Egreetings Network, Inc. Reports Record Revenues for Q4 and FY 99; FY 99 Q4 Revenues up 103 Percent Versus FY 99 Q3.Business Editors/High-Tech Writers SAN FRANCISCO--(BUSINESS WIRE)--Feb. 1, 2000 Egreetings Network, Inc. (Nasdaq:EGRT), a leading provider of online greetings greetings interj an expression of friendly salutation and gifts, today reported financial results for the fourth quarter and year ended Dec. 31, 1999. Revenues for the fourth quarter of 1999 were $1.6 million, up 103 percent from $804,000 reported in the third quarter of 1999 and up significantly from $135,000 in the fourth quarter of 1998. Net loss for the fourth quarter of 1999, including certain non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , was $14.6 million or a loss of $0.64 per share on 22.9 million shares. This compares with a net loss of $10.0 million or a loss of $0.61 per share on 16.4 million shares for the third quarter of 1999 and with a net loss of $2.6 million or a loss of $ 0.31 per share on 8.5 million shares for the fourth quarter of 1998. Excluding the amortization of non-cash stock-based compensation and deferred content, net loss for the fourth quarter of 1999 was $13.4 million, or a loss of $0.58 per share, compared with a net loss of $8.8 million, or a loss of $0.54 per share for the third quarter of 1999. This compares with a net loss of $0.29 per share for the fourth quarter of 1998. Revenues for the year ended Dec. 31, 1999 were $3.2 million, up 897 percent from $317,000 reported a year ago. Net loss for fiscal 1999, including certain non-cash charges, was $36.6 million or a loss of $2.28 per share on 16.1 million shares, compared with a net loss of $7.8 million or a loss of $ 0.94 per share on 8.3 million shares for 1998. Excluding the amortization of non-cash stock-based compensation and deferred content, net loss for fiscal 1999 was $ 33.3 million, or a loss of $2.07 per share, compared with a net loss for fiscal 1998 of $7.5 million or a loss of $0.90 per share. All outstanding shares used in the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of net loss per share assume conversion of all preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , as if the conversion to common stock occurred at the beginning of the period or at the date of issuance, if later. The company closed its initial public offering of 6.48 million shares of its common stock on Dec. 17, 1999, including 479,000 shares sold as the result of the exercise of the over-allotment option, raising approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $60.3 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . &uot;This holiday quarter, Egreetings' customers sent a record 20 million Egreetings brand digital greeting cards See e-card. and animations,&uot; said Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. M. Tucker, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Egreetings Network. &uot;We recently announced plans to expand our product offerings to include online invitation and activity-planning services, as well as additional gift-giving choices through a partnership with FTD FTD Financial Times Deutschland (German sister newspaper of the Financial Times) FTD Frontotemporal Dementia FTD Fitted FTD Federal Tax Deposit FTD Flight Training Device FTD Fastest Time of the Day .COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. . The breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is and depth of our content offering was also enhanced through major partnerships announced with NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. television and The Cartoon cartoon [Ital., cartone=paper], either of two types of drawings: in the fine arts, a preliminary sketch for a more complete work; in journalism, a humorous or satirical drawing. Bank for New Yorker yorker Noun Cricket a ball bowled so as to pitch just under or just beyond the bat [probably after the Yorkshire County Cricket Club] magazine cartoons Many of the cartoons used in this database were obtained from The Cartoon Bank, Dobbs Ferry, NY, which has a huge selection of cartoons on every subject (visit www.cartoonbank.com). . I am very pleased with the progress we continue to make on key strategic fronts important to our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success,&uot; he said. Egreetings management will hold a conference call to discuss these results today, Feb. 1, at 1:30 PM Pacific Time. Those wishing to join should dial 212/547-0139 at approximately 1:15 PM. A replay will be available for one week after today by calling 402.220.2067, passcode 6985390. About Egreetings Network, Inc. Egreetings offers consumers a simple and convenient way to find and send appropriate greetings and gifts. The Egreetings.com Web site contains over 5000 digital greetings incorporating rich media elements such as graphics, animations and music that consumers can personalize per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. and send for free. Egreetings.com also offers a Gift Center with a wide variety of gifts and gift certificates for every occasion. Egreetings Network, Inc. is a Nasdaq-listed company under the symbol EGRT. Note to Editors: E-greetings is a registered trademark and Egreetings is a trademark of Egreetings Network, Inc. (Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Statements of Income and Balance Sheets to follow)
EGREETINGS NETWORK, INC.
CONDENSED BALANCE SHEETS
( in thousands)
December 31, December 31,
1999 1998
ASSETS
Current Assets:
Cash and cash equivalents $ 81,774 $ 268
Receivables, net 1,228 210
Prepaid expenses and
other current assets 9,244 41
------------ ------------
Total current assets 92,246 519
Furniture and equipment, net 11,800 845
Restricted cash deposit 2,172 --
Deferred content costs 12,740 1,566
Deposits and other assets 1,165 38
------------ ------------
Total assets $120,123 $ 2,968
============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 7,910 $ 869
Accrued expenses and
other current liabilities 4,320 2,028
Deferred revenue 581 86
Current portion of
equipment term loan 1,764 374
------------ ------------
Total current liabilities 14,575 3,357
Equipment term loan,
less current portion 3,271 586
Other non-current liabilities 447 514
------------ ------------
Total liabilities 18,293 4,457
Stockholders' Equity:
Convertible preferred stock -- 11,363
Common stock 159,227 504
Deferred stock compensation (2,195) (287)
Notes receivable from stockholders (5,490) --
Accumulated deficit (49,712) (13,069)
------------ ------------
Total stockholders'
equity (deficit) 101,830 (1,489)
------------ ------------
Total liabilities and
stockholders' equity $120,123 $ 2,968
============ ===========
EGREETINGS NETWORK, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts )
Three Months Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $ 1,633 $ 135 $ 3,160 $ 317
Costs and expenses:
Cost of services 943 208 2,932 610
Sales and marketing 8,815 1,175 17,035 3,094
Operations and development 3,891 997 10,972 2,628
General and administrative 1,385 242 5,437 1,444
Amortization of deferred
content costs 618 12 1,371 138
Amortization of deferred
stock compensation 626 89 1,992 201
-------- -------- ------- -------
Total costs and expenses 16,278 2,723 39,739 8,115
-------- -------- ------- -------
Loss from operations (14,645) (2,588) (36,579) (7,798)
Interest income (expense), net 30 (20) (63) (23)
-------- -------- ------- -------
Net loss $(14,615) $(2,608) $(36,642)$(7,821)
========= ======== ======== ========
Net loss per share:
Proforma basic and diluted $ (0.64) $ (0.31) $ (2.28)$ (0.94)
========= ======== ======== ========
Shares used in calculation
of net loss per share:
Proforma basic and diluted 22,902 8,513 16,068 8,324
========= ======== ======== ========
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