Prime Response Announces Record Revenue for First Quarter 2000; Revenues Increase Nearly 100% On Growing North American Sales
CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 25, 2000--Prime Response, Inc. (NASDAQ, EASDAQ: PRME), a leading eMarketing visionary in the eCRM arena, today announced financial results for the first quarter ended March 31, 2000.
Total revenues nearly doubled to a record $7.5 million for first quarter 2000, compared with revenue of $3.8 million for the first quarter ended March 31, 1999. The net loss before preferred stock dividends and participation payments was $5.1 million, or ($0.43) per share, compared with a net loss of $3.8 million, or ($0.54) per share, in the same period of 1999. Excluding non-cash charges for stock based compensation and non-cash sales and marketing expense, the net loss for the quarter was $4.4 million, or ($0.37) per share, compared with a net loss of $3.8 million, or ($0.54) per share, in the comparable 1999 period. Including the non-cash expenses identified above, the participation payments paid upon conversion of preferred stock at our recent IPO, and preferred dividends, the net loss for first quarter 2000 was $46.3 million, or ($3.96) per share, compared with a net loss of $4.4 million, or ($0.64) per share, in first quarter 1999.
"We are very pleased to report an outstanding quarter where we surpassed revenue growth expectations," said Peter J. Boni, Chief Executive Officer and President of Prime Response. "We successfully executed our market penetration strategy by significantly increasing sales in our target vertical markets, combining both our direct selling efforts with new and expanded partnerships, alliances, and distribution channels.
Boni continued, "This strong activity contributed to an overall customer base that now exceeds 70 clients worldwide. It was particularly evident in North America, where we increased our customer base by 50% from the previous quarter, growing from 14 to 21 customers. These clients now represent 37% of our total revenue, which increased from 19% in the previous quarter. Just as significantly, we recorded more software license revenue in North America in the first quarter alone than for all of 1999, while still increasing international software license revenue 142% over last year's comparable period."
Boni concluded, " With the premier product that offers an integrated approach to marketing automation in both the new Internet and traditional `brick and mortar' channels, Prime Response is rapidly increasing its customer base."
New customers in the first quarter 2000 included such major domestic and international companies as Warner Music, 1-800-Flowers.com, DLJdirect, CIBC, E-Plus, Max Mobile, Advanced Bank Popular and Advanced Info Services Public Company, Ltd. (AIS). New partnerships during the quarter included MarketSoft, Cap Gemini, and Tata Consultancy Services.
Current Prime Response clients include major consumer-oriented companies in the financial services, communications, retail/e-commerce and transportation, travel and leisure areas such as AirTouch, Allianz, The Associates, British Airways, Credit Suisse, CVS, Deutsche Bank,Wachovia Bank, E*TRADE, Fiat, KPN, Mattel Interactive, MediaOne, British Telecom, priceline.com and UPS. Partners include Andersen Consulting, Fair, Isaac, Hewlett Packard, IBM, SAS Institute, and Sun Microsystems.
Conference Call Today
Prime Response, Inc. will hold its first-ever quarterly results conference call for the first quarter ending March 31, 2000, at 10:00 a.m. (Eastern Time) today. During the call, Chief Executive Officer and President Peter J. Boni and Chief Financial Officer Fred Phillips will discuss quarterly financial results and be available to answer questions about other topics related to Prime Response's strategy and opportunities. At 9:50 a.m. E.T., interested participants should call 1-800-810-0924 in the U.S. or 1-913-981-4900 internationally. There will also be a live Webcast of the call on the Investor Relations section of Prime Response's Web site at www.primeresponse.com.
About Prime Response
Prime Response is consistently recognized as a leading integrated eMarketing Automation visionary in the fast-growing Customer Relationship Management (CRM) industry. The Company's Prime@Vantage.com product--a pioneering eMarketing solution within the eCRM space--is a Web-based, multi-channel marketing automation solution that integrates Internet channels, such as e-mail and Web, with traditional marketing channels, such as direct mail, call centers, direct sales systems, and mass market advertising. Prime@Vantage.com is an enterprise-class "front office" software suite for use by leading organizations to create relevant, highly targeted, measurable marketing campaigns that incrementally build more loyal and profitable customer relationships. Prime Response is located in Cambridge, MA (corporate headquarters), London (international headquarters), Antwerp, Chicago, Denver, Frankfurt, Melbourne, Minneapolis, Munich, New York, Paris, San Francisco, Singapore and Sydney. More information is available at www.primeresponse.com, marketing@primeresponse.com or +1 617 876-8300.
"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, including but not limited to, statements that involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, results of future operations, technological difficulties, the results of future research, lack of product demand and market acceptance for current and future products, the effect of economic conditions, the impact of competitive products and pricing, and/or other factors outside the control of the company, which are detailed from time to time in the company's SEC reports. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company 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.
Prime Response, Prime@Vantage and Prime@Vantage.com are trademarks and/or registered trademarks of Prime Response, Inc. All other trademarks and registered trademarks are the properties of their respective owners.
(c) 2000 Prime Response, Inc., except as otherwise acknowledged.
NOTE TO EDITORS: An asterisk appears between the "E" and the "Trade" in the company name ETRADE. This asterisk may not appear on all databases.
Prime Response, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
2000 1999
Revenues:
Software licenses $4,595 $1,080
Services & support 2,132 1,711
Applications hosting 808 991
Total Revenue 7,535 3,782
Cost of revenues:
Software licenses -- --
Services & support 1,966 850
Applications hosting 866 775
Non-cash cost of good sold 28 --
Total cost of goods sold 2,860 1,625
Gross Profit 4,675 2,157
Operating expenses:
Sales and marketing 5,129 2,811
Non-cash sales & marketing 632 16
Research and development 2,523 1,950
Non-cash research & development 31 --
General & administrative 1,399 847
Non-cash general & administrative 29 --
Amortization of intangible -- 314
9,743 5,938
Other expense (income):
Interest income (199) (1)
Interest expense 184 33
Loss on foreign exchange 5 19
Loss before income taxes (5,058) (3,832)
Provision for income taxes 18 1
Net loss $(5,076) $(3,833)
Preferred stock dividends and
participation payment 41,234 611
Net loss attributable to common stockholder $(46,310) $(4,444)
Basic and diluted net loss per share $(3.96) $(0.64)
Net loss excluding noncash changes $(4,356) $(3,817)
Basic and diluted net loss per share
excluding noncash charges $(0.37) $(0.54)
Weighted average shares outstanding -
basic and diluted 11,680 7,035
Prime Response, Inc.
Consolidated Balance Sheets
(in thousands)
March 31, Dec. 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $38,213 $3,999
Accounts receivable, net 8,115 9,057
Prepaid and other current assets 2,677 2,595
49,005 15,651
Property and equipment, net 2,705 2,602
Intangible and other assets, net 7,745 7,262
$59,455 $25,515
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable 3,812 3,920
Short term debt and capital lease obligations 165 2,289
Accrued expenses 3,676 4,472
Accrued interest income 176 176
Deferred revenue 5,333 6,074
13,162 16,931
Long term debt and capital lease obligations 238 311
Long term interest income 1,354 1,398
REdeemable common stock -- 8,295
Series A redeemable convertible preferred stock -- 27,842
Series B redeemable convertible preferred stock -- 10,343
Series C redeemable convertible preferred stock -- 4,891
Stockholders' equity (deficit):
Common stock 199 65
Treasury stock (4,273) --
Additional paid in capital 146,314 6,520
Accumulated comprehensive income (loss) (11) (12)
Accumulated deficit (92,437) (46,127)
Deferred compensation (2,546) (2,397)
Note receivable from stockholder (2,545) (2,545)
44,701 (44,496)
$59,455 $25,515
CONTACT:
IR Contacts
Prime Response
Fred Phillips, 617/234-6204
fphillips@primeresponse.com
or
Ingoldsby IR, Inc.
John Ingoldsby, 617/513-7177
ingold@shore.net
or
PR Contact, U.S.
Prime Response
Darren Horwitz, 617/234-6208
dhorwitz@primeresponse.com
or
PR Contact, International
Prime Response
Susanna Cesar, 44 181-580-0314
scesar@primeresponse.com
KEYWORD: MASSACHUSETTS
BW1219 APR 25,2000
5:36 PACIFIC
8:36 EASTERN |
