ShopNow.com Announces New Corporate Name and an Accelerated
Profitability Schedule Network Commerce Inc. Expects Gross Margins to
Exceed 50 Percent by the End of 2000; Company Objective Is to Reach
Profitability in Q4 2001
SEATTLE, May 18, 2000 /PRNewswire via COMTEX/ -- ShopNow.com Inc. today
announced the creation of a new corporate identity to better reflect the
company's position as a leading provider of technology, services and commerce
networks for Internet sites, businesses and merchants. The company's new
corporate name is Network Commerce Inc. (Nasdaq: NWKC). The new name will serve
as an umbrella identity for the company.
Network Commerce's core commerce infrastructure technology, commerce
applications and services will be known as the Network Commerce Distributed
CommerceSuite. Built on the Distributed CommerceSuite are the Network Commerce
Distributed Business Network, which includes b2bNow.com, FreeMerchant.com and
pending its acquisition, Ubarter.com; and the Network Commerce Distributed
Consumer Network, which includes ShopNow.com, BottomDollar.com, and
SpeedyClick.com. The names of these Internet properties will remain the same.
The company also offers consulting, custom commerce solutions, and integrated
marketing services through Network Commerce Inc.'s eBusiness Services division.
Network Commerce Inc. also announced its goal of achieving profitability, on a
pro forma basis consistent with current reporting, in the fourth quarter of
2001, significantly earlier than consensus analyst expectations. The company has
reported strong financial results over the last several quarters, with total
revenue for the first quarter of 2000 at $18.7 million, an increase of 39
percent from $13.4 million in the fourth quarter of 1999 and an increase of 146
percent from $7.6 million in the third quarter of 1999. The company's gross
margins increased to 44 percent in the first quarter of 2000 from 42 percent in
the fourth quarter of 1999, and 36 percent in the third quarter of 1999. The
company anticipates gross margins will exceed 50 percent by the end of 2000.
"We have demonstrated the strength of our business model with tremendous revenue
growth and strong gross margins. We are confident we will reach profitability
significantly ahead of schedule by further strengthening revenue growth,
accelerating margins and lowering expenses as a percentage of revenue," said
Dwayne Walker, chairman and chief executive officer of Network Commerce Inc.
"Our expansive commerce networks and large customer base clearly illustrate our
position as a leading e-commerce technology and services company."
Network Commerce Inc. provides businesses with the technology, services and the
marketplaces to successfully conduct business online:
-- The Network Commerce Distributed CommerceSuite is comprised of the
company's core technology and services which empower businesses and
merchants to create, manage and grow a reliable online presence. These
include domain registration; commerce store building technology;
hosting services; transaction processing and fraud detection
technology; customer delivery and retention programs; comparison
shopping and commerce marketplace engines; and custom commerce
solutions. Over 20,000 businesses have already licensed components of
the Network Commerce Distributed CommerceSuite.
-- The Network Commerce Distributed Business Network consists of
b2bNow.com (http://www.b2bnow.com), a business-to-business marketplace
and directory featuring over 610,000 businesses in 260 international
markets; FreeMerchant.com (http://www.freemerchant.com), a business and
merchant online store builder with over 65,000 hosted businesses; and
pending completion of the merger in June 2000, Ubarter.com
(http://www.ubarter.com), a business-to-business barter exchange with
over 4,000 business customers.
-- The Network Commerce Distributed Consumer Network consists of
ShopNow.com (http://www.shopnow.com), a leading shopping network and
directory featuring over 60,000 merchants and over 7,000 affiliate
sites; BottomDollar.com (http://www.bottomdollar.com), a comparison
shopping network with over 1,700 affiliate sites; and SpeedyClick.com
(http://www.speedyclick.com), a leading commerce-enabled entertainment
community with over 7,000 affiliate sites.
-- Network Commerce Inc.'s eBusiness Services division provides
consulting, custom commerce, and integrated marketing services.
Network Commerce Inc. will host a conference call at 9:00 a.m. Eastern Time
(6:00 a.m. Pacific Time) to discuss its new corporate name and accelerated
profitability schedule. The call will feature remarks by Chairman and Chief
Executive Officer Dwayne Walker followed by a question and answer session. The
dial-in number for the conference call is 888-214-7574.
The conference call will be replayed for 48 hours, starting approximately one
hour after the call ends. For callers within the United States, the replay
number is 800-633-8284. For callers outside the United States, the replay number
is 858-812-6440. The replay confirmation number is 15258302.
A broadcast of the conference call may also be heard via a live Web cast or
replay on the corporate Web site at networkcommerce.com and on
vcall.com.
About Network Commerce Inc.
Network Commerce Inc. ( networkcommerce.com ) is a leading provider
of technology, services and commerce networks for Internet sites, businesses and
merchants. Network Commerce's core commerce infrastructure technology, services
and commerce applications are known as the Network Commerce Distributed
CommerceSuite. Built on the Distributed CommerceSuite are the Network Commerce
Distributed Business Network and the Network Commerce Distributed Consumer
Network. The Network Commerce Distributed Consumer Network is comprised of
ShopNow.com (http://www.shopnow.com), a leading shopping network and directory
featuring over 60,000 merchants and over 7,000 affiliate sites; BottomDollar.com
(http://www.bottomdollar.com), a comparison shopping network with over 1,700
affiliate sites; and SpeedyClick.com (http://www.speedyclick.com), a leading
commerce-enabled entertainment community with over 7,000 affiliate sites. The
Network Commerce Distributed Business Network is comprised of b2bNow.com
(http://www.b2bnow.com), a business-to-business marketplace and directory
featuring over 610,000 businesses in 260 international markets; FreeMerchant.com
(http://www.freemerchant.com), a business and merchant store builder with over
65,000 hosted businesses; and, pending completion of the merger in June 2000,
Ubarter.com (http://www.ubarter.com), a business-to-business barter exchange
with over 4,000 businesses.
Network Commerce Inc.'s eBusiness Services division provides consulting, custom
commerce solutions, and integrated marketing services. Network Commerce Inc. has
over 600 employees and is headquartered in Seattle with offices in Arizona,
California, and Georgia.
Forward Looking Statements:
Certain statements in this announcement, including statements concerning our
plans, intentions and expectations, contain "forward-looking statements" within
the meaning of the Securities Act of 1933 as amended. Forward-looking statements
are based on the opinions and estimates of management at the time the statements
are made and are subject to certain risks and uncertainties that could cause
actual results to differ materially from those anticipated in the
forward-looking statements. The words "believe," "expect," "intend,"
"anticipate," variations of such words and similar expressions identify
forward-looking statements but their absence does not mean that the statement is
not forward-looking. These statements are not guaranties of future performance
and are subject to certain risks, uncertainties and assumptions that are
difficult to predict. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date of this announcement.
Factors that could affect Network Commerce's actual results, include, among
others, the factors described in Network Commerce's filings with the Securities
and Exchange Commission, including its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2000. Network Commerce Inc. undertakes no obligation to
update publicly any forward-looking statements to reflect new information,
events or circumstances after the date of this release or to reflect the
occurrence of unanticipated events.
SOURCE Network Commerce Inc.
CONTACT: media, Rita Brautigam of Network Commerce Inc., 206-223-1996,
or ritab@networkcommerce.com, or Matt Gillingham of APCO Worldwide,
206-972-2596, or mgilling@apcoassoc.com, for Network Commerce Inc.; or
investors, Alan Koslow, 877-430-0131, or ir@networkcommerce.com, or Elise
Spencer, 877-430-0131, or ir@networkcommerce.com, both of Network Commerce
Inc.
URL: shopnow.com
networkcommerce.com
prnewswire.com
(C) 2000 PR Newswire. All rights reserved. |
