Alloy Online Reports Record Second Quarter Results.NEW YORK--(BUSINESS WIRE)--Sept. 8, 1999-- 83% Increase in Second Quarter Sales Exceeds Analysts' Expectations Sequential One after the other in some consecutive order such as by name or number. Revenues Up 49% From Q1'99 Gross Margins Exceed 50% Alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. Online, Inc. (Nasdaq:ALOY) (www.alloy.com), a leading 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 destination for the boys and girls boys and girls mercurialisannua. of Generation Y, today announced record financial results for the second quarter ended July July: see month. 31, 1999, which exceeded analysts' expectations. Net revenues for the second quarter increased 83% to $3.8 million compared to $2.1 million in the second quarter of 1998, and 49% on a sequential basis compared to $2.5 million in the first quarter of 1999. Gross profit for the second quarter was $1.9 million, or 50.2% of revenues, up from $887,000, or 42.5% of revenues, in the comparable period last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the second quarter were $5.5 million compared to $3.0 million in the second quarter of 1998. The net loss for the quarter, before non-recurring costs of $235,000 related to the early retirement of debt, was $3.1 million, or $0.23 per basic share, compared to $2.2 million, or $0.26 per basic share, in the second quarter of 1998. The net loss per basic share after non-recurring charges was $0.25 in the second quarter of 1999 versus a net loss per basic share of $0.26 in the second quarter of last year. Net revenues for the first half of 1999 increased 85% to $6.4 million compared to $3.4 million in the first half of 1998. Gross profit for the first half of 1999 improved to $3.2 million, or 50.6% of revenues, versus $1.3 million, or 38.8% of revenues in the comparable period last year. Operating expenses were $9.0 million compared to $4.8 million in the first half of 1998. The net loss for the six month period, before non-recurring costs of $235,000 related to the early retirement of debt, was $5.4 million, or $0.49 per basic share, compared to $3.5 million, or $0.41 per basic share in the first half of 1998. The net loss per basic share after non-recurring charges for the first six months of 1999 was $0.51 versus $0.41 per basic share in the comparable period of 1998. For the three month period ended July 31, 1999, Alloy's registered online user base continued to rise, reaching 850,000 registrants versus 570,000 at April 30, 1999 and 300,000 registrants at January January: see month. 31, 1999. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Media Metrix, Alloy's unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. in July reached 415,000, up 58% from 263,000 in April. Alloy's database of Generation Y boys and girls grew to 2.6 million at the end of the second quarter, primarily driven by traffic on Alloy's web site. "Our second quarter financial performance reflects a combination of robust sales driven by strong customer response to our merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain offerings; the continued strength of our gross margins, which remained above 50% for the second consecutive quarter; and the ongoing benefits of our investments in marketing the Alloy brand," noted Matthew Matthew one of the twelve disciples. [N.T.: Matthew] See : Evangelism C. Diamond, Chairman and Chief Executive Officer. "We are particularly excited to enter the back-to-school and holiday selling seasons on such solid footing. In recent months, we have commenced implementing a number of operating and growth strategies. Specifically, our marketing partnerships with Yahoo (Nasdaq:YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ) and Excite @ Home (Nasdaq:ATHM ATHM Excite@Home (NASDAQ symbol) ATHM Alternative Therapies in Health and Medicine ATHM American Textile History Museum (Lowell, MA) ), along with our television ad campaign, are generating increased traffic flows to Alloy.com; our introductions of the Web's first teen-specific auctions and online games have helped broaden the appeal of the Web site and attracted sticky Refers to an application or service that keeps you on a Web site. For example, stock quotes, glossaries, educational material, chat rooms and similar offerings give you reason to remain on the site, while it allows the company to show you more ads or proprietary messages. traffic; and we have continued to add merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and marketing expertise to our organization." Mr. Diamond concluded, "Our businesses turned in strong performances across the board in the second quarter. We believe that this broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased strength reflects the success of our operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. , which will help enable us to leverage the Alloy brand into multiple high-growth distribution channels and high-margin revenue sources." Alloy Online is a leading Web site and direct marketer providing community, content and commerce to Generation Y, one of the fastest growing segments of the population. Our Web site, www.alloy.com, offers a unique blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. of services through which Generation Y boys and girls can interact Interact can refer to:
Fall of Interact While the Game Boy device was first released, Interact acquired the rights to sell Datel's Action Replay , share information, explore compelling and relevant content and shop for apparel, accessories, footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , music, cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). , and magazine subscriptions. For further information regarding Alloy Online, please visit our web site and click on "Investor Info INFO Information INFO Information (logging abbreviation) INFO Inform(ed/ation) INFO Ionic Difluoroamino Oxidizer " or call our investor information line at 877-ALLOY-IR. This announcement may contain 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. that involve risks and uncertainties, including statements regarding the continued strength of our gross margins; the ongoing benefits of our investments in marketing the Alloy brand; the successful implementation of our operating and growth strategies, generating increased traffic flows to our Web site, broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad the appeal of our Web site and attracting sticky traffic; our ability to add merchandising and marketing experience to our organization; the success of our operating model and our ability to leverage the Alloy brand into multiple high-growth distribution channels and high-margin revenue sources. Our actual results could differ materially from those projected in the forward-looking statements and reported results should not be considered an indication of our future performance. Factors that might cause or contribute to such differences include, among others: our expected future losses; our operating and growth strategies may not generate increased traffic flows to our Web site, broaden the appeal of our Web site, or attract additional or repeat traffic to our Web site; we lack experienced management and personnel; we may fail to establish an effective internal sales and marketing organization to generate revenues and we may not be able to adapt as Internet technologies and customer demands continue to evolve Evolve may refer to several terms:
Alloy Online, Inc.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
7/31/98 7/31/99 7/31/98 7/31/99
Net merchandise
revenues $ 2,082 $ 3,596 $ 3,434 $ 5,988
Sponsorship and
other revenues 5 219 6 382
------- ------- ------- -------
Total revenues 2,087 3,815 3,440 6,370
Cost of goods sold 1,200 1,900 2,106 3,148
------- ------- ------- -------
Gross profit 887 1,915 1,334 3,222
Selling and
marketing expenses 2,483 4,320 4,000 6,930
General and
administrative expenses 509 1,146 774 2,065
------- ------- ------- -------
Total operating
expenses 2,992 5,466 4,774 8,995
Loss from operations (2,105) (3,551) (3,440) (5,773)
Interest income
(expense), net (60) 472 (38) 394
------- ------- ------- -------
Net loss before
extraordinary items ($2,165) ($3,079) ($3,478) ($5,379)
Charge for early
retirement of debt 0 (235) 0 (235)
------- ------- ------- -------
Net loss after
extraordinary items ($2,165) ($3,314) ($3,478) ($5,614)
Basic net loss per
common share before
extraordinary items ($ 0.26) ($ 0.23) ($ 0.41) ($ 0.49)
Extraordinary loss from
early retirement
of debt $ 0.00 ($ 0.02) $ 0.00 ($ 0.02)
Basic net loss per common
share after extraordinary
items ($ 0.26) ($ 0.25) ($ 0.41) ($ 0.51)
Diluted net loss per common
share before extraordinary
items ($ 0.24) ($ 0.23) ($ 0.39) ($ 0.49)
Extraordinary loss from
early retirement
of debt $ 0.00 ($ 0.02) $ 0.00 ($ 0.02)
Diluted net loss per
common share after
extraordinary items ($ 0.24) ($ 0.25) ($ 0.39) ($ 0.51)
Weighted average common
shares outstanding:
Basic 8,479,727 13,411,623 8,479,727 11,100,952
Diluted 8,953,880 13,411,623 8,953,880 11,100,952
Alloy Online, Inc.
SELECTED BALANCE SHEET DATA
(In thousands)
January 31, 1999 July 31, 1999
(audited) (unaudited)
Assets
Current Assets
Cash and cash equivalents $ 2,983 $23,643
Marketable securities 0 22,351
Accounts receivable, net 145 245
Stock subscription receivable 2,500 0
Inventories, net 810 2,462
Prepaid catalog costs 426 1,847
Other current assets 34 1,115
------- --------
Total current assets 6,898 51,663
Property and equipment, net 178 423
Other assets 331 381
------- --------
Total assets $ 7,407 $52,467
Liabilities and
Stockholders' Deficit
Current Liabilities
Accounts payable and
accrued expenses $ 1,558 $ 5,756
Other current liabilities 74 83
------- -------
Total current liabilties 1,632 5,839
Promissory notes, net of
unamortized discount 3,945 0
Capital lease obligation,
less current portion 40 6
Series A convertible
redeemable preferred stock 4,836 0
Stockholders' Deficit (3,046) 46,622
------- -------
Total liabilities and
stockholders' deficit $ 7,407 $52,467
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion