They just announced the earnings:
Wednesday October 21, 4:09 pm Eastern Time
Company Press Release
Beyond.com Announces Third Quarter
Financial Results
Company Posts Record Revenues
Customer Accounts Up 47.3 Percent Sequentially From Q2'98 Levels<>
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 21, 1998--Online software superstore Beyond.com(tm),
(Nasdaq:BYND - news), today announced its financial results for the third quarter ended Sept. 30, 1998.
Revenues for the third quarter of 1998 were a record $9.7 million, a 28.5 percent increase compared with revenues
of $7.6 million in the second quarter of 1998 and a 102 percent increase compared with revenues of $4.8 million
reported in the third quarter a year ago. The net loss for the third quarter of 1998 was $8.9 million.
This compares with a net loss of $5.5 million in the second quarter of 1998 and a net loss of $1.5 million in the third
quarter a year ago. The pro forma basic and diluted net loss per share for the third quarter of 1998 was ($0.33) per
share. This compares with a pro forma net loss of ($0.25) per share in the second quarter of 1998 and a pro forma
net loss of ($0.09) per share in the third quarter of 1997.
Overall cumulative customer accounts increased to 431,000 through the third quarter of 1998, an increase of 47.3
percent from 293,000 cumulative customer accounts through the second quarter of 1998.
The company's Affiliates Program, which enables qualified commercial web sites to market and sell Beyond.com's
software SKUs, increased more than 250 percent from approximately 1,400 affiliates at the end of July to more than
5,000 affiliates by mid October.
According to Media Metrix, Beyond.com grew its reach on the Internet by 325% from a 0.8 reach in July to a 2.6
reach in September. Overall, Beyond.com was the 12th most visited shopping site on the Internet.
''We are extremely happy with our third quarter revenue and customer growth, which we attribute primarily to our
national advertising campaign and enhanced web site (http://www.beyond.com),'' said Mark Breier, president and
chief executive officer of Beyond.com.
''Today, Beyond.com is more helpful, offering software reviews and recommendations, side-by-side displays of
electronically downloadable and boxed software products. We also have enhanced search capabilities so customers
can search for software by title, publisher or operating system,'' Breier explained. ''Additionally, we broadened our
Games Center on our web site to feature some of the hottest-selling titles from publishers including Electronic Arts
Inc., GT Interactive Software Corp., Eidos PLC and The Learning Company.
''On the enterprise side of the business, we formed a strategic partnership with Trilogy Software to jointly market
and distribute software electronically to small and mid-tier corporations. We signed an agreement with Network
Associates Inc. to fulfill software orders off of their McAfee online mall and became the exclusive online software
reseller of their planned Internet commerce portal site. Additionally, we became a software reseller for Microsoft's
online store. We now fulfill software orders on behalf of four of the top eight software publisher sites: Autodesk,
Microsoft, Netscape and Network Associates. We believe these strategic alliances will help us rapidly grow our
customer base,'' Breier said.
''During the third quarter, we also expanded our government business by signing a four-year, $8.3 million contract
with the U.S. government to electronically distribute software upgrades and updates throughout the National
Imagery and Mapping Agency. The contract is reviewed and renewed annually. And, in August, Beyond.com
opened the first online government software store (http://www.beyond.com/gov.htm), which enables government
customers to purchase and download software at discount prices,'' Breier explained.
''Today, we are the only public company that focuses exclusively on selling software over the Internet. Our critical
core competencies include our expertise in electronic software distribution, our partnerships with the top key portal
sites, our strategic relationships with top software publishers, a helpful site with software reviews and
recommendations and a three-pronged sales approach that targets consumers and corporate and government
enterprises.
''Going forward, we expect to aggressively invest in branding and marketing campaigns to continue to build our
brand identity and gain new customer accounts. Our goal is to be first in consumer's minds as the place to go to buy
software.''
About Beyond.com
Beyond.com sells commercial, off-the-shelf software to the government enterprise, corporate and consumer
markets, offering its customers a better way to buy software. Visitors to the company's online store
(http://www.beyond.com), enjoy a comprehensive selection of software backed by customer service and competitive
pricing.
Approximately 30,000 software stock-keeping units (SKUs) are available for online purchase with more than 3,300
SKUs available for immediate, electronic delivery, including software from such major publishers as Adobe, Lotus,
Microsoft, Sun Microsystems and Symantec.
The company has established strategic marketing alliances with America Online, Inc., Excite, Inc. and Netscape
Communications Corporation. Additionally, Beyond.com offers publishers transaction processing, physical and
electronic order fulfillment, customer support, site design consultation, marketing support and reporting.
Beyond.com is incorporated in Delaware as software.net Corporation. Software.net Corporation has applied for
federal registration of the marks BEYOND.COM and SOFTWARE.NET. Beyond.com trades on the Nasdaq under
the symbol ''BYND''.
To the extent that this news release discusses expectations about software.net (Beyond.com's) revenues and
earnings projections, expectations about the company's business in the fourth quarter of 1998 and beyond, or plans to
grow the company's customer base and further enhance its web site, these statements are forward-looking within
the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results for the fourth quarter
of 1998 and subsequent quarters could differ materially from any future performance suggested above. Among the
factors that could affect subsequent periods include: Reductions in or cancellations of customer orders, changes in
relationships with software suppliers, changes in relationships with strategic partners, changes in the product mix sold
by the company, competition from other online software resellers or publishers, inability to raise sufficient capital on
satisfactory terms, or at all, and other factors described in the company's prospectus dated June 17, 1998, as filed
with the Securities and Exchange Commission (''SEC'').
Beyond.com news and product/service information is available at the company's World Wide Web site located at
beyond.com
-0-
Beyond.com
Consolidated Statements of Operations
(in thousands, except per share count)
Three Months Ending Nine Months Ending
Sept. 30 Sept. 30
1998 1997 1998 1997
(unaudited) (unaudited) (unaudited) (unaudited)
Net Revenues $ 9,742 $ 4,825 $ 23,511 $ 11,417
Cost of Revenues 8,281 4,295 19,943 9,970
---------- ---------- ----------- ----------
Gross Profit 1,461 530 3,568 1,447
Operating Expenses:
Research and
Development 1,287 302 3,009 641
Sales and
Marketing 8,048 442 14,268 1,039
General and
Administrative 1,407 265 3,220 675
---------- ---------- ----------- ----------
Total Operating
Expenses 10,743 1,009 20,498 2,355
---------- ---------- ----------- ----------
Loss From
Operations (9,282) (479) (16,930) (908)
Interest Income 370 24 227 96
Gain on Sale of Assets 14 -- 14 --
Loss From
Continuing
Operations (8,898) (455) (16,689) (812)
Loss From
Discontinued
Operations -- (1,036) -- (2,074)
Net Loss ($8,898) ($1,491) ($16,689) ($2,886)
---------- ---------- ----------- ----------
Accretion of Premium
on Preferred Stock -- ($25) ($51) ($76)
---------- ---------- ----------- ----------
Net Loss Applicable
to Common
Stockholders ($8,898) ($1,516) ($16,740) ($2,962)
Shares used in
computing net loss
per share 27,300,196 9,000,000 16,128,977 9,000,000
Basic and Diluted
Net Loss per Share ($0.33) ($0.17) ($1.04) ($0.33)
========== ========== =========== ========
Shares used in
computing pro forma
net loss per share 27,300,196 17,175,551 20,896,209 17,094,096
---------- ---------- ----------- ----------
Pro Forma Basic and
Diluted Net Loss
per Share ($0.33) ($0.09) ($0.80) ($0.17)
=========== =========== =========== =========
Beyond.com
Consolidated Balance Sheets
(in thousands, except per share count)
Sept. 30, December 31,
1998 1997
(Unaudited) (Audited)
--------------- --------------
Current Assets:
Cash and Cash Equivalents $ 33,199 $ 2,571
Accounts Receivable, net 9,097 1,181
Prepaid Partnership Agreements 6,579 396
Other Prepaid Expenses and
Current Assets 375 120
Cost of Deferred Revenue 3,610 4,938
--------------- --------------
Total Current Assets 52,860 9,206
Non-Current Assets
Property and equipment, net 2,053 380
Deposits and Other Long Term Assets 1,343 --
Intangible Assets 932 --
-------------- --------------
Total Non-Current Assets 4,328 380
=============== ==============
Total Assets $ 57,188 $ 9,586
=============== ==============
Current Liabilities:
Current Note Payable $ 5,002 --
Accounts Payable 6,723 2,256
Other Accrued Liabilities 2,865 270
Current Obligation Under Capital
Leases -- 18
Deferred Revenue 3,991 5,569
--------------- --------------
Total Current
Liabilities 18,581 8,113
Note Payable to a Shareholder
and Director -- 60
Noncurrent Obligations under
capital leases -- 39
Commitments:
Redeemable Convertible
Preferred Stock -- 12,565
Stockholder's Equity: (Net Capital Deficiency)
Common Stock 69,286 47
Deferred Compensation (2,701) --
Accumulated Deficit (27,978) (11,238)
--------------- --------------
Total Stockholder's
Equity (Net Capital Deficiency) 38,607 (11,191)
Total Liabilities and
Stockholder's Equity
--------------- --------------
(Net Capital Deficiency) $57,188 $9,586
=============== ==============
Contact:
Beyond.com
Michael Praisner, 408/616-4200 (CFO)
Laura Dayton, 408/616-4328 (Director of IR)
More Quotes and News:
software.net Corp (Nasdaq:BYND - news)
Related News Categories: computers, earnings, internet, software
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Questions or Comments?
I also listen to their conferance call. They sound pretty upbeat. The jury is out on these guys. |
