Reports New Fortune 1000 Customers for LaunchForce(R) Reduces Cash
Usage in the Quarter
SAN MATEO, Calif., Oct. 24 /PRNewswire-FirstCall/ --
Eloquent(R), Inc. (Nasdaq: ELOQ), a leading provider of sales effectiveness
solutions, today reported financial results for the third fiscal quarter ended
September 30, 2002.
Revenue for the third quarter ended September 30, 2002 was $0.7 million,
the same level as the prior quarter's revenue, an increase of $0.3 million
from the first quarter of 2002 revenue of $0.4 million, and a decrease of
$0.4 million from the third quarter of 2001 revenue which was $1.1 million.
Approximately 80% of the third quarter of 2002 revenue is from Eloquent's
LaunchForce(R) business, with the remainder being from Eloquent's legacy
content business.
The third quarter of 2002 net loss was $2.0 million, or a net loss of
$0.10 per share. The third quarter of 2002 pro forma net loss, adjusted to
exclude non-cash charges for stock-based compensation expense, and
amortization of the intangible assets recorded upon Eloquent's acquisition of
Rebop Media Inc., was $1.7 million or a pro forma net loss of $0.09 per share.
This compares to a prior quarter net loss of $2.3 million or a net loss of
$0.12 per share, and a pro forma net loss for the prior quarter of
$2.2 million, or a pro forma net loss of $0.12 per share, which excludes items
consistent with the current period pro forma presentation as well as
restructuring and impairment charges.
The net cash outflow for the Company during the third quarter of 2002 was
$1.9 million consisting of approximately $1.5 million for the ongoing
operating activities, and approximately $0.4 million for working capital. The
cash and short-term investment balance, as of September 30, 2002 was
$12.1 million. The Company has no bank debt.
Cliff Reid, CEO and Chairman said, "We are pleased to report that in the
third quarter we continued to add substantial new customers for our
LaunchForce deployments. This quarter our revenue included new LaunchForce
customers such as Eastman Kodak, Fujitsu Technology Solutions Inc., and H&R
Block. As we enter the fourth quarter we have a strong pipeline of Fortune
1000 prospects and we are confident that they can be converted into new
customers either in the fourth quarter or early next year.
Market conditions remain extremely difficult, and for new customers the
decision process is a slow one, which has resulted in an extension of our
sales cycle and caused us to allow more time to build revenue and develop our
business. This is one of the reasons we have cut our cash burn-rate
significantly. Our cash burn in the third quarter was $1.9 million, which is
the lowest since before we became a public company in February 2000, and our
EBITDA on a cash basis, was a negative $1.6 million for the quarter."
During a conference call at 2:00 p.m. Pacific Time on October 24, 2002,
Chairman and Chief Executive Officer Cliff Reid, and Chief Financial Officer
John Curson, will present an overview of the quarter ended September 30, 2002.
To listen to the call please dial 703-871-3722 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 October 31, 2002 by
dialing 703-925-2435, passcode #6258863.
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 Qwest 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 BALANCE SHEETS
(in thousands)
September 30, December 31,
2002 2001
ASSETS
Current assets:
Cash and short-term investments $12,087 $21,405
Accounts receivable, net 494 184
Prepaid expenses and other current assets 520 316
Total current assets 13,101 21,905
Property and equipment, net 546 1,944
Acquired technology and patents 1,025 1,429
Goodwill -- 3,230
Other assets 446 667
Total assets $15,118 $29,175
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $1,998 $3,186
Accrued restructuring liability 377 855
Capital lease obligation 42 230
Deferred revenue 628 640
Total current liabilities 3,045 4,911
Accrued restructuring liability 531 1,980
Stockholders' equity:
Capital stock 129,394 129,446
Unearned compensation (167) (641)
Notes receivable from employees -- (100)
Unrealized gain (loss) on
investments (2) 94
Accumulated deficit (117,683) (106,515)
Total stockholders' equity 11,542 22,284
Total liabilities and
stockholders' equity $15,118 $29,175
ELOQUENT, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
Revenue:
Software licenses and
maintenance $498 $284 $1,257 $1,453
Services 210 788 561 3,234
Total revenue 708 1,072 1,818 4,687
Cost of revenue:
Software licenses and
maintenance and services 336 1,025 1,532 3,544
Amortization of acquired
technology and patents 135 135 404 135
Total cost of revenue 471 1,160 1,936 3,679
Gross margin 237 (88) (118) 1,008
Operating expenses:
Research and development 541 1,187 1,892 3,355
Sales and marketing 1,071 2,166 3,843 6,967
General and administrative 524 1,156 2,208 3,347
Restructuring -- -- (962) 1,400
In-process research and
development -- 283 -- 283
Impairment of property and
equipment -- -- 779 --
Amortization of investment
in Rebop Media, Inc. -- -- -- 796
Amortization of stock-
based compensation 110 484 409 1,424
Total operating expenses 2,246 5,276 8,169 17,572
Loss from operations (2,009) (5,364) (8,287) (16,564)
Interest and other income, net 59 378 349 1,438
Impairment of investment -- -- -- (759)
Net loss before cumulative
effect of accounting
change (1,950) (4,986) (7,938) (15,885)
Cumulative effect of
accounting change -- -- (3,230) --
Net loss $(1,950) $(4,986) $(11,168) $(15,885)
Basic and diluted net loss
per share:
Net loss before cumulative
effect of accounting
change $(0.10) $(0.27) $(0.41) $(0.88)
Cumulative effect of
accounting change -- -- (0.17) --
Net loss $(0.10) $(0.27) $(0.58) $(0.88)
Shares used in computing
basic and diluted
net loss per share 19,317 18,610 19,292 18,109
Pro forma net loss * $(1,705) $(4,084) $(7,308) $(11,088)
Pro forma net loss per share $(0.09) $(0.22) $(0.38) $(0.61)
Shares used in computing pro
forma net loss per share 19,317 18,610 19,292 18,109
* 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. and related
in-process research and development expense.
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 investors, Karen Keating of
FRB/Weber Shandwick, +1-415-986-1591, for Eloquent, Inc.
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