NEW YORK, August 14, 2000 (PRIMEZONE) -- iParty Corp. (AMEX:IPT), owners and operators of iParty.com, a premier destination for party goods and party planning, today reported results for its second quarter 2000 and six months ended June 30, 2000.
For the quarter, iParty Corp. reported revenues of $260,000, an increase of 77% over the first quarter 2000 revenues. The Company reported a net loss of $5.1 million, or $0.46 per diluted share. Due to the Company's limited operating history, comparable results for the prior year are not meaningful. The weighted average number of common shares outstanding for the quarter were 11,136,107.
Sal Perisano, Chief Executive Officer of iParty Corp., commented, "Throughout the past two quarters the Company entered into many significant strategic alliances and partnerships, while simultaneously increasing our customer base and traffic to our site. The execution of our business model is progressing accordingly and has resulted in the 77% sequential increase in revenues over the first quarter of 2000. As part of our growth strategy, we recently announced the purchase of 33 retails stores from The Big Party that will be renamed "iParty.com" early next year. We expect that these new stores will help increase traffic to our site, while decreasing customer acquisition costs as we continue to position the Company as the leading online and catalog supplier of party goods."
Mr. Perisano continued, "The strategic alliances and partnerships we entered into during the second quarter will enable us to continue our growth and expand our business. Our strategic partnerships, which include: a marketing and content partnership with BabiesRUS.com, a division of ToysRUs; a cross partnership promotion of products and services with Gymboree Play and Music Centers; an exclusive, multi-platform marketing partnership with sesamestreet.com; a cross promotion alliance with Nestle; and a marketing relationship with Simon Brand Ventures, are indicative of our growth through partnerships business model."
Mr. Perisano concluded, "We will continue to execute our growth strategy of actively seeking new strategic alliances and partnerships that will allow iParty to maintain the growth witnessed during the first half of 2000, and in particular the second quarter. Going forward, we are extremely optimistic about the second half of 2000 as we enter into our busiest time of the year, which includes Halloween and the holiday party season."
About iParty Corp.
Headquartered in New York City, iParty.com, owned and operated by iParty Corp. (AMEX:IPT), is a premier online destination and offline national catalog for party givers that makes throwing a successful event both stress-free and fun. From over 11,000 party supplies and costumes to an online party magazine and party related content, iParty.com offers consumers a sophisticated yet fun and easy-to- navigate resource with a definitive assortment of products to customize any party, including birthday bashes, Easter get-togethers, graduation parties, summer barbecues, and, of course, Halloween. iParty.com offers reliable, time-tested knowledge of party-perfect trends, superior customer service and distribution to ensure comprehensive merchandise selections for every occasion. Please visit our site at www.iparty.com.
Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by iParty.com) contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and the success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of iParty Corp.
iPARTY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues $ 259,852 $ - $ 406,685 $ -
--------- -------- --------- ---------
Operating costs:
Cost of products sold 375,363 - 492,720 -
Amortization of
fulfillment partner
warrant 377,744 - 755,488 -
Marketing and sales 2,563,555 - 4,979,563 -
Product and
technology
development 1,664,788 - 3,562,532 -
General and
administrative 549,544 987,988 1,078,543 1,543,214
Loss resulting from
abandonment
of assets - - - 273,288
Non-cash compensation
expense 88,777 95,269 634,956 229,403
--------- -------- --------- -------
Operating loss (5,359,919) (1,083,257) (11,097,117) (2,045,905)
Interest income 226,679 733 500,133 1,547
Interest Expense - (240,989) - (240,989)
--------- --------- ---------- ---------
Net loss before
income taxes (5,133,240) (1,323,513) (10,596,984) (2,285,347)
Provision for
income taxes - - - -
----------- ---------- ----------- -----------
Net loss $(5,133,240) $(1,323,513) $(10,596,984) $(2,285,347)
Loss per share:
Basic and diluted $ (0.46) $ (0.12) $ (0.95) $ (0.21)
========= ============ ============= ============
Weighted Average
Shares
Outstanding:
Basic and
diluted 11,136,107 11,005,691 11,103,436 11,005,691
=========== ============ ============ ===========
iPARTY CORP.
CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, December 31,
ASSETS 2000 1999
Current assets:
Cash and cash equivalents $10,542,816 $18,673,304
Marketable securities 1,644,313 973,877
Prepaid expenses and other
current assets 378,517 579,133
----------- -----------
Total current assets 12,565,646 20,226,314
Property and equipment, net 939,355 860,457
Intangible Assets 5,092,222 6,119,734
Other assets 56,594 50,245
----------- -----------
Total assets 18,653,817 27,256,750
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,576,469 $1,749,806
Accrued expenses 952,021 452,876
----------- -----------
Total current liabilities 3,528,490 2,202,682
Other Liabilities:
Deferred Payables 33,287 -
Commitments and contingencies
- -
------------ -----------
Total Liabilities 3,561,777 2,202,682
============ ===========
Stockholders' Equity:
Preferred stock 2,395 2,395
Common stock 11,137 11,006
Additional paid in capital 59,251,256 58,616,431
Accumulated deficit (44,172,748) (33,575,764)
------------- ------------
Total stockholders' equity 15,092,040 25,054,068
------------- ------------
Total liabilities and
stockholders' equity $18,653,817 $27,256,750
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