I forgot all about CYCH since Monday...
COMTEX) B: CYBERCASH, INC. REPORTS RECORD REVENUES FOR FOURTH QUARTE
B: CYBERCASH, INC. REPORTS RECORD REVENUES FOR FOURTH QUARTER 1999 AND FULL
YEAR INTERNET TRANSACTIONS NEARLY TRIPLE IN QUARTER TO 22.6 Million from Year
Ago; Full-Year Transactions Rise to 57.4 Million Base of Online
Merchant-Customers More Than Doubles In 1999 to Nearly 20,000
RESTON, Va., Jan 27, 2000 /PRNewswire via COMTEX/ -- CyberCash, Inc.
(Nasdaq: CYCH), the world's leading provider of Internet payment
services and electronic payment technologies, announced today that
revenues for the year ended December 31, 1999, rose to a record $20.3
million as the company continued to build upon its position as the top
provider of electronic-payment products and services to both Internet
merchants and traditional retailers, many of whom will eventually move
into the online world.
Revenues for the fourth quarter of 1999 rose to a record $6.3 million,
which represents a 43% increase over 1998's fourth quarter revenues of
$4.4 million and a 24% increase over the third quarter of 1999. In the
company's Internet services business, fourth quarter revenues rose 73%
to $2.4 million from the same period a year ago. For the company's
payment software business, which provides electronic-payment software
to retailers not yet online, fourth quarter revenues rose 17% to $3.1
million from the year-earlier period. Customization services accounted
for the remaining $800,000 of fourth quarter revenues. CyberCash's
full-year revenues of $20.3 million represented an increase of 61% from
$12.6 million in 1998.
CyberCash reported a fourth quarter 1999 loss, excluding a one-time
restructuring charge of $775,000 related to a strategic workforce
reduction, of $0.39 a share. This compares favorably to the First Call
consensus estimate for a loss of $0.44 a share. For the fourth quarter
of 1999, CyberCash's net loss including the charge was $10.1 million,
or $0.42 a share, compared with a net loss of $8.0 million, or $0.46 a
share, in the same period a year ago. The net loss for full-year 1999
was $43.1 million, or $2.02 per share, compared with $30.9 million, or
$2.15 a share, in 1998.
James J. Condon, President and Chief Executive Officer, said: "In 1999,
CyberCash continued to provide the very best in Internet and
electronic- payment products and services to one of the world's largest
merchant bases. Our CashRegister Internet payment service processed an
industry-leading 57 million transactions in 1999. And our payment
software business provided a superior platform to a huge base of
retailers -- a platform that can seamlessly allow them to enter the
e-tailing world. We are committed to the creation of shareholder value
through a clear focus on financial performance, superior technology and
world-class execution."
Added Condon: "CyberCash's 1999 was a year of progress as much as
promise, as our third- and fourth-quarter results exceeded even our own
expectations. Key relationships with IBM and Concentric helped build
our CashRegister Internet service business. The acquisition of Tellan
Software brought the ability to expand the product offerings in our
payment software business. And we filled out our management team with a
group of seasoned and talented executives in finance, marketing and
operations. With this team in place, and with the technology,
infrastructure, relationships and brand equity we have built, CyberCash
is uniquely positioned to take full advantage of the explosion in
online transactions that is expected to take place over the next few
years."
Key Metrics
Some key growth metrics from 1999:
* Internet service transactions increased 197% to a record 22.6 million
in the fourth quarter, a sequential increase of 54% from the third
quarter of 1999.
* For the full year, the company processed 57.4 million transactions, up
from 29.6 million in 1998.
* CashRegister Internet service revenues rose 110% for the full year.
* CyberCash's Internet merchant base more than doubled to 19,400 by
year-end 1999, from 9,200 at the end of 1998.
* We are now providing payment services to an increasing number of large,
well-known Internet merchants including Toysrus.com, McAfee.com,
DVDExpress.com and SmarterKids.com.
* CyberCash's leading payment software products have been shipped to more
than 130,000 merchants, by far the largest installed base in the
industry.
* Software revenues increased 65% for full-year 1999.
Dennis N. Cavender, Chief Financial Officer, said: "CyberCash's
fundamental business metrics continue to improve as we move into the
year 2000. Our goals are to grow revenues even faster, continue to
improve gross margins and gain additional cost efficiencies. The growth
rate of CyberCash's Internet services suggests a bright future for this
business as e-retailing becomes a mass-market phenomenon, and our
payment software business continues to expand at an impressive rate and
represent a powerful cash producer for the company as a whole."
CyberCash is rescinding its shelf registration on file with the
Securities and Exchange Commission due to its strong cash position
going into the new year, and does not anticipate the need to raise
additional funds for working capital.
Internet Services The CashRegister Internet service business took a
number of steps forward in 1999 that will allow it to take full
advantage of the explosion in online transactions expected in the first
half of this decade. Not only is CyberCash the largest provider of
Internet payment services, it pioneered this space and has one of the
largest merchant bases in the industry.
CyberCash announced in November that the CashRegister Internet service
would be featured in Concentric Network Corporation's e-commerce retail
packages, which are available at Staples superstores nationwide.
Concentric is an industry leader in offering small- and medium-sized
merchants the tools to succeed in e-commerce, and CyberCash considers
this partnership to be an extremely valuable and profitable endeavor
going forward.
Also in November, CyberCash announced an extension of its relationship
with IBM to offer the CashRegister service to medium-sized enterprises
through IBM's WebSphere Payment Manager. This will allow for the secure
Internet processing of credit cards by WebSphere, and represents yet
another important brand-name alliance for CyberCash.
In the important growth area of Internet payment processing, earlier in
the year CyberCash announced an alliance to offer HNC Software, Inc.'s
state-of-the-art eFalcon Internet fraud detection service to its entire
base of Internet merchants. HNC is the leading provider of online fraud
protection software, and with the HNC partnership CyberCash will be
able to make its industry leading Internet payment service an even more
complete solution for online retailers and those who are contemplating
the move online.
Other 1999 innovations in CyberCash's Internet service business
included the incorporation of its innovative InstaBuy one-click
shopping service as an integral part of the CashRegister service, an
alliance with Compaq Computer Corporation to include CyberCash's
solutions across current and future e-commerce offerings, and an
alliance with EarthLink to provide payment services for its electronic
commerce offering, TotalCommerce.
Payment Software CyberCash's payment software business also made great
strides during the quarter. With the largest installed base in the
industry, CyberCash's ICVERIFY family of products has become the
preferred choice of merchants looking to take greater control of their
electronic transaction processing. It also provides a single platform
for those retailers that plan to move online and transition to
CyberCash's Internet service.
In June, CyberCash announced the acquisition of Tellan Software, Inc.,
consolidating CyberCash's dominance in the electronic payment software
market. Tellan produces payment-processing software for Internet
commerce, as well as global enterprises that want to consolidate
disparate payment applications into a central platform. Tellan's
leading brands include MacAuthorize, PCAuthorize and WebAuthorize, and
by combining the best of both companies' software, CyberCash intends to
extend its lead as producer of the world's most highly functional and
reliable way to make electronic payments.
About CyberCash CyberCash, Inc., the world's leading provider of
Internet payment services and electronic payment technologies, is a
pioneer in payment software and solutions spanning both the e-commerce
and physical world markets. CyberCash today has more than 20,000
Internet merchant customers, over 130,000 physical world software
products shipped and solutions that are delivered as either software or
services. CyberCash offers the broadest reach in the payment industry
with a comprehensive distribution network that includes direct selling
as well as marketing partnerships with financial institutions, Internet
service providers, application service providers and storefront
solution providers.
This press release contains statements that are forward looking. They
are based on the Company's current expectations, and are subject to a
number of uncertainties and risks. The Company's actual results may
differ materially. The uncertainties and risks include the pace of
growth of Internet commerce, the development by the Company and its
competitors of new products and services, the integration by CyberCash
of its different product and service offerings, strategic decisions by
major participants in the industry, competitive pricing pressures,
legal and regulatory developments and general economic conditions.
Further information about these and other relevant risks and
uncertainties may be found in the Company's annual report on Form 10-K
and its other filings with the Securities and Exchange Commission, all
of which are available from the Commission and from the Company's
worldwide Web site cybercash.com, as well as other sources.
To receive CyberCash's latest news and corporate developments, visit
the company's Web site at cybercash.com .
CyberCash is a trademark, and Agile Wallet, ICVERIFY, MacAuthorize,
WebAuthorize and PCAuthorize are registered trademarks of CyberCash,
Inc. WebSphere is a trademark of International Business Machines
Corporation, eFalcon is a trademark of HNC Software, Inc., and
TotalCommerce is a trademark of EarthLink Network, Inc.
Revenue and Merchant Statistics
Quarter Ended
December 31, September 30, December 31,
1999 1999 1998
Internet service revenues 38% 36% 30%
Software product revenues 49% 58% 60%
Customization services 13% 6% 10%
Online Merchants 19,400 15,900 9,200
Average daily Cash Register
transaction volume 250,000 160,000 85,000
CYBERCASH, INC.
Consolidated Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $6,262,426 $4,417,982 $20,254,075 $12,587,603
Less: returns 97,575 113,388 473,634 312,045
Net revenues 6,164,851 4,304,594 19,780,441 12,275,558
Cost of revenues 3,474,869 2,235,488 11,697,431 7,517,061
Gross profit 2,689,982 2,069,106 8,083,010 4,758,497
Costs and expenses:
Research and
development 2,696,038 2,803,956 10,543,457 9,065,841
Sales and marketing 4,953,918 3,308,141 22,649,914 14,651,584
General and
administrative 2,247,568 2,115,204 8,440,836 7,026,469
Amortization of
intangibles 2,369,303 1,936,521 8,476,813 5,164,056
Restructuring charge 774,992 -- 774,992 608,755
Loss from
operations (10,351,837) (8,094,716) (42,803,002) (31,758,208)
Interest and other
income, net 276,085 158,706 671,497 915,040
Loss from investments
in affiliates -- (101,280) (1,000,000) (101,280)
Net loss $(10,075,752) $(8,037,290) $(43,131,505) $(30,944,448)
Net loss available
to stockholders $(10,075,752) $(8,164,466) $(43,131,505) $(31,667,512)
Net loss per share $(0.42) $(0.46) $(2.02) $(2.15)
Weighted average
shares outstanding 23,779,272 17,616,282 21,396,537 14,707,723
CYBERCASH, INC.
Consolidated Balance Sheets
December 31, 1999 December 31, 1998
Cash and cash equivalents $18,176,010 $10,902,532
Accounts receivable, net 3,394,091 4,661,574
Other assets 9,843,022 3,536,888
Property and equipment, net 9,965,802 9,050,162
Goodwill and intangibles, net 67,326,739 65,173,315
Total assets $108,705,664 $93,324,471
Liabilities $ 6,516,070 $ 5,730,266
Stockholders' equity 102,189,594 87,594,205
Total liabilities and
stockholders' equity $108,705,664 $93,324,471
CONTACTS: CYBERCASH, INC. ROBINSON, LERER & MONTGOMERY
Dennis N. Cavender Farrell Kramer
Chief Financial Officer 212-484-7474
703-453-1119
SOURCE CyberCash, Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: Dennis N. Cavender, Chief Financial Officer of Cybercash, Inc.,
703-453-1119; or Farrell Kramer of Robinson, Lerer &
Montgomery, 212-484-7474,
for CyberCash, Inc.
WEB PAGE: cybercash.com |
