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Thursday February 13 10:50 AM EDT
Infonautics Reports Full-Year And Fourth-Quarter 1996 Results
WAYNE, Pa., Feb. 13 /PRNewswire/ -- Infonautics Inc , a provider of online reference services and information technology products, today announced revenues of $507,000 in the fourth quarter of 1996. This is a 61 percent increase over revenues of $315,000 in the year's third quarter. Revenues for the fourth quarter of 1995 totaled $181,000.
The Company had a net loss of $4.7 million, or $0.50 per share, in the fourth quarter of 1996, compared with a net loss of $3.0 million, or $0.50 per share, a year earlier.
In 1996, the Company had revenues of $1.4 million and a net loss of $13.8 million, or $1.65 per share, compared with revenues of $448,000 and a net loss of $7.5 million, or $1.23 per share, the previous year.
Marvin I. Weinberger, chairman and chief executive officer, said sales growth is strongest in the institutional/educational and publishing markets, and that the Company is placing increased emphasis on the near-term development of those markets.
"As with many other companies offering products and services via the Internet, we are finding that subscription revenues from consumers are not developing as rapidly as we had hoped," Mr. Weinberger said. "It is becoming increasingly clear that an effective way to reach the consumer is through the schools, which makes our institutional sales of Electric Library doubly important. We are building our institutional sales forces to take advantage of this opportunity. In addition, we are expanding our EPP sales force, which markets EPP-Direct to publishers, and increasing our customer support capabilities, naturally adding to costs."
The Company said today that some major U.S. newspapers will become users of EPP-Direct as a result of a contract signed with Cox Interactive Media Inc., of Atlanta, Georgia. The first of these newspapers will be The Atlanta Journal/Constitution.
In the fourth quarter of 1996, Infonautics signed new Electric Library contracts with 92 institutions. At the end of 1996, Infonautics had 26,000 consumer customers for its Electric Library and Homework Helper consumer reference services. This total included 10,500 Electric Library subscribers and 6,100 monthly and 9,400 hourly Homework Helper subscribers.
Infonautics' total costs and expenses were $5.7 million in the fourth quarter of 1996, compared with $3.2 million a year earlier. Sales and marketing expenses increased to $2.6 million from $948,000 a year earlier, primarily as a result of product promotions and additions to the sales force. Development expense was $1.3 million in the fourth quarter of 1996, compared with $1.4 million a year earlier, and general and administrative expense increased to $1.4 million from $641,000.
As of December 31, 1996 the Company had cash, cash equivalents and short- term investments totaling approximately $27.4 million and total assets of $30.2 million.
Previously announced events of the fourth quarter of 1996 included:
* The development of an online archival service for Business Week magazine's new website, with Infonautics serving as host and using its EPP- Direct service to provide system maintenance, royalty reporting, and customer billing and support.
* An announcement that Infonautics would team with Concentric Network Corporation, a provider of tailored network solutions for the Internet/Intranet markets, to provide users of Electric Library with easy Internet access on a free trial basis.
* The launch by Infonautics of researchpaper.com, a collection of topics and ideas for school-related research projects available on the Web.
Early in 1997, Infonautics announced an agreement with IBM under which access to the Electric Library will be available from The 1997 World Book Multimedia Encyclopedia. The Company also announced the addition of Business Week, Time Magazine and 10 other Time Inc. periodicals including Fortune, Money, Life, People, Entertainment Weekly and Sports Illustrated to the Electric Library database.
About Infonautics
Infonautics, Inc. at infonautics.com develops online reference services and information technology products for the consumer, educational and publisher markets. The Company's reference services, Electric Library and Homework Helper, are available through the Internet and consumer online services, and are marketed to schools, libraries and other academic institutions (http://www.education.elibrary.com). Infonautics' core technology software product -- Electronic Printing Press (EPP) -- is sold to publishers and content creators on a site license basis and through EPP- Direct, a turnkey digital service bureau. Infonautics was founded in November 1992 and is based in Wayne, Pa.
To receive additional information on Infonautics, via fax at no charge, dial 1-800-PRO-INFO and enter code INFO.
This news release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding the Company's growth and expansion plans and the sufficiency of the Company's liquidity and capital. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described under "Risk Factors" in the Company's prospectus dated April 29, 1996, issued in conjunction with the Company's registration statement on Form S1 (333-2428).
Infonautics, Inc.
Summary Financial Data
Three Months Ended Twelve Months Ended
Statement of December 31, December 31,
Operations Data 1996 1995 1996 1995
Total revenues $507,000 $181,000 $1,442,000 $448,000
Total costs and
expenses 5,682,000 3,200,000 16,426,000 7,943,000
Loss from
operations (5,175,000) (3,019,000) (14,984,000) (7,495,000)
Net loss $(4,747,000) $(3,000,000) $(13,786,000) $(7,481,000)
Pro forma net loss
per share $(0.50) $(0.50) $(1.65) $(1.23)
Shares used in computing
pro forma net loss
per share 9,489,000 6,062,000 8,348,000 6,062,000
December 31, December 31,
1996 1995
Balance Sheet Data:
Cash, cash equivalents and investments $27,379,000 $962,000
Working capital $25,840,000 $(1,514,000)
Total assets $30,227,000 $2,532,000
Long-term debt, less current portion $0 $138,000
Total Shareholders' Equity $27,687,000 $(549,000)
SOURCE Infonautics, Inc. |
