Fatbrain.com Reports Results for the Fourth Quarter and Fiscal 2000; Quarterly Online Sales Increase 193% to $10.3 million; Annual Online Sales Grow 170% to $28.8 million.Business Editors SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--March 8, 2000 Fatbrain.com(TM), Inc. (Nasdaq: FATB FATB Florida Association of Ticket Brokers ), the leading online information exchange for business, today announced financial results for the fourth quarter and fiscal year ended January 31, 2000. The Company announced record online sales of $10.3 million for the fourth quarter, an increase of 193 percent from online sales of $3.5 million for the same quarter of the prior year. Total company sales, which also include sales generated by physical retail stores and trade shows, were $11.9 million for the quarter, a 122 percent increase over total sales of $5.3 million for the same period last year. The Company reported a net loss for the fourth quarter of $10.0 million, or $0.79 per share. These results compare to a net loss of $3.4 million, or $0.37 per share, in the prior year period. For the fiscal year, online sales totaled $28.8 million, an increase of 170 percent from online sales of $10.7 million for fiscal 1999. Total sales for the twelve month period were $35.3 million, an increase of 79 percent from total sales of $19.8 million for the prior fiscal year. The Company reported an annual net loss of $30.3 million, or $2.61 per share, compared to a net loss of $9.9 million, or $2.87 per share, for the same period of last year. Fatbrain.com added more than 56,000 new customers during the fourth quarter, bringing the Company's total customer base to over 245,000. Online customer accounts increased 29.9 percent from the previous quarter, and repeat customer orders represented 60.4 percent of orders placed. Business-to-Business Operating Highlights Fatbrain.com Revolutionizes the Way Corporations Manage, Market and Distribute Content with Online Information Exchanges Fatbrain.com's new Information Exchange solution combines the Company's e-commerce expertise, secure digital publishing technology, comprehensive professional bookstore, established print-on-demand infrastructure and world-class distribution and 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. to deliver a complete Web-based, one-stop outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. solution for mission-critical internal and external corporate information. Key elements of Fatbrain.com's document management solution include:
-- A one-stop, Web-based, end-to-end solution. Based on
Fatbrain.com's successful corporate online bookstore model,
corporations can catalog, track, publish and deliver their
internal and external publications via a custom
intranet-based or Internet Web site. In addition, the
Information Exchange can provide convenient access to
Fatbrain.com's world-class selection of books and resources
including Web-based training and certification programs.
-- Enterprise eMatter. Employing Fatbrain.com's secure digital
publishing technology, this efficient corporate application
for eMatter brings businesses one step closer to the
"paperless" office and allows not only the faster
distribution of information, but also reduced printing
expenses through the secure electronic distribution of
internal information.
-- Print-on-Demand. Fatbrain.com's print-on-demand solution
allows corporations to eliminate the costs associated with
setting up and maintaining an internal publishing and
distribution operation. The program oversees production,
warehousing and delivery of up-to-the-minute printed
documentation for employees, customers and partners.
Dennis Capovilla, Fatbrain.com's president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , commented, "With our business-to-business solutions accounting for the lion's share of our revenues, we're expanding our focus on B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business to provide a comprehensive outsourcing solution. Information Exchanges allow corporations to streamline costs and improve service across all operations associated with document management, while freeing up valuable resources to focus on their core businesses. We believe that our new Information Exchange solutions will allow us to address a greater market opportunity and to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: our successful B2B expertise with higher margin generating services." Fatbrain.com's B2B Solutions Embraced at Over 300 Fortune 1000 Corporations Fatbrain.com added over 450 corporate accounts during the fourth quarter and now reaches more than 300 of the corporations included in the Fortune 1000. Through its corporate business-to-business programs, Fatbrain.com's reach has grown to more than 2.25 million employee desktops worldwide. During the quarter, the Company developed new corporate custom online bookstores for both new and existing customers, including a two-year agreement to host a bookstore exclusively for Informix (Nasdaq: IFMX IFMX Informix Corporation ) customer and developer communities and Fatbrain.com's fifth and sixth bookstores for Microsoft (Nasdaq: MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ), serving the Microsoft Office Microsoft's primary desktop applications for Windows and Mac. Depending on the package, it includes some combination of Word, Excel, PowerPoint, Access and Outlook along with various Internet and other utilities. and Microsoft Certified See certification. Solutions Provider user communities. In addition, Adobe Systems Adobe Systems Incorporated (pronounced a-DOE-bee IPA: /əˈdoʊbiː/) (NASDAQ: ADBE) (LSE: ABS) is an American computer software company headquartered in San Jose, California, USA. and Lawson Software (Lawson Software, St. Paul, MN, www.lawson.com) A software company that specializes in ERP for vertical markets including health care, retail, public sector, professional and financial services. signed on to take advantage of Fatbrain.com's Print-on-Demand solution for outsourcing the production and distribution of corporate publications to their respective customer communities. As part of the agreement, Fatbrain.com launched custom online bookstores accessible from links on Adobe adobe (ədō`bē): see rammed earth. adobe Handmade sun-dried bricks formed from a mixture of heavy clay and straw found in arid regions. and Lawson intranets and Lawson's customer support Web site that provide developers and employees with a quick and easy way to locate and buy hard copies of developer and software documentation. New Partnership with E-Commerce Leader Fatbrain.com continues to establish strategic partnerships with e-commerce industry leaders to offer its business-to-business outsourcing solutions to corporations of all sizes. The Company recently teamed up with Concur Technologies as part of its Business Advantage program, a global leveraged buying e-commerce trading network for the small and mid-size business (SMB (1) (Small to Medium-sized Business) Also called "SME" (small to medium-sized enterprise), it refers to companies that are larger than the small office/home office (SOHO), but not huge. ) market that connects users over the Internet directly to market-leading suppliers, and enables small and mid-size businesses to take advantage of the leveraged buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. of multi-billion dollar corporations. Fatbrain.com Expands Senior Management Team to Strengthen B2B Focus In an effort to help drive the growth of its business-to-business e-commerce strategy, Fatbrain.com strengthened its senior management team during the fourth quarter with the appointment of Dennis Capovilla to the newly created position of president and chief operating officer, reporting to Chris MacAskill, who continues as chief executive officer. In his previous role as vice president of sales and business development, Capovilla was responsible for driving Fatbrain.com's sales, business development, customer service and product management strategies and was instrumental in forging key relationships with Fatbrain.com's major corporate customers and strategic partners. Brad McBride replaces Capovilla as vice president, worldwide sales, and is responsible for driving the business-to-business strategy forward by managing and growing Fatbrain.com's customer base and working with key accounts to develop corporate solutions for outsourcing internal and external information resources (1) The data and information assets of an organization, department or unit. See data administration. (2) Another name for the Information Systems (IS) or Information Technology (IT) department. See IT. through Fatbrain.com's Information Exchange program. Previously an 18-year veteran of Xerox, McBride was responsible for managing the operations performance of the company's Silicon Valley sales organization. More than 7,000 eMatter Works Published Fatbrain.com continues to make strides with its mass market eMatter digital publishing initiative. Known authors who recently submitted works via eMatter include Arthur C. Clarke Sir Arthur Charles Clarke, CBE (born 16 December 1917) is a British science-fiction author and inventor, most famous for his novel , and for collaborating with director Stanley Kubrick on the . , best-selling best·sell·er also best seller n. A product, such as a book, that is among those sold in the largest numbers. best author of 2001: A Space Odyssey Odyssey (ŏd`ĭsē): see Homer. Odyssey Homer’s long, narrative poem centered on Odysseus. [Gk. Lit.: Odyssey] See : Epic Odyssey ; Peter Norton Peter Norton (born November 14 1943) is an American software publisher, author, and philanthropist. Biography Norton was born in Aberdeen, Washington, U.S., North America. He attended Reed College in Portland, Oregon, graduating in 1965. , best selling author of "Peter Norton's Inside the PC;" Edward Yourdon (person) Edward Yourdon - A software engineering consultant, widely known as the developer of the "Yourdon method" of structured systems analysis and design, as well as the co-developer of the Coad/Yourdon method of object-oriented analysis and design. , renown expert and author of "Case Studies in Object-Oriented Analysis and Design Object-oriented analysis and design (OOAD) is a software engineering approach that models a system as a group of interacting objects. Each object represents some entity of interest in the system being modeled, and is characterised by its class, its state (data elements), and its ;" Jonathan Littman, author of "The Watchman WATCHMAN. An officer in many cities and towns, whose duty it is to watch during the night and take care of the property of the inhabitants. 2. He possesses generally the common law authority of a constable (q.v. " about hacker A person who writes programs in assembly language or in system-level languages, such as C. The term often refers to any programmer, but its true meaning is someone with a strong technical background who is "hacking away" at the bits and bytes. Kevin Mitnick Kevin David Mitnick (born October 6, 1963) is a controversial computer cracker and convicted criminal in the United States. Mitnick was convicted in the late 1990s of illegally gaining access to computer networks and stealing intellectual property. ; Seth Godin, Internet business marketing guru guru (g  `r, g r` and
best selling author of "Permission Marketing;" and Bob Nelson,
best selling author of "Management for Dummies."In addition, several new publishing firms have committed to providing content for purchase through the eMatter platform. New partners include IDG IDG International Data Group IDG Integrated Drive Generator IDG Installation Design Guide IDG Internet Discussion Group IDG Inset Dielectric Guide IDG International Dangerous Goods (mail, shipping) Consumer Cliff Notes, John Wiley John Wiley may refer to:
Chris MacAskill, chief executive officer, commented, "While we have found an ideal fit for enterprise eMatter within our new Information Exchange product suite, we also believe that tremendous opportunities exist for eMatter within the mass market. We have several initiatives underway to strengthen our first mover mover /mov·er/ (moo´ver) that which produces motion. prime mover a muscle that acts directly to bring about a desired movement. advantage in the emerging marketplace for online digital publishing, and we plan to unveil new branding and financing strategies to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this mass market opportunity in the coming weeks." About Fatbrain.com Fatbrain.com is the leader in managing, marketing and distributing information for businesses. Today, the company's business-to-business solutions reach more than 2.25 million employee desktops at more than 300 Fortune1000 corporations worldwide. Fatbrain.com provides businesses with a comprehensive Web-based solution for information exchange by combining its leading professional bookstore with unique print-on-demand capabilities and enterprise eMatter, a customized implementation of its secure digital publishing solution, for the printed and digital delivery of valuable, mission critical corporate information. Fatbrain.com enables paper and digital documents to co-exist in an organized and highly-accessible fashion. Last year, the company was named the second fastest-growing public company in Silicon Valley. Visit Fatbrain.com on the Web at http://www.fatbrain.com. This announcement 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. that involve risks and uncertainties including, among others, Fatbrain.com's limited operating history, anticipated losses, the unpredictability of its future revenues, competition, risks associated with system development and operation risks, management of potential growth, and risks of new business areas, international expansion, business combinations, and strategic alliances. Actual results could differ materially from those discussed. More information about factors that potentially could affect Fatbrain.com's financial results is included in the Company's filings on Form 10-KSB and Forms 10-QSB with the Securities and Exchange Commission. All forward looking statements are based on information available to the Company on 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 such statements. Note to Editors: Fatbrain.com and eMatter are trademarks of Fatbrain.com, Inc. All company and product names may be trademarks of the respective companies with which they are associated.
Fatbrain.com, Inc.
Statements of Operations
(in thousands, except per share data)
Quarter ended Year ended
January 31, January 31,
2000 1999 2000 1999
Revenues: (unaudited)
Online $ 10,252 $ 3,503 $ 28,776 $ 10,662
Retail and other 1,602 1,838 6,562 9,118
-------- -------- -------- --------
Total revenues 11,854 5,341 35,338 19,780
Cost of revenues:
Online 8,308 2,795 23,191 8,433
Retail and other 1,058 1,240 4,286 5,967
-------- -------- -------- --------
Total cost of
revenues 9,366 4,035 27,477 14,400
-------- -------- -------- --------
Gross profit 2,488 1,306 7,861 5,380
Operating expenses:
Sales and marketing 7,596 3,103 25,121 9,918
Development and
engineering 2,349 947 6,598 2,858
General and
administrative 2,877 886 7,354 2,909
-------- -------- -------- --------
Total operating
expenses 12,822 4,936 39,073 15,685
-------- -------- -------- --------
Loss from operations (10,334) (3,630) (31,212) (10,305)
Interest, net 326 269 921 413
======== ======== ======== ========
Net loss $(10,008) $ (3,361) $(30,291) $ (9,892)
======== ======== ======== ========
Basic and diluted
net loss per share $ (0.79) $ (0.37) $ (2.61) $ (2.87)
======== ======== ======== ========
Shares used in
calculating basic
and diluted net
loss per share 12,606 9,064 11,627 3,441
======== ======== ======== ========
Fatbrain.com, Inc.
Balance Sheets
(in thousands, except per share data)
(unaudited)
January 31, January 31,
2000 1999
Assets
Current assets:
Cash and equivalents $ 15,367 $ 9,341
Short-term investments 5,475 5,344
Accounts receivable, net
of allowance of $654 and $161 3,027 1,268
Inventories 5,798 3,204
Prepaid expenses and
other current assets 3,471 1,068
-------- --------
Total current assets 33,138 20,225
Property and equipment, net 11,224 2,097
Investments 1,274 14,181
Goodwill, net 2,545 2,751
Other assets 284 360
======== ========
Total assets $ 48,465 $ 39,614
======== ========
Liabilities and Stockholders' equity
Current liabilities:
Accounts payable $ 8,350 $ 1,896
Accrued expenses 2,964 1,169
Current portion of
capital lease obligations 22 18
-------- --------
Total current liabilities 11,336 3,083
Capital lease obligations 12 35
-------- --------
Total liabilities 11,348 3,118
Stockholders' equity:
Preferred stock, $0.001
par value, 5,000
authorized, none
issued and outstanding -- --
Common stock, $0.001 par value,
50,000 and 50,000 shares
authorized, 12,951 and 11,172
shares issued and outstanding
at January 31, 2000 and
January 31, 1999, respectively 13 11
Additional paid-in capital 75,909 50,270
Warrants 5,261 12
Unrealized loss on investments (25) (47)
Accumulated deficit (44,041) (13,750)
-------- --------
Total stockholders' equity 37,117 36,496
======== ========
Total liabilities and
stockholders' equity $ 48,465 $ 39,614
======== ========
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