HEAR 1st Quarter Results. . . .175% Increase in Revenues.
I don't think this was posted here:
HEARME REPORTS FIRST QUARTER RESULTS;
STRONG PERFORMANCE LED BY TRACTION IN
TECHNOLOGY LICENSING, NEW PRODUCTS AND
INCREASED VOICE USAGE BUSINESS EDITORS
MOUNTAIN VIEW, Calif--April 17, 2000--HearMe
(Nasdaq: HEAR.O) today reported results for the first quarter ended
March 31, 2000.
Revenues increased to $5.9 million, a 175% increase over revenues
of $2.1 million reported for the first quarter of 1999. The pro forma
loss for the first quarter was $7.7 million or $.34 per diluted share,
excluding the effects of amortization of intangible assets and stock
compensation expense. This compares with a loss of $5.0 million or
$.32 per diluted share on a pro forma basis for the first quarter of
1999.
Including the amortization of intangible assets and stock
compensation expense, the Company had a net loss of $11.4 million for
the quarter, or $.50 per diluted share, compared to a net loss of $6.0
million, or a pro forma loss of $.38 per diluted share, in the same
quarter last year.
"Our strong revenue performance during the quarter was driven by a
significant increase in sales of our technology products for live
voice and real-time interactivity. Not only did we gain traction with
our newest products, but we also broadened our customer base,"
commented Paul Matteucci, Chief Executive Officer of HearMe.
"Additionally, our bottom line was significantly better than expected,
primarily a result of higher margins from increased technology
licensing revenues and a strong internal focus on progress towards
profitability. Continued strength in our consumer Web network
advertising revenues also contributed positively to the quarter's
results.
"Nearly a year after our initial public offering, HearMe is a much
stronger company. The quantitative milestones are only a part of the
story," added Matteucci. "Today we have over 200 employees dedicated
to delivering live voice solutions to an increasingly receptive and
rapidly growing marketplace. Our management team has been augmented
with very talented individuals from AudioTalk, and this week, we begin
our first national marketing campaign designed to solidify the
position of the HearMe brand as a leading voice-enabling technology on
the Internet."
At the beginning of the second quarter, the Company closed its
merger with AudioTalk, a leading provider of Internet voice and IP
telephony technologies to Web businesses. AudioTalk provides the
Company with standards-compliant voice solutions including,
phone-to-PC and PC-to-phone conference calling, voice mail, and
voice-enabled messages.
"Through this merger, HearMe is accelerating the availability and
marketing of new and improved live voice solutions designed for
business applications, including customer relationship management
(CRM), e-commerce, business conferencing and distance learning,"
explained Matteucci. "We believe this combination will accelerate our
growth, as it establishes critical mass for our business technology
solutions and broadens our customer base. We are integrating
AudioTalk, its technology and people more rapidly than we had
originally anticipated to take advantage of immediate opportunities,
and as previously announced, expect to begin seeing revenue benefits
in the second quarter."
HearMe continues to build momentum in positioning itself as a
leader in live-voice interaction on the Internet by offering one of
the most robust, easily integrated technology product line-up
available. During the first quarter, HearMe generated $2.9 million in
revenues from technology product licensing. New revenue from
technology products contributed to this growth. During the quarter, 15
customers signed up to build custom voice applications working with
the HearMe(TM) VoiceNETWORK(TM) product, and 5 customers licensed
VoiceSERVER(TM) to build their own voice infrastructure. Most
recently, HearMe formed its first partnership in the CRM sector.
The Company expanded its presence in international markets,
launching strategic new initiatives with customers across Asia and
Europe. In the first quarter, Asiacontent.com, a leading provider of
localized services across China and a wide variety of countries
through Asia, announced plans to integrate HearMe's real-time
technology and voice-enabled services. Similarly, 3rd Elevation, a new
venture funded by KPN (Royal Dutch Telecom), launched new
voice-enabled services across Europe, using the HearMe technology
platforms. To further take advantage of this opportunity, HearMe also
expanded its international sales presence with a new office in the
United Kingdom.
Throughout the first quarter, HearMe continued to build the market
for voice with strategic initiatives focused on increasing market
share and brand penetration. The Company launched partnerships with a
variety of leading consumer Web sites -- such as CBS Marketwatch.com,
ESPN.com, FortuneCity.com, and Homestead.com -- to increase the reach
of the HearMe VoiceCREATOR(TM) product. In total, more than 70,000 Web
sites had registered for and received the HearMe software by the end
of the first quarter.
"By the end of the first quarter, our voice services were
generating over 12 million user minutes of voice-enabled usage per
day," explained Matteucci. "We are encouraged and excited by the rapid
growth of live voice usage and the adoption of our technology by
millions of people. It not only validates our technology, but also
demonstrates the opportunity that exists for real-time voice
technologies."
HearMe also continued to experience strength in its consumer Web
network, including HearMe.com(TM) and Mplayer.com(R), with strong
sequential growth in member registrations, unique monthly visitors and
usage. By the end of the first quarter, registered members reached 7.9
million, up from 6.6 million at the end of the fourth quarter. Further
demonstrating this growth, data from Nielsen/NetRatings indicates that
during March 2000, HearMe Web sites hosted over 4.6 million unique
visitors from U.S. households, up from 3.8 million unique visitors
during December 1999.
About HearMe
HearMe is reshaping today's Internet applications into real-time
interactive experiences through which large groups of people can
connect and communicate, using voice as well as text and video. The
Company develops, operates and licenses technology that enables
real-time Internet communication and communities where people can
gather to share affinities, interests, or ideas. Communication tools
such as text chat applications and instant messengers are already
incorporating HearMe technology to enable real-time voice interaction
among multiple people.
HearMe technologies are enhancing a wide range of Internet
applications including e-commerce, live customer support,
business-to-business collaboration, distance learning, entertainment
and consumer communities. Companies working with HearMe technology and
services include MTV Online Networks, Macromedia, Asiacontent.com,
Prospero Technologies, theglobe.com, Talk City, StarMedia Network,
GTECH Corporation, LG InterNet and Sony Online Entertainment. Founded
in early 1995 as Mpath Interactive, Inc., HearMe is located in
Mountain View, Calif. The Company can be found on the Internet at
www.hearme.com or reached at 650/429-3900.
Except for the historical information contained herein, the
matters discussed in this news release are forward-looking statements
that involve risks and uncertainties that could cause actual results
to differ materially from those in such forward-looking statements.
Potential risks and uncertainties include, without limitation,
HearMe's dependence on its ability to significantly increase its user
base, user minutes, advertising revenue and revenue from HearMe
Technology Products customers; to launch new products, to maintain and
develop strategic relationships with media, Internet and technology
companies; to recruit engineering and technical staff, to successfully
integrate newly acquired companies and to compete effectively. These
and other risk factors are described in detail in the company's Annual
Report on form 10-K for the period ended December 31, 1999 and in
HearMe's other filings with the Securities and Exchange Commission.
Note to Editors: HearMe, HearMe.com, VoiceCREATOR, VoiceNETWORK,
and VoiceSERVER are trademarks and Mplayer.com is a registered
trademark of HearMe. All other product or service names mentioned
herein are trademarks of their respective owners.
(Tables Follow)
HearMe
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three months ended
------------------
March 31,
--------
2000 1999
---- ----
Revenues:
Live Communities $2,949 $1,120
Technology Products 2,911 1,008
------- -------
Total revenues 5,860 2,128
------- -------
Cost of revenues:
Live Communities 1,702 1,659
Technology Products 224 231
------- -------
Total cost of revenues 1,926 1,890
------- -------
Gross profit 3,934 238
Operating expenses:
Research and development 2,784 1,543
Sales and marketing 6,900 2,331
General and administrative 2,886 1,438
Goodwill and intangibles amortization 2,797
Stock based compensation 886 936
------- -------
Total operating expenses 16,253 6,248
------- -------
Loss from operations (12,319) (6,010)
Interest income, net 875 34
------- -------
Net loss ($11,444) ($5,976)
========= ========
Net loss per share, basic and diluted ($.50) ($1.89)
========= ========
Weighted average shares
outstanding, basic and diluted 23,109 3,169
========= ========
Pro forma net loss per
share, basic and diluted ($.50) ($.38)
========= ========
Number of shares used in pro forma net loss
calculations(1) 23,109 15,731
========= ========
(1) Pro forma share counts are computed using the weighted average
number of common shares outstanding, including the pro forma
c conversion of all of the Company's
outstanding preferred stock into common stock as of the beginning
of the period.
HearMe
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $2,420 $2,573
Short-term investments 57,629 66,756
Accounts receivable, net 6,738 6,713
Prepaid expenses and other 4,677 1,697
-------- --------
Total current assets 71,464 77,739
-------- --------
Property and equipment, net 5,206 4,500
Intangibles 3,578 4,153
Goodwill 15,256 17,708
Other assets 482 456
-------- --------
Total assets $95,986 $104,556
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $4,615 $3,194
Accrued payroll and related liabilities 3,220 2,941
Current portion of capital lease obligations 206 322
Deferred revenue 571 396
Notes payable 178 255
-------- --------
Total current liabilities 8,790 7,108
Convertible note payable -- --
Deferred tax liability 1,431 1,661
Capital lease obligations and
notes, net of current portion 7 19
-------- --------
Total liabilities 10,228 8,788
-------- --------
Redeemeable common stock 2,000 2,000
Stockholders' equity 83,758 93,768
-------- --------
Total liabilities and
stockholders' equity $95,986 $104,556
======== ======== |
