Revenues Up 86%; 24 New Customers Added During the Quarter
SAN MATEO, Calif., July 27 /PRNewswire/ -- Eloquent, Inc. (Nasdaq: ELOQ),
the leader in Web-based rich media business communications solutions, today
reported record financial results for the second quarter ended June 30, 2000.
Total revenues for the quarter were $5.2 million, an increase of
86 percent over second quarter 1999 revenues of $2.8 million and an increase
of 13 percent over the first quarter of 2000. Net loss, excluding the effect
of stock-based compensation and interest and other charges, was $4.3 million,
or a loss of $0.24 per share (on 17.6 million pro forma weighted shares
outstanding). This compares to a net loss, excluding stock-based compensation
charges and interest and other charges, of $2.1 million or $0.20 per share for
the second quarter of the previous year (on 10.5 million pro forma weighted
shares outstanding). The net loss before extraordinary expense for the first
quarter of 2000, excluding stock-based compensation charges and interest and
other charges, was $3.0 million, or $0.20 per share (on 14.8 million pro forma
weighted shares outstanding).
Eloquent also reported a gross margin of $2.8 million, or 53 percent of
revenues, compared with a gross margin of 38 percent in the second quarter of
1999, and 52 percent reported for the quarter ended March 31, 2000. The
Company indicated that the gross margin improvement was due primarily to the
combination of an increasing proportion of software licenses and overall
increased revenues. Cash and cash equivalents as of June 30, 2000 were
$56 million.
"The sales growth and increasing gross margin that we produced in the
second quarter continue to demonstrate Eloquent's path to profitability," said
Abe Kleinfeld, Eloquent's president and CEO. "Eloquent enjoys a strong cash
position that will enable us to continue to invest in sales, marketing and new
product development. In the upcoming quarter, we will introduce our next
generation server software, which represents the most significant development
in Eloquent's technology platform to date. This reinforces our clear
leadership of the rich media market and places Eloquent in a position to fully
capitalize on the significant market opportunity that lies ahead."
Mr. Kleinfeld also noted the following highlights from the quarter:
-- Growth in Customer Base. In the second quarter of 2000, Eloquent
signed 24 new customers, bringing the Company's total customer base to
over 220. The Company expanded beyond its traditional strength in the
Financial, Hi-tech and Telecom industries, with new customers in such
industries as Automotive, Chemicals, and Healthcare. New customers in
the quarter included 3M, American Express, Bergen Brunswig,
DaimlerChrysler, DuPont, ExxonMobil, General Motors, PE Biosystems and
The Budd Company.
-- Strong Repeat Business. Eloquent continued to see a high level of
repeat business from its existing customer base, with more than
70 percent of second quarter revenue coming from repeat customers,
including: Autodesk, Cisco, Compaq, FileNET, Hewlett-Packard, IBM,
KPMG, Lucent, Microsoft and US West.
-- Partnerships and Alliances. On July 25, 2000, Eloquent announced that
it plans to invest in Rebop Media(TM), Inc., a new company being formed
to create the first live video-based Web conferencing product designed
to reliably serve large business audiences. Rebop Media will be headed
by Eloquent's co-founder and chairman, Dr. Cliff Reid. Also 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 buyers of medical equipment over the Internet.
-- New Solutions. In June, the Company introduced Eloquent Collaborative
Publishing(SM), which provides Eloquent's customers with the ability to
track, update and edit presentations online during the production
process. Eloquent Collaborative Publishing is expected to shorten the
time it takes customers to review and edit their presentations by as
much as 50 percent, resulting in greater efficiencies for both Eloquent
and its customers.
-- Investment in Sales and Marketing. Eloquent continued to invest in
sales and marketing during the quarter. In particular, the Company
announced the opening of its Canadian operations in June. This will
allow Eloquent to enhance the service it provides to such Canadian
customers as CIBC, IBM Canada and Nortel Networks, and to expand its
business to new customers in the country.
"We look forward to continued advances in all of these areas in the coming
quarters," said Mr. Kleinfeld. "We believe Eloquent is well positioned to
benefit from the increasing adoption of rich streaming content in business
applications and Web sites, expanding network bandwidth, and the growing
business requirement to communicate at Internet speed."
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 220 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 on February 16,
2000, and the Company's most recent Form 10-Q, 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 owner.
ELOQUENT, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenue:
Software licenses
and maintenance $2,113 $540 $3,617 $880
Services 3,094 2,260 6,216 3,867
Total revenue 5,207 2,800 9,833 4,747
Cost of revenue:
Software licenses
and maintenance 277 135 704 231
Services 2,170 1,600 3,954 2,863
Total cost of
revenue 2,447 1,735 4,658 3,094
Gross margin 2,760 1,065 5,175 1,653
Operating expenses:
Research and
development 1,267 484 2,157 950
Sales and marketing 5,473 1,862 9,503 3,668
General and
administrative 1,257 816 2,201 1,671
Stock-based
compensation 2,026 913 4,508 2,042
Total operating
expenses 10,023 4,075 18,369 8,331
Loss from operations (7,263) (3,010) (13,194) (6,678)
Interest expense
and other charges (190) (103) (1,239) (197)
Interest and
other income 948 38 1,424 88
Net loss before
extraordinary item (6,505) (3,075) (13,009) (6,787)
Extraordinary loss
on early extinguishments
of debt - - (7,453) -
Net loss $(6,505) $(3,075) $(20,462) $(6,787)
Basic and diluted net
loss per share:
Net loss before
extraordinary
item $(0.39) $(0.95) $(0.98) $(2.15)
Extraordinary loss - - (0.56) -
Net loss $(0.39) $(0.95) $(1.54) $(2.15)
Shares used in
computing basic
and diluted
net loss per share 16,831 3,222 13,265 3,153
Pro forma basic and
diluted loss per share: *
Net loss before
extraordinary
item $(0.24) $(0.20) $(0.45) $(0.44)
Extraordinary loss - - (0.46) -
Pro forma loss $(0.24) $(0.20) $(0.91) $(0.44)
Shares used in
computing pro
forma net loss
per share * 17,596 10,519 16,176 10,450
*Pro forma loss per share excluding stock based compensation charges and
interest expense and other charges is 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)
June 30, March 31, December 31,
2000 2000 1999
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and short-term
investments $56,386 $62,869 $17,174
Accounts receivable, net 5,938 4,275 3,439
Prepaid expenses and
other current assets 621 775 414
Total current assets 62,945 67,919 21,027
Property and equipment, net 2,812 2,502 1,915
Other assets 3,639 3,779 2,323
Total assets $69,396 $74,200 $25,265
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $- $- $3,000
Accounts payable and
accrued liabilities 3,792 4,161 3,917
Capital lease obligation,
current portion 802 833 618
Deferred income 1,541 1,490 787
Total current liabilities 6,135 6,484 8,322
Capital lease obligation,
net of current portion 491 666 777
Long-term notes payable - - 8,477
Stockholders' equity:
Capital stock 126,157 126,187 52,100
Unearned compensation (8,078) (10,333) (9,564)
Accumulated deficit (55,309) (48,804) (34,847)
- - -
Total stockholders' equity 62,770 67,050 7,689
Total liabilities and
stockholders' equity $69,396 $74,200 $25,265
SOURCE Eloquent, Inc.
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Related links:
http://www.eloquent.com
CONTACT:
John Curson, Chief Financial Officer of
Eloquent, 650-294-6500, or jcurson@eloquent.com; or Investor
Relations, Analysts, Allison Parker, General Inquiries, Chris
West, or Financial Media, Chris Wood, all of The Financial
Relations Board, 415-986-1591
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