Company Successfully Reduces First Quarter Cash Burn-Rate for On-going
Activities Below $3 million - Ready to Introduce New Product During
Second Quarter
SAN MATEO, Calif., April 30 /PRNewswire/ -- Eloquent, Inc. (Nasdaq: ELOQ)
today reported financial results for the first quarter ended March 31, 2001.
One of the results of the fourth quarter 2000 restructuring was a significant
reduction in cash usage during the first quarter of 2001, compared to prior
quarters. Cash usage dropped from previous levels of approximately $8 million
per quarter to a first quarter burn-rate of approximately $2.9 million for
ongoing activities, and approximately $1.1 million primarily for previously
reserved restructuring items. The cash and short-term investments balance, as
of March 31, 2001 was $36.4 million.
Revenue for the first quarter ended March 31, 2001 was $2.0 million,
compared to the first quarter 2000 revenue of $4.6 million, and the prior
quarter's revenue of $1.9 million. Gross margin for the first quarter of 2001
was $693,000 or 34.5% of revenue, compared to $2.4 million or 52.2% of revenue
for the first quarter of the prior year.
Net loss for the first quarter of 2001, excluding the effect of non-cash
charges for the amortization of stock-based compensation, and the amortization
of Eloquent's investment in Rebop Media, Inc., was $3.2 million or a loss of
$0.18 per share. This compares to a net loss, excluding amortization of
stock-based compensation charges and extra-ordinary items, of $4.0 million or
a loss of $0.27 per share for the same quarter of the prior year.
Net loss for the first quarter of 2001 was $4.2 million or $0.24 per share
compared to $14.0 million or $1.44 per share for the first quarter of 2000.
"This was our first quarter operating as a leaner organization and we
achieved our goal of dramatically reducing the cash burn rate," said Cliff
Reid, Eloquent's CEO. "We are well-positioned for revenue generation in the
targeted market of product launches. During the first quarter, we began to
ship Eloquent Communications Server 6.1 and we prepared internally for the
introduction of our new product offering which will be launched next month."
Market Focus
The first quarter saw Eloquent continue to implement its new market focus
based upon a strategic study of its business opportunities conducted with the
assistance of The McKenna Group. On the sales and marketing front, Eloquent
laid the foundation during the first quarter that is required to generate
revenue within the company's target market of applications for enterprise
product launches. On the research and development front, Eloquent continued
to focus its energies on the company's rich media platform products and
technologies which will yield additional application-specific products in
upcoming quarters.
Major Product Initiatives
During the first quarter, Eloquent began shipping the Eloquent
Communications Server (ECS) 6.1, a significant milestone in enabling the
adoption of streaming media by global enterprises. The ECS 6.1 features media
management and enrichment capabilities as well as support for the complete
rich media publishing lifecycle. Its rich media creation, management, and
delivery capabilities let companies harness the full power of streaming media
in their business communications.
April 30th Conference Call
During a conference call on April 30, 2001 at 2:00 p.m. PST, Chief
Executive Officer Cliff Reid and Chief Financial Officer John Curson will
present an overview of the first quarter 2001. To listen to the call, please
dial 800-982-3472 or 703-871-3022 at least 5 minutes prior to the start.
Interested parties also have the opportunity to listen to the conference call
live via the link on the investor relations page at http://www.eloquent.com . The
webcast will be available at that address for 30 days. A replay of the call
will be available through May 7, 2001 by dialing 888-266-2086 or 703-925-2435,
code # 5145000.
About Eloquent, Inc.
Eloquent (Nasdaq: ELOQ) develops rich media communications products aimed
at the product launch market that dramatically improve an organization's
ability to disseminate accurate and critical information to globally dispersed
audiences in a cost-effective and timely manner. A pioneer in the enterprise
streaming and rich media industry since 1995, Eloquent has developed a rich
media communications platform that delivers application-specific
communications products across the Internet, corporate intranet or extranet.
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 Report on Form 10-K for the year ended
December 31, 2000 on file with the Securities and Exchange Commission.
Eloquent and the Eloquent logo are trademarks of Eloquent, Inc. All other
trademarks are the property of their respective owners.
ELOQUENT, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
(unaudited)
Revenue:
Software licenses and maintenance $527 $1,504
Services 1,478 3,122
Total revenue 2,005 4,626
Cost of revenue:
Software licenses and maintenance 367 427
Services 945 1,784
Total cost of revenue 1,312 2,211
Gross margin 693 2,415
Operating expenses:
Research and development 1,073 890
Sales and marketing 2,287 4,030
General and administrative 1,094 944
Amortization of investment in
Rebop Media, Inc. 486 -
Amortization of stock-based
compensation 502 2,482
Total operating expenses 5,442 8,346
Loss from operations (4,749) (5,931)
Interest and other income (expense),
net 543 (573)
Net loss before extraordinary item (4,206) (6,504)
Extraordinary loss on early
extinguishment of debt - (7,453)
Net loss $(4,206) $(13,957)
Basic and diluted net loss per
share:
Net loss before extraordinary item $(0.24) $(0.67)
Extraordinary loss - (0.77)
Net loss $(0.24) $(1.44)
Shares used in computing basic and
diluted
net loss per share * 17,793 9,698
Pro forma basic and diluted net loss
per share:
Pro forma net loss per share ** $(0.18) $(0.27)
Shares used in computing pro forma
net loss per share *** 17,793 14,756
* The shares used in computing basic and diluted net loss per share for
the quarter ended March 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 intial public offering, as of
February 17, 2000 -- the date of the conversion and issuance.
** The loss used in computing pro forma net loss per share excludes
non-cash charges for stock based compensation expense, the
extraordinary item and the non-cash charge associated with
amortization of Eloquent's investment in Rebop Media, Inc.
*** The shares used in computing pro forma net loss per share for the
quarter ended March 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.
CONDENSED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $36,438 $40,456
Accounts receivable, net 1,378 2,768
Prepaid expenses and other current
assets 725 370
Total current assets 38,541 43,594
Property and equipment, net 3,055 3,348
Other assets 2,147 2,651
Total assets $43,743 $49,593
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities 4,556 4,553
Accrued restructuring liability 1,484 3,173
Capital lease obligation, current
portion 540 709
Deferred income 885 1,128
Total current liabilities 7,465 9,563
Capital lease obligation, net of
current portion 131 230
Stockholders' equity:
Capital stock 128,157 128,168
Unearned compensation (2,019) (2,462)
Unrealized gain on investments 314 193
Accumulated deficit (90,305) (86,099)
Total stockholders' equity 36,147 39,800
Total liabilities and
stockholders' equity $43,743 $49,593
SOURCE Eloquent, Inc.
 back to top
Related links:
http://www.eloquent.com
CONTACT:
John Curson, Chief Financial Officer of
Eloquent, 650-294-6500; General, Pam Roberts, Analysts, Allison
Parker, Financial Media, Dawn Swidorski, all of Financial
Relations Board, 415-986-1591
|
