Quarterly Revenues Up 138% over First Quarter of Previous Year
New Customer Acquisition Up 100% over Prior Quarter
SAN MATEO, Calif., April 26 /PRNewswire/ -- Eloquent, Inc. (Nasdaq: ELOQ),
the leader in Web-based rich media business communications solutions, today
reported record financial results for the first quarter ended March 31, 2000.
Total revenues for the quarter were $4.6 million, a 138% increase over
total revenues of $1.9 million in the first quarter of 1999, and a
12% increase over the fourth quarter of 1999. Loss from operations, excluding
the effect of stock-based compensation charges, was $3.4 million, or a loss of
$0.23 per share (on 14.8 million pro forma weighted shares outstanding). Loss
from operations for the first quarter of the previous year, excluding stock-
based compensation charges, was $2.5 million or a loss of $0.24 per share (on
10.4 million pro forma weighted shares outstanding).
Eloquent reported cash and cash equivalents of $62.9 million as of March
31, 2000 compared to a $17.2 million balance as of December 31, 1999.
Eloquent also reported a gross margin of $2.4 million, or 52%, a
significant increase from 30% in the first quarter of 1999, and a two
percentage point increase from the 50% margin reported for the quarter ended
December 31, 1999. Eloquent indicated that the gross margin improvement was
due primarily to a combination of the increasing proportion of software
licenses and maintenance revenue and the scaleable effect of increasing volume
on content production.
"We are pleased with our first quarter results," said Abe Kleinfeld,
Eloquent's president and CEO. "The rich media communications market continues
to see strong growth as companies adopt the Internet as a preferred and cost
effective medium for communicating with their customers, partners and
employees. As the market leader, we have been at the forefront of this growth.
In the first quarter of 2000, we signed 28 new customers, a 100% increase in
new signings from the prior quarter, bringing our total customer base to over
200. We now have over 2 million end users of Eloquent solutions, which is
double the amount from 10 months earlier. Included among these new customers
are Agilent Technologies, Alcatel, Computer Associates, Cambridge Technology
Partners, Commerce One, Continental Airlines, Fidelity Investments, Johnson
Controls, Lawson Software and Sabre."
"I am also pleased to report that we continue to see a high level of
repeat business from our existing customer base. For example, in the first
quarter of 2000, we delivered the 85th project for Cisco Systems, extending
our four-year relationship. Included in the long list of repeat customers are
AT&T, Compaq, First USA, Microsoft, Nortel, IBM, Juniper Networks, KPMG and
Siebel Systems, " said Kleinfeld.
Kleinfeld also commented on personnel developments during the quarter.
"As planned, we continued to invest in sales, marketing and development to
drive continued revenue growth and expand our technology lead. We increased
our quota-carrying sales headcount to 36 during the first quarter of 2000, up
from 25 in the prior quarter. In addition to our San Mateo, California
development organization, we also opened our Boulder, Colorado development
center, where we have added a server software development team," Kleinfeld
said.
As announced on April 25, 2000, Eloquent entered into a strategic
partnership with TradeMD, a leading e-marketplace for medical equipment. In
connection with this partnership, Eloquent made an equity investment in
TradeMD. TradeMD will use Eloquent's rich media communications solutions to
deliver product information from health care industry experts to interested
buyers of medical equipment over the Internet. "Eloquent solutions are
particularly well suited for B2B marketplaces because they provide buyers
instant access to advice and information from subject-matter experts to allow
them to make better-informed decisions," Kleinfeld said.
About Eloquent, Inc.
Eloquent (Nasdaq: ELOQ) is the leader in Web-based rich media business
communications solutions. Eloquent products and services quickly and
effectively transfer knowledge to large audiences over the Web using
synchronized on-demand video, audio, text and graphics. Eloquent solutions
improve an organization's ability to deploy knowledge quickly. They reduce
time-to-market, increase customer satisfaction, and enable on-demand strategic
communications that drive top-line performance-at a fraction of the cost of
traditional methods.
Eloquent's full service solution offering includes Web-based player and
server software, content production facilities, content and application
hosting, and a complete professional services offering. Eloquent's open
architecture integrates easily with industry-leading technologies, enterprise
applications, and other digital content. Eloquent's worldwide customer base
includes over 2 million users across more than 200 companies.
For more information, please visit the company's Web site at
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 recent Prospectus, filed with the
Securities and Exchange Commission on February 16, 2000.
Eloquent and the Eloquent logo are trademarks of Eloquent, Inc. All other
trademarks are the property of their respective owner
ELOQUENT, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2000 1999
Revenue:
Software licenses and maintenance $1,504 $340
Services 3,122 1,607
Total revenue 4,625 1,947
Cost of revenue:
Software licenses and maintenance 427 96
Services 1,784 1,263
Total cost of revenue 2,211 1,359
Gross margin 2,415 588
Operating expenses:
Research and development 890 466
Sales and marketing 4,030 1,806
General and administrative 944 855
Stock-based compensation 2,482 1,129
Total operating expenses 8,346 4,256
Loss from operations (5,931) (3,668)
Other expense, net (574) (44)
Net loss before extraordinary item (6,505) (3,712)
Extraordinary loss on early
extinguishment of debt (7,453) --
Net loss $(13,958) $(3,712)
Basic and diluted net
loss per share:
Net loss before extraordinary item $(0.67) $(1.20)
Extraordinary loss (0.77) --
Net loss $(1.44) $(1.20)
Shares used in computing basic
and diluted net loss per share 9,698 3,083
Pro forma basic and
diluted net loss per share: *
Net loss before extraordinary item $(0.44) $(0.36)
Extraordinary loss (0.51) --
Net loss $(0.95) $(0.36)
Shares used in computing pro forma
net loss per share * 14,756 10,380
Pro forma operating loss per share
excluding stock-based compensation
charges * $(0.23) $(0.24)
Shares used in computing pro forma
operating loss per share * 14,756 10,380
* Pro forma net loss per share and pro forma operating loss per share
excluding stock-based compensation charges are computed using the
weighted average number of shares of Common Stock outstanding,
including the pro forma effects of the exercise of warrants to purchase
Common Stock and 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
exercise and conversion occurred at the beginning of the period.
ELOQUENT, INC.
CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2000 1999
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $62,869 $17,174
Accounts receivable, net 4,275 3,439
Prepaid expenses and other
current assets 775 415
Total current assets 67,919 21,028
Property and equipment, net 2,502 1,915
Other assets 3,779 2,323
Total assets $74,200 $25,266
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $-- $3,000
Accounts payable and
accrued liabilities 4,161 3,917
Capital lease obligation,
current portion 833 618
Deferred income 1,490 787
Total current liabilities 6,484 8,322
Capital lease obligation,
net of current portion 667 777
Long-term notes payable -- 8,477
Stockholders' equity:
Capital stock 126,187 52,100
Unearned compensation (10,333) (9,564)
Accumulated deficit (48,804) (34,846)
Total stockholders' equity 67,049 7,690
Total liabilities and
stockholders' equity $74,200 $25,266
SOURCE Eloquent, Inc.
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Related links:
http://www.eloquent.com
CONTACT:
John Curson, Chief Financial Officer of
Eloquent, Inc., 650-294-6500, jcurson@eloquent.com, or Investor
Relations, Don Markley or Chris West of Financial Relations
Board, 415-986-1591
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