LAS VEGAS, May 7, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today reported a sequential narrowing of its net loss and sequentially higher revenues for its first quarter ended March 31, 2002.
For the quarter ended March 31, 2002, PurchasePro recorded a net loss of $8.8 million, or $0.11 per share, compared with a net loss a year ago of $33.5 million, or $0.49 per share, and also improved from the fourth quarter 2001 net loss of $71.3 million, or $0.98 per share. Per share amounts do not reflect a one-for-five reverse stock split, which will be effective on May 14, 2002. The company said that with effect for the reverse split, its first quarter loss per share was $0.54, compared with $2.44 a year earlier.
Revenues for the first quarter totaled $2.8 million, contrasted to first quarter revenues in 2001 of $16.0 million, but up from fourth quarter 2001 revenues of $2.4 million.
Additional key metrics from PurchasePro's first quarter include:
* Software licenses sold in the quarter totaled $658,000, compared
with $524,000 in the prior quarter and $11.0 million a year
earlier.
* Transaction revenue was $64,000, compared with $57,000 in the
prior quarter and $25,000 in the comparable quarter a year ago.
* Hosting revenue was $356,000 in the quarter, compared with
$367,000 in the prior quarter and $626,000 a year ago.
* Maintenance revenue in the quarter was $542,000, compared with
$437,000 in the prior quarter and $728,000 a year earlier.
* Professional fees were $621,000, compared with $466,000 in the
prior quarter and $289,000 a year earlier.
* Cash used in operations was $5.9 million, compared with $12.8
million in the prior quarter and $8.9 million a year ago.
* 92,000 purchase orders totaling $92 million were received in the
quarter, compared with 78,000 purchase orders valued at $85
million in the prior quarter and 28,000 purchase orders valued at
$23 million a year earlier.
* In the first quarter, PurchasePro's customers ran $314 million in
reverse auction volume resulting in $108 million of implied
savings through the PurchasePro Commerce Network compared with
$377 million and $116 million in implied savings in the prior
quarter. For the full year, ended December 31, 2001, PurchasePro's
clients drove $864 million in reverse auction volume resulting in
$275 million in savings through the network.
Richard L. Clemmer, president and chief executive officer, said: "PurchasePro demonstrated significant progress in the first quarter. Our revenues began to edge up, although we certainly are working toward higher growth rates, and our bottom line loss narrowed significantly. This improvement reflects the continuing success of our turnaround strategies, the realignment of our infrastructure, reduced cost structure and the revamping of our business and pricing models. Subsequent to the close of the quarter, we took further actions to improve PurchasePro's investor profile, especially our recently announced one-for-five reverse stock split. Looking ahead, we believe we can now concentrate fully on driving higher sales, while maintaining our lowered cost structure."
Clemmer added: "During the first quarter we made good strides on the sales front, signing e-Source and e-Procurement contracts with a number of new business partners and renewing other important contracts. Nevertheless, the environment for software sales remains sluggish. We can no longer say with confidence when PurchasePro will be cash flow and EBITDA positive, although we are confident that both will occur by year-end 2002 given our pipeline of new business activity."
Investor Conference Call
The company said it will hold an open conference call today at 1:45 p.m. (PDT). The call may be accessed, in real time, through PurchasePro's investor relations Website at www.irconnect.com/ppro.
The conference call will be replayed beginning on May 7, 2002 ending on May 14, 2002. The replay call in number is (800) 642-1687 and the international replay call in number is (706) 645-9291. The replay pass code is 4016453. Investors may also access a "Web replay" of the call through www.irconnect.com/ppro beginning on May 7, 2002 through the end of the second quarter.
About PurchasePro
PurchasePro(r), www.purchasepro.com, is a B2B e-commerce leader with the objective of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. Founded in 1996, PurchasePro provides electronic procurement, materials management and strategic sourcing solutions to businesses worldwide.
This news release may include forward-looking statements, which are subject to the "Safe Harbor" created by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve certain risks and uncertainties that can cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements represent only the views of certain members of management and are based on limited information available to us now, which is subject to change. We have no current plan to update these statements. Actual results may differ substantially from what we say today and no one should assume at a later date that the forward-looking statements provided herein are still valid. They speak only as of today. For more information about these risks and uncertainties, see the SEC filings of PurchasePro.com, Inc., including the section titled "Factors That May Affect Results" in its Form 10-K for the year ended December 31, 2001, which is available from the company on request and on the Internet at the SEC's Website, www.sec.gov. Note: PurchasePro is a service mark of PurchasePro.com Inc. All other trademarks or registered trademarks are the property of their respective owners.
PURCHASEPRO.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, Dec. 31,
2002 2001
-------- --------
ASSETS
Current assets:
Cash and cash equivalents (including
restricted cash of $912 and $912) $ 6,985 $ 7,401
Trade accounts receivable, net 2,431 2,350
Other receivables 1,075 916
Prepaid expenses and other current assets 967 1,129
-------- --------
Total current assets 11,458 11,796
Property and equipment:
Computer equipment and software 27,397 27,448
Furniture and fixtures 931 931
Leasehold improvements 6,100 6,091
-------- --------
34,428 34,470
Less--accumulated depreciation and amortization (16,573) (14,159)
-------- --------
Net property and equipment 17,855 20,311
Other assets:
Intangibles, net 3,624 3,833
Capitalized software development costs, net 8,122 8,896
Deposits and other 884 1,030
-------- --------
Total other assets, net 12,630 13,759
-------- --------
Total assets $ 41,943 $ 45,866
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,765 $ 2,541
Accrued and other current liabilities 4,822 5,198
Deferred revenues 1,755 1,900
Current portion of long-term liabilities 6,360 6,238
-------- --------
Total current liabilities 14,702 15,877
Long-term liabilities 5,356 5,533
-------- --------
Total liabilities 20,058 21,410
Commitments and contingencies
Stockholders' equity:
Common stock 177 157
Additional paid-in capital 455,165 449,333
Common stock in treasury at cost (902) (902)
Deferred stock-based compensation -- (397)
Accumulated deficit (432,555) (423,735)
-------- --------
Total stockholders' equity 21,885 24,456
-------- --------
Total liabilities and stockholders' equity $ 41,943 $ 45,866
======== ========
Note: Adjusted to reflect 1-for-5 stock split.
PURCHASEPRO.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
------------------------------
March 31, Dec. 31, March 31,
2002 2001 2001
-------- -------- --------
Revenues:
Software licenses $ 658 $ 524 $ 11,032
Network access and service fees 1,971 1,688 3,465
Advertising 20 20 1,381
Other 116 160 151
-------- -------- --------
Total revenues 2,765 2,392 16,029
Cost of revenues 960 1,414 2,178
-------- -------- --------
Gross profit 1,805 978 13,851
Operating expenses:
Sales and marketing 1,652 5,705 31,432
Programming and development 926 1,196 3,160
General and administrative 7,078 15,042 11,631
Amortization of
stock-based compensation 733 1,452 1,664
Asset impairments and abandonments 129 41,994 --
Employee termination
benefits and other -- 6,833 --
-------- -------- --------
Total operating expenses 10,518 72,222 47,887
-------- -------- --------
Operating loss (8,713) (71,244) (34,036)
Other income (loss) (107) (11) 569
-------- -------- --------
Net loss before benefit
for income taxes (8,820) (71,255) (33,467)
Benefit for income taxes -- -- --
-------- -------- --------
Net loss $ (8,820) $(71,255) $(33,467)
======== ======== ========
Net loss per share:
Basic $ (0.11) $ (0.98) $ (0.49)
======== ======== ========
Diluted $ (0.11) $ (0.98) $ (0.49)
======== ======== ========
Weighted average shares outstanding:
Basic 81,599 72,625 68,677
======== ======== ========
Diluted 81,599 72,625 68,677
======== ======== ========
Pro forma adjustment for 1 for 5 reverse
stock split to be effective 5/14/02
Net loss per share:
Basic $ (0.54) $ (4.91) $ (2.44)
======== ======== ========
Diluted $ (0.54) $ (4.91) $ (2.44)
======== ======== ========