PrimeResponse Announces Record Revenue of $9 Million
CAMBRIDGE, Mass.--(BUSINESS WIRE)--July 25, 2000--
-- Robust North American Sales and Global Andersen Consulting Alliance Contribute to 126% Increase in Software License Revenue --
PrimeResponse, Inc. (NASDAQ, EASDAQ: PRME), a leader in business to consumer relationship marketing, today announced that revenue increased 78% to $9.0 million for the second quarter ended June 30, 2000, compared with revenue of $5.1 million for the second quarter ended June 30, 1999. Second quarter revenue increased 20% over the previous quarter's revenue of $7.5 million. For the second consecutive quarter, software license revenue more than doubled by increasing 126% to $5.7 million from $2.5 million in last year's comparable quarter.
The net loss for the second quarter ended June 30, 2000, excluding non-cash charges for stock-based compensation, non-cash sales and marketing expense and preferred stock dividends was $5.2 million, or
($0.25) per share, compared with a net loss of $2.8 million, or
($0.39) per share, in the same period of 1999. Including the non-cash expenses identified above and preferred stock dividends, the net loss for second quarter 2000 was $6.0 million, or ($0.29) per share, compared with a net loss of $5.2 million, or ($0.73) per share, in the second quarter of 1999.
"We experienced a very strong quarter with record revenue as we again exceeded our sales objectives," said Peter J. Boni, President and Chief Executive Officer of PrimeResponse. "During the quarter, we broadened our position as a leader in relationship marketing targeting business to consumer clients as we successfully broke new ground in helping our clients direct and personalize their marketing initiatives to target and retain new and existing customers.
Boni continued, "Similar to last quarter, we made our most significant advances in North America, where in this period we again exceeded our revenue for all of 1999. North America accounted for 39% of our total revenue in Q2, versus 13% in the same period of 1999. Total North American software license revenue accounted for 46% of our total license revenue. All of these successes have resulted in significant growth and in an increased client base of 80 customers worldwide, including 25 in the United States."
Another contributing factor to the strong quarterly results was the rapid success of the Andersen Consulting alliance, as PrimeResponse signed agreements with its first clients through this relationship. The majority of the commission on the first transactions with Andersen consulting will be used to fund cooperative marketing activities to promote further sales of PrimeResponse products. The commission totaled $1.2 million and will be paid at a lower percentage rate on future transactions.
Other highlights of the quarter included the Prime@Vantage Wireless(TM) launch, where early adopters including two affiliates of Deutsche Telecom were announced, as well as a global "Web seminar" attended by a record audience. The Company introduced Prime@Vantage Optimizer(TM) to enable real-time optimization across all eMarketing channels and offers. Additionally, PrimeResponse was rated ahead of a host of leading eCRM vendors in an independent marketing automation study conducted by Quaero LLC, specialists in Customer Relationship Management (CRM), where PrimeResponse had the highest possible ratings in every category ranked.
New customers in the second quarter 2000 included two divisions of Chase Manhattan Bank, Texas Instruments, Network Solutions, Winfire Corporation, Fauriel Informatique, AXA Financial, Telstra Corporation, Bouygues Telecom, Lloyds TSB, and max.mobil. and T-Mobil, both of which are subsidiaries of Deutsche Telecom. Several existing customers acquired additional PrimeResponse products, including DLJdirect, Wachovia Corp. and Royal Bank of Scotland. New partners in the second quarter included Clarify, iXL, eBusiness Advantage and Mummert & Partners.
Conference Call Today
PrimeResponse, Inc. will hold its quarterly results conference call for the second quarter ending June 30, 2000, at 10:00 a.m. (Eastern Time) today. During the call, President and Chief Executive Officer 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 PrimeResponse's strategy and opportunities. At 9:50 a.m. E.T., interested participants should call +1-800-406-5345 in the U.S. or +1-913-981-5571 internationally. There will also be a live Webcast of the call on the Investor Relations section of PrimeResponse's Web site at www.primeresponse.com.
About PrimeResponse
PrimeResponse, Inc. (NASDAQ and EASDAQ: PRME) is a leader in business to consumer relationship marketing. Eighty of the world's leading companies have chosen PrimeResponse for its industry expertise and innovation. The Company's Prime@Vantage(TM) product suite maximizes an organization's return on its marketing investment while building more loyal and profitable customer relationships. The Prime@Vantage(TM) relationship marketing solution helps organizations easily plan, optimize, execute and track sophisticated direct marketing campaigns that span traditional channels (direct mail, call centers and advertising) as well as the latest electronic channels (Web, e-mail and wireless). A single view of all customer communications lets companies deliver the right message to the right person, at the right time, via the right channel--to increase response rates and ensure the best-possible customer experience.
PrimeResponse is located in Cambridge, MA (corporate headquarters), London (international headquarters), Antwerp, Denver, Frankfurt, Melbourne, Minneapolis, Munich, New York, Paris, San Francisco, Singapore and Sydney. More information is available at www.primeresponse.com, marketing@primeresponse.com, +1 617 876-8300 or +1 877-PRIME54.
PrimeResponse, Prime@Vantage Wireless, 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.
"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, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Software licenses $ 5,746 $ 2,544 $ 10,341 $ 3,624
Services & support 2,507 1,543 4,639 3,254
Applications hosting 780 994 1,588 1,985
Total Revenues 9,033 5,081 16,568 8,863
Cost of revenues:
Software licenses - - - -
Services & support 1,739 1,167 3,705 2,017
Applications hosting 890 666 1,756 1,441
Non-cash cost of good sold 29 5 57 5
Total cost of revenues 2,658 1,838 5,518 3,463
Gross Profit 6,375 3,243 11,050 5,400
Operating expenses:
Sales and marketing 8,140 2,728 13,269 5,539
Non-cash sales
and marketing 678 3 1,310 19
Research and
development 2,786 2,130 5,309 4,080
Non-cash research
and development 32 - 63 -
General and administrative 1,457 853 2,856 1,700
Non-cash general and
administrative 30 1,678 59 1,678
Amortization of
intangible assets - 309 - 623
13,123 7,701 22,866 13,639
Other expense (income):
Interest income (703) (17) (902) (18)
Interest expense 70 30 254 63
Loss on foreign exchange (21) 31 (16) 50
Loss before income taxes (6,094) (4,502) (11,152) (8,334)
Provision for income taxes (92) 1 (74) 2
Net loss $ (6,002) $ (4,503) $ (11,078) $(8,336)
Preferred stock dividends
and participation payment - 677 41,234 1,288
Net loss attributable to
common stockholder $ (6,002) $ (5,180) $ (52,312) $(9,624)
Net loss per share
- basic and diluted $ (0.29) $ (0.73) $ (3.25) $ (1.35)
Net loss excluding
non-cash charges,
preferred stock
dividends and
participation payment $ (5,233) $ (2,817) $ (9,589) $(6,634)
Basic and diluted
net loss per share
excluding non-cash charges $ (0.25) $ (0.39) $ (0.59) $ (0.93)
Weighted average shares
outstanding
- basic and diluted 20,551 7,247 16,116 7,140
Prime Response, Inc.
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 40,091 $ 3,999
Accounts receivable, net 10,648 9,057
Prepaid and other current assets 2,328 2,595
53,067 15,651
Property and equipment, net 3,137 2,602
Intangible and other assets, net 7,230 7,262
$ 63,434 $ 25,515
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Accounts payable 3,326 3,920
Short term debt and capital
lease obligations 98 2,289
Accrued expenses 5,943 4,472
Accrued interest income 176 176
Deferred revenue 5,016 6,074
14,559 16,931
Long term debt and capital
lease obligations -- 311
Long term accrued interest income 1,310 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 207 65
Treasury stock (4,273) --
Additional paid in capital 154,975 6,520
Accumulated other
comprehensive income (loss) 3 (12)
Accumulated deficit (98,439) (46,127)
Deferred compensation (2,363) (2,397)
Note receivable from stockholder (2,545) (2,545)
47,565 (44,496)
$ 63,434 $ 25,515
CONTACT:
IR Contacts:
PrimeResponse
Fred Phillips, +1 617/234-6204
fphillips@primeresponse.com
or
Ingoldsby IR, Inc.
John Ingoldsby, +1 617/513-7177
ingold@shore.net
or
PR Contact, U.S.:
PrimeResponse
Darren Horwitz, +1 617/234-6208
dhorwitz@primeresponse.com
or
PR Contact, International:
PrimeResponse
Susanna Cesar, +44 181-580-0314
scesar@primeresponse.com
KEYWORD: MASSACHUSETTS
BW2197 JUL 25,2000
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