Engage Announces Fiscal Third Quarter 2002 Results.Business Editors ANDOVER Andover (ăn`dōvər), town (1990 pop. 29,151), Essex co., NE Mass.; inc. 1646. Chiefly a textile producer in the 19th cent., Andover now makes toiletries, electronic and computer equipment, chemicals, medical instruments, rubber products, , Mass.--(BUSINESS WIRE)--June 10, 2002 Engage, Inc. (Nasdaq: ENGA), a leading provider of software solutions and services for advertisers, marketers and publishers, today announced operating and financial results for its third fiscal quarter of 2002, ended April 30, 2002. In line with the Company's previous announcement, revenue for the third fiscal quarter was $5.3 million, compared to $6.1 million for the second fiscal quarter of 2002. Gross profit for the third fiscal quarter, excluding non-cash amortization, was $1.6 million, or 30% of revenue, compared to $2.5 million, or 41% of revenue, for the previous quarter. Total gross profit for the third fiscal quarter, including amortization, was $142,000, or 3% of revenue, compared to $1.0 million, or 17% of revenue, for the previous quarter. On a cash basis (a), Engage's 2002 third quarter net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the before amortization, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs and stock compensation was $7.9 million, or $0.04 per share, using a weighted average share count of 196.5 million. This compared to a loss of $5.6 million, or $0.03 per share, for the second fiscal quarter 2002. For the third fiscal quarter 2002, Engage's cash basis net loss from continuing operations included a charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.6 million related to the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of future lease costs for certain facilities that are no longer occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. by the Company. The accrual is based upon total future lease costs under the facility lease, less estimated proceeds from possible subleasing arrangements that the Company may be able to enter into during future periods. Total net loss for the third fiscal quarter was $15.4 million, or $0.08 per share, compared to a loss of $13.2 million, or $0.07 per share, in the previous quarter. "Throughout the third quarter, we continued to invest in the business to best position Engage for future 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. growth," said Christopher Cuddy cud·dy 1 n. pl. cud·dies 1. Nautical A small cabin or the cook's galley on a ship. 2. A small room, cupboard, or closet. [Origin unknown. , president and 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 Engage. "We listened to our customers and the market and made significant investments in sales hires, marketing and product initiatives. We believe these investments better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. our products and services with the current economic realities of today's market. Given these conditions, we believe we have not yet begun to see the impact of our investments." Cash utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rate for the third quarter was $3.9 million, compared to $5.7 million in the prior quarter. As of April 30, 2002, Engage's cash and cash equivalents totaled $20.4 million. Engage will conduct a conference call and simultaneous Webcast today at 5:00 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 to discuss the Company's fiscal 2002 third quarter results. To access the live call, please dial 952-556-2808 at least ten minutes prior to 5:00 p.m. To access the online Webcast, please visit the investor section of Engage's corporate Web site at www.engage.com. About Engage, Inc. Engage, Inc. (Nasdaq: ENGA) is a leading provider of software solutions and services for advertisers, marketers and publishers. Engage's digital asset management and workflow automation See workflow. software enables the creation, production and delivery of marketing and advertising content more quickly and efficiently, increasing time-to-market advantages, boosting productivity and ultimately driving higher ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). from marketing programs and advertising campaigns. The company's 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 ad management business platform powers the effective and efficient design and delivery of online campaigns for web publishers who are competing for advertising revenue in a rapidly evolving medium. A majority-owned operating company operating company A business that engages in transactions with outsiders. of CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) , Inc. (Nasdaq: CMGI), Engage is headquartered in Andover, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , with
European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. headquarters in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. . For more information on Engage, please call 877-U ENGAGE or visit www.engage.com. (a) This cash basis measure is not a recognized measure for financial statement presentation under 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. generally accepted accounting principles (U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .S. GAAP earnings measures do not have any defined meaning and are therefore unlikely to be comparable to similar measures presented by other issuers. This cash basis measure is provided to assist readers in evaluating the operating performance of Engage's ongoing business and each of the items listed (amortization, restructuring costs and stock compensation) were excluded because they were considered to be of a non-operational nature. Readers are encouraged to consider this cash basis measure in the context of Engage's U.S. GAAP results. Information Regarding 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. This press release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements and include statements regarding our belief that our investments better align our products and services with the current economic realities of today's market and our belief that we have not yet begun to see the impact of our investments. Such statements are based on our current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. Such factors and uncertainties include, but are not limited to, our ability to accurately estimate our financial results, our ability to reduce expenses and to increase sales of our product offerings, the impact of competition within our industry, our long sales and implementation cycle, our current debt obligations and our need to obtain future financing. Such factors and uncertainties also include, those set forth in "Factors that may Effect Future Results and Market Price of Stock" in our Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July July: see month. 31, 2001 filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no duty or obligation to update any forward-looking statements in light of new information or future events, unless required by law.
Engage, Inc.
Consolidated Balance Sheets
(In thousands)
April 30, July 31,
2002 2001
--------- ---------
(unaudited)
Assets
Current assets:
Cash and cash equivalents...................$ 20,421 $ 33,261
Accounts receivable, net.................... 5,363 8,357
Prepaid expenses............................ 1,144 1,221
Current assets of discontinued operations... 791 13,016
--------- ---------
Total current assets..................... 27,719 55,855
--------- ---------
Property and equipment, net.................. 4,476 7,094
Intangible assets, net....................... 39,415 61,389
Other assets................................. 1,286 7,258
Long-term assets of discontinued operations.. 152 1,241
--------- ---------
Total assets.............................$ 73,048 $ 132,837
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of obligation under
capital lease..............................$ 297 $ 2,806
Current portion of long-term debt........... - 1,693
Debt to CMGI................................ 59,364 -
Accounts payable............................ 2,012 5,903
Due to CMGI affiliates...................... 1,157 1,699
Accrued expenses............................ 13,765 38,396
Deferred revenue............................ 2,800 6,365
--------- ---------
Total current liabilities................ 79,395 56,862
--------- ---------
Due to CMGI.................................. - 39,821
Deferred revenue............................. 59 24
Obligation under capital lease, net of
current portion............................. - 759
Long-term debt, less current portion......... - 266
Other long-term liabilities.................. 482 396
--------- ---------
Total liabilities.................... 79,936 98,128
--------- ---------
Minority interest............................ - 6,755
Stockholders' equity:
Common stock................................ 1,960 1,965
Additional paid-in capital.................. 3,686,132 3,774,494
Deferred compensation....................... (1,391) (4,337)
Accumulated other comprehensive income...... 41 558
Accumulated deficit.........................(3,693,630) (3,744,726)
--------- ---------
Total stockholders' equity............... (6,888) 27,954
--------- ---------
Total liabilities and stockholders'
equity..................................$ 73,048 $ 132,837
========= =========
Engage, Inc.
Consolidated Operating Results
(In thousands, except per share data)
(unaudited)
Three months ended
---------------------------
April 30, January 31, April 30,
2002 2002 2001
------- ------- -------
Revenue:
Product revenue........................ $ 1,759 $ 2,340 $ 4,402
Services and support revenue........... 3,587 3,735 8,171
------- ------- -------
Total revenue....................... 5,346 6,075 12,573
------- ------- -------
Cost of revenue:
Cost of product revenue................ 297 60 103
Cost of services and support revenue... 3,449 3,509 7,096
Amortization of developed technology... 1,458 1,459 1,459
------- ------- -------
Total cost of revenue............... 5,204 5,028 8,658
------- ------- -------
Gross profit........................ 142 1,047 3,915
------- ------- -------
Operating expenses:
Research and development............... 2,049 1,883 3,302
Selling and marketing.................. 2,859 2,890 7,344
General and administrative............. 3,967 2,137 5,307
Amortization and impairment of goodwill
and other intangibles................. 5,866 5,866 18,963
Restructuring costs.................... (152) - 613
Stock compensation..................... 280 294 438
------- ------- -------
Total operating expenses............ 14,869 13,070 35,967
------- ------- -------
Operating loss...................... (14,727) (12,023) (32,052)
------- ------- -------
Other income (expense):
Interest income........................ 110 137 872
Interest expense....................... (1,025) (1,042) -
Minority interest...................... - 16 260
Other income (expense), net............ 251 (289) (290)
------- ------- -------
Loss from continuing operations......... (15,391) (13,201) (31,210)
------- ------- -------
Loss from discontinued operations....... - - (45,427)
------- ------- -------
Net loss................................ $(15,391) $(13,201) $(76,637)
======= ======= =======
Basic and diluted net loss per share data:
Continuing operations................... $ (0.08) $ (0.07) $ (0.16)
Discontinued operations................. - - (0.23)
------- ------- -------
Basic and diluted net loss per share.... $ (0.08) $ (0.07) $ (0.39)
======= ======= =======
Weighted average number of
basic and diluted shares outstanding... 196,458 196,574 196,943
======= ======= =======
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion