LAS VEGAS, Nov. 13, 2001 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today reported a net loss for the third quarter ended September 30, 2001 of $106.4 million, or $1.46 per share, on revenues of $3.6 million, compared with a net loss in the comparable quarter a year ago of $8.2 million, or $0.13 per share, on revenues of $17.3 million. The company's third quarter results include special charges totaling $98.0 million related to write-downs and write offs of certain intangible assets and investments. The company also eliminated an obligation to AOL in the quarter in the amount of $19.8 million. Excluding the special charges and eliminated AOL obligation, most of which were non-cash, the company's loss for the third quarter was $28.2 million.
Additional key metrics from PurchasePro's third quarter include:
-- Software licenses sold in the quarter totaled $818,000, compared
with $4.5 million in the prior quarter and $11.3 million a year
earlier.
-- Transaction revenue was $58,000, compared with $38,000 in the
prior quarter and $2,000 in the comparable quarter a year ago.
-- Hosting revenue was $323,000 in the quarter, compared with
$488,000 in the prior quarter and $160,000 a year ago.
-- Maintenance revenue in the quarter was $463,000, compared with
$516,000 in the prior quarter and $100,000 a year earlier.
-- Professional fees were $944,000, compared with $454,000 in the
prior quarter and $485,000 a year earlier.
-- Gross margins were 64 percent, compared with 85 percent in the
prior quarter and 91 percent a year earlier.
-- Operating expenses were $108.8 million, compared with $75.5
million in the prior quarter and $25.2 million a year ago.
-- 82,000 purchase orders totaling $86 million were received in the
quarter, compared with 60,056 purchase orders valued at $61.2
million in the prior quarter.
-- For the quarter ended September 30, 2001, 398 e-Source auctions
were held with total high bids of $210 million and total low bids
of $178 million from 2,319 suppliers, with a market spread or
implied savings of $32 million.
Richard L. Clemmer, president and chief executive officer, said, "As we announced in October, we anticipated that this quarter would be a difficult one in light of the challenging economy. We also announced that we anticipated closing some of the sales expected in the third quarter, in the current, or fourth quarter; and we have done so, recently announcing a license sale to Corporate Express. At this point, we expect to announce additional licenses prior to the year's end."
The company also said it will hold an open conference call at 2:00 p.m. (PST) today. There will be a limited number of lines to the conference call. The call-in number is 877.362.3954. The international call-in number is 706.679.8114. The call will also be Webcast through PurchasePro's investor relations Website located at www.irconnect.com/ppro.
There will be a replay of the call beginning at 5:00 p.m. (PST), November 13 that will run until 12:00 a.m. (PST), November 16. 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 2389861.
About PurchasePro
PurchasePro(r),www.purchasepro.com, is a B2B e-commerce leader with the stated goal of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. The PurchasePro commerce network comprises more than 300,000 businesses, authorized to buy and sell, and powers hundreds of private-label marketplaces. PurchasePro provides the following B2B e-commerce solutions: e-Procurement for enterprise-wide procurement; e-Source for strategic sourcing; v-Distributor for online distributors; and e-MarketMaker for Internet market makers.
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 10-K filing for the period ended December 31, 2000, and its 10-Q for the quarter ended June 30, 2001, which are 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
(Unaudited)
December 31, September 30,
2000 2001
-------------- ---------------
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
(including restricted cash
of $0 and $1,824) $ 86,335 $ 20,065
Trade accounts receivable, net 23,171 2,719
Other receivables 859 43
Prepaid expenses and
other current assets 9,378 2,153
--------- ---------
Total current assets 119,743 24,980
Property and equipment:
Computer equipment and software 49,620 53,676
Furniture and fixtures 2,327 3,267
Leasehold improvements 6,244 7,786
--------- ---------
58,191 64,729
Less -- accumulated
depreciation and
amortization (7,940) (22,201)
--------- ---------
Net property and equipment 50,251 42,528
Other assets:
Intangibles, net 123,410 16,178
Capitalized software
development costs, net 5,516 24,111
Investments in other companies 15,718 1,176
Deposits and other 5,584 438
--------- ---------
Total other assets, net 150,228 41,903
--------- ---------
Total assets $ 320,222 $ 109,411
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 20,248 $ 6,175
Accrued and other
current liabilities 3,421 6,474
Deferred revenues 3,030 1,544
Current portion of
long-term liabilities 22,255 6,098
--------- ---------
Total current liabilities 48,954 20,291
Long-term liabilities 10,348 1,128
--------- ---------
Total liabilities 59,302 21,419
Contingencies
Stockholders' equity:
Common stock 667 731
Additional paid-in capital 414,667 443,201
Common stock in treasury
at cost -- (902)
Deferred stock-based
compensation (4,390) (1,760)
Accumulated deficit (151,552) (352,480)
Accumulated other
comprehensive income (loss) 1,528 (798)
--------- ---------
Total stockholders' equity 260,920 87,992
--------- ---------
Total liabilities and
stockholders' equity $ 320,222 $ 109,411
========= =========
PURCHASEPRO.COM, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended, Nine Months Ended,
September 30, September 30,
------------------- ------------------
2000 2001 2000 2001
------------------- ------------------
(In thousands, except per share amounts)
Revenues:
Software licenses $ 11,330 $ 818 $ 12,815 $ 16,368
Network access
and service
fees 5,090 2,387 13,352 16,977
Advertising 648 201 2,102 2,397
Other 269 155 3,132 632
--------- --------- --------- ---------
Total revenues 17,337 3,561 31,401 36,374
Cost of revenues 1,490 1,272 2,503 6,010
--------- --------- --------- ---------
Gross profit 15,847 2,289 28,898 30,364
Operating expenses:
Sales and
marketing 12,496 5,146 29,676 37,899
Programming and
development 2,747 1,261 5,963 8,452
General and
administrative 7,357 18,139 17,830 55,824
Strategic
marketing expense -- 4,770 -- 24,385
Amortization of
stock-based
compensation 2,590 1,198 15,027 5,136
Asset impairments
and abandonments -- 98,004 -- 115,804
Cancellation of
AOL obligation -- (19,766) -- (19,766)
Employee
termination
benefits and
other -- -- -- 4,380
--------- --------- --------- ---------
Total operating
expenses 25,190 108,752 68,496 232,114
--------- --------- --------- ---------
Operating loss (9,343) (106,463) (39,598) (201,750)
Other income:
Interest income,
net 1,112 64 3,545 822
--------- --------- --------- ---------
Total other income 1,112 64 3,545 822
--------- --------- --------- ---------
Net loss before
benefit for
income taxes (8,231) (106,399) (36,053) (200,928)
Benefit for
income taxes -- -- -- --
--------- --------- --------- ---------
Net loss $ (8,231) $(106,399) $ (36,053) $(200,928)
========= ========= ========= =========
Net loss per
share:
Basic $ (0.13) $ (1.46) $ (0.61) $ (2.82)
========= ========= ========= =========
Diluted $ (0.13) $ (1.46) $ (0.61) $ (2.82)
========= ========= ========= =========
Weighted average
shares
outstanding:
Basic 64,742 73,089 59,179 71,306
========= ========= ========= =========
Diluted 64,742 73,089 59,179 71,306
========= ========= ========= =========