[0] Mail.com Q2'00 Revenue Surges 630% to a Record $15.0 Million; Again Surpasses Consensus Revenue and EPS Estimates.Business & Technology Editors NEW YORK--(BUSINESS WIRE)--July 25, 2000 Mail.com Wikipedia is not the place for advertisement or self-advertising. mail.com is a popular web based Email service that offers free and premium Email products, shopping mall and a customized toolbar that makes online navigation easier and fun. History Mail. , Inc. (Nasdaq: MAIL), a leading global provider of outsourced Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the messaging services, again reported record results for the second quarter of 2000. Revenues for the quarter ended June June: see month. 30, 2000 increased 630% to a record $15.0 million from $2.1 million in the comparable quarter a year ago. Revenues for the second quarter of 2000 rose 51% over first quarter revenues of $10.0 million. The Company exceeded consensus revenue estimates by 11%. For the quarter ended June 30, 2000, the Company reported a pro-forma net loss, which excludes certain non-operating and other non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , of $28.0 million, or $0.49 per share, beating consensus estimates of $0.52 per share. This compares to a pro-forma net loss of $7.4 million, or $0.36 per share, for the quarter ended June 30, 1999. Net loss attributable to common stockholders for the quarter ended June 30, 2000, including all non-operating and other non-cash charges, was $47.9 million, or $0.84 per share, compared to a net loss attributable to common stockholders of $22.5 million, or $1.09 per share, for the quarter ended June 30, 1999. Mail.com also reported that gross margin from its messaging business increased to 9%, up from 1% in the first quarter of 2000. "The outstanding revenue growth in this quarter underscores Mail.com's leadership position in the outsourced Internet messaging market. Revenues resulting from outsourced services to corporations, ISPs and Web sites accounted for 85% of our messaging revenue this quarter, up from 80% in the first quarter of 2000. During the quarter we expanded the range of our business service offerings, increased our already leading customer base and grew our revenues by 630%. Our sequential growth in revenues of over 50% was well ahead of our competitors. We also closed the quarter with $89 million in cash to fund our future growth," said Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. Gorman, Chairman and Chief Executive Officer. Revenues for the six months ended June 30, 2000 increased 670% to $25.0 million from $3.2 million in the comparable period in 1999. For the six months ended June 30, 2000, the Company reported a pro-forma net loss, which excludes certain non-operating and other non-cash charges, of $47.8 million, or $0.90 per share, compared to a pro-forma net loss of $13.7 million, or $0.74 per share, for the six months ended June 30, 1999. Net loss attributable to common stockholders for the six months ended June 30, 2000, including all non-operating and non-cash charges, was $90.4 million, or $1.70 per share, compared to a net loss attributable to common stockholders of $28.9 million, or $1.56 per share, for the six months ended June 30, 1999. As of June 30, 2000, Mail.com had established 17.7 million outsourced seats representing cumulative growth of 23% over March 31, 2000. Revenue per outsourced seat per month increased to $0.28 in the second quarter of 2000, from $0.26 in the first quarter of 2000. Cost per outsourced seat per month remained flat at $0.26 in both the second and first quarters of 2000. "In the business messaging market, we are seeing an increased market acceptance by corporations of outsourced messaging," said Gorman. "Companies are realizing that outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. is the solution to a more reliable, secure and capable communications platform. Building complex e-mail exchanges makes no more sense than a company building its own telephone exchanges. In the wake of the `ILOVEYOU' virus, we have seen a marked increase in demand for our industry-dominant virus scanning, spam E-mail that is not requested. Also known as "unsolicited commercial e-mail" (UCE), "unsolicited bulk e-mail" (UBE), "gray mail" and just plain "junk mail," the term is both a noun (the e-mail message) and a verb (to send it). blocking and content filtering See Web filtering and parental control software. services. This is evidenced by our competitive win during the quarter to provide our MailWatch service to protect Ford Motor Company's 170,000 employees." "Our Personal Communications Services See PCS. Group once again demonstrated the strength of our unique business model, showing dramatic growth across all key metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. . Our focus on bricks and mortar A store (shop, supermarket, department store, etc.) in the real world. Contrast with clicks and mortar. and strong dot-com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or sponsors and advertisers served us well this quarter. Media Metrix reaffirmed our ranking in the top five advertising networks, a key factor in our access to leading agencies and sponsors. Notably, permission-marketing revenues grew 31% over the first quarter of 2000, and now accounts for 33% of all PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. revenue. Our number of monthly ad impressions served soared 32% to 1.6 billion in June. In addition, we recently added a new revenue stream and business service, e-mail list management, through a relationship with CheetahMail," added Gorman. The following are the highlights of Mail.com's second quarter: - Mail.com added 735 new corporate customers during the quarter. Key competitive wins of the quarter include Chase, Ford Motor Company, Fleet, GEICO, General Electric, Mead, Nationwide Insurance, Oracle and Siemens Building Technologies. Mail.com now serves more than 100 of the Fortune 500 companies, including six of the top 10. - Mail.com was chosen as a preferred outsourcer of Microsoft Exchange 2000 services. - Mail.com generated 32.4 million minutes of Internet fax Using the Internet to send faxes. Fax servers accept an incoming fax message and route it to a fax server in the same locality as the destination fax machine. The fax server then makes a local telephone call to send the fax. traffic during the second quarter of 2000. - Mail.com expanded its business messaging product offerings to include collaborative applications such as group scheduling See calendaring. , document sharing See data conferencing. and project management tools, making Mail.com the first Internet messaging company to offer a fully integrated suite of outsourced collaboration Working together on a project. See collaborative software. services. - The Company launched its next generation messaging platform providing businesses with many additional features including SSL (Secure Sockets Layer) The leading security protocol on the Internet. Developed by Netscape, SSL is widely used to do two things: to validate the identity of a Web site and to create an encrypted connection for sending credit card and other personal data. secure Web, POP and SMTP (Simple Mail Transfer Protocol) The standard e-mail protocol on the Internet and part of the TCP/IP protocol suite, as defined by IETF RFC 2821. SMTP defines the message format and the message transfer agent (MTA), which stores and forwards the mail. access, and further distanced itself from the competition by enhancing its Production Fax Service with the release of Version 2.0. - Worldspan chose Mail.com to deliver mission critical desktop fax solutions. - Mail.com signed its 100th ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. giving Mail.com access to a subscriber base of nearly 14 million users. During the quarter, the Company launched its Web-based e-mail See Internet e-mail service and HTML e-mail. services for Asia's leading ISP, Pacific Internet. - Page views increased 27% to a record 1.2 billion in the second quarter, versus 948 million page views in the first quarter of 2000. The second quarter marked the first time Mail.com achieved over one billion page views in a quarter. - Mail.com added 148 new advertisers to its extensive advertising network during the second quarter including AT&T, GE Capital, Oracle, Toys R Us and Volvo. To date, over 500 companies have advertised on the Mail.com Advertising Network. Mail.com also recently extended its expertise in the wireless arena through a partnership with BulletIN.net. Mail.com's enhanced wireless product offering combines BulletIN.net's cutting-edge wireless technology with Mail.com's ubiquitous Found in large quantities everywhere. This English word means "all over the place." WebMail to provide users with the most reliable e-mail service See Internet e-mail service. anytime, anywhere, from their wireless device or from their PC. WORLD.com WORLD.com's majority-owned subsidiaries majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. , Asia.com and India.com had significant developments during the quarter. Asia.com has positioned itself as a leading provider of wireless and Internet business services in Asia. The Company is headquartered in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and has operations in 13 cities across Asia. Asia.com completed three acquisitions and formed several business relationships to extend its wireless leadership in the pan-Asian region during the quarter. Huelink Corporation, a leading wireless solutions provider, brings to Asia.com cutting-edge wireless applications protocol (WAP (1) (Wireless Access Point) See access point. (2) (Wireless Application Protocol) A standard for providing cellular phones, pagers and other handheld devices with secure access to e-mail and text-based Web pages. ) technology, an expansive base of corporate customers and strategic partnerships in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and securities, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , insurance, travel and entertainment industries. Asia.com also acquired Lohoo.com, which provides comprehensive services to business travelers over wireless and Internet devices, including hotel reservations, airline ticket bookings, car rental and conference services. Key wireless relationships formed during the quarter include Mastercard, Motorola and SouFun Taiwan. India.com made similar progress during the quarter. Through its acquisition of MultiZones, India.com is positioned to be the leading supplier of e-commerce and Internet services in India. India.com has also joined forces with Sapient sa·pi·ent adj. Having great wisdom and discernment. [Middle English, from Old French, from Latin sapi , a leading technology developer, to create a best of breed portal platform that can further support India.com's B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business revenue opportunity. This platform is scheduled to launch in the third quarter of 2000. Gary Millin, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of WORLD.com, said, "We are extremely pleased with the performance of WORLD.com, far exceeding our expectations to date. We are looking forward to the continuing rapid growth, in order to build value for Mail.com shareholders." About Mail.Com Mail.com, Inc. is a one-stop resource for Internet messaging services, providing reliable feature-rich e-mail, Internet fax and collaboration services to businesses, ISPs, Web sites and direct to consumers through its flagship Web site: http://www.mail.com. Mail.com has IP network facilities in 20 key countries and currently serves more than 17.7 million outsourced seats and over 9,000 corporate customers worldwide. Mail.com's subsidiary, WORLD.com, Inc., is a leading global developer of premier domain properties such as USA.com and Europe.com. WORLD.com is a majority owner of Asia.com, Inc., a leading provider of wireless and Internet business services across Asia, and India.com, Inc., a leading supplier of e-commerce and Internet services in India. This news release may contain statements of a forward-looking nature relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future events or the future financial results of Mail.com. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should specifically consider the various factors which could cause actual events or results to differ materially from those indicated from such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including the matters set forth in Mail.com's reports and documents filed from time to time with the Securities and Exchange Commission. -0-
Mail.com, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
ASSETS June 30, Dec. 31,
2000 1999
(unaudited)
Cash, cash equivalents and marketable
securities $ 88,878 $ 44,876
Accounts receivable, net 9,741 4,138
Other current assets 7,895 2,123
Property and equipment, net 43,713 28,935
Partner advances 8,549 16,809
Intangible (principally goodwill) and
other assets 275,753 40,386
--------- ---------
Total assets $ 434,529 $ 137,267
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 39,652 $ 19,281
Deferred revenue 1,963 1,335
Capital lease obligations 24,392 17,499
Other liabilities and minority interest 4,839 3,138
Convertible note and long term debt 100,754 --
Total liabilities and minority interest $ 171,600 $ 41,253
Total stockholders' equity $ 262,929 $ 96,014
-------- --------
Total liabilities and stockholders' equity $ 434,529 $ 137,267
========= =========
Mail.com, Inc.
Condensed Statements of Operations
(unaudited, in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
-------------------- ---------------------
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Messaging $ 13,592 $ 2,057 $ 23,543 $ 3,243
Domain development
(WORLD.com) 1,431 -- 1,431 --
-------- -------- --------- ---------
Total revenue 15,023 2,057 24,974 3,243
Operating expenses:
Cost of revenues:
Messaging 12,435 2,178 22,277 3,656
Domain development
(WORLD.com) 1,460 -- 1,478 --
------- -------- --------- ---------
Total cost
of revenues 13,895 2,178 23,755 3,656
Sales and marketing 16,864 3,906 31,832 7,496
General and
administrative 9,328 2,634 16,200 3,999
Product development 5,540 1,410 9,132 2,587
Amortization of
goodwill/other
intangibles 16,733 -- 24,567 --
Acquisition-related
compensation 400 -- 2,200 --
Write-off of acquired
technology -- -- 7,650 --
-------- -------- --------- ---------
Total operating
expenses 62,760 10,128 115,336 17,738
Loss from
operations (47,737) (8,071) (90,362) (14,495)
Other income
(expenses) and
minority
interest, net (160) 111 (79) 127
--------- -------- ---------- ---------
Net loss (47,897) (7,960) (90,441) (14,368)
Stock dividend -- (14,556) -- (14,556)
Net loss attrib. to
common stockholders (47,897) (22,516) (90,441) (28,924)
Basic and diluted net
loss per common share $ (0.84) $ (1.09) $ (1.70) $ (1.56)
========= ======== ========= =========
Weighted average basic
and diluted
shares outstanding 57,361,379 20,605,412 53,352,500 8,531,509
=========== =========== ========== ==========
Total non-operating
and certain non-cash
items* 19,907 15,087 42,617 15,198
Pro-forma net loss
excluding non-operating
and certain non-cash
items $ (27,990) $ (7,429) $ (47,824) $ (13,726)
============ ========= ========== ==========
Pro-forma net loss
per share excluding
non-operating and
certain non-cash items* $ (0.49) $ (0.36) $ (0.90) $ (0.74)
============ ======== ========== ==========
*Non-operating and non-cash items include certain issuance and amortization of stock and warrants, write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of acquired technology and amortization of goodwill. |
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