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<< Monday May 24, 5:14 pm Eastern Time
Company Press Release
SOURCE: Net Perceptions, Inc.
Net Perceptions, Inc. Reports First Quarter Revenue Up 183%
MINNEAPOLIS, May 24 /PRNewswire/ -- Net Perceptions, Inc. (Nasdaq: NETP - news) today announced its financial results for the first fiscal quarter ended March 31, 1999. Total revenues for the first quarter of 1999 increased 183 percent to approximately $1.9 million from revenues of approximately $670,000 for the same period in 1998. The net loss for the quarter ended March 31, 1999 was approximately $2.9 million compared to approximately $876,000 for the same period in 1998, including amortization of deferred stock compensation of $503,000 and $7,000 in the first quarters of 1999 and 1998, respectively. Pro forma basic and diluted net loss per share was $0.19 for the quarter ended March 31, 1999, compared to a net loss of $0.07 per share in the first quarter of 1998.
''We are very pleased with our overall performance in the first quarter,'' said Steven Snyder, president and chief executive officer. ''The results represent strong execution across all functions of the company as we continue to build our leadership position and momentum in the e-commerce personalization marketplace.''
During the first quarter, Net Perceptions continued to expand its client list, adding 17 new license customers, including Dean and Deluca, Micron Electronics and Virgin Megastore Online. This brings the total Net Perceptions customer base to more than 85 accounts worldwide. In addition, Net Perceptions entered into product distribution agreements with Futurelink Distribution Corporation, Media Serve, Inc. and Net Force, Inc.
''With two deployments of our technology in call centers during the quarter, we are beginning to provide real-time relationship marketing solutions to off-web customer touch-points,'' Snyder added. ''These implementations were complimented by new sales to two customers who plan to deploy our products both on the Internet and in call centers. We believe these transactions signal an early trend in real-time marketing, in which companies will seek to leverage data gathered from all customer interactions to deliver personalized service.''
Net Perceptions' customers continue to deploy innovative, real-time personalization applications. The following recent deployments are representative of the ability of Net Perceptions' products to act on knowledge in real-time to better serve customers:
-- SkyMall, Inc., initially deployed an application to
support its print catalog operations, a unique advertising vehicle that
extends SkyMall's reach to 68 percent of all domestic airline seat
pockets reaching over 410 million people each year. The application
integrates with SkyMall's order entry system to provide, via the call
center operator, personalized product offerings based on the callers
purchase history at the point of sale.
-- Electronics Boutique, a leading online video and PC game
store at www.ebworld.com, introduced "EB Recommends" to invite visitors
to quickly find products of interest through its "Shopping Advisor".
"Shopping Advisor" asks visitors to enter up to three of their favorite
titles and based on these preferences delivers a personalized list of
titles based on the visitors' tastes. Additionally, when site visitors
click on a product for more information, the product detail page has
further recommendations of other items that may be of interest to the
visitors.
-- ShopNow.com Inc., a leading e-commerce direct-marketing and outsource
company, introduced a shopping cart application on several of its
sites. The application leverages the contents of a visitor's shopping
cart to recommend additional items for purchase.
About Net Perceptions
Net Perceptions is a leading worldwide supplier of real-time relationship marketing solutions that enable Internet retailers to market to customers on a personalized one-to-one basis. Net Perceptions solutions can increase new and repeat business by learning more about each customer's individual needs, tastes and preferences with every interaction, then making increasingly personalized product and service recommendations.
On April 23, 1999, Net Perceptions, Inc. completed an initial public offering, selling 3,650,000 shares of common stock at a price of $14 per share, raising a total of $47,523,000 in net proceeds after payment of estimated offering expenses. On May 20, 1999, Net Perception's investment bankers exercised the over-allotment of 547,000 shares, which will generate more than $7 million of additional capital. Concurrent with the closing of the initial public offering, all outstanding shares of preferred stock were converted into common stock. Pro forma net loss per share figures presented above have therefore been presented to reflect all preferred shares as if they were converted to common shares at the time of issuance. The accompanying balance sheet as of March 31, 1999 does not reflect the net proceeds of the company's initial public offering.
Founded in 1996, Net Perceptions, Inc., has headquarters in Minneapolis and operates additional offices in New York, San Francisco and London. Net Perceptions' common stock trades on the Nasdaq Stock Market(sm) under the symbol NETP. Net Perceptions can be reached at (612) 903-9424 or at netperceptions.com.
Net Perceptions is a registered trademark of Net Perceptions, Inc. All other names are the properties of their respective companies.
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Net Perceptions, Inc.'s business, which are not historical facts, are ''forward-looking statements'' that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ''Risk Factors'' in the Company's Registration Statement on Form S-1, filed on April 23, 1999 with the Securities and Exchange Commission.
NET PERCEPTIONS, INC.
Condensed Balanced Sheet
(in thousands)
March 31, December 31,
1999 1998
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $2,331 $972
Accounts receivable, net 4,275 3,382
Prepaid expenses and other current assets 346 142
Deferred offering costs 700 --
Total current assets 7,652 4,496
Property and equipment, net 1,503 1,019
Other assets 116 122
Total assets $9,271 $5,637
Liabilities, Convertible Redeemable
Preferred Stock and Stockholders' Equity
Current Liabilities:
Convertible note payable $4,000 $--
Accounts payable and accrued expenses 3,162 1,666
Deferred revenue 2,547 2,107
Current portion of capital lease obligations 253 255
Total current liabilities 9,962 4,028
Long-term Liabilities:
Capital lease obligations, net of current portion 479 538
Deferred rent 109 --
Total liabilities $10,550 $4,566
Commitments and contingencies
Series A Convertible Redeemable
Preferred Stock at redemption value 650 650
Stockholders' Equity:
Series B Convertible Preferred Stock -- --
Series C Convertible Preferred Stock -- --
Common Stock 1 1
Additional paid-in capital 11,663 11,137
Accumulated deficit (13,593) (10,717)
Total stockholders' equity (1,929) 421
Total liabilities and stockholders' equity $9,271 $5,637
NET PERCEPTIONS, INC.
Condensed Statement of Operations
(in thousands, except share and per share amounts)
Three Months Three Months
Ended Ended
March 31, March 31,
1999 1998
(Unaudited) (Unaudited)
Revenues:
Product $1,561 $617
Service and maintenance 334 53
Total revenues 1,895 670
Cost of revenues:
Product 36 6
Service and maintenance 313 35
Total cost of revenues 349 41
Gross margin 1,546 629
Operating expenses:
Sales and marketing 1,737 932
Research and development 1,536 368
General and administrative 574 226
Stock compensation expense 503 7
Total operating expenses 4,350 1,533
Loss from operations (2,804) (904)
Other income (expense), net (72) 28
Net loss $(2,876) $(876)
Net loss per share:
Basic and diluted $(0.64) $(0.31)
Shares used in computing basic
and diluted net loss per share 4,518,784 2,839,996
Unaudited pro forma basic and diluted
net loss per share $(0.19) $(0.07)
Shares used in computing unaudited
pro forma basic and diluted
net loss per share 15,187,484 13,102,617
SOURCE: Net Perceptions, Inc.
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