Engage Increases Fiscal Year Revenues by 623%; Customers increased during 4th quarter to 335; 35 million profiles now available through Engage Knowledge database.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)--Sept. 22, 1999-- Engage Technologies, Inc. (Nasdaq: ENGA), a provider of profile driven Internet marketing See Internet advertising. solutions and services and 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), today announced operating and financial results for its fiscal fourth quarter and year ended July July: see month. 31, 1999. The Company also provided an update on corporate developments. Engage raised $94.8 million, net of issuance and other deal related costs, in its initial public offering on July 20, 1999. Total revenues for the fiscal 1999 fourth quarter were $7.0 million, a 338% increase from last year's fourth quarter and a 48% increase over fiscal 1999 third quarter revenues of $4.7 million. Revenues for the fiscal year ended July 31, 1999 grew 623% to $16.0 million compared to $2.2 million in fiscal 1998. This revenue growth for the fiscal year was attributable primarily to the Accipiter and I/PRO acquisitions and increased sales of Engage's profiling products and services. Net loss for the fourth quarter increased to $10.8 million, or $0.26 per share, compared to a net loss of $4.6 million, or $0.25 per share, in last year's fourth quarter. Fourth quarter expenditures included continued research and development investments as well as initiatives in selling and marketing in conjunction with a corporate branding Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. campaign. For the 1999 fiscal year, net loss was $32.0 million, or $0.89 per share, compared to a net loss of $13.8 million, or $0.83 per share last year. Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Schaut, President and Chief Executive Officer, commented, "Fiscal 1999 was an exciting year for Engage. We have taken strategic actions that firmly position the Company for growth in fiscal 2000, including successfully integrating acquisitions as well as leveraging our family of products to our rapidly growing customer base. Additionally, our successful initial public offering provided the Company with the financial resources to help pursue our corporate objectives on an accelerated timeline
Timeline may refer to:
Engage's customer base has grown rapidly, reflecting strong demand for the Company's products. In the fourth quarter alone, Engage added 33 new customers including FasTV.com, Infomove, TheBigStore.com, TheBigHub.com, theglobe.com and Granada in the U.K. As of July 31st, 116 of the Company's total 335 customers used two or more of Engage's products and/or services. During the fiscal year, the Company made significant progress in the development and expansion of its business. In April, Engage acquired and successfully integrated 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 Profiles Corporation (I/PRO), which provides Web site traffic measurement, analysis and verification of site traffic and advertising results. Additionally during the fourth quarter, the Company launched a new channel strategy to focus specifically on partnering with various system integrators See systems integrator. , such as IXL (Nasdaq: IIXL) and Razorfish Razorfish is a common name used for two unrelated groups of fishes:
In late July, Engage further enhanced the Company's product line through the commercial launch of Engage Knowledge, a proprietary service providing real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. access to a database of anonymous global profiles of Web users. As of July 31, 1999, Engage Knowledge had grown to 34 licensed customers. At that time, 13 customers representing 408 contributing sites had installed the necessary software and were actively contributing data. Also at fiscal year end, the Engage Knowledge database was comprised of more than 35 million profiles, up from 30 million at the end of April. Subsequent to the quarter, Engage announced several agreements that reinforce the viability and strength of Engage's solutions: -- Engage recently announced a strategic partnership with Compaq, whereby Compaq will deploy Engage's Precision Profiling and Accipiter AdManager technology, enabling Compaq to better target and measure their Internet marketing programs. -- Engage received a multi-million dollar expansion of its alliance with Microsoft Corp's MSN (1) (MicroSoft Network) A family of Internet-based services from Microsoft, which includes a search engine, e-mail (Hotmail), instant messaging (Windows Live Messaging) and a general-purpose portal with news, information and shopping (MSN Directory). unit to include licensing of Engage's Accipiter AdManager technology with compliance to Engage's proprietary profiling API's. The technology will be used on Microsoft's advertising-supported web sites, including MSN and MSNBC MSNBC Microsoft/National Broadcasting Company . -- Highlighting the importance of profiling solutions to E-Commerce, Engage partnered with Cybuy, a wholly-owned subsidiary of the NatWest Group. Cybuy will use Engage's Accipiter AdManager technology in conjunction with Engage Knowledge to target e-commerce offers based on a visitor's profile, thus increasing the understanding of consumer interests and matching merchants' offers with their target audiences. -- I/PRO launched its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. headquarters co-locating with the already established Engage European operations in London. The UK office will function as a sales, marketing, and support center for I/PRO Europe. Additionally, Engage recently opened a sales office in Germany in conjunction with its European efforts. Mr. Schaut concluded, "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the opportunities before us as we head into fiscal 2000. Engage intends to broaden its family of products and services targeted at Web publishers, advertisers and merchants. Through our over 325 talented and committed personnel worldwide, we intend to continue to execute on our mission to make Engage the global leader in profile driven Internet marketing." About Engage Engage, (Nasdaq:ENGA), a majority-owned operating company of CMGI, Inc., (Nasdaq:CMGI), is a provider of profile driven Internet marketing solutions. Engage offers a range of software products and services that enable Web publishers, advertisers and merchants to target and deliver advertisements, commerce and e-commerce offerings to their audiences and to measure their effectiveness. Engage's core product and services include Engage Knowledge, a database that currently contains more than 35 million anonymous consumer profiles, and Accipiter AdManager, an online advertising management system that automates the scheduling, targeting and delivery of ads on Web sites and the reporting of campaign results. Additionally, Engage offers Web traffic verification, measurement and analysis, and research through its wholly-owned subsidiary, I/PRO. For more information about Engage, please visit www.engage.com. About CMGI With nearly 50 companies, CMGI, Inc. (Nasdaq: CMGI) represents the largest, most diverse network of Internet companies in the world. This network includes both CMGI operating companies and a growing number of synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. investments through its venture capital affiliate, @Ventures. CMGI leverages the technologies, content, and market reach of its extended family of companies to foster rapid growth and industry leadership across its network, and the larger Internet Economy The Internet Economy refers to conducting business through markets whose infrastructure is based on the Internet and World-Wide Web. An Internet economy differs from a traditional economy in a number of ways, including: communication, market segmentation, distribution costs, and price. . Microsoft, Intel, Sumitomo and Compaq hold minority positions in CMGI. CMGI's majority-owned operating companies include Engage Technologies (Nasdaq: ENGA), Activerse, Adsmart, AltaVista, Cha! Technologies, iCAST, Magnitude Network, NaviSite, NaviNet, Planet Direct and ZineZone. The company's @Ventures affiliates have ownership interests in Lycos, Inc. (Nasdaq: LCOS (Liquid Crystal on Silicon) A technology used to make microdisplays for rear-projection TVs and head-mounted displays (HMDs). Each LCoS chip hosts a grayscale LCD shutter sandwiched between a cover glass and a mirror. ), Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Chemdex (Nasdaq: CMDX), Advoco.com, Ancestry an·ces·try n. pl. an·ces·tries 1. Ancestral descent or lineage. 2. Ancestors considered as a group. [Middle English auncestrie, alteration (influenced by .com, Asimba, AuctionWatch, Aureate au·re·ate adj. 1. Of a golden color; gilded. 2. Inflated and pompous in style. [Middle English aureat, from Late Latin aure Media, blaxxun, BizBuyer.com, buyingedge.com, CarParts.com, eCircles.com, Furniture.com, HotLinks, Intelligent/Digital, KOZ.com, Mondera.com, MotherNature.com, NextMonet.com, NextPlanetOver.com, OneCore.com, ONElist, PlanetOutdoors.com, Productopia, Promedix.com, Raging rag·ing adj. 1. Very active and unpredicatable; volatile: a raging debate; a raging fire. 2. Remarkable; extraordinary: a raging hit on prime-time TV. Bull, Softway Systems, ThingWorld.com, Vicinity, Virtual Ink, Visto and WebCT. CMGI is also the majority-owner of SalesLink, InSolutions and On- Demand Solutions, leaders in the direct marketing, fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. and turnkey See turnkey system. arenas. CMGI Corporate headquarters is located at 100 Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax: 978-684-3814. Additional information is available on the company's Web site at http://www.cmgi.com. Statement Under 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 . This press release includes forward-looking information. All statements other than statements of historical fact, including without limitation, those with respect to the Company's objectives, plans and strategies set forth herein and those preceded by or that include the words "believes," "intends," "expects," "will," "anticipates," or similar expressions, 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. . These forward- looking statements are subject to a number of risks and uncertainties which could cause the Company's future results of operations to differ materially from those anticipated, including the risks detailed in the Company's prospectus included as part of the S-1 Registration Statement declared effective on July 19, 1999 under the Securities Act of 1933. -0-
Engage Technologies, Inc. and Subsidiaries
Report of Fourth Quarter and Year End Operating Results
(In thousands, except per share data)
(unaudited)
Three months ended Year ended
July 31, July 31,
1998 1999 1998 1999
Revenue
Product revenue $ 1,423 $6,373 $1,945 $14,167
Services and
support revenue 181 653 272 1,856
Total revenue 1,604 7,026 2,217 16,023
Cost of revenue
Cost of product revenue 149 2,167 185 3,494
Cost of services
and support revenue 900 1,658 2,053 5,957
Total cost of revenue 1,049 3,825 2,238 9,451
Gross (loss) profit 555 3,201 (21) 6,572
Operating expenses
In-process research
and development
- - 9,200 4,500
Research and development
1,171 2,883 5,859 8,699
Selling and marketing
1,491 6,162 4,015 12,776
General and administrative
976 1,706 1,993 4,115
Amortization of goodwill
and other intangibles 1,033 2,286 1,391 5,829
Stock compensation 361 798 426 1,455
Total operating expenses 5,032 13,835 22,884 37,374
Loss from operations (4,477) (10,634) (22,905) (30,802)
Other income (expense)
Gain on sale of
product rights - - 9,240 -
Other (112) (199) (172) (1,201)
Net loss $(4,589) $(10,833) $(13,837) $(32,003)
Pro forma basic and diluted
net loss per share(a) $(0.25) $(0.26) $(0.83) $(0.89)
Pro forma weighted average
number of basic and diluted
shares outstanding(a) 18,435 41,036 16,750 35,931
(a) Historical basic and diluted net loss per share have not been
presented because they are irrelevant due to the significant
change in the Company's capital structure upon the completion of
the initial public offering which included the conversion of all
debt to CMGI and preferred stock. The unaudited pro forma basic
and diluted loss per share information included in the
accompanying statement of operations reflects the impact of the
conversion of debt to CMGI and preferred stock as of the later of
the issuance of the convertible security or the beginning of each
period, using the if-converted method.
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