NEW YORK, July 30, 2001 (PRIMEZONE) -- eB2B Commerce, Inc. (Nasdaq:EBTB), a leader in business-to-business transaction management services, announced today the results of its second quarter, posting a 6% gain in revenues over the same quarter last year. eB2B's consistent revenue streams and recently achieved $400,000 monthly cost reduction plan have positioned the Company to be EBITDA breakeven by the end of 2001 (EBITDA is defined as net loss adjusted to exclude: (1) depreciation and amortization; (2) stock related compensation; and (3) interest, net.
eB2B recorded revenues of $1,679,000 for the second quarter of 2001, an increase of 6% compared to revenues of $1,590,000 in the second quarter of 2000. For the first six months of 2001, revenues were $3,543,000, an increase of 77% compared to revenues of $2,005,000 for the same period in 2000.
"It's rewarding to see the continued growth in eB2B's business during the same time period in which we have gone through significant restructuring," says Richard Cohan, CEO of eB2B Commerce. "Our cost reduction initiatives have been successful, resulting in an annualized cash savings of over $4.8 million."
"Additionally, we expect revenue for the 2001 fiscal year to be in the range of $7.5-$8.5 million, based on promising early results from registering users on our new TradeGateway technology platform in our Chain Drug vertical market. Our supplier base is also growing for our consumer electronic and telecommunication customers. We are also anticipating growth in our professional and consulting services business unit, based on the addition of sales resources and a strategic decision to broaden the base of customers served by this unit," adds Cohan.
eB2B's transaction processing and related services' reportable segment generated revenues of $1,078,000 for the three months ended June 30, 2001, an increase of 21% over the same period in 2000 and $2,243,000 for the first six months of 2001, an increase of 111% compared to the first six months of 2000.
In addition, the Company has concluded its previously announced strategic reorganization plan and recognized restructuring costs of $1,129,000 in the three-month period ended June 30, 2001. As a result of the strategic review, other actions initiated by management may result in additional restructuring charges in the third quarter of 2001.
The Company's reported loss before interest, taxes, depreciation and amortization (EBITDA) for the three months ended June 30, 2001 was $3,438,000. Excluding restructuring costs, the Company's EBITDA loss would have been $2,309,000 in the quarter, a $1,883,000 or 45% improvement compared to the $4,192,000 EBITDA loss reported in the quarter ended June 30, 2000. eB2B reports that its net loss for the second quarter of 2001 was $10,113,000, or $0.59 per share, compared with a net loss of $18,324,000 or $1.59 per share, in the same period in 2000.
Concurrently with this release, the Company has filed a Form 8-K with the SEC, providing additional information about the Company's results and plans for the future. eB2B's SEC filings may be accessed through the Investor section of our Web site at www.eb2b.com.
"eB2B is entering a new stage in its development. We are operating efficiently, driving execution of our rollout and are focused on growing our businesses profitably. By providing connectivity solutions to access standard transactions in an affordable way for small and medium enterprises, we solve a critical 'last mile' problem for our customers. Organizations on both sides of the order management process are embracing eB2B's solutions. Though TradeGateway has only been in production for a few weeks, we are experiencing positive results. We expect to see the revenue impact of our rollout in the fourth quarter of 2001 continuing through 2002 and beyond. Our training, professional and consulting business units are expected to continue to contribute to profitability going forward," explains Cohan.
About eB2B Commerce
eB2B Commerce is a leading provider of business-to-business transaction management services that simplify trading partner integration, automation and collaboration across the order management life cycle. The eB2B Trading Network and Transaction Lifecycle Management solutions provide enterprises small and large with a total solution for improving trading partner relationships that enhance productivity and bottom line profitability.
FORWARD-LOOKING STATEMENTS -- This document contains forward-looking statements that reflect the current assumptions of eB2B and expectations regarding future events. While these statements reflect the Company's current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to, the Company's limited operating history; the Company's ability to raise additional capital, if needed; the soundness of our business strategies relative to the perceived market opportunities; our ability to successfully develop, market, sell and improve our business to business transaction services to retailers, suppliers, buyers or sellers; our ability to compete effectively on price and support services; the risks associated with rapidly changing technologies, such as the internet; and our assessment of our specific vertical industry's need to become technology efficient. These factors and other risk factors are more fully discussed in the Company's filings with the Securities and Exchange Commission, which you are strongly urged to read. eB2B expressly disclaims any intent or obligation to update any forward-looking statements. When used in this Report, the words "believes," "estimated," "estimates," "expects," "expected," "anticipates," "may" and similar expressions are intended to identify forward-looking statements.
eB2B Commerce, Inc.
Financial Summary
Three and Six Months Ended June 30, 2001
(Unaudited)
Three Months Ended Six Months Ended
06/30/01 06/30/00 06/30/01 06/30/00
Revenue $ 1,679,000 $ 1,590,000 $ 3,543,000 2,005,000
Recurring
EBITDA(*) (2,309,000) (4,192,000) (5,858,000) (6,957,000)
Restructuring
Charge (1,129,000) -- (1,129,000) --
EBITDA (3,438,000) (4,192,000) (6,987,000) (6,957,000)
Loss from
Operations (8,568,000) (18,612,000) (16,700,000) (25,196,000)
Net Loss (10,113,000) (18,324,000) (18,210,000) (24,631,000)
Net Loss per
Common Share $ (0.59) $ (1.59) $ (1.11) $ (2.60)
Weighted
Average
Number of
Common Shares
Outstanding 17,277,890 11,514,073 16,428,054 9,477,222
(*) EBITDA is defined as net loss adjusted to exclude:
(1) depreciation and amortization, (2) stock related compensation
and (3)interest, net.