SAN RAMON, Calif., May 4, 2000 (PRIMEZONE) -- ZapMe! Corporation (Nasdaq:IZAP), the leading provider of broadband educational services and content to schools and communities nationwide, today reported record revenues of $5.4 million for the three months ended March 31, 2000, an increase of 157% over revenues of $2.1 million for the fourth quarter of 1999. In the prior year period the company had not yet begun to generate revenue.
Excluding amortization of stock-based compensation, net loss for the three months ended March 31, 2000 was $8.7 million, or $(0.21) per share, compared to a net loss of $9.2 million, or $(0.26) per share for the fourth quarter of 1999. Including amortization of stock-based compensation, net loss for the three months ended March 31, 2000 was $10.7 million, or $(0.25) per share, compared to a net loss of $11.9 million, or $(0.33) per share in the prior year fourth quarter.
The company also reported significant growth in school partnerships and student use of the ZapMe!(tm) netspace and equipment. As of March 31, 2000, ZapMe! had deployed equipment to approximately 1,800 partner schools compared to 1,250 schools as of December 31, 1999 and less than 500 schools as of March 31, 1999. The student population in partner schools exceeds 1.5 million students.
"This was our best quarter ever in expanding the reach of our network and in generating revenues. Additionally, during the quarter we took a step to increase the effectiveness of our broadband education network by reaching agreement to acquire eFundraising.com Corporation," said Rick Inatome, president and chief executive officer. "We expect to close the acquisition in the second quarter of this year and believe it will not only enhance our product but generate additional revenue." Inatome continued "Our focus moving forward is to continue to expand our content offerings, increase corporate sponsorships and aggressively build out our network."
During the three-month period, ZapMe! formed an education advisory board with educational leaders from middle and high school institutions to provide guidance on curriculum and content. In an unrelated move, Inatome was invited and joined the board of the National Campaign Against Youth Violence. ZapMe! will assist in creating and delivering online multi-media educational messages and resources in support of the NCAYV's efforts to stop the epidemic of youth violence.
Inatome noted that in March the company formed r)Star Broadband Networks Inc., a new subsidiary, to provide specialized, broadband Internet media networks specific to industries outside of education. ZapMe! founder and Chairman of the Board, Lance Mortensen, heads the new division. Most recently, r)Star was selected by Web-On-Site to provide a bi-directional PC-based satellite platform for the delivery of broadband web content and streaming video to Web-On-Site's nationwide network of WebCatcher Internet stations.
About ZapMe! Corporation
ZapMe!, a champion of student privacy rights and the leading provider of quality technology and online educational content to schools and communities nationwide, has built America's largest Internet media network specializing in education.
ZapMe! is dedicated to providing students with access to the latest technology and educational resources they need to succeed in the digital age. High-performance computer labs with satellite broadband capabilities provide safe, high-speed delivery of aggregated educational Web content - including 13,000 pre-selected, indexed educational sites - and make the ZapMe!(tm) netspace the premier interactive educational medium and provide a powerful learning experience to middle and high school students, educators and parents across the country. ZapMe!
(www.zapme.com) is located in San Ramon, California. For more information, please call 925-242-5232.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward looking statements. Some information included in this press release contain statements that are forward-looking. Such forward-looking information involves significant risks and uncertainties that could affect anticipated results in the future. These factors include, but are not limited to, the adoption of ZapMe!'s network by schools, the ability of the company to secure additional corporate sponsorships and additional content from third party education content providers and the ability of the company to market its broadband services, as well as additional risks and uncertainties, detailed in the company's filings with the Securities and Exchange Commission.
ZapMe! Is a trademark of ZapMe! Corporation. All other company names or product names are trademarks of their respective companies.
Statements of Operations
(in thousands, except for per share amounts)
Three Months Ended
3/31/00 12/31/99 3/31/99
(unaudited) (unaudited) (unaudited)
Revenue $1,254 $1,141 $6
Revenue from affiliates 4,156 957 -
Total revenue 5,410 2,098 6
Costs and expenses:
Costs of revenue 4,647 5,149 212
Research and development 1,363 995 472
Sales and marketing 2,327 2,320 864
General and administrative 6,170 2,914 885
Amortization of deferre
stock compensation 2,028 2,651 10
Total costs and expenses 16,535 14,029 2,443
Loss from operations (11,125) (11,931) (2,437)
Interest income/(expense) 430 553 (3)
Other income/(expense) (7) (3) -
Net loss (10,702) (11,381) (2,440)
Accretion and dividend on redeemable
convertible preferred stock - (513) -
Loss applicable to common stockholders $(10,702) $(11,894) (2,440)
Net loss per share:
Basis and diluted $(0.25) $(0.33) N/A
Shares used in calculation of net loss
per share 42,236 36,076 N/A
Mar. 31, 2000 Dec. 31, 1999
(unaudited) (unaudited)
Balance Sheet Data:
Cash and cash equivalents $98,275 $112,714
Working capital 81,339 94,906
Total assets 147,813 151,192
Capital leases, less current portion 18,008 13,292
Shareholders' equity $105,737 $114,313