Great earnings report on NetPerceptions(NETP)...maybe now we'll get the respect we deserve on Wall Street......Thursday October 21, 6:00 pm Eastern Time
Company Press Release
SOURCE: Net Perceptions, Inc.
Net Perceptions, Inc. Reports Record Third Quarter
Results; Net Perceptions Solidifies Leadership Position in Personalization
Market
MINNEAPOLIS, Oct. 21 /PRNewswire/ -- Net Perceptions, Inc. (Nasdaq: NETP - news), the leading supplier of realtime
personalization solutions, today announced record revenues of $4.1 million for the third quarter ended September 30, 1999,
the 9th consecutive quarter of solid revenue growth.
Revenues were up 256% over the $1.2 million reported in the same period last year and 46% from the $2.8 million the
company reported in the second quarter. The company also reported a net loss for the quarter of $3.0 million, or $0.15 per
share, compared with a loss of $1.2 million for the same period in 1998. For the nine-month period, Net Perceptions reported
revenues of $8.8 million, up 213% over the $2.8 million reported in the first nine months of 1998. Losses for the first nine
months of 1999 totaled $9.0 million, compared with $3.1 million in the same period last year.
''Net Perceptions solidified its position as the market leader in one-to-one realtime personalization,'' said Steven Snyder, Net
Perceptions' president and chief executive officer. ''We gained tremendous traction in software sales, which rose more than
200% over the same period last year, and the investment we have made in consulting services began to pay off, resulting in
more than a 563% increase in revenues form this business segment over the same period last year.''
Other key Q3 highlights included 25 new licensed customers and, broadened distribution through both new channel and
strategic partners. Specifically:
Customer Base
Net Perceptions added 25 new licensed customers in the quarter. New E-commerce customers include the Carlson
Companies, a $22 billion private international hotel, restaurant and travel industry company headquartered in suburban
Minneapolis. Additionally, eTOYs has purchased Net Perceptions for E-commerce for use on its award-winning website.
Based in Santa Monica, Calif., eToys Inc. is one of the leading Internet retailers for children's products.
Other new E-commerce sites include Publisher's ClearingHouse, Follett Higher Education Group Inc., Sportsline.com and
Wine.com (formerly Virtual Vineyards). Procter & Gamble became the first Net Perceptions for Knowledge Management
customer; Follett Higher Education Group also purchased a license for Net Perceptions for Marketing Campaigns.
As of September 30, 1999, Net Perceptions customers totaled 138, making the company the leading provider of real-time
personalization solutions.
''Our strategy of leveraging our technology across multiple touchpoints is succeeding,'' Mr. Snyder said. ''In addition to our
category-leading presence in the Internet, we are establishing a significant footprint in markets that span catalogue marketing,
cross-platform 'clicks and mortar' businesses, email, and the all-new market of Knowledge Management in corporations. We
are in an excellent position with products, services and expertise to dominate the personalization category of these
tremendously large markets.''
New Products and Intellectual Property
Net Perceptions has announced three new products since the beginning of the third quarter: Net Perceptions for Marketing
Campaigns, Net Perceptions for Knowledge Management and the Net Perceptions Recommendation Engine as an embedded
OEM solution. The Net Perceptions for Marketing Campaigns and Net Perceptions for Knowledge Management products
deliver on the company's plan to leverage its technology into new Internet-related applications as well as new markets
altogether.
''We believe these new product offerings give us the broadest offering of personalization solutions in the industry,'' said Mr.
Snyder. ''Our Net Perceptions for Marketing Campaigns is the first realtime personalization technology directed at the massive
email market. As consumers become more attuned to email communication, but also more selective with respect to the emails
they're willing to read, Net Perceptions for Marketing Campaigns is meant to ensure that the email a consumer receives from a
retailer is specifically tailored to that individual's tastes and needs.''
Net Perceptions for Knowledge Management is the company's first product designed to leverage its core technology into an
entirely new market. The product targets Fortune 1000 companies with a solution that helps customers capture both the explicit
and the implicit knowledge accumulated in an organization.
''With this new product, our customers will be able to transform their virtual library into a resource that also captures the
collective knowledge of the organization,'' said Mr. Snyder. ''This product actually captures the experience workers have with
documents, and then passes that information -- all through a corporate intranet -- onto workers undertaking similar endeavors.''
Finally, the company introduced its core recommendation platform as a stand-alone product with enhanced features that include
a 10-millisecond response time, further performance improvements on the NT platform and significant advances in allowing
merchandiser control over recommendations.
During the quarter, Net Perceptions filed four new patents meant to protect the franchise that in the Company's view
distinguishes Net Perceptions as the undisputed leader in the personalization category. In the broadest sense, the company filed
patents to protect key aspects of Net Perceptions' marketing campaigns product as well as features that make its core
recommendation engine a unique offering in the personalization market.
Broadened Distribution
Net Perceptions, Inc. began to capitalize on its investment in additional personnel and leadership in the development of channel
and strategic partnerships. Under the leadership of George Nader, who was promoted in the second quarter to Vice President
in charge of accelerating the development of our channel and strategic partners, Net Perceptions added six new customers as a
result of its relationships with partners. Several of these opportunities were facilitated through relationships with Oracle Corp.
and Pandesic LLC, a joint venture between Intel Corp. and SAP.
During the quarter, for example, Net Perceptions began shipping its Windows NT API (Application Programmer's Interfaces)
integration with Oracle's iStore/iMarketing product. Subsequent to quarter end, the company also closed an OEM transaction
with Interleaf, Inc.), a Waltham, Mass.-based company that provides software solutions for publishing complex documents
across the extended enterprise. The company also launched three new live sites through partnerships with systems integrators,
and strengthened its ties with Allaire and Open Market.
''This has been a gratifying quarter by any measure,'' Mr. Snyder said. ''We have moved forward with new products, and
continued to gain momentum in the marketplace, in our view firmly establishing Net Perceptions as the leader in realtime
personalization products.''
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