Company Introduces New 'FirstLaunch' Program
SAN MATEO, Calif., Oct. 25 /PRNewswire/ -- Eloquent, Inc. (Nasdaq: ELOQ)
today reported financial results for the third quarter ended September 30,
2001.
Revenue for the third quarter ended September 30, 2001 was $1.1 million,
compared to the prior quarter's revenue of $1.6 million, and the third quarter
2000 revenue of $3.2 million. Gross margin for the third quarter of 2001 was a
negative $88,000 or negative 8.2% of revenue, compared to the prior quarter's
gross margin of $403,000 or 25.0% of revenue, and the third quarter 2000 gross
margin of $842,000 or 26.7% of revenue.
Adjusted net loss for the third quarter of 2001, excluding the effect of
non-cash amortization and one-time charges was $4.1 million or a loss of $0.22
per share. This compares to an adjusted net loss, on the same basis, of $3.8
million or a loss of $0.21 per share for the prior quarter and, on the same
basis, an adjusted net loss of $7.7 million or a loss of $0.45 per share for
the same quarter of the prior year.
For the third quarter of 2001, non-cash amortization charges for stock-
based compensation were $484,000. Additionally, a continuing non-cash charge
of $135,000 for amortization of acquired technology and patents was recorded
in cost of revenue, and a one-time, non-cash charge of $283,000 for the
amortization of in-process research and development was recorded in expenses,
both charges resulted from Eloquent's acquisition of Rebop Media, Inc.
Unadjusted net loss for the third quarter of 2001 was $5.0 million or a
loss of $0.27 per share, compared to a loss of $6.7 million or a loss of $0.37
per share for the prior quarter, and a loss of $8.6 million or a loss of $0.50
per share for the third quarter of 2000.
The cash and short-term investments balance as of September 30, 2001 was
$25.2 million, down from $32.3 million at the end of the prior quarter. This
is the result of a use of cash during the third quarter of approximately $3.6
million for the ongoing business activities, $3.2 million toward the
acquisition of Rebop, and $0.3 million for residual restructuring items.
"We are in the early stages of getting traction with our new product,
LaunchForce, and remain optimistic about its market potential," said Cliff
Reid, Eloquent's CEO. "The slowing economy and the September 11th tragedy
have decreased capital spending, but at the same time increased the need for
effective global product launches that do not rely on travel. LaunchForce
exactly meets this growing need. To enable companies to get started with
LaunchForce, we are introducing a program called 'FirstLaunch' which is
tailored to fit into existing marketing budgets. This will enable companies
with limited capital budgets to adopt LaunchForce on a rental basis, with an
option to convert to a purchase or to continue renting in the future."
October 25th Conference Call
During a conference call on October 25, 2001 at 2:00 p.m. PDT, management
will present an overview of the third quarter 2001 results. To listen to the
call, please dial 888-413-4411 or 703-871-3095 at least five 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 November 1, 2001 by dialing
888-266-2086, or 703-925-2435, passcode #5598928.
About Eloquent, Inc.
Eloquent develops rich media communications products aimed at the product
launch market that dramatically improve an organization's ability to cut
costs, increase time-to-market, and disseminate consistent and critical
information to globally dispersed audiences. 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, visit http://www.eloquent.com.
The foregoing, and matters to be discussed in the conference call
described above, include 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-Q for the quarter ended
June 30, 2001, and Form 10-K for the year ended December 31, 2000, both on
file with the Securities and Exchange Commission. Further information will be
provided in Eloquent's Report on Form 10-Q for the quarter ended September 30,
2001 to be filed with the Securities and Exchange Commission on or about
November 14, 2001.
NOTE: Eloquent and the Eloquent logo are trademarks of Eloquent, Inc. All
other trademarks are the property of their respective owners.
ELOQUENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
(unaudited) (unaudited)
Revenue:
Software licenses and
maintenance $283 $984 $1,452 $4,601
Services 789 2,170 3,235 8,386
Total revenue 1,072 3,154 4,687 12,987
Cost of revenue:
Software licenses and
maintenance and services 1,025 2,312 3,544 6,970
Amortization of acquired
technology and patents 135 -- 135 --
Total cost of revenue 1,160 2,312 3,679 6,970
Gross margin (88) 842 1,008 6,017
Operating expenses:
Research and development 1,187 1,597 3,355 3,754
Sales and marketing 2,167 6,225 6,968 15,728
General and administrative 1,156 1,376 3,347 3,577
Restructuring expense -- -- 1,400 --
Amortization of investment
in Rebop Media, Inc. -- -- 796 --
In-process research and
development 283 -- 283 --
Amortization of stock-
based compensation 484 949 1,424 5,457
Total operating expenses 5,277 10,147 17,573 28,516
Loss from operations (5,365) (9,305) (16,565) (22,499)
Interest and other income,
net 379 703 1,439 888
Impairment of investment -- -- (759) --
Net loss before
extraordinary item (4,986) (8,602) (15,885) (21,611)
Extraordinary loss on early
extinguishment of debt -- -- -- (7,453)
Net loss $(4,986) $(8,602) $(15,885) $(29,064)
Basic and diluted net loss
per share:
Net loss before
extraordinary item $(0.27) $(0.50) $(0.88) $(1.48)
Extraordinary loss -- -- -- (0.51)
Net loss $(0.27) $(0.50) $(0.88) $(1.99)
Shares used in computing
basic and diluted
net loss per share * 18,610 17,185 18,109 14,618
Pro forma net loss ** $(4,084) $(7,653) $(11,088) $(16,154)
Pro forma net loss per share
** $(0.22) $(0.45) $(0.61) $(1.02)
Shares used in computing pro
forma
net loss per share *** 18,610 17,185 18,109 15,846
* The shares used in computing basic and diluted net loss per share for
the nine months ended September 30, 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 initial public offering, as of
February 17, 2000 -- the date of the conversion and issuance.
** The pro forma net loss used in computing pro forma net loss per share
excludes non-cash charges for stock-based compensation expense,
restructuring expense, the impairment charge, the extraordinary item
and the non-cash charge associated with amortization of Eloquent's
investment in Rebop Media, Inc. and the intangible assets recorded
upon acquisition of Rebop Media, Inc.
*** The shares used in computing pro forma net loss per share for the nine
months ended September 30, 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 CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2001 2000
(unaudited)
ASSETS
Current assets:
Cash and short-term investments $25,230 $40,456
Accounts receivable, net 586 2,768
Prepaid expenses and other current
assets 374 370
Total current assets 26,190 43,594
Property and equipment, net 2,342 3,348
Acquired technology and patents 1,564 --
Goodwill 3,230 --
Other assets 844 2,651
Total assets $34,170 $49,593
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities 4,186 4,553
Accrued restructuring liability 742 3,173
Capital lease obligation, current
portion 332 709
Deferred revenue 695 1,128
Total current liabilities 5,955 9,563
Capital lease obligation, net of
current portion 18 230
Accrued restructuring liability 1,550 --
Stockholders' equity:
Capital stock 129,448 128,168
Unearned compensation (887) (2,462)
Notes receivable from employees (100) --
Unrealized gain on investments 170 193
Accumulated deficit (101,984) (86,099)
Total stockholders' equity 26,647 39,800
Total liabilities and
stockholders' equity $34,170 $49,593
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,
Analyst Contact, or Pam Roberts, General Inquiries, both of
FRB/Weber Shandwick, +1-415-986-1591, for Eloquent, Inc.
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