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Record Sales and Strong New Customer Growth
Reinforce SmarterKids.com's Leadership in Online
Educational Category
Company Leads Online Industry in Customer Satisfaction and Achieves Q4 Net Sales of $4.3
Million
NEEDHAM, Mass.--(BUSINESS WIRE)--Jan. 13, 2000-- Continuously Ranked #1 Educational Site
SmarterKids.com (NASDAQ: SKDS - news), the leading online educational store and resource for parents, today announced
net sales for the fourth quarter ended December 31, 1999, totaled approximately $4.3 million (unaudited), almost six times the
$721,000 generated in the quarter ended September 30, 1999.
SmarterKids.com empowers parents to help their children learn and develop by providing resources, content and product
recommendations personalized for each child. Parents can create learning profiles of their children that are then matched to
products based on each child's individual academic needs and goals. All products are extensively evaluated by the Company's
team of teachers for the skill area and learning style addressed, as well as the educational approach and play value of each item.
Other highlights from the fourth quarter include:
The site's number of cumulative unique customers increased over 165% during the fourth quarter to approximately
160,000, up from 60,000 in September 1999.
The number of children's learning profiles registered at the site increased to 100,000 by the end of 1999 from 40,000 in
September 1999, representing a 150% increase.
Over 99% of the Company's orders were shipped in time to meet holiday deadlines - including orders placed on
December 23rd.
According to Media Metrix, SmarterKids.com is the leading educational shopping site and was recognized as one of the
top e-commerce gainers, increasing average unique visitors by over 140% for the three weeks prior to December 19th.
The site is the overall #1 educational toy site according to Gomez Advisors' Fall 1999 and Winter 1999 Internet
Scorecards.
The site has also been ranked the #1 educational site according to PC Data and is #15 in PC Data's top 40 e-tail sites
for December 1999.
SmarterKids.com was recognized as one of the top three winners of eConvergent's Customer Satisfaction Contest this
holiday season. Other winners included Amazon.com (NASDAQ: AMZN - news) and Buy.com.
David Blohm, chief executive officer, commented, ``We are extremely pleased with the record sales results achieved in the
fourth quarter, especially as SmarterKids.com has emerged as the pioneer in the online children's education sector.
SmarterKids.com's outstanding senior management prepared the Company for the tremendous growth and success we
experienced in the fourth quarter. Our ability to deliver over 99% of our packages by December 24th has help us build
customer loyalty as we enter into a new century of higher standards for online retailers.'
Mr. Blohm concluded, ``The strong momentum we are experiencing clearly highlights our ongoing success in responding to the
individualized scholastic needs of children. The dramatic growth in the number of registered learning profiles indicates parents
trust us to keep records of their child's learning needs and goals. This is a testament to the Company's mission -- being the clear
leader in the online education sector. Going forward, we believe that our broad assortment of academic products and services,
coupled with our solid infrastructure and fulfillment capabilities, will continue to enhance our position.'
About SmarterKids.com
SmarterKids.com, Inc., (NASDAQ: SKDS - news) the leading educational store on the Web, is dedicated to helping parents
instill a love of learning in their children. The site features award-winning content in the ``Parents Center' and a personalized
shopping experience, linking selected toys, games, books, software, and hands-on activities to each child's learning profile.
Through SmarterKids.com's patent-pending evaluation and recommendation process, the site offers thousands of
teacher-approved and kid-tested educational products and services for children ages toddler through 14, including both
well-known brands and hard-to-find quality offerings. SmarterKids.com is headquartered in Needham, Mass.
SmarterKids.com has partnerships with leading educational and Internet companies including: Yahoo (NASDAQ: YHOO -
news), Microsoft Encarta (NASDAQ: MSFT - news), iVillage (NASDAQ: IVIL - news), Disney (NYSE: DIS - news),
Children's Television Workshop, Lightspan Partnership, National Computer Systems (NASDAQ: NLCS - news), Princeton
Review's Homeroom.com and J.L. Hammett.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities
Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements,
including, without limitation, statements regarding current or future financial performance, management's plans and objectives for
future operations, product offerings and services, management's assessment of market factors, as well as statements regarding
the strategy and plans of the Company and its partners, constitute forward-looking statements which involve risks and
uncertainties. Actual results could differ materially from the forward-looking statements. Risks and uncertainties which could
cause actual results to differ include, without limitation, risks and uncertainties associated with a limited operating history under a
new business model, the ability to achieve profitability, the funding of ongoing operations, the fluctuation of operating results, the
ability to meet consumer demand, securing quality merchandise on acceptable commercial terms, management of growth,
introduction and market acceptance of new product offerings and services, reliance on a sole distribution service provider, J.L.
Hammett Co., and a delivery service provider, United Parcel Services, competition, dependence on proprietary technology,
downturns in economic conditions, generally and in the market for on-line retail products, year 2000 problems, development of
the Internet infrastructure and legal uncertainties concerning the Internet. For a more detailed description of the risk factors
associated with the Company, please refer to the Company's prospectus dated November 23, 1999, on file with the Securities
and Exchange Commission. |
