Eloquent Achieves Traction With New Eloquent LaunchForce Product - Signs
Business With 3M, Hewlett-Packard, and Alcatel's Genesys Telecommunications
SAN MATEO, Calif., Jan. 31 /PRNewswire-FirstCall/ --
Eloquent, Inc. (Nasdaq: ELOQ), a leading provider of sales effectiveness
solutions, today reported financial results for the fourth quarter and year
ended December 31, 2001.
Revenue for the fourth quarter ended December 31 , 2001 was $0.7 million,
a decrease of $0.4 million from the prior quarter's revenue of $1.1 million,
and a decrease of $1.2 million from the fourth quarter of 2000 revenue of
$1.9 million. The fourth quarter of 2001 revenue is primarily from Eloquent's
legacy content business, which the Company expects to be replaced by the new
Eloquent LaunchForce(R) business in future quarters.
The fourth quarter 2001 net loss was $4.5 million or a loss of $0.24 per
share. The fourth quarter 2001 pro-forma net loss, adjusted to exclude the
effect of non-cash stock-based compensation charges, a non-cash restructuring
charge for unutilized lease space, and non-cash amortization of purchased
technology and in-process research and development expense, was $3.3 million
or a loss of $0.17 per share. This compares to a pro-forma net loss, on the
same basis, for the prior quarter of 2001 of $4.1 million or a loss of
$0.22 per share, and to a pro-forma net loss for the fourth quarter of 2000,
also excluding the impairment charge, the extraordinary item, effect of
accounting change, and the amortization of investment in Rebop Media Inc., of
$7.2 million or a loss of $0.41 per share.
The net cash outflow for the Company during the fourth quarter of 2001 was
$3.8 million which resulted in a cash and short-term investments balance as of
December 31, 2001 of $21.4 million. The Company has no bank debt.
Eloquent also announced that the Company has booked orders from 3M,
Genesys Telecommunications Laboratories, a wholly owned subsidiary of Alcatel,
and Hewlett-Packard for its Eloquent LaunchForce solution.
Cliff Reid CEO and Chairman said, "We are delighted to see our new
product, Eloquent LaunchForce, achieve traction in the market. The
transactions with 3M, Hewlett-Packard, and the Genesys Telecommunications
subsidiary of Alcatel mark the end of the year-long process of restructuring
Eloquent, transforming it from a rich media platform and services company to a
sales effectiveness company. We are now focused on ramping up revenues and
establishing Eloquent LaunchForce as the industry's leading sales
effectiveness solution."
Following this release during a conference call at 2:00 p.m. PST, Chairman
and Chief Executive Officer Cliff Reid, and Chief Financial Officer
John Curson, will present an overview of the December quarter 2001 and
Eloquent's strategic positioning regarding its new products. To participate
please dial 877-817-7175 or 703-871-3599 at least 5 minutes prior to the
scheduled start. Interested parties will have the opportunity to listen to the
conference call live on Eloquent's website at http://www.eloquent.com or to the
webcast replay which will be available for 30 days. A replay of the call will
be available through February 7, 2002 by dialing 888-266-2086 or 703-925-2435,
code #5794385.
About Eloquent, Inc.
Eloquent provides sales effectiveness solutions to Fortune 1000 companies
-- enabling organizations to increase the productivity of their sales and
marketing organizations, accelerate new revenues and reduce product launch
expenses. Using Eloquent's patented rich media platform, Eloquent
LaunchForce(R) provides a closed-loop, field readiness solution that helps
companies better equip employees, partners, and channels with the information
they need to be more effective. More than 50 Fortune 1000 companies, including
AT&T, Citibank, Cisco Systems, Hewlett-Packard, Nike, Merrill Lynch, Sprint
and Sun Microsystems have used Eloquent's solutions. Eloquent is a registered
trademark of Eloquent, Inc., headquartered in San Mateo, California. For more
information, visit http://www.eloquent.com.
Except for historical information, all of the expectations and assumptions
contained in the foregoing are forward-looking statements involving risks and
uncertainties. Important factors that could cause actual results to differ
materially from such forward-looking statements include, but are not limited
to, competition in our markets and for qualified personnel, timing of customer
orders and technological change. For additional information regarding these
and other risks, refer to Eloquent's most recent Form 10-Q, on file with the
Securities and Exchange Commission.
The above press release should be read in conjunction with the following
financial tables.
NOTE: Eloquent and the Eloquent logo are registered trademarks of
Eloquent, Inc. All other trademarks are the property of their respective owner
ELOQUENT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
Revenue:
Software licenses
and maintenance $250 $ 660 $1,702 $5,261
Services 417 1,200 3,652 9,586
Total revenue 667 1,860 5,354 14,847
Cost of revenue:
Software licenses
and maintenance
and services 740 2,169 4,284 9,139
Amortization of acquired
technology and patents 135 -- 270 --
Total cost of revenue 875 2,169 4,554 9,139
Gross margin (208) (309) 800 5,708
Operating expenses:
Research and
development 1,044 986 4,399 4,740
Sales and marketing 1,461 5,113 8,429 20,841
General and
administrative 986 1,350 4,333 4,927
Restructuring expense 850 6,000 2,250 6,000
Amortization of
investment in
Rebop Media, Inc. -- 560 796 560
In-process research
and development -- -- 283 --
Amortization of
stock-based
compensation 236 (1,317) 1,660 4,140
Total operating
expenses 4,577 12,692 22,150 41,208
Loss from operations (4,785) (13,001) (21,350) (35,500)
Interest and other
income, net 254 563 1,693 1,451
Impairment of investment -- (2,250) (759) (2,250)
Net loss before
extraordinary item (4,531) (14,688) (20,416) (36,299)
Extraordinary loss
on early
extinguishments
of debt -- -- -- (7,453)
Net loss before
accounting change
- beneficial
conversion feature (4,531) (14,688) (20,416) (43,752)
Cumulative effect
of accounting change
- beneficial
conversion feature -- (7,500) -- (7,500)
Net loss $(4,531) $(22,188) $(20,416) $(51,252)
Basic and diluted
net loss per share:
Net loss before
extraordinary item $(0.24) $(0.84) $(1.11) $(2.36)
Extraordinary loss -- -- -- (0.48)
Cumulative effect
of accounting change -- (0.43) -- (0.49)
Net loss $(0.24) $(1.27) $(1.11) $(3.33)
Shares used in
computing basic
and diluted
net loss per share (A) 19,243 17,531 18,363 15,381
Pro forma
net loss (B) $(3,310) $(7,195) $(14,398) $(23,349)
Pro forma net
loss per share (B) $(0.17) $(0.41) $(0.78) $(1.43)
Shares used in
computing pro
forma net loss
per share (C) 19,243 17,531 18,363 16,283
(A) The shares used in computing basic and diluted net loss per share for
the twelve months ended December 31, 2000, include the effects of the
conversion of the Company's Series A, B, C and D preferred stock into
shares of the Company's common stock and the issuance of common stock
upon completion of the Company's initial public offering, as of
February 17, 2000 - the date of the conversion and issuance.
(B) The pro forma net loss used in computing pro forma net loss per share
excludes non-cash charges for stock-based compensation expense,
restructuring expense, the impairment charge, the extraordinary item,
the effect of the accounting change and the non-cash charge associated
with amortization of Eloquent's investment in Rebop Media, Inc. and
amortization of the intangible assets and in-process research and
development recorded upon acquisition of Rebop Media, Inc.
(C) The shares used in computing pro forma net loss per share for the
twelve months ended December 31, 2000 represent the weighted average
number of shares outstanding, including the pro forma effects of the
conversion of the Company's Series A, B, C and D preferred stock into
shares of the Company's common stock, as if such conversion occurred
at the beginning of the period.
ELOQUENT, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2001 2000
ASSETS
Current assets:
Cash and short-term investments $21,405 $40,456
Accounts receivable, net 184 2,768
Prepaid expenses and other current assets 316 370
Total current assets 21,905 43,594
Property and equipment, net 1,944 3,348
Acquired technology and patents 1,429 --
Goodwill 3,230 --
Other assets 667 2,651
Total assets $29,175 $49,593
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities 3,186 4,553
Accrued restructuring liability 855 3,173
Capital lease obligation, current portion 230 709
Deferred revenue 640 1,128
Total current liabilities 4,911 9,563
Capital lease obligation, net of current portion -- 230
Accrued restructuring liability 1,980 --
Stockholders' equity:
Capital stock 129,446 128,168
Unearned compensation (641) (2,462)
Notes receivable from employees (100) --
Unrealized gain on investments 94 193
Accumulated deficit (106,515) (86,099)
Total stockholders' equity 22,284 39,800
Total liabilities and stockholders' equity $29,175 $49,593
SOURCE Eloquent, Inc.
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Related links:
http://www.eloquent.com
CONTACT:
John Curson, Chief Financial Officer of
Eloquent, Inc., +1-650-294-6500; or investors, Karen Keating,
Analysts|Investors, or Pam Roberts, General, both of FRB|Weber
Shandwick, +1-415-986-1591, for Eloquent, Inc.
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