Avenue A, Inc. Announces Significantly Improved Financial Performance; Q3 Results Beat Previously Announced Earnings Guidance; Atlas DMT Scores First Clients.Business/High Tech Editors (Conference Call and Webcast at 5:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Today) SEATTLE--(BUSINESS WIRE)--Oct. 23, 2001 Avenue A, Inc. (Nasdaq:AVEA AVEA American Veterinary Exhibitors Association ), a digital marketing and technology company, today announced financial results for the third quarter of 2001 that were significantly better than both its second quarter results and the previously announced financial guidance for the third quarter. For the third quarter ended September September: see month. 30, 2001, Avenue A, Inc. reported revenues of $20.4 million. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the third quarter of 2001, which excludes the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and deferred stock compensation and a non-recurring charge related to the disposition of excess fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , was $2.8 million or $0.05 per share. This compares to a pro forma net loss of $7.4 million (before non-recurring charges), or $0.13 per share, for the second quarter of this year. Previously announced guidance estimated a pro forma loss of $0.10-0.11 per share for the 2001 third quarter. Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. McAndrews McAndrews may refer to:
McAndrews noted that during the quarter, the Company moved forward with the rollout of its Atlas Atlas, in Greek mythology Atlas (ăt`ləs), in Greek mythology, a Titan; son of Iapetus and Clymene and the brother of Prometheus. (TM) Digital Marketing Suite, representing the addition of an expected significant contributor to future revenue streams. "We completed the development of the Atlas Suite Version 2.0, as we had promised. To date, we have placed the product at six advertising agencies, and continue to get positive feedback from the marketplace. The Atlas launch is truly a watershed watershed, elevation or divide separating the catchment area, or drainage basin, of one river system or group of river systems from another system or group of systems. The term is also often used synonymously with drainage basin. event, as it positions us squarely square·ly adv. 1. Mathematics At right angles: sawed the beam squarely. 2. In a square shape. 3. at the forefront of the digital marketing industry in its two main segments -- service and technology," he said. The Company noted that it ended the third quarter with $117.3 million in cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments, and had a cash burn of $2.1 million during the third quarter. Third Quarter 2001 Conference Call/Webcast Today Avenue A, Inc. will host a conference call to discuss these financial results at 5:30 p.m. Eastern/2:30 p.m. Pacific. The live webcast and replay will be available from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.avenueainc.com, under "Calendar of Events." Interested parties should visit the website approximately 15 minutes prior to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary software. About Avenue A, Inc. Avenue A, Inc., a digital marketing services and technology company, was founded in 1997 to help marketers acquire, retain and grow customers across all digital media. Through its two operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon -- Avenue A, an interactive advertising agency, and Atlas DMT See DSL. (TM), an advertising technology provider -- Avenue A, Inc. is able to touch and bring value to any interaction in the digital marketplace. The corporation is based in Seattle and operates in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Avenue A, Inc. and Avenue A/NYC adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. the NAI See Network Associates. privacy principles that have been applauded by the FTC FTC See Federal Trade Commission (FTC). . These principles are designed to ensure Internet user Internet user n → internauta m/f Internet user Internet n → internaute m/f privacy. Please visit www.avenueainc.com to learn more. About Atlas DMT Atlas DMT is DMT I Diabetes Mellitus Type 1 an advertising technology provider and operating unit of Avenue A, Inc. Atlas DMT is the creator of Atlas Digital Marketing Suite 2.0, the industry's first complete digital marketing management system built by and for marketers. With more than 50,000 campaigns to its credit, the Atlas Suite helps advertising agencies and other marketing professionals deliver efficient, profitable digital marketing programs. The end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. system manages online media planning, buying, ad delivery and analysis. Atlas DMT serves its clients from offices in Seattle and New York. To learn more, please visit www.atlasdmt.com. About Avenue A Avenue A is an interactive advertising agency and operating unit of Avenue A, Inc. It offers a one-stop solution that seeks to drive breakthrough results for its clients' web and e-mail marketing Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. initiatives by using innovative technology and rigorous analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. methods that turn campaign data into actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action. An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. insights. Avenue A's integrated suite of services includes web advertising, affiliate programs, search engine optimization Designing a Web site so that search engines easily find the pages and index them. The goal is to have your page be in the top 10 results of a search. Optimization includes the choice of words used in the text paragraphs and the placement of those words on the page, both visible and hidden , strategic portal relationships, e-mail prospecting, e-mail list management, customer targeting, profiling and advanced analytical services. Avenue A focuses on achieving the best possible results and the highest possible return on investment for its clients' digital marketing efforts. Clients include Microsoft, AT&T Wireless and Best Buy. Certain statements in this press release are "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Forward-looking statements in this release include, without limitation, statements and inferences regarding future financial performance and the Atlas Digital Marketing Suite representing the addition of an expected significant contributor to future revenue streams. Factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, among others, further downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the online advertising industry, as well as the economy in general, the failure to attract new clients and to achieve effective advertising campaigns for existing clients, Avenue A's limited operating history, Avenue A's history of losses, quarterly and seasonal fluctuations in the company's operating results, the short term nature of Avenue A, Inc.'s contracts with clients which are cancelable on 90 days' or less notice, and the uncertainties and potential cost of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the risks of adverse rulings by the courts presiding pre·side intr.v. pre·sid·ed, pre·sid·ing, pre·sides 1. To hold the position of authority; act as chairperson or president. 2. To possess or exercise authority or control. 3. over previously announced pending lawsuits which might materially and adversely affect Avenue A, Inc.'s business. More information about factors that potentially could affect Avenue A, Inc.'s financial results is included in Avenue A, Inc.'s Form 10-Q Form 10-Q See 10-Q. , as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , for the fiscal quarter ended June 30, 2001 filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Avenue A, Inc. undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise. Avenue A, Inc. has applied for registration of the "Avenue A" and "Atlas" service marks in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries. All other trademarks, trade names or company names referenced herein are used for identification only and are the property of their respective owners.
Avenue A, Inc.
Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2001 2000
--------- ---------
(unaudited)
Assets
Current assets:
Cash, cash equivalents, and
short-term investments $ 117,348 $ 134,145
Accounts receivable, net
of allowance 13,764 39,343
Other receivable 2,691 1,824
Prepaid expenses and other
current assets 548 716
--------- ---------
Total current assets 134,351 176,028
--------- ---------
Property and equipment, net 8,465 13,087
Intangible assets, net 1,828 3,519
Other assets 1,321 5,671
--------- ---------
Total assets $ 145,965 $ 198,305
========= =========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $ 22,709 $ 48,664
Notes payable, current portion 2,000 2,000
Deferred revenue 1,185 1,084
--------- ---------
Total current liabilities 25,894 51,748
--------- ---------
Long-term notes payable 2,056 3,556
--------- ---------
Total liabilities 27,950 55,304
--------- ---------
Shareholders' equity:
Common stock 581 581
Paid-in capital 217,103 222,901
Deferred stock compensation (5,851) (21,566)
Subscription receivable (618) (941)
Accumulated deficit (93,200) (57,974)
--------- ---------
Total shareholders' equity 118,015 143,001
--------- ---------
Total liabilities and
shareholders' equity $ 145,965 $ 198,305
========= =========
Avenue A, Inc.
Consolidated Statement of Operations
(in thousands, except per share data)
(unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue $20,399 $47,172 $65,136 $146,372
Cost of revenue 13,609 37,372 46,889 117,927
--------- --------- --------- ---------
Gross profit 6,790 9,800 18,247 28,445
--------- --------- --------- ---------
Expenses:
Client support 2,038 4,085 8,078 11,268
Product development 2,919 3,286 9,922 8,212
Selling, general, and
administrative 4,650 7,964 18,705 21,101
Depreciation and
amortization of property
and equipment 1,431 1,155 4,392 2,856
Amortization of
intangible assets 504 503 1,503 1,510
Amortization of deferred
stock compensation 2,737 7,107 9,453 20,641
Impairment of fixed assets 550 -- 550 --
Corporate restructuring
charges -- -- 3,666 --
--------- --------- --------- ---------
Total expenses 14,829 24,100 56,269 65,588
--------- --------- --------- ---------
Loss from operations (8,039) (14,300) (38,022) (37,143)
Interest income, net 1,472 2,126 5,001 6,131
Impairment of cost-basis
investment -- -- 2,500 --
--------- --------- --------- ---------
Net loss $(6,567) $(12,174) $(35,521) $(31,012)
========= ========= ========= =========
Basic and diluted net
loss per share $(0.11) $(0.22) $(0.62) $(0.65)
========= ========= ========= =========
Shares used in computing
basic and diluted net loss
per share 57,346 55,159 57,042 47,522
========= ========= ========= =========
Avenue A, Inc.
Reconciliation of Loss From Operations to Pro Forma Loss
From Operations, Pro Forma Net Loss, and Pro Forma
Net Loss Excluding Non-recurring items
(in thousands)
(unaudited)
Quarter Ended Nine Months Ended
September 30, September 30,
------------------------------------------
2001 2000 2001 2000
------------------------------------------
Loss from operations $ (8,039) $(14,300) $(38,022) $(37,143)
Amortization of
intangible assets 504 503 1,503 1,510
Amortization of deferred
stock compensation 2,737 7,107 9,453 20,641
-------- -------- -------- --------
Pro forma loss from
operations (A) (4,798) (6,690) (27,066) (14,992)
Interest income, net 1,472 2,126 5,001 6,131
Impairment of
cost-basis investment -- -- 2,500 --
-------- -------- -------- --------
Pro forma net loss (A) $ (3,326) $ (4,564) $(24,565) $ (8,861)
======== ======== ======== ========
Pro forma basic and
diluted net loss per
share $ (0.06) $ (0.08) $ (0.43) $ (0.19)
======== ======== ======== ========
Shares used in
computing pro forma
basic and diluted
net loss per share 57,346 55,159 57,042 47,522
======== ======== ======== ========
Pro forma net loss (A) $ (3,326) $ (4,564) $(24,565) $ (8,861)
Corporate restructuring
charges -- -- 3,666 --
Impairment of fixed
assets 550 -- 550 --
Impairment of cost-basis
investment -- -- 2,500 --
-------- -------- -------- --------
Pro forma net loss
excluding
non-recurring
items (B) $ (2,776) $ (4,564) $(17,849) $ (8,861)
======== ======== ======== ========
Pro forma basic and
diluted net loss per
share excluding
non-recurring items $ (0.05) $ (0.08) $ (0.31) $ (0.19)
======== ======== ======== ========
Shares used in
computing pro forma
basic and diluted
net loss per share 57,346 55,159 57,042 47,522
======== ======== ======== ========
(A) The pro forma loss from operations and net loss exclude
amortization of intangible assets and stock-based compensation
charges, which are summarized in the above table. These
disclosures do not purport to be prepared in accordance with
Generally Accepted Accounting Principles (GAAP).
(B) The pro forma net loss excluding non-recurring items excludes
corporate restructuring charges, impairment of fixed assets, and
impairment of cost-basis investment which are summarized in the
above table. These disclosures do not purport to be prepared in
accordance with Generally Accepted Accounting Principles (GAAP).
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