Vicinity Corporation Announces Strong Second Quarter Results
jx>yx NT) vicinity.com, a leading provider of Internet-based
marketing infrastructure services, today reported financial results for its
fiscal second quarter and the six months ended January 31, 2000.
Revenue for the second quarter of fiscal 2000 was $3.3 million compared with
$1.4 million for the second quarter of fiscal 1999, an increase of 133 percent.
Revenue for the quarter increased 31 percent, from $2.5 million in the first
quarter of fiscal 2000. For the second quarter of fiscal 2000, gross profit
increased to 38 percent, compared to gross profit of 36 percent for the same
quarter of the previous year. Gross profit increased 2 percentage points,
sequentially. Net loss applicable to common stockholders for the quarter was
$4.1 million, or $0.70 loss per share compared to a net loss of $1.1 million or
$0.30 loss per share for the same period in 1999.
In the first six months of fiscal 2000, revenue was $5.8 million, up from $2.9
million in the same period a year ago, a 101 percent increase. Gross profit for
the first six months of fiscal 2000 was 38 percent at January 31, 2000, down one
point from the same period of the previous year. Net loss applicable to common
stockholders was $7.5 million, or $1.49 loss per share for the six-month period
ended January 31, 2000, compared to $1.9 million or $0.51 loss per share for the
same period in 1999.
Revenue growth in the second quarter of fiscal 2000 was driven by an increase in
licensing and hosting revenue as a result of new customer signings and current
customer renewals. Hosting revenue was up 20 percent on a quarter over quarter
basis. In addition, the company saw an increase in revenue from service and
transaction fees in the second quarter of fiscal 2000, which were 22 percent of
total revenue, an increase of 99 percent sequentially.
"Our impressive growth this quarter provides further evidence that traditional
retailers recognize that Vicinity provides a critical marketing solution that
helps drive consumers from their Web sites into their brick and mortar stores,"
said Emerick Woods, Vicinity's CEO and president. "Vicinity's multiple platforms
and product offerings provide a seamless solution for the increasing number of
Global 2000 customers seeking a single source provider for their Internet-based
marketing efforts. Our customer base includes many of the world's leading brand
names -- all of whom appreciate the value we add to their marketing strategy."
Over the last year, Vicinity's customer base grew by more than 100 customers
from 197 customers in the second fiscal quarter of 1999 to 298 customers by
January 31, 2000. New customers added in the second fiscal quarter included
Reebok, Domino's and Best Buy. Vicinity also signed strategic partnerships with
AltaVista Shopping.com and Phone.com that will enhance the company's positioning
among leading Internet shopping portals and wireless technology innovators.
"We are extremely pleased with the growth in our U.S. customer base, but
particularly excited that we are expanding the number of international customers
who are embracing our solutions," said Emerick Woods. "In fiscal year 2000, we
have added nine international customers, including Starwood Hotels and Shell
International. Our services are now available in 14 countries and 10 languages."
On February 9, the company successfully completed its initial public offering,
which raised $126 million, net of underwriting commissions, through the sale of
approximately 8 million shares, including the full underwriter's over allotment
of common stock at a price of $17 per share.
About Vicinity
Vicinity Corporation is a leading provider of Internet-based infrastructure
marketing services for brand-name Global 2000 companies. The company's
click-and-mortar solutions, available in 14 countries and in 10 languages,
enable its approximately 300 customers to direct consumers searching for a
specific product or service to the nearest brick-and-mortar store that carries
that product or service. Vicinity's customers include FedEx, Ford, GM,
Hewlett-Packard, Hilton Hotels Corporation, Marriott, McDonald's, NEC, Pizza
Hut, Starbucks, Starwood Hotels, Taco Bell, Toyota, Levi Strauss & Co. and UPS.
Its suite of private-label and co-branded content and services -- available via
the Internet, cellular phones, WAP phones, wireless devices and landline
telephones -- includes Business Finder(SM), Telephone Business Finder(SM),
Wireless Business Finder(SM), BrandFinder(SM), SiteMaker(SM), MailMaker(SM),
MapBlast!(R) Mapping Services, and Business Directory.
Publicly traded on Nasdaq under the symbol VCNT, Vicinity's investors include
CMGI (Nasdaq: CMGI). The company's strategic alliances include Inktomi (Nasdaq:
INKT), and Palm Computing (Nasdaq: PALM) and it is a member of the Phone.com
(Nasdaq: PHCM) Alliance Program. Vicinity was established in 1995, is
headquartered in Palo Alto, Calif., and has an office in Lebanon, NH.
Vicinity(R) is a registered trademark of Vicinity Corporation.
Except for the historical information contained herein, the matters discussed in
this news release may contain forward-looking statements made under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. All
forward-looking statements involve risks and uncertainties. Vicinity
Corporation's actual results may differ materially from the results discussed in
the forward-looking statements. Similarly, factors that might cause such a
difference include, but are not limited to, those discussed in the Company's
final prospectus dated February 8, 2000, including the "Risk Factors" identified
therein, and the other information filed by the Company from time to time with
the Securities and Exchange Commission. These filings may be accessed in a
database maintained by the Securities and Exchange Commission at
sec.gov. |
