Razorfish Announces Second Quarter 2001 Financial Results.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 14, 2001 Razorfish Razorfish is a common name used for two unrelated groups of fishes:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : RAZF), a global digital solutions provider, today reported its financial results for the quarter ended June June: see month. 30, 2001. For the three months ended June 30, 2001, revenues were $28.7 million, which compares to $42.7 million for the first quarter of 2001 and $76.6 million for the second quarter of 2000. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss (before amortization of intangibles and stock-based compensation, 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). and other charges) for the second quarter of 2001 was ($3.7 million) or ($0.04) per share, which compares to pro forma net loss of ($6.6 million) or ($.07) per share for the first quarter 2001 and pro forma net income of $7.3 million or $0.08 per share for the second quarter 2000. "In this very difficult environment, our operational performance improved in our second quarter as compared to our first quarter with higher gross margins (35% vs. 32%) and lower DSO See CSO. (67 days vs. 76 days). While we will not be satisfied until we generate positive cash flows, our Q2 results demonstrate our commitment to our goal of returning to profitable operations and our progress towards it," said Jean-Philippe Maheu, Chief Executive Officer of Razorfish. "In addition, we added ten blue chip clients to our roster, including Glaxo SmithKline, Solaris A multitasking, multiprocessing operating system from Sun that runs on SPARC and x86-based computers. In 2005, Sun made Solaris free and open source. Known for its robustness and scalability, Solaris provides an enterprise-wide Unix environment that can manage thousands of nodes from one Health Network, Canadian Broadcasting Corporation “Radio-Canada” redirects here. For the French language TV arm of the CBC, see Télévision de Radio-Canada. The Canadian Broadcasting Corporation (CBC), a Canadian crown corporation, is the country’s national public radio and television broadcaster. , Ikea, Bayerishe Landesbank (Bayern LB), CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. , UK Channel Four, a leading enterprise software company, a leading microprocessor microprocessor, integrated circuit containing the arithmetic, logic, and control circuitry required to interpret and execute instructions from a computer program. and IT solutions company, and a leading engineering company," Maheu added. "We have also extended our relationships in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. with Cisco, Concord Concord, cities, United States Concord (kŏng`kərd, kŏn`kôrd'). 1 city (1990 pop. 111,348), Contra Costa co., W central Calif.; settled c.1852, inc. 1906. Communications, Avaya Avaya Inc. (NYSE: AV) is a S&P 500, global telecommunications company which specializes in enterprise telephony and call center technology. Formerly the Business Communications unit of Lucent Technologies, it was spun off on October 1, 2000. , Ford Motor Company, a leading biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. company and Veritas Ver´i`tas n. 1. The Bureau Veritas. See under Bureau. and in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). with Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). , DenNorske Bank, AstraZeneca and Nissan. We have
strengthened our client relationships by assisting clients in optimizing
their return on their digital investments."
As part of its aggressive cost reduction initiatives, Razorfish also confirmed the following recent actions: -- the closure of its Helsinki and Milan offices, -- a headcount reduction of approximately 600 people, of which approximately 170 came from the non billable staff. As of the beginning of August 2001, Razorfish had approximately 670 personnel of which approximately 510 are billable consultants; and -- the reduction of real estate obligations in several locations. Accordingly, Razorfish recorded a $70 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. comprised of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , a one-time charge associated with real estate and equipment leases, and a write off of unutilized equipment. Conference Call To access the earnings release conference call over the 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 , please log on to www.razorfish.com under "Investor" or www.vcall.com on Tuesday, August 14, 2001 at 5:30 p.m. Eastern Time. It is advised that you log on at least fifteen minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. A rebroadcast of the call will be archived at www.razorfish.com under "Investor" or at www.vcall.com. About Razorfish: Founded in 1995, Razorfish is a global digital solutions provider that helps leading companies generate competitive value by leveraging the power of digital technology. From strategy and design to system integration, Razorfish provides clients with opportunities to increase their return on investment, enhance productivity, and maximize the value of their relationships with customers, employees, and partners. Razorfish is headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and has offices in Amsterdam, Boston, Frankfurt, Hamburg Hamburg, city, Germany Hamburg (häm`b rkh), officially Freie und Hansestadt Hamburg (Free and Hanseatic City of Hamburg), city (1994 pop. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , London, Munich, New York, Oslo,
San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Silicon Valley, Stockholm, and Tokyo. Recent Razorfish
clients include Ford Motor Company, AstraZeneca, Panalpina, Deutsche
Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , Nissan-Europe, Sony Corporation, DIRECTV and HBO Hyperbaric oxygen therapy (HBO)A form of oxygen therapy in which the patient breathes oxygen in a pressurized chamber. Mentioned in: Ozone Therapy . For more information visit: www.razorfish.com. Forward-Looking Statement 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. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the 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. Statements under the Private Securities 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. Reform Act of 1995 This release contains, in addition to historical information, forward-looking statements, including, but not limited to, the results of operations for the quarter ended June 30, 2001. We use words like "anticipates", "believes", "plans", "targets", "intends", "expects", "future" and similar expressions to identify forward looking statements. Forward-looking statements are subject by their nature to risks and uncertainties, and actual results could differ materially from those set forth in the forward-looking statements. Typical risks and uncertainties include, but are not limited to, those related to the number and size of projects completed in a given period, integration of acquisitions, international and domestic economic conditions including, without limitation, interest rate and currency exchange rate fluctuations, changes in competition, and other factors described from time to time in Razorfish's reports filed with the Securities Exchange Commission. In addition, we draw your attention to the risk factors identified by Razorfish's 2000 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. filed with the Securities Exchange Commission on April 2, 2001. Any forward-looking statements are made pursuant to 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 and, as such, speak only as of the date made. The Company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by the securities laws.
Razorfish, Inc.
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CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------
(in thousands, except per share amounts) Three Months Ended
(unaudited) June 30
------------------------------
2000 2001
------------------------------
Revenues $ 76,560 $ 28,712
Project personnel 36,391 18,562
------------ -------------
Gross profit 40,169 10,150
Sales and marketing 4,871 1,777
General and administrative 24,358 14,826
------------ -------------
Total ordinary operating expenses 29,229 16,603
------------ -------------
Income from ordinary operations 10,940 (6,453)
Restructuring Charges - 70,040
Impairment Loss - 60,116
Non-cash compensation - 260
Amortization of intangibles 2,166 822
------------ -------------
Income from operations 8,774 (137,691)
Other income, net 1,230 365
------------ -------------
Income before income taxes 10,004 (137,326)
Provision for income taxes 4,869 (214)
------------ -------------
Net income (loss) $ 5,135 $ (137,112)
============ =============
Net income per share
Basic $ 0.06 $ (1.40)
Diluted $ 0.05 $ (1.40)
Weighted average shares outstanding
Basic 91,438 98,158
Diluted 96,508 98,158
Pro forma data: (a)
Income before income taxes $ 10,004 $ (137,326)
Restructuring Charges - 70,040
Impairment loss - 60,116
Non-cash compensation - 260
Amortization of intangibles 2,166 822
------------ -------------
Pro forma income before income taxes 12,170 (6,088)
Pro forma provision for income taxes 4,868 (2,436)
------------ -------------
Pro forma net income (loss) $ 7,302 $ (3,652)
============ =============
Pro forma net income per share $ 0.08 $ (0.04)
Weighted average shares outstanding 96,508 98,158
(a) Pro forma data excludes restructuring charges, impairment loss,
non-cash compensation and amortization of intangibles. The pro
forma provision for income taxes is calculated using a 40% tax
rate. This data does not purport to be prepared in accordance
with Generally Accepted Accounting Principles.
Razorfish, Inc.
---------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------
(in thousands, except per share amounts) Six Months Ended
(unaudited) June 30
-----------------------------
2000 2001
-----------------------------
Revenues $ 140,676 $ 71,372
Project personnel 66,254 47,419
------------ ------------
Gross profit 74,422 23,953
Sales and marketing 8,951 6,429
General and administrative 44,739 35,334
------------ ------------
Total ordinary operating expenses 53,690 41,763
------------ ------------
Income from ordinary operations 20,732 (17,810)
Restructuring Charges - 82,817
Impairment Loss 60,116
Non-cash compensation 260
Amortization of intangibles 4,152 1,759
------------ ------------
Income from operations 16,580 (162,762)
Other income, net 2,236 678
------------ ------------
Income before income taxes 18,816 (162,084)
Provision for income taxes 9,188 (74)
------------ ------------
Net income (loss) $ 9,628 $ (162,010)
============ ============
Net income per share
Basic $ 0.11 $ (1.65)
Diluted $ 0.10 $ (1.65)
Weighted average shares outstanding
Basic 90,687 98,033
Diluted 97,585 98,033
Pro forma data: (a)
Income before income taxes $ 18,816 $ (162,084)
Restructuring Charges - 82,817
Impairment loss - 60,116
Non-cash compensation - 260
Amortization of intangibles 4,152 1,759
------------ ------------
Pro forma income before income taxes 22,968 (17,132)
Pro forma provision for income taxes 9,187 (6,853)
------------ ------------
Pro forma net income (loss) $ 13,781 $ (10,279)
============ ============
Pro forma net income per share $ 0.14 $ (0.10)
Weighted average shares outstanding 97,585 98,033
(a) Pro forma data excludes restructuring charges, impairment loss,
non-cash compensation and amortization of intangibles. The pro
forma provision for income taxes is calculated using a 40% tax
rate. This data does not purport to be prepared in accordance
with Generally Accepted Accounting Principles.
---------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
---------------------------------------------
(in thousands)
(unaudited) December 31, June 30,
2000 2001
ASSETS
Current assets
Cash, cash equivalents,
and short-term investments $ 51,483 $ 15,125
Accounts and unbilled receivables 45,212 23,340
Other current assets 5,560 5,774
------------ -----------
Total current assets 102,255 44,239
Net fixed assets 30,901 8,455
Other assets 71,799 5,795
------------ -----------
Total assets $ 204,955 $ 58,489
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses 31,843 30,847
Deferred revenues 1,928 1,983
------------ -----------
Total current liabilities 33,771 32,830
Long-term obligations 2,033 19,324
------------ -----------
Total liabilities 35,804 52,154
Stockholders' equity 169,151 6,335
------------ -----------
Total liabilities and stockholders'
equity $ 204,955 $ 58,489
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