Nice call.
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Register.com, Inc. (ticker: RCOM, exchange: NASDAQ) News Release - 1-May-2001
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Register.com Reports Cash EPS of $0.13 for First Quarter 2001 on Revenue Growth of 148%
NEW YORK--(BUSINESS WIRE)--May 1, 2001--Register.com, Inc. (Nasdaq: RCOM), a leading Internet domain name registrar, today reported that net income for the first quarter 2001 totaled approximately $2.0 million or $0.04 per share, versus a net loss of $991,000 or ($0.04) per share in the first quarter of 2000.
First quarter 2001 cash earnings, or net income excluding amortization of goodwill related to acquisitions, totaled $5.8 million or $0.13 per share. Net revenues for the period were $30.7 million, compared to net revenues of $12.4 million for the comparable year-ago period, an increase of 148%.
Register.com finished the first quarter 2001 with over $178 million in cash and cash equivalents, short-term investments and available-for-sale securities on its balance sheet. The Company has no debt. Cash flow from operations for the three months ended March 31, 2001 was $4.7 million. First quarter gross margins remained constant at approximately 72%.
"We are pleased to report our second consecutive profitable quarter and our 13th consecutive quarter of revenue growth," said Richard D. Forman, President and Chief Executive Officer of Register.com. "Profitability remains a key focus, as well as continuing to attract high quality registrants through our value-added offerings. Our results show that we are trending positively in both directions. We are excited about the anticipated introduction of new top level domains in the second half of the year and look forward to our added role as a participant in the .pro and .info registries."
The Company registered, transferred and renewed approximately 565,000 domain names in the first quarter of 2001. Approximately 95% of the first quarter registration units were registered through traditional Register.com channels, up from 68% in the prior quarter, indicating the increased quality of the Company's registrations. The balance of the quarter's registrations was registered via the company's NameBargain brand. The registrations for the quarter were comprised of approximately 377,000 new registrations and 188,000 renewals. As of March 31, 2001, Register.com had approximately 3.6 million domain names under management, up from approximately 3.4 million in at the end of 2000.
Of the total registration sales for the first quarter 2001, 83% were purchased through www.register.com, 7% via Corporate Services, 9% through the Company's Global Partner Network and 1% via NameBargain.
Register.com announced the following significant developments in the first quarter:
In March, Register.com introduced a service to help customers request .pro, .info, .biz and .name domains prior to their anticipated launch, directly from the Register.com home page, as well as through the Register.com Global Partner Network.
Register.com enhanced its customer service capabilities with the opening of a new Canadian customer support center, which is also expected to yield considerable cost savings and efficiencies to the Company.
In an alliance with a leading .ca registrar, Register.com became the first non-Canadian company to offer real-time domain registrations with the restricted .ca extension.
Register.com recently became the first U.S. registrar to offer real-time German country code .de domain registrations in the world's most popular country code domain.
Register.com launched multilingual domain registration services enabling real-time registrations in all the character sets supported by the registry, including, European, Middle Eastern, Indian and specialized Asian languages.
Rene Mathis was named Chief Financial Officer, responsible for the Company's financial operations. Mr. Mathis brings over 20 years of senior financial experience.
Conference Call Information:
Register.com will host a conference call at 5:30 p.m. (EDT) this evening to review the first quarter earnings announcement. A live broadcast will be available at investor.register.com and www.streetevents.com. A replay of the call will also be available on the sites and can be accessed two hours after the call's start time.
About Register.com
Register.com, Inc. (www.register.com) provides domain name registration and other Internet services for individuals and businesses that wish to have a unique address and a branded identity on the Internet. The first registrar to compete in the domain registration market after its deregulation in 1999, Register.com has processed over 3 million registrations across over 240 top-level domains.
Through the company's Global Partner Network, Register.com also provides telcos, ISPs and other online businesses and communities with the ability to offer, brand and manage their own unique version of the Register.com domain registration and Web site creation services. Register.com was named among the Top 100 Web Sites by PC Magazine in March, 2001. The company was founded in 1994 and is based in New York.
Statements in this announcement other than historical data and information constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, uncertainty of future revenue and profitability, uncertainty regarding the introduction of new top level domains and the functionality of multilingual domain names, increasing competition across all segments of the domain name registration business, customer acceptance of new products and services offered by the company in addition to or as enhancements of its registration services, uncertainty of regulation related to the domain registration business and the Internet generally and the rate of growth of the Internet and online commerce, and other factors detailed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2000.
This announcement includes information regarding our cash earnings per share because we believe that it is a useful measure of our financial performance. However, cash earnings per share is not a measure of financial performance under generally accepted accounting principles and other companies may calculate cash earnings per share differently from the way that we do. You should not consider cash earnings per share as an alternative to net income (loss) as an indicator of our operating performance. Our company policy is to provide our expectations only once per quarter, and not to update that information until the next quarter.
Register.com, Inc.
Consolidated Statement of Operations
(Unaudited)
For the three months ended March 31,
2000 2001
Net revenues $ 12,417,870 $ 30,659,637
Cost of revenues 4,101,011 8,451,170
Gross Profit 8,316,859 22,208,467
Operating costs and
expenses
Sales and marketing 7,173,206 8,210,041
Research & development 717,768 1,986,167
General & administrative
(includes non-cash
compensation of
$831,773 and $424,371,
respectively) 2,529,794 4,343,034
Non-cash compensation
Amortization of goodwill
and other intangibles - 3,882,319
Total operating costs
and expenses 10,420,768 18,421,561
Income (loss) from operations (2,103,909) 3,786,906
Other income (expenses), net 1,113,017 2,475,209
(Loss) income before provision
for income taxes (990,892) 6,262,115
Provision for income taxes - (4,311,550)
Net income (loss) $ (990,892) $ 1,950,565
Basic earnings (loss)
per share $ (0.04) $ 0.05
Weighted average shares
used in basic earnings
(loss) per share 24,180,105 36,896,280
Diluted net income (loss)
per share $ (0.04) $ 0.04
Weighted average shares
used in diluted earnings
(loss) per share 24,180,105 43,466,795
Register.com, Inc.
Consolidated Balance Sheet
December 31, March 31,
2000 2001
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 60,155,747 $ 46,524,182
Short-term investments 65,283,178 72,216,208
Accounts receivable, less
allowance of $1,748,824
and $1,012,402, respectively 6,596,089 8,590,530
Prepaid domain name
registry fees 16,855,163 16,429,397
Deferred tax asset 20,754,301 20,216,828
Prepaid income taxes 3,774,077 -
Other current assets 2,974,136 4,942,539
Total current assets 176,392,691 168,919,684
Fixed assets, net 9,371,754 9,063,715
Prepaid domain name
registry fees, net of
current portion 4,423,227 4,271,860
Other investments 600,000 750,000
Available-for-sale securities 47,980,150 59,599,613
Goodwill and other
intangibles, net 53,848,813 49,966,494
Total assets $ 292,616,635 292,571,366
Liabilities and Stockholders'
Equity
Current Liabilities
Accounts payable and accrued
expenses $ 13,502,152 $ 12,628,037
Deferred revenue, net 69,026,927 67,035,431
Other current liabilities 1,703,767 2,351,929
Total current liabilities 84,232,846 82,015,397
Deferred revenue, net of
current portion 19,489,288 18,413,141
Total Liabilities 103,722,134 100,428,538
Commitments and contingencies
Stockholders' equity
Preferred stock--$.0001 par
value, 5,000,000 shares
authorized; Series A
convertible preferred;
4,694,333 issued and
outstanding at December 31,
1999 and none issued and
outstanding at
December 31, 2000 - -
Common stock--$.0001 par
value, 200,000,000 shares
authorized; 21,065,047
issued and outstanding at
December 31, 1999 and
36,823,281 issued and
outstanding at
December 31, 2000 3,682 3,701
Additional paid-in capital 204,676,750 204,781,120
Unearned compensation (4,287,988) (3,863,616)
Unrealized gain in marketable
securities 384,020 1,153,021
Accumulated deficit (11,881,963) (9,931,398)
Total stockholders' equity 188,894,501 192,142,828
Total liabilities and
stockholders' equity $ 292,616,635 $ 292,571,366
--30--jeh/ny* ad/ny*
CONTACT: Register.com, Inc., New York
Investor Relations:
Stephanie Marks, 212/798-9169
smarks@register.com
Public Relations:
Shonna Keogan, 212/798-9149
skeogan@register.com |
