Let's see if the momentum upward and the attention continues. I think it will...
ScreamingMedia Inc. Announces First Quarter 2001 Results
Business Wire - Tuesday, May 08, 2001
NEW YORK--(BUSINESS WIRE)--May 8, 2001--ScreamingMedia Inc. (NASDAQ: SCRM):
- Ends First Quarter with $7.6 Million in revenue, a 180%
increase over First Quarter 2000.
- Reports a pro forma EPS loss of $0.12 in first quarter,
compared to a pro forma EPS loss of $0.14 in the fourth
quarter.
- Cuts cash burn by more than 50% to $4.6 million in the first quarter, from $9.7 million in the fourth quarter.
- Signs contract with Boeing for its largest contract ever.
- Forges new strategic technology alliances with Lucent, IBM WebSphere, RR Donnelley, and OpenMarket.
- Names Kevin Clark Chairman; appoints Jay Chiat Chairman
Emeritus. ScreamingMedia Inc. (NASDAQ: SCRM), a leading global provider of content solutions, today announced operating results for the first quarter ended March 31, 2001.
The company continues to execute on its strategy of providing a complete outsourced content solution with high ROI to large enterprise customers. ScreamingMedia is supporting this strategy by improving its leading technology and content solutions offering; developing a solutions focused sales force; growing its professional services capability to implement multi-faceted fully outsourced solutions; increasing distribution by forming partnerships with leading technology companies, and, in many instances, embedding its technology into their platforms; and prudently expanding its geographic presence.
Revenue for the first quarter totaled $7.6 million, a 180% increase over revenue of $2.7 million in the first quarter of 2000, and slightly lower than $7.9 million in the fourth quarter of 2000. Gross margins remain strong at 71% in the first quarter.
The pro forma net loss for the most recent quarter, which excludes non cash charges related to the amortization of deferred stock compensation, was $4.7 million, or a loss of $0.12 per share. This compares to a pro forma net loss $5.5 million, or a loss of $0.14 per share in the fourth quarter of 2000, and a pro forma net loss of $6.3 million, or a loss of $0.26 per share for the first quarter of 2000.
On March 31, 2001, ScreamingMedia had cash, cash equivalents, and marketable securities of approximately $94 million, or $2.46 per share. The company reduced its cash burn by more than 50% to $4.6 million in the first quarter of 2001 from $9.7 million in the fourth quarter of 2000.
"As more and more established global corporations such as Boeing and Vodafone continue to use web-based technologies and platforms to advance their enterprises, the benefits of adopting ScreamingMedia's outsourced technology and content solutions have become obvious" said Kevin Clark, CEO of ScreamingMedia. "We are not merely vendors for these large enterprise customers, but we are long-term partners, closely integrated into their business platforms, providing a bundled solution of technology, content, and professional services, intimately involving us in the construction of their major portal initiatives. So, as these major companies continue to build out their platforms, and new needs develop, we will grow and adapt with them, further monetizing these relationships."
Enterprise Market Momentum
In the first quarter, the company added 101 new customers and had 53 upsells totaling $5.0 million in annual contract value. The company continues to attract higher revenue, higher quality enterprise customers. The average annual contract value for new customers in the first quarter of 2001 increased 70% to approximately $41,000 from $24,000 in the fourth quarter of 2000. The average monthly recurring fee for new customers in the first quarter of 2001 increased approximately 70% to $2,700 from $1,600 in the fourth quarter of 2000. The average license and setup fee for new customers in the first quarter of 2001 increased 48% to approximately $10,200 from $6,900 in the fourth quarter of 2000.
"Our strategy of providing a complete content solution has enabled us to sign some of our largest deals," continued Clark.
"ScreamingMedia has signed new deals with enterprises clients such as Boeing, Vodafone, Federal Express, Hallmark, Rogers ATT, Bank of New York, Biogen, Nortel, NCR, Ingersoll Rand, Ziff Davis, Debeers and ATT Broadband. The Company also continued to upsell relationships with enterprise customers such as E*TRADE, BestBuy, American Express, Oracle, Shell, and Rogers Media. At the end of the first quarter 2001, customers in the large and mid-sized enterprise segment represented 62% of the Company's overall revenue, compared to 57% in the fourth quarter of 2000.
Boeing
Leading the content solutions space in new directions, ScreamingMedia has signed its largest contract ever with Boeing, to provide news, destination-based and travel-related content through an integrated technology solution to Connexion by Boeing, an in-flight portal. ScreamingMedia will provide Connexion by Boeing with its own network content and also will use its infrastructure technology platform to deliver third-party content.
Vodafone
ScreamingMedia will also deliver customized content to Vizzavi, Vodafone's wireless portal, through an integrated software solution. ScreamingMedia will power the delivery of AP content to Vodafone's global mobile affiliates, in addition to providing customized content packages from approximately 3,000 publications in ScreamingMedia's global digital content network. As needed, ScreamingMedia will also provide its Content!Connect services in which it will negotiate third-party licensing agreements with content providers on behalf of Vodafone and provide the technology to process and integrate this content.
Strengthens Technology and Content Solutions Platform
ScreamingMedia announced that it is currently Beta testing the next generation of its Content Engine, called Content Engine 2.0. This latest version is based on a new architecture that enhances the scalability, flexibility, and reliability of the data infrastructure. Content Engine 2.0 also has enhanced search capabilities that enable enterprises to conduct ad-hoc searches of ScreamingMedia's entire content and photo catalog.
Furthermore, the ability to provide enterprise clients with Professional Services is essential to offering an innovative content solution. Professional Services include the following: systems integration, filter building, editorial services, content consulting and the development of custom adapters. The goal of the Professional Services organization is to seamlessly implement a multi-faceted content solution while improving the time to market and integrity of the solution.
ScreamingMedia continues to actively enhance its content offering, adding depth, breadth, and new types of content. Some of the latest enhancements include: AV!Direct, packages of rich media content such as audio and video; News!Stand Commerce Edition, a contextual commerce offering; plus new deals with Stockpoint, a leading provider of global online and wireless investment analysis tools and market information; and Infospace, to provide on-line directories.
Alliance Partnerships
ScreamingMedia's state-of-the-art, fully-flexible and scalable technology platform integrates seamlessly into the platforms of major technology companies. In the first quarter of 2001, ScreamingMedia entered into new alliances with several world-class technology partners including Lucent, IBM WebSphere, the Premedia Technologies unit of R.R. Donnelley, and Open Market. Furthermore, existing partnerships with companies such as Allaire, BroadVision, Interwoven, BEA Systems, TIBCO, iPlanet, Plumtree and Real Networks continue to generate significant enterprise level leads for ScreamingMedia.
ScreamingMedia CEO, Kevin Clark, Named Chairman
ScreamingMedia today also announced that Kevin Clark, Chief Executive Officer, has been elected to the additional role of Chairman of the Board and that Jay Chiat, current Chairman, was elected Chairman Emeritus. As Chairman, Mr. Clark will focus his attention on strategic opportunities, including new growth channels for the Company. He will also be instrumental in working with the Company and its Board of Directors to find a new highly qualified successor for the job of Chief Executive Officer. Once the position is filled, Mr. Clark will remain Chairman of the Board of ScreamingMedia.
Clark commented, "ScreamingMedia is now the leading provider of content solutions to major enterprises and we have more than adequately funded the Company to profitability. As Chairman, I look forward to continuing to work directly with the executive team, the Board, and eventually the new CEO, to build shareholder value."
Earnings Conference Call Information
To listen to ScreamingMedia's live first quarter conference call today at 5:00 PM ET, 2:00 PM PT, dial-in at least 10 minutes in advance of the call, toll-free in the United States at 1-800-447-0521 (no passcode is required) or outside of the United States at 1-847-413-3238 (no passcode is required). A replay of the call will be made available 2 hours after the completion of the call and until May 15. Dial in the United States and International at 1-630-652-3044 (passcode is 3859984) for this replay. A live and archived audio web cast will also be made available. Visit www.screamingmedia.com and click on "About ScreamingMedia" and then "Investor Relations." The call will be archived on our website.
About ScreamingMedia:
ScreamingMedia Inc. (NASDAQ: SCRM) is a leading global provider of content solutions. Powered by its state-of-the-art technology platform, ScreamingMedia offers its clients robust content and technology services to meet all their business needs. Through its content services, ScreamingMedia aggregates licensed content -- news, features, photos, video, stock quotes, audio, weather reports and more - from approximately 3,000 publications, then filters, delivers and precisely integrates this content instantaneously into the web and wireless platforms of its clients, including Fortune 500 corporations, portals, vortals, niche websites and wireless networks. For enterprises and media companies with their own content resources, ScreamingMedia technology services provides the company's core infrastructure platform and tools, to enable customers to power the aggregation, syndication, processing and integration of content across their own web and wireless networks. Serving the United States, Europe and Latin America, ScreamingMedia is headquartered in New York City and has offices in San Francisco, Miami, London, Paris and Sydney, Australia through an exclusive agreement with BecomeMedia. For more information, visit ScreamingMedia's website at www.screamingmedia.com.
The release contains information about future expectations and plans of ScreamingMedia's management and prospects of ScreamingMedia's business that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. 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. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the timely development and market acceptance of new and updated products, our ability to expand our infrastructure (including personnel and computer systems) and the effect of competition. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Readers are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. ScreamingMedia 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. |
