Circle.com Reports Third Quarter Results; Tracking Stock Issued.BALTIMORE, Md.--(BUSINESS WIRE)--Oct. 26, 1999-- Circle.com (Nasdaq:CIRC) today reported record revenues for the quarter ended September 30, 1999. The company reported net revenues for the quarter ended September 30, 1999 that increased 146% to a record $10.2 million compared with $4.1 million for the same quarter of 1998. Earnings per share (diluted) for the third quarter of 1999 declined to $0.11 (loss) from $0.01 profit in the third quarter of 1998, on a 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 basis. Earnings per share declined due to investments in infrastructure and growth orientated o·ri·en·tate v. o·ri·en·tat·ed, o·ri·en·tat·ing, o·ri·en·tates v.tr. To orient: "He . . . initiatives. "We had a very exciting quarter, with some major client wins, including PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank, United Healthcare and Teligent, among others. The fourth quarter started strong with the previously announced win of the National Anti-Smoking Campaign. Now with the creation of tracking stock, our performance can be measured directly against our competitive set," said Robert Wilke, Chief Executive Officer of Circle.com. "Our continued pace of new business shows that new clients are attracted to our ability to create, retain, and expand customer relationships on the Web. Through both our proprietary technology, the Dynamic Marketing Environment (DME (Distributed Management Environment) A network monitoring and control protocol defined by the Open Software Foundation (now The Open Group). DME was not widely used. DME - Distributed Management Environment ) and our full suite of Web-enabling services, we do more than create a technology infrastructure - we build market share for our clients." "As we continue our rapid growth we remain mindful of the need to invest aggressively to ensure our capacity will keep pace with our client acquisition and that our operational infrastructure remains world class," said Victor Mandel, Executive Vice President of Finance and Development. "Our investments will provide our clients with a full range of web solutions and position Circle.com for long-term sustainable growth." On October 22, 1999, Snyder Communications Snyder Communications Inc. (SNC) was founded in 1988 by Daniel M. Snyder and his sister Michelle Snyder. Their activities were mainly outsourced marketing services, such as Direct marketing, database marketing, proprietary product sampling, sponsored information display in prime shareholders approved the proposal to create a tracking stock in Circle.com, a division of Snyder Communications, Inc. (NYSE NYSE See: New York Stock Exchange :SNC SNC St Norbert College (De Pere, Wisconsin) SNC Sistema Nervioso Central SNC Société en Nom Collectif (French: Partnership) SNC Système Nerveux Central (French: central nervous system) ). The stock began trading separately from SNC on October 25 on the Nasdaq market under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors CIRCV on a "when issued" basis. On Friday, October 29, Circle.com shares will begin trading on a regular basis on the Nasdaq National Market under the symbol CIRC. This release includes a pro forma presentation of Circle.com excluding Snyder Communications, Inc. These financial results should be read in conjunction with the financial results of Snyder Communications, Inc. being released today. Circle.com is a leading provider of complete end-to-end Web solutions with a specialty in customer relationship management systems and Web-enabling services for leading companies. Major clients include: IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Bell Atlantic, UPS, Wall Street Journal.com, Talbots.com and E RADE. At the end of the third quarter, Circle.com employed approximately 300 people in offices worldwide, and is headquartered in Baltimore, Maryland. -0- Circle.com (Dollar amounts in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1999 1998 1999 1998 Net revenues $ 10,208 $ 4,142 $ 22,555 $ 8,972 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. : Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. 6,256 2,031 13,384 4,451 Office and general 8,758 1,555 15,775 3,846 Income (loss) from operations (4,806) 556 (6,604) 675 Interest expense, net (229) -- (229) -- Income (loss) before income taxes (5,035) 556 (6,833) 675 Income tax provision (benefit) (a) (2,300) 255 (1,708) 345 Net income (loss) (2,735) 301 (5,125) 330 Less: Income (loss) related to SNC's 20% retained interest (547) 60 (1,025) 66 Income (loss) attributable to Circle.com stockholders $ (2,188) $ 241 $ (4,100) $ 264 Diluted net income (loss) per share (b) $ (0.11) $ 0.01 $ (0.20) $ 0.01 Pro forma Circle.com shares (c) 20,139 20,139 20,139 20,139 (a) The income tax provision (benefit) is calculated on a pro forma basis and assumes that Circle.com was taxed as a C corporation for all of 1998 and 1999. (b) Circle.com per share amounts exclude the portion of Circle.com's income (loss) which is attributed to SNC's 20% retained interest. (c) For all periods presented, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. has been computed using the shares of Circle.com stock that were due to be issued on the date of the recapitalization (October 22, 1999). |
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