Lightspan Exceeds Analyst Expectations for Second Consecutive Quarter; Cash Position Remains Strong
SAN DIEGO, May 22 /PRNewswire/ -- Lightspan, Inc. (Nasdaq: LSPN) (the Company), a leading provider of quality curriculum-based software and Internet products and services used in schools and homes, announced today its first quarter 2002 results exceeded analyst estimates for the second consecutive quarter. Total revenues of $10.7 million for the first quarter of 2002 exceeded estimates by approximately $0.4 million. The Company recorded a net loss per share of $.39 compared to the analysts' consensus of $.40 per share as reported by First Call.
Chairman and Chief Executive Officer John T. Kernan stated: "Our first quarter reflects a balanced revenue stream from all of our products including the annuity-based Internet subscription business and our higher education division, Academic Systems. This solid top-line performance was complemented by our management team's commitment to controlling operating costs, which were 15 percent lower than the first quarter of last year."
Revenues generated from Internet subscriptions increased over 115 percent during the first quarter of 2002 to $1.6 million from $0.7 million in the first quarter 2001. Additionally, deferred revenues from Internet subscriptions increased to $10.6 million as of April 30, 2001. President and Chief Operating Officer Carl Zeiger stated: "During the first quarter of 2002, we increased our installed base of products across all lines of business through the addition of new customers plus the expansion of contracts with existing customers. This clearly demonstrates our strong brand and the loyalty developed by Lightspan in the education marketplace."
Total revenues during the first quarter of 2002 increased to $10.7 million from $10.3 million during the same period in 2001 (pro forma). On a reported basis, total revenues during the first quarter of 2002 were $10.7 million compared to $56.4 million during the same period in 2001, which included $46.1 million of deferred license revenue from prior years.
The net operating loss for the first quarter of 2002 (excluding non-cash expenses - pro forma) decreased 18 percent to $14.0 million from $17.1 million during the same period in 2001 due primarily to a $3.6 million reduction in operating expenses during the current quarter, most notably in sales and marketing costs. Management continues to focus on lowering expenses through operating efficiencies while growing the customer and revenue base. The Company continues to maintain a solid cash position in excess of $68 million and no debt.
The Company continued to increase its client base across all product lines during the first quarter of 2002. Total schools using the Company's flagship software product, Achieve Now, increased to 3,458 as of April 30, 2001. The Company's Internet subscription products, The Lightspan Network and eduTest.com are being used in 3,067 schools. Academic Systems, the Company's higher education division, also experienced solid growth increasing the number of client campuses to 315 as of April 30, 2001.
The opportunity for growth within Lightspan's existing customer base is highlighted with two significant new contracts. The Company recently announced a $0.9 million, multi-year contract with the Adams 50 School District in Colorado, which represents the third year of increasing purchases by the district. Lightspan also announced that it signed a $1.2 million, multi-year contract with the St. Petersburg Junior College system, expanding the Florida Colleges' already significant use of the Company's materials through its higher education division, Academic Systems.
Kernan concluded: "The operating results of this latest quarter clearly demonstrate our management team's commitment to achieving profitability by increasing revenues and controlling operating costs. As a result, we are excited about Lightspan's future:
-- We are confident the net loss per share estimates ranging from
1.32-$1.45 can be achieved for the current fiscal year.
-- We anticipate the amount of net cash utilized during the second half of
the current fiscal year will decrease significantly as compared to the
first six months of the year due to seasonally higher revenues and
lower operating expenses.
-- We believe our cash resources are sufficient to achieve positive
operating cash flow. |
