Company Reports Quarterly Revenue Growth
SAN MATEO, Calif., July 23 /PRNewswire-FirstCall/ --
Eloquent(R), Inc. (Nasdaq: ELOQ), a leading provider of sales effectiveness
solutions, today reported financial results for the second fiscal quarter
ended June 30, 2002.
Revenue for the second quarter ended June 30, 2002 was $0.7 million, an
increase of $0.3 million from the prior quarter's revenue of $0.4 million, and
a decrease of $0.9 million from the second quarter of 2001 revenue of
$1.6 million. Approximately 85% of the second quarter of 2002 revenue is from
Eloquent's LaunchForce(R) business, with the remainder being from Eloquent's
legacy content business.
The second quarter of 2002 net loss was $2.3 million or a net loss of
$0.12 per share. The second quarter of 2002 pro forma net loss, adjusted to
exclude non-cash charges for stock-based compensation expense, restructuring
and impairment charges, and the non-cash charges associated with amortization
of Eloquent's investment in Rebop Media, Inc. and the intangible assets
recorded upon the acquisition of Rebop Media, Inc. was $2.2 million or a pro
forma net loss of $0.12 per share. This compares to a prior quarter net loss
of $6.9 million or $0.36 per share, and a pro forma net loss for the same
period of $3.4 million, or a net loss of $0.17 per share, which excluded items
consistent with the current period presentation and the cumulative effect of
accounting change associated with the adoption of Statement of Financial
Standard No. 142 which requires companies to assess the goodwill recorded from
previous acquisitions, and as necessary, record a one-time impairment charge
that does not affect cash or the Company's operations.
The net cash outflow for the Company of $3.7 million during the second
quarter of 2002 consisted of approximately $2.3 million for the ongoing
operating activities, approximately $1.1 million associated with unoccupied
property and headcount reduction from approximately 80 to approximately 40
employees in the second quarter arising from the Company's restructuring
initiatives, and approximately $0.3 million for working capital. The cash and
short-term investment balance, as of June 30, 2002 was $14.0 million. The
Company has no bank debt.
Cliff Reid, CEO and Chairman said, "We are pleased to report revenue
growth over the first quarter. This revenue growth was driven by existing
customers expanding their successful LaunchForce deployments. Going into the
third quarter we have a strong pipeline of Fortune 1000 prospects which we are
confident will convert into new customers in the second half of the year.
However, market conditions remain extremely difficult. New customers continue
their slow decision processes, which have extended our sales cycle. In the
present business climate, we have to allow more time to build revenue and
develop our business, which is one of the reasons we have cut our cash burn-
rate significantly. During the quarter we implemented the restructuring that
we discussed in last quarter's press release, and reduced the ongoing cash
burn from approximately $3.7 million per quarter to approximately $2.3 million
per quarter."
During a conference call at 2:00pm Pacific Time on July 23, 2002, Chairman
and Chief Executive Officer Cliff Reid, and Chief Financial Officer John
Curson, will present an overview of the quarter ended June 30, 2002, and
Eloquent's strategic positioning. To listen to the call please dial
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 (Investor Relations -- overview) or to
the webcast replay which will be available for 30 days. A replay of the call
will be available through July 30, 2002 by dialing 703-925-2435, passcode
#6100459.
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 filings 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 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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
Revenue:
Software licenses and
maintenance $573 $642 $759 $1,169
Services 134 968 351 2,446
Total revenue 707 1,610 1,110 3,615
Cost of revenue:
Software licenses and
maintenance and services 443 1,207 1,196 2,519
Amortization of acquired
technology and patents 135 -- 269 --
Total cost of revenue 578 1,207 1,465 2,519
Gross margin 129 403 (355) 1,096
Operating expenses:
Research and development 543 1,095 1,351 2,168
Sales and marketing 1,279 2,514 2,772 4,801
General and administrative 791 1,097 1,684 2,191
Restructuring (962) 1,400 (962) 1,400
Impairment of property and
equipment 779 -- 779 --
Amortization of investment
in Rebop Media, Inc. -- 310 -- 796
Amortization of stock-
based compensation 100 438 299 940
Total operating expenses 2,530 6,854 5,923 12,296
Loss from operations (2,401) (6,451) (6,278) (11,200)
Interest and other income,
net 113 517 290 1,060
Impairment of investment -- (759) -- (759)
Net loss before cumulative
effect of accounting
change (2,288) (6,693) (5,988) (10,899)
Cumulative effect of
accounting change ** -- -- (3,230) --
Net loss $(2,288) $(6,693) $(9,218) $(10,899)
Basic and diluted net loss
per share:
Net loss before cumulative
effect of accounting
change $(0.12) $(0.37) $(0.31) $(0.61)
Cumulative effect of
accounting change ** -- -- (0.17) --
Net loss $(0.12) $(0.37) $(0.48) $(0.61)
Shares used in computing
basic and diluted
net loss per share 19,299 17,936 19,280 17,860
Pro forma net loss * $(2,236) $(3,786) $(5,603) $(7,004)
Pro forma net loss per
share $(0.12) $(0.21) $(0.29) $(0.39)
Shares used in computing
pro forma
net loss per share 19,299 17,936 19,280 17,860
* The pro forma net loss used in computing pro forma net loss per share
excludes non-cash charges for stock-based compensation expense,
restructuring, impairment charges, the cumulative effect of the accounting
change and the non-cash charges associated with amortization of Eloquent's
investment in Rebop Media, Inc. and the intangible assets recorded upon
the acquisition of Rebop Media, Inc.
** With effect from January 1, 2002, the Company adopted Statement of
Financial Accounting Standards No. 142 ("SFAS 142"). SFAS 142 requires
companies to assess the goodwill recorded from previous acquisitions and,
as necessary, record a one-time impairment charge that does not affect
cash or the Company's operations.
ELOQUENT, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2002 2001
ASSETS
Current assets:
Cash and short-term investments $14,020 $21,405
Accounts receivable, net 307 184
Prepaid expenses and other current
assets 789 316
Total current assets 15,116 21,905
Property and equipment, net 694 1,944
Acquired technology and patents 1,160 1,429
Goodwill -- 3,230
Other assets 654 667
Total assets $17,624 $29,175
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $2,377 $3,186
Accrued restructuring liability 467 855
Capital lease obligation 86 230
Deferred revenue 741 640
Total current liabilities 3,671 4,911
Accrued restructuring liability 601 1,980
Stockholders' equity:
Capital stock 129,394 129,446
Unearned compensation (277) (641)
Notes receivable from employees (25) (100)
Unrealized gain (loss) on
investments (7) 94
Accumulated deficit (115,733) (106,515)
Total stockholders' equity 13,352 22,284
Total liabilities and
stockholders' equity $17,624 $29,175
SOURCE Eloquent, Inc.
 back to top
Related links:
http://www.eloquent.com
CONTACT:
John Curson, Chief Financial Officer of
Eloquent, +1-650-294-6500; or Investor Relations, Karen Keating,
Analysts/Investors, or Pam Roberts, General, both of FRB/Weber
Shandwick, +1-415-986-1591
|
