Eloquent Books Orders from Four Fortune 1000 Companies
SAN MATEO, Calif., April 25 /PRNewswire-FirstCall/ --
Eloquent(R), Inc. (Nasdaq: ELOQ), a leading provider of sales effectiveness
solutions, today reported financial results for the first quarter ended March
31, 2002.
Revenue for the first quarter ended March 31, 2002 was $0.4 million, a
decrease of $0.3 million from the prior quarter's revenue of $0.7 million, and
a decrease of $1.6 million from the first quarter of 2001 revenue of $2.0
million. The first quarter of 2002 revenue is primarily Eloquent's legacy
content business, which the Company expects to be replaced by the new
LaunchForce(R) business in future quarters.
The first quarter 2002 net loss was $3.7 million or a loss of $0.19 per
share. The first quarter 2002 pro-forma net loss, adjusted to exclude the
effect of non-cash stock-based compensation charges, and non-cash amortization
of purchased technology, was $3.4 million or a loss of $0.17 per share. This
compares to a first quarter 2001 net loss of $4.2 million or $0.24 per share,
and a pro-forma net loss for the same period of $3.2 million, or $0.18 per
share, which excludes stock based compensation, and amortization of our
investment in Rebop Media Inc..
The net cash outflow for the Company during the first quarter of 2002 was
$3.7 million which resulted in a cash and short-term investment balance as of
March 31, 2002 of $17.7 million. The Company has no bank debt.
Eloquent also announced that during the quarter the Company had booked
orders from four Fortune 1000 companies for its LaunchForce solution.
Eloquent also announced that shortly after the quarter end it had taken
steps to further reduce its cash burn-rate by reducing the number of employees
from approximately 80 to approximately 40, and as a result also would also be
utilizing less space. The company believes that on a quarterly basis going
forward a cash break-even would require approximately $2 million to $2.5
million of revenue, and that at current revenue levels the cash burn-rate
would be approximately $1.6 million to $2.1 million per quarter.
Cliff Reid, CEO and Chairman said, "Despite a generally slow business
climate in our market segment we continue to see LaunchForce gain more
traction in the market. The business with leading Fortune 1000 companies
indicates the continued interest in our solution. However, we believe that in
the present business climate we have to be prepared to build the revenue more
slowly than we previously expected, and as a result of that, we have cut our
burn-rate significantly in order to conserve cash and to allow us time to
develop our customer base."
During a conference call at 2:00 PM PDT on April 25, 2002, Chairman and
Chief Executive Officer Cliff Reid, and Chief Financial Officer John Curson,
will present an overview of the March quarter 2002, and Eloquent's strategic
positioning. To participate please dial 703-871-3094 or 888-806-9460 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 May 2, 2002 by dialing
888-266-2086 or 703-925-2435, code #5948621.
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(TM) 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 3Com, Alcatel, BT, Citibank, Compaq, H&R Block, Nike, Merrill Lynch,
Siemens, and Quest 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-K, on file with the
Securities and Exchange Commission.
The above press release should be read in conjunction with the following
financial tables.
Eloquent and the Eloquent logo are trademarks of Eloquent, Inc. All other
trademarks are the property of their respective owner
-Financial Tables To Follow-
ELOQUENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
March 31,
2002 2001
(unaudited)
Revenue:
Software licenses and maintenance $186 $527
Services 217 1,478
Total revenue 403 2,005
Cost of revenue:
Software licenses and maintenance and services 753 1,312
Amortization of acquired technology and patents 134 --
Total cost of revenue 887 1,312
Gross margin (484) 693
Operating expenses:
Research and development 808 1,073
Sales and marketing 1,493 2,287
General and administrative 893 1,094
Amortization of investment in Rebop Media, Inc. -- 486
Amortization of stock-based compensation 199 502
Total operating expenses 3,393 5,442
Loss from operations (3,877) (4,749)
Interest and other income (expense), net 177 543
Net loss $(3,700) $(4,206)
Basic and diluted net loss per share $(0.19) $(0.24)
Shares used in computing basic and diluted net loss
per share 19,263 17,793
Pro forma net loss * $(3,367) $(3,218)
Pro forma basic and diluted net loss per share:
Pro forma net loss per share * $(0.17) $(0.18)
Shares used in computing pro forma net loss per share 19,263 17,793
* The pro forma net loss used in computing pro forma net loss per share
excludes non-cash charges for stock based compensation expense and the
non-cash charge associated with amortization of Eloquent's
investment in and the intangible assets resulting from Eloquent's
acquisition of Rebop Media, Inc.
ELOQUENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2002 2001
ASSETS
Current assets:
Cash and short-term investments $17,715 $21,405
Accounts receivable, net 164 184
Prepaid expenses and other current assets 1,031 316
Total current assets 18,910 21,905
Property and equipment, net 1,609 1,944
Acquired technology and patents 1,295 1,429
Goodwill 3,230 3,230
Other assets 661 667
Total assets $25,705 $29,175
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $3,316 $3,186
Accrued restructuring liability 789 855
Capital lease obligation, current portion 148 230
Deferred revenue 897 640
Total current liabilities 5,150 4,911
Accrued restructuring liability 1,800 1,980
Stockholders' equity:
Capital stock 129,445 129,446
Unearned compensation (440) (641)
Notes receivable from employees (25) (100)
Unrealized gain (loss) on investments (10) 94
Accumulated deficit (110,215) (106,515)
Total stockholders' equity 18,755 22,284
Total liabilities and stockholders' equity $25,705 $29,175
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 investor relations, Karen
Keating, Analysts/Investors, or Pam Roberts, General, of
FRB/Weber Shandwick, +1-415-986-1591, for Eloquent, Inc.
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