SAN MATEO, Calif., Oct. 25 /PRNewswire/ -- Eloquent, Inc. (Nasdaq: ELOQ),
the leader in Web-based rich media business communications solutions, today
reported financial results for the third quarter ended September 30, 2000.
Total revenue for the quarter was $3.2 million, a decrease of 13 percent
over third quarter 1999 revenue of $3.6 million and a decrease of 39 percent
over the second quarter of 2000. Net loss, excluding the effect of
stock-based compensation charges, was $7.7 million, or a loss of $0.45 per
share (on 17.2 million weighted shares outstanding). This compares to a net
loss, excluding stock-based compensation charges, of $2.0 million or $0.18 per
share for the third quarter of the previous year (on 10.7 million pro forma
weighted shares outstanding). The net loss for the second quarter of 2000,
excluding stock-based compensation charges, was $4.5 million, or $0.27 per
share (on 16.8 million pro forma weighted shares outstanding).
Eloquent also reported a gross margin of $0.8 million, or 27 percent of
revenue, compared with a gross margin of 45 percent in the third quarter of
1999, and 53 percent reported for the quarter ended June 30, 2000. Cash and
cash equivalents as of September 30, 2000 were $48.1 million.
"The slowdown from our recent rate of revenue growth came primarily from
an extended sales cycle in our business as we transition to our next
generation Eloquent Communications Server (ECS 6.0), introduced on August 29,
2000," said Abe Kleinfeld, Eloquent's president and CEO.
"Our strategic alliance with Microsoft announced yesterday, validates that
our fundamental strategy is on target to provide complete business
communications solutions to enterprises, consisting of leading-edge enterprise
software and content services", added Kleinfeld.
Mr. Kleinfeld noted the following highlights from the quarter:
-- Partnerships and Alliances: Yesterday, October 24, 2000, Microsoft and
Eloquent announced a strategic alliance to work together to develop a
comprehensive end-to-end enterprise communications solution for the
management and delivery of streaming media. This solution will help
address the growing needs of enterprise customers to manage the large
volume of streamed Windows Media(TM) content on their corporate
networks. The Eloquent Communications Server combined with the Windows
Media Platform will be a complete digital media communications solution
promoted by Microsoft's enterprise sales force.
-- New Solutions: In August, Eloquent announced the Eloquent
Communications Server 6.0, the industry's first streaming content
management and enrichment system. The ECS allows companies to find,
organize, manage, secure, deliver, personalize and enrich all forms of
streaming content for business leverage and improved communications.
With the ECS, companies can now turn streaming content into a
collaborative, extensible and dynamic content format that
revolutionizes the way companies communicate with their customers,
partners and employees. Eloquent believes the ECS will significantly
expand its market opportunity and fuel future growth.
-- Growth in Customer Base: In the third quarter of 2000, Eloquent signed
23 new customers, bringing the Company's total customer base to more
than 250. The Company expanded beyond its traditional strength in the
Financial, Hi-tech and Telecom industries, with new customers in such
industries as Automotive, Government and Healthcare. New customers in
the quarter included ABB, American Automobile Association (AAA), Dana
Corp., Johnson & Johnson, Palm, Inc., Royal & SunAlliance, SAFECO
Corp., Textron Financial Corp. and the United States Navy.
-- Strong Repeat Business: Eloquent continued to see a high level of
repeat business from its existing customer base, with approximately 80
percent of the September quarter orders coming from repeat customers
such as AT&T, Citibank, Cisco, Compaq, IBM, Lucent and Nortel.
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, graphics and interactivity.
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 250 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 owners.
ELOQUENT, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenue:
Software licenses and
maintenance $984 $712 $4,601 $1,592
Services 2,170 2,916 8,386 6,783
Total revenue 3,154 3,628 12,987 8,375
Cost of revenue:
Software licenses and maintenance 348 176 1,052 407
Services 1,964 1,827 5,918 4,690
Total cost of revenue 2,312 2,003 6,970 5,097
Gross margin 842 1,625 6,017 3,278
Operating expenses:
Research and development 1,597 467 3,754 1,417
Sales and marketing 6,225 2,016 15,728 5,684
General and administrative 1,376 915 3,577 2,586
Stock-based compensation 949 1,301 5,457 3,343
Total operating expenses 10,147 4,699 28,516 13,030
Loss from operations (9,305) (3,074) (22,499) (9,752)
Interest expense and other charges (135) (221) (1,374) (418)
Interest and other income 838 35 2,262 123
Net loss before extraordinary
item (8,602) (3,260) (21,611) (10,047)
Extraordinary loss on early
extinguishment of debt - - (7,453) -
Net loss $(8,602) $(3,260) $(29,064) $(10,047)
Basic and diluted net loss per
share:
Net loss before extraordinary
item $(0.50) $(0.91) $(1.48) $(3.06)
Extraordinary loss - - (0.51) -
Net loss $(0.50) $(0.91) $(1.99) $(3.06)
Shares used in computing basic
and diluted net loss per share 17,185 3,563 14,618 3,286
Pro forma basic and diluted loss
per share: *
Net loss before extraordinary
item $(0.45) $(0.18) $(1.49) $(0.64)
Extraordinary loss - - (0.47) -
Pro forma loss $(0.45) $(0.18) $(1.96) $(0.64)
Shares used in computing pro
forma net loss per share * 17,185 10,724 15,846 10,445
* Pro forma loss per share excluding stock based compensation charges is
computed using the weighted average number of shares of Common Stock
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 exercise and conversion occurred at
the beginning of the period.
ELOQUENT, INC.
CONDENSED BALANCE SHEETS
(in thousands)
September 30, December 31,
2000 1999
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $48,062 $17,174
Accounts receivable, net 4,747 3,439
Prepaid expenses and other current assets 879 414
Total current assets 53,688 21,027
Property and equipment, net 4,877 1,915
Other assets 4,162 2,323
Total assets $62,727 $25,265
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $- $3,000
Accounts payable and accrued liabilities 5,095 3,917
Capital lease obligation, current portion 724 618
Deferred income 1,324 787
Total current liabilities 7,143 8,322
Capital lease obligation, net of current portion 365 777
Long-term notes payable - 8,477
Stockholders' equity:
Capital stock 124,597 52,100
Unearned compensation (5,525) (9,564)
Unrealized gain on investment 58 -
Accumulated deficit (63,911) (34,847)
Total stockholders' equity 55,219 7,689
Total liabilities and stockholders' equity $62,727 $25,265
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 Analysts,
Allison Parker, General, Pam Roberts, or Financial Media, Chris
Wood, 415-986-1591, all of The Financial Relations Board
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