Tuesday June 22, 4:25 pm Eastern Time
Company Press Release
SOURCE: Cyberian Outpost, Inc.
Cyberian Outpost Reports
Fiscal 2000 First Quarter
Financial Results; Outpost.com Net Sales
Increase 183% in First Quarter
KENT, Conn., June 22 /PRNewswire/ -- Cyberian Outpost, Inc. (Nasdaq:
COOL - news), a leading global Internet retailer of computer hardware,
software and accessories, today announced financial results for the first
quarter ended May 31, 1999.
Net sales for the first quarter of fiscal 2000 were $32.7 million, an increase
of approximately 183% over net sales of $11.6 million for the same quarter
last year. Gross profit for the quarter increased to $3.4 million, with gross
margin of 10.4%, up from gross profit of $1.0 million and gross margin of
9.0% in the first quarter ended May 31, 1998. Gross margin also improved
on a sequential basis, up from 9.7% in the prior quarter.
The Company reported a first quarter net loss of $8.9 million, or a basic and
diluted net loss per share of $0.38, compared to a net loss of $4.2 million, or
a basic and diluted net loss per share of $0.69, for the same quarter last year.
On a pro forma basis, basic and diluted net loss per share were $0.38 and
$0.25, for the quarters ended May 31, 1999 and 1998, respectively.
Outpost.com achieved solid customer growth, ending the first quarter with
approximately 331,000 customers in over 150 countries, an increase of 18%
over the fourth quarter of fiscal year 1999. Purchases from existing customers
remained very strong, with repeat buyers accounting for approximately 43%
of net sales in the first quarter.
''Our core focus during the past quarter was to grow our margin, which is
demonstrated by our increase to 10.4% gross margin. We are very pleased
with our results, especially given that, along with others in the industry, we
experienced delayed shipments from Apple for the PowerBook G3 and the
temporary halt of Compaq Computer deliveries during this past quarter,''
commented Darryl Peck, Chief Executive Officer of Cyberian Outpost. ''We
exceeded our goals and will continue to focus on margins while maintaining
our strategy of superior service and extensive product selection. Additionally,
we've more than doubled our Affiliate Network membership since the end of
our fiscal year and now boast nearly 64,000 affiliates, up from 25,000 in
February.''
Recent Highlights
Outpost.com Reauthorized by Compaq
Recognizing Outpost.com's record of high customer satisfaction and
extensive focus on customer service, Compaq Computer Corporation
reauthorized sales of its consumer line of computers in early May.
Additionally, during the past quarter, Outpost.com was authorized to sell
Compaq's commercial products as a participant in Compaq's Authorized
Internet Reseller Pilot Program.
Outpost.com Board Appoints EVP for Business Development
Outpost.com's Executive Vice President & Chief Financial Officer, Kate
Vick, was named EVP for Business Development. She will retain her CFO
title. This new position recognizes the Company's expanded focus on the
importance of new business development activities in Outpost.com's future
growth and expansion. Ms. Vick's role in leading the Company's financing
strategy over the past two years and her previous 18 plus years in consulting
and operating roles with high growth, entrepreneurial companies makes her
an ideal candidate to guide the Company's new business development efforts.
Outpost.com Bolsters its Management Team with the Appointment of Four
Experienced Directors
Outpost.com has augmented the management team with the addition of four
new officers.
-- Edith Wollin, recently appointed Executive Director of Advertising and
Promotion for Outpost.com, was previously a Manager of Strategic
Services and Entertainment Marketing at Sony Electronics for seven
years. Ms. Wollin brings an additional sixteen years of advertising
and integrated communications experience to the Company.
-- Derek Holding, joins Outpost.com as Executive Director of Customer
Experience after leading interdisciplinary teams in the design of
interactive customer experiences since 1987. He has held consulting
and senior positions at Prodigy Services, Art Technology Group and
Meca Software. Mr. Holding specializes in creating online consumer
solutions that unite both technology and design.
-- Evan Zuckert brings fifteen years of corporate finance experience to
the Company and was recently named Executive Director for Business
Development. Mr. Zuckert spent the last six years as a Director in the
Debt Markets Group for Merrill Lynch, where he originated corporate
finance and risk management transactions for specialized industry
groups.
-- Brett Lauter comes to Outpost.com as Director of Customer Relationship
Marketing. Formerly with First Union Bank, Mr. Lauter served for the
last 10 years in numerous senior roles developing and managing customer
satisfaction and retention programs.
This experienced team will focus on the strategic areas of customer
experience, long-term customer relationships, market development and
branding and new business opportunities.
Outpost.com Announces TruePrice Policy
Outpost.com launched its TruePrice policy, providing free overnight delivery
to customers in the United States and expanded its Customer Service Center
to accept calls 24 hours a day, Monday 8:00 a.m. through Saturday 5:00 p.m.
Eastern Time. These new initiatives add value, increase service levels for the
customer and end the shipping-cost confusion that can be associated with
ordering products online.
Outpost.com Launches Second Phase of its Advertising Campaign
Outpost.com launched the latest wave of its advertising campaign with new
radio and television commercials. Television advertisements ran on all of the
major broadcast networks in top markets including New York, Los Angeles
and San Francisco, as well as nationally broadcast cable networks. Radio
commercials aired in select nationally syndicated programming including the
Howard Stern Show and Imus in the Morning.
Affiliate Network Expands to 64,000
The Company's Affiliate Network more than doubled during the quarter. The
Outpost.com Affiliate Network currently boasts a membership of nearly
64,000, up from 25,000 in February. The Outpost.com Affiliate Network
features an innovative model for commissions in which affiliates can choose
to receive their commission in cash or in a store credit that is redeemable
towards the purchase of the more than 160,000 computer products available
at Outpost.com.
About Cyberian Outpost, Inc.
A leader in global e-commerce since 1995, Cyberian Outpost (Nasdaq:
COOL - news), operates the Outpost.com Internet superstore for computer
products from its Web site at outpost.com, 24 hours a day, seven
days a week. Outpost.com provides consumers and small office purchasers of
computer products superior selection, quick and easy search capabilities, and
product information on over 160,000 hardware, software, and peripheral
products. With a safe and secure credit card payment system, fast and direct
international shipping, Outpost.com offers exceptional value and service to
its customers worldwide.
This release may contain forward-looking statements that are subject to
certain risks and uncertainties. Such statements are based on management's
current expectations and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those described in the
forward-looking statements, especially when measured on a quarterly basis.
The Company cautions investors that there can be no assurance that actual
results or business conditions will not differ materially from those projected
or suggested in such forward-looking statements as a result of various factors,
including, but not limited to, the following: (i) our early stage of
development, (ii) competition, (iii) our ability to expand internationally, (iv)
uncertainty regarding the continued growth of the Internet and online
commerce, (v) uncertainty regarding governmental regulation and (vi)
reliance on strategic alliances.
Cyberian Outpost, Inc.
Balance Sheet
(In thousands)
May 31, Feb 28,
1999 1999
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 21,240 $ 26,828
Short term investments 25,848 28,735
Accounts receivable, less allowance for
doubtful accounts of $189 as of
May 31, 1999 and $212 as of
February 28, 1999 3,054 3,441
Inventories 6,352 5,750
Prepaid expenses and other
current assets 853 365
Total current assets 57,347 65,119
Property and equipment, net 8,073 5,937
Other assets 400 408
Total assets $ 65,820 $ 71,464
Liabilities and Stockholders' Equity
Current Liabilities:
Current portion of capital lease
obligations $ 505 $ 501
Accounts payable 9,896 8,985
Accrued expenses 4,969 2,779
Total current liabilities 15,370 12,265
Capital lease obligations, excluding
current portion 810 778
Total liabilities 16,180 13,043
Stockholders' equity:
Common stock 230 230
Additional paid-in-capital 92,449 92,319
Accumulated other comprehensive loss (162) (106)
Accumulated deficit (42,877) (34,022)
Total stockholders' equity 49,640 58,421
Total liabilities and stockholders'
equity $ 65,820 $ 71,464
Cyberian Outpost, Inc.
Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
May 31,
1999 1998
Net sales $ 32,680 $ 11,562
Cost of sales 29,267 10,520
Gross profit 3,413 1,042
Operating expenses:
Sales and marketing 9,433 4,009
General and administrative 2,059 722
Technology and development 1,448 596
Total operating expenses 12,940 5,327
Operating loss (9,527) (4,285)
Other income (expense), net 672 129
Net loss $ (8,855) $ (4,156)
Accretion of premium on
preferred stock -- (120)
Dividends applicable to
preferred stockholders -- (356)
Net loss applicable to
common stockholders $ (8,855) $ (4,632)
Basic and diluted net loss
per common share $ (0.38) $ (0.69)
Weighted average basic and
diluted common shares
outstanding 23,024 6,680
Pro forma basic and diluted
net loss per common share(1) $(0.38) $ (0.25)
Pro forma weighted average
basic and diluted common
shares outstanding(1) 23,024 16,849
(1) Pro forma net loss per share has been computed under SFAS No. 128,
except that it reflects the conversion of the Convertible Stock as of the
beginning of the earliest period presented or date of issuance, whichever
is later. Therefore, the pro forma net loss per share does not include
the accretion of or dividends on the Series C Redeemable Convertible
Preferred Stock. The pro forma weighted average shares outstanding
includes the common stock resulting from the conversion of the Convertible
Stock as of the beginning of the earliest period presented or the date
of issuance, whichever is later.
SOURCE: Cyberian Outpost, Inc. |
