STYLECLICK ANNOUNCES NEW COMPANY ORGANIZATION TO ADVANCE ITS OFFERING OF SCALABLE COMMERCE SERVICES
Streamlining Includes Acquisition and Integration of the MVP.com Technology
Platform, $15 Million Revolving Credit Line from USAi, New Senior Management
and Addition of Core MVP.com Technologists
Los Angeles, CA - March 22, 2001 - Styleclick (NASDAQ: IBUY), a provider of
e-commerce technologies and services, announced today a new company
organization to advance its offering of scalable commerce services. The new
organization includes Styleclick`s acquisition and integration of the
MVP.com technology platform, a $15 million revolving credit line made
available by majority-owner, USA Networks, Inc., changes in senior
management, and the addition of core MVP.com technologists to the Company`s
senior staff.
The acquisition of MVP.com`s technology platform with proven scalability
will help enable Styleclick to better serve its commerce partners. The
Company has signed agreements with About, Elle.com and others to build and
operate their brand name stores on the Internet. The addition of MVP.com`s
platform will help to ensure that Styleclick`s services can grow with the
developing needs of its customers, including the business funneled to
Styleclick by USA Electronic Commerce Solutions (ECS) such as stores for CBS
SportsLine, NASCAR.com and the PGA Tour. Additionally, Styleclick will
continue to transition its FirstAuction.com site into an e-commerce driven
service, as talks with external auction partners continue.
The Company also announced the appointment of Lisa Brown, currently
President and CEO, USAi`s ECS, to the position of CEO, Styleclick, and
Robert Halper, currently EVP Operations and Finance of ECS, to the post of
President and COO, Styleclick. Both Ms. Brown and Mr. Halper will also
continue in their positions at ECS. Maurizio Vecchione has resigned from his
position as CEO of Styleclick and from his seat on the Styleclick Board
after 13 years with the Company. Ed Zinser has resigned from his position as
COO of Styleclick and is leaving the company to pursue other interests.
Barry Hall, CFO of Styleclick, will continue in that position.
Additionally, Ian Drury, former CTO of MVP.com and Brent Hill, former VP
Business Development of MVP.com, the technologists responsible for creating
the software being acquired from MVP.com, will be joining the senior staff
of Styleclick as Executive Vice Presidents. Both Mr. Drury and Mr. Hill are
also former executives with Andersen Consulting (now Accenture), where they
specialized in e-commerce and e-crm.
Also being announced today is the inception of a $15 million, 18 month
revolving credit line, being made available by Styleclick`s majority-owner,
USAi. Styleclick`s ability to borrow under the credit line will be subject
to approval by its Board of Directors.
Styleclick has revised the outlook for its financial performance for the
year 2001, now expecting 2001 revenues of $14 million and an EBITDA
(earnings before interest, taxes, depreciation and amortization) loss,
excluding goodwill, of $18 million. Styleclick has not issued guidance for
2002. This revision of the Company`s guidance for the full year is based on,
among other factors, Styleclick`s decision to transition out of the
business-to-consumer market and focus on growing its higher-margin business
of providing e-commerce technologies and services to established brands.
"Our investment in the technology and people of Styleclick and MVP.com is a
valuable step toward the Company`s renewed focus on being the best commerce
services partner in the space. By expediting their development of scalable
online solutions, we believe Styleclick can be a more valuable partner to
its clients while quickening its own growth," said Jon Miller, President and
CEO, USA Information and Services.
"Under the leadership of Maurizio Vecchione, Styleclick has already been
successful at developing an impressive roster of commerce partnerships and
due in large part to his efforts, we are able to move ahead with great
confidence," said Lisa Brown. "With our acquisition of MVP.com`s proprietary
technologies, our competitive advantage is strengthened because we can build
and launch partner stores even faster than before. Combine that with the
technology experience that Ian Drury and Brent Hill bring to our new
management team, and I believe we are well prepared to be the leading CSP
going forward. Speaking for a moment as CEO of ECS, we`re more than pleased
with the enhanced capabilities Styleclick brings to our own third-party
business partners through ECS and to the growing USAi internal needs."
Ian Drury brings thirteen years of technology, e-commerce, and business
development expertise to the Styleclick management team. As VP and CTO of
MVP.com, Mr. Drury was responsible for site development, business
development, partner integration, application support, and network
operations and was an acting member of the Board of Directors. In 1999,
BigEdge.com, an online sporting goods retailer and company Mr. Drury
co-founded, merged with MVP.com. Prior to BigEdge.com, Mr. Drury was an
Associate Partner in the Technology practice at Andersen Consulting,
specializing in electronic commerce.
Brent Hill brings ten years of software development and project management
experience to the Styleclick management team. As VP of Business Development
and a member of the Board of Directors at MVP.com, Mr. Hill was responsible
for significant acquisitions as well as the company`s golf business, its
largest business unit. Prior to MVP.com. Mr. Hill was a co-founder of
BigEdge.com. He also spent ten years at Andersen Consulting, where he was a
Senior Manager in the Technology practice. He specialized in Customer
Relationship Management for clients in the communications industry, and was
a member of the Internet Community of Practice.
Styleclick, Inc. provides e-commerce technologies and services enabling
brands to sell online. The Company`s end-to-end offerings include Web
design, development and hosting, product imaging, online sales and
merchandising technologies, inventory management and integrated back-end
fulfillment and customer care. Styleclick is the outsourcing partner of
choice for a variety of entertainment, sports, publishing, home furnishings,
and style businesses. A majority-owned subsidiary of USA Networks, Inc.,
(NASDAQ: USAI), Styleclick operates as part of USA Information and Services
(USAIS), which coordinates the efforts of USAi`s businesses engaged in
various forms of transactional interactivity.
# # #
This press release contains "forward-looking statements" about Styleclick,
as defined in the Securities Exchange Act of 1934, as amended, including
those statements regarding future operating results and the timing of
product introductions, the timing and composition of revenues, among others.
Except for historical information, the matters discussed in this press
release are forward-looking statements that are subject to certain risks and
uncertainties that could cause the actual results to differ materially from
those projected. Factors that could cause actual results to differ
materially include the following: company integration risks; the
unpredictability and potential fluctuations in future revenues and operating
results; unforeseen technical or other obstacles in the development or
production of the Company.
Contact: Media: Bonnie Poindexter 323-403-1052 bpoindexter@styleclick.com
Investors: Gail Laguna 323-403-1000 glaguna@styleclick.com
5105 W. Goldleaf Circle
Los Angeles, CA 90056
Tel. 323-403-1000
Fax.
323-403-1033
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