTS SLEUTH, ENCYCLOPEDIA.COM and
RESEARCHPAPER.COM are trademarks of Infonautics, Inc. or its subsidiaries. All other trademarks and service marks are
the properties of their respective owners.
This news release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties.
These forward-looking statements may include statements regarding, for example, the Company's ability to continue its financial
and operational performance, the Company's strategic plans with Bell & Howell Company and the value derived from this
relationship, and the development and success of the Company's various Infonautics Sleuth businesses and Electric Library
businesses. Such statements are based on management's current expectations and are subject to a number of uncertainties and
risks that could cause actual results to differ materially from those described in the forward-looking statements. More
information about potential factors which could affect the Company's financial results is included in the Risk Factors sections of
the Company's filings with the Securities and Exchange Commission. All forward-looking statements included in this document
are based on information available to the company as of the date of this document, and the company assumes no obligation to
update any such forward-looking statements.
INFONAUTICS, INC.
SUMMARY FINANCIAL DATA
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Statement of
Operations Data:
Total revenues $6,172,000 $4,148,000 $17,380,000 $10,313,000
Total costs
and expenses $7,922,000 $8,371,000 $23,601,000 $24,128,000
Loss from
operations $(1,750,000) $(4,223,000) $(6,221,000) $(13,815,000)
Net loss $(2,025,000) $(4,214,000) $(7,195,000) $(13,661,000)
Redemption of
preferred stock
in excess of
carrying amount $0 $0 $(75,000) $0
Net loss
applicable to
common
shareholders $(2,025,000) $(4,214,000) $(7,270,000) $(13,661,000)
Net loss per
common share -
basic and diluted $(0.17) $(0.44) $(0.62) $(1.42)
Weighted average
shares
outstanding -
basic and
diluted 11,692,400 9,640,900 11,682,800 9,589,700
September 30, December 31,
1999 1998
Balance Sheet Data:
Cash, cash equivalents and investments $2,463,000 $3,268,000
Working capital $(7,131,000) $(5,561,000)
Total assets $11,854,000 $10,192,000
Note payable, bank $ 471,000 $0
Total noncurrent liabilities $4,471,000 $577,000
Total shareholders' equity (deficit) $(9,197,000) $(3,298,000)
For further information, contact Bob Wright, 610-225-6356, or bwright@infonautics.com, or Freddi O'Brien, 610-293-6891,
or fobrien@infonautics.com, both of Infonautics.
SOURCE: Infonautics, Inc.
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