Cybergold Announces Record Second Quarter Results; Revenues Increased 58 Percent Sequentially Over First Quarter 2000.Business Editors and High Tech Writers OAKLAND Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Calif.--(BUSINESS WIRE)--July 31, 2000 Cybergold, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CGLD), the 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 incentives company that rewards consumers with cash, today announced financial results for the second quarter ended June June: see month. 30, 2000. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues for the second quarter rose to $6.8 million, a 750 percent increase over second quarter 1999 consolidated revenues of $0.8 million, and a 58 percent sequential One after the other in some consecutive order such as by name or number. increase over first quarter 2000 consolidated revenues of $4.3 million. Gross profit for the second quarter rose 74 percent to $5.4 million, or 79 percent of revenues, compared to gross profit of $3.1 million in the first quarter, or 73 percent of revenues. Consolidated net loss for second quarter 2000 was $6.9 million, or $0.33 per common share, a 13 percent sequential improvement from a consolidated net loss of $7.9 million, or $0.38 per common share, in first quarter 2000. In the second quarter of 1999, Cybergold posted a consolidated net loss of $2.9 million, or $0.55 per common share. At June 30, 2000, Cybergold had $31 million in unrestricted cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . Nat Goldhaber A. Nathaniel ("Nat") Goldhaber - An Internet entrepreneur and longtime associate of the Maharishi Mahesh Yogi, was the Natural Law Party nominee for Vice President in 2000 on the ticket headed by John Hagelin. , Cybergold's Chief Executive Officer and President stated, "Our incentive-based direct marketing consistently delivers real value to our members, consumers and advertisers. Our success in membership growth is driving the growing number of large contracts we are accumulating, as well as serving to broaden our client base. As a result, we have increased our gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. our path-to-profitability."
During the quarter, Cybergold achieved a number of milestones:
-- Cybergold's membership base reached 9.0 million. The quarter's
organic growth was 1.5 million exceeding last quarter's organic
growth of 1.0 million members.
-- Cybergold's advertising and merchant client base continues to
expand in breadth and depth. Of the company's more than 600
relationships, the number of high-volume relationships continues
to grow rapidly. During the second quarter, 21 clients spent more
than $100,000, up 75 percent from 12 in the first quarter. The
average spend per advertiser also increased 42 percent from
$24,000 to $34,000.
-- Our gross profit margin expanded to 79 percent, from 73 percent
in the first quarter 2000. The increase reflects improved
management of cost of goods sold and increased volume of targeted
email and custom marketing programs.
Pending Merger With MyPoints.com On April 17, 2000, Cybergold and MyPoints.com (NASDAQ: MYPT MYPT myosin phosphatase target (biochemistry) MYPT Merseyside Young People’s Theatre (UK) MYPT Maramures Young People's Trust (UK) ) announced a definitive agreement for MyPoints.com to acquire Cybergold in an all-stock, fixed exchange ratio transaction, valued at $157 million on the day of the announcement. The company expects to close the transaction in early August. "Cybergold and MyPoints.com have worked closely together since the merger announcement on a plan to seamlessly integrate the two companies into the largest, most powerful, most pervasive pervasive, adj indicates that a condition permeates the entire development of the individual. marketing organization on the Internet in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. today. We will offer advertisers a broader, larger audience and will be able to build even more specific marketing programs and services aimed at their target markets," Goldhaber said. "We believe our clients will achieve even greater ROIs Rois is a municipality of Spain in the Province of A Coruña, in the autonomous community of Galicia. [ edit ] Municipalities of A Coruña About Cybergold Cybergold, Inc. (NASDAQ: CGLD) is the leading Internet incentives company that rewards consumers with cash and other rewards for responding to Web-based advertisements and programs. With more than nine million members, Cybergold provides its clients with an efficient means of reaching interested and responsive consumers on the Internet. Cybergold members receive a wide selection of programs and activities to participate in and to generate cash, which can be used online for purchases or offline (1) Not connected to the Internet, online service or internal network. See offline file. (2) Not connected to or not installed in the computer. If a terminal, printer or other device is physically connected to the computer, but is not turned on or in ready mode, it is by having it transferred to a VISA See VESA. card or a bank checking account or donating it to charity. Cybergold's partners include Visa USA, MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) and EarthLink EarthLink (NASDAQ: ELNK), is an Internet service provider headquartered in Atlanta, Georgia, USA. Business EarthLink provides a variety of Internet connection types, including dial-up, DSL, satellite, and cable. . Cybergold, headquartered in Oakland, California “Oakland” redirects here. For other uses, see Oakland (disambiguation). Oakland (IPA: /ˈoʊklənd/), founded in 1852, is the eighth-largest city in the U.S. , pioneered Internet incentives in 1995. For more information, visit www.cybergold.com. Statements in this press release regarding Cybergold, Inc.'s business which are not historical facts 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 Section 21E of the Securities Exchange Act of 1934, 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. , including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. Forward-looking statements include statements regarding future revenue and market growth. All forward-looking statements included in this document are based upon information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company assumes no obligation to update any such forward-looking statement. Actual results could differ materially from the Company's current expectations. 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, as amended.
Cybergold, Inc.
Consolidated Statements of Operations
(Unaudited)
For The Three Month Period Ended
June 30, 1999 June 30, 2000
--------------- ---------------
Revenues
Transaction $ 560,685 $ 3,236,550
CMS & other $ 226,000 $ 3,590,658
--------------- ---------------
Total Revenues $ 786,685 $ 6,827,208
Cost of Goods Sold
Transaction $ 263,981 $ 1,347,098
CMS & other $ 99,000 $ 66,304
--------------- ---------------
Total Costs of Goods Sold $ 362,981 $ 1,413,402
--------------- ---------------
Gross Profit $ 423,704 $ 5,413,806
Gross Profit % 54% 79%
Operating expenses
Sales & marketing $ 1,508,873 $ 7,385,995
Product development $ 636,436 $ 2,250,197
General & administrative $ 519,436 $ 2,894,237
Amortization of deferred comp. $ 164,000 $ 221,733
--------------- ---------------
Total Operating expenses $ 2,828,745 $ 12,752,162
Loss from operations $ (2,405,041) $ (7,338,356)
Net other income $ 32,830 $ 452,586
--------------- ---------------
Net loss $ (2,372,211) $ (6,885,770)
Dividend attributable to preferred
stockholders $ (527,939) $ --
--------------- ---------------
Net loss attributable to
common stockholders $ (2,900,150) $ (6,885,770)
=============== ===============
Net loss per common share,
basic and diluted $ (0.55) $ (0.33)
=============== ===============
Weighted average common shares
outstanding, basic and diluted 5,279,565 21,150,173
=============== ===============
Cybergold, Inc.
Consolidated Balance Sheet
(Unaudited)
June 30, 1999 June 30, 2000
--------------- ---------------
ASSETS
Current Assets:
Cash & cash equivalents $ 8,612,269 $ 9,214,798
Short-term investments in marketable
securities 0 21,783,476
Accounts receivable, less allowance
for doubtful accounts of $44,000
and $820,905 respectively 441,152 5,099,091
Deferred financing costs 411,253 0
Prepaid expenses and other current
assets 61,497 367,977
--------------- ---------------
Total current assets 9,526,171 36,465,342
Property and equipment, net 479,817 2,417,926
Intangible assets, net 0 178,311
Long term investment 0 1,778,065
Deposits and other assets 21,206 147,630
--------------- ---------------
Total assets $ 10,027,194 $ 40,987,274
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 850,160 $ 2,496,334
Current maturities of long-term
obligations 166,833 233,062
Member payable 1,207,366 3,422,371
Membership acquisition payable 471,714 922,145
Loans Payable 144,016 0
Accrued liabilities 193,949 2,831,495
Deferred revenue 270,881 385,601
--------------- ---------------
Total current liabilities 3,304,919 10,291,008
Long term obligations, net of
current maturities 337,200 265,241
--------------- ---------------
Total liabilities 3,642,119 10,556,249
Stockholders' Equity:
Common stock 2,098 3,076
Additional paid in capital 25,101,988 72,331,727
Deferred compensation (1,449,075) (1,112,324)
Retained deficit (17,269,936) (40,675,279)
Unrealized loss 0 (116,175)
--------------- ---------------
Total stockholders' equity 6,385,075 30,431,025
--------------- ---------------
Total liabilities and stockholders'
equity $ 10,027,194 $ 40,987,274
=============== ===============
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