Ecometry Corporation Reports Third Quarter 2001 Results.Business Editors/High-Tech Writers DELRAY BEACH Delray Beach, resort city (1990 pop. 47,181), Palm Beach co., SE Fla., on the Atlantic coast; settled 1895, inc. 1911. Mostly residential, Delray Beach is also the trade center for a citrus-fruit and vegetable-growing region. , Fla.--(BUSINESS WIRE)--Nov. 1, 2001 Ecometry Corporation (Nasdaq:ECOM ECOM Electronic Commerce ECOM Emergency Communications ECOM Electronics Command (Army) ECOM Emission Control ECOM Electronic Computer-Originated Mail ECOM United States Army Electronics Command ECOM Ethernet Communication Module ), a leading provider of integrated software Separate software components or applications that have been combined into one package. See integrated software package. solutions for multi-channel See multichannel. commerce, today announced financial results for the third quarter ended September September: see month. 30, 2001. Third Quarter Results Revenues for the third quarter were $6.2 million, a decrease of $7.9 million, or 56.1%, from $14.1 million for the third quarter of 2000. The decrease was related to the continuing economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , which resulted in lower demand for Ecometry's products and services. New and existing customer sales during the third quarter decreased approximately 75% from the third quarter of 2000. Net loss for the third quarter was $1.6 million, or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $586,000, or $0.05 per diluted share, in the third quarter of 2000. General and administrative expenses were $2.8 million for the third quarter of 2001 compared to $2.9 million for the same period last year. Sales and marketing expenses during the quarter ended September 30, 2001 decreased to $1.2million from $1.7 million during the same period last year. This decrease is attributable to lower costs for advertising, public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , salaries and lower commissions on sales. Research and development expenses for the third quarter of 2001 and 2000 were consistent at $1.1 million. The Company expects to continue investing in new and enhanced products during future periods. "During the past quarter Ecometry gained seven new customers, three of which purchased the new version of Ecometry's NT product" said the company's president, John Marrah. "Even with these new customer acquisitions, revenue from both new and existing customers fell well short of historical trends. We are continuing to focus on the development of new products and at the same time, reducing costs wherever possible." About Ecometry Corporation Ecometry is a leading provider of multi-channel commerce solutions worldwide. The Ecometry family of products ensures customer satisfaction throughout the multi-channel shopping and buying experience. Its flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Ecometry Retail Enterprise(TM), is a customer-centric, high volume suite of business applications designed to completely automate To turn a set of manual steps into an operation that goes by itself. See automation. front-end and back-end In their most general meanings, the terms front end and back end refer to the initial and the end stages of a process flow. These terms acquire more special meanings in particular areas. operations across multiple channels. It enables retailers to acquire, retain and manage customers, suppliers and partners from one centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. database. Headquartered in Delray Beach, Florida Delray Beach is a city in Palm Beach County, Florida, USA. As of the 2000 census, the city had a total population of 60,020. As of 2004, the population estimated by the U.S. Census Bureau is 64,150. , Ecometry's client roster includes industry-leading retailers such as Nordstrom Nordstrom, Inc. (NYSE: JWN) is an upscale department store chain in the United States which was initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrance, and home furnishings. , Time Life, Brookstone Brookstone is a chain of retail stores in the United States. Its first store was opened in 1973 in Peterborough, New Hampshire. Its headquarters are currently located in Merrimack, New Hampshire. Brookstone sells many types of products ranging from radar detectors to massage chairs. , Zales, Hickory Hickory, city, United States Hickory, city (1990 pop. 28,301), Burke and Catawba counties, W N.C., at the foot of the Blue Ridge Mts.; inc. 1870. It is a processing and trade center for an abundant agricultural region (grain, soybeans, poultry, hogs, Farms, KBKids.com, Nine West, Coldwater Creek Coldwater Creek is a clothing retailer which is based in Sandpoint, Idaho, United States. The company was founded in 1984 by Dennis Pence. The company had 239 stores in operation at the end of the 2006 fiscal year.[1] Notes 1. ^ Coldwater Creek. , Hallmark hallmark, mark impressed on silverwork or goldwork to signify official approval of the standard of purity of the metal, also called plate mark. The hallmark was introduced by statute in England in 1300 and enforced by the Goldsmiths' Hall, London. , Urban Outfitters Urban Outfitters, Inc. NASDAQ: URBN owns and operates three retail clothing brands: Urban Outfitters, Anthropologie and Free People. The first store opened in 1970 in Philadelphia, Pennsylvania, focusing on "funky" fashion and household products. and RedEnvelope.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. This news release 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. , which are made pursuant to the safe harbor provisions 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. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding future financial performance, management's plans and objectives for future operations, product plans and performance, management's assessment of market factors, as well as statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, risks associated with the company's business, including the following risks: the unpredictability of revenues due to large dollar amounts of the company's individual license transactions and the lengthy and unpredictable sales cycles for these transactions; the company's dependence on the development, introduction and client acceptance of new and enhanced versions of the Ecometry software products; the ability to control costs, the company's dependence on new product development; uncertainties regarding the outcome of pending class action 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. against the company; the company's reliance on a combination of trade secrets, copyright and trademark law, nondisclosure nondisclosure Malpractice Negligent nondisclosure, see there Research ethics The withholding of information about financial interests–stocks, consultancy fees, and other arrangements–that a researcher might have in the outcome of a clinical trial of a agreements and technical measures to protect its proprietary technology; the company's ability to sell its products in new markets within the direct commerce industry; the company's dependence on proprietary technology licensed from third parties; the company's ability to continue to resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. a variety of hardware and software developed and manufactured by third parties; the company's ability to maintain margins on the sale of hardware and software developed and manufactured by third parties; significant competition in the software and direct commerce industry and competitive pricing for the company's products; customer concentration; fluctuations in demand for the company's products which are dependent upon the condition of the software and direct commerce industries; the company's ability to collect receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed ; and other risks and uncertainties described in the company's prospectus dated January 29, 1999, Forms 10-K and 10-Q and other documents filed with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
ECOMETRY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------- --------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue:
License fees $ 1,234 $ 5,407 $ 4,693 $ 12,581
Third party software
and hardware 1,254 4,609 4,482 13,568
Support 2,866 2,466 8,584 7,033
Services 839 1,623 2,776 4,109
--------- --------- --------- ---------
Total revenue 6,193 14,105 20,535 37,291
Cost of revenue:
License fees 347 782 1,583 2,579
Third party software
and hardware 945 3,891 3,271 10,983
Support 1,555 1,411 4,706 4,591
Services 554 907 1,886 2,698
--------- --------- --------- ---------
Total cost of revenue 3,401 6,991 11,446 20,851
--------- --------- --------- ---------
Gross margin 2,792 7,114 9,089 16,440
Operating expenses:
General and
administrative 2,774 2,932 8,057 8,759
Sales and marketing 1,237 1,736 4,814 5,816
Research and development 1,115 1,066 3,539 3,333
--------- --------- --------- ---------
Total operating
expenses 5,126 5,734 16,410 17,908
--------- --------- --------- ---------
Operating (loss) income (2,334) 1,380 (7,321) (1,468)
Other income, net:
Interest income 374 638 1,397 1,798
--------- --------- --------- ---------
Total other income,
net 374 638 1,397 1,798
--------- --------- --------- ---------
(Loss) income before
income tax benefit
(expense) (1,960) 2,018 (5,924) 330
Income tax benefit
(expense) 314 (1,432) 1,152 (701)
--------- --------- --------- ---------
Net (loss) income $ (1,646) $ 586 $ (4,772) $ (371)
========= ========= ========= =========
Basic net (loss)
income per share $ (0.13) $ 0.05 $ (0.39) $ (0.03)
========= ========= ========= =========
Diluted net (loss)
income per share $ (0.13) $ 0.05 $ (0.39) $ (0.03)
========= ========= ========= =========
Weighted average shares
used in basic per
share computation 12,403 12,390 12,389 12,376
========= ========= ========= =========
Weighted average shares
used in diluted per
share computation 12,403 12,460 12,389 12,376
========= ========= ========= =========
ECOMETRY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, December 31,
2001 2000
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 37,280 $ 36,827
Accounts receivable, net of
allowance for doubtful
accounts of $1,170 at
September 30, 2001 and
$901 at December 31, 2000 2,139 7,055
Income taxes receivable 2,178 1,995
Inventory 603 313
Deferred income taxes 299 819
Prepaid expenses and other
current assets 553 534
------------- ------------
Total current assets 43,052 47,543
Property and equipment, net 2,633 2,812
Other assets 139 211
------------- ------------
Total assets $ 45,824 $ 50,566
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 4,069 $ 4,768
Current portion of capital
lease obligation 33 31
Deferred revenue 1,472 729
------------- ------------
Total current liabilities 5,574 5,528
Other non-current liabilities 255 282
------------- ------------
Total liabilities 5,829 5,810
Total stockholders' equity 39,995 44,756
------------- ------------
Total liabilities and
stockholders' equity $ 45,824 $ 50,566
============= ============
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