DELRAY BEACH, FL., May 8, 2002 - Ecometry Corporation (Nasdaq: ECOM), a provider of integrated software solutions for multi-channel commerce, today announced financial results for the first quarter of 2002.
First Quarter Results
Revenues for the first quarter were $5.9 million, a decrease of 3.9%, from $6.2 million for the first quarter of 2001. This decrease, which was partially offset by higher sales of license fees, was primarily due to the absence of revenue generated by Ecometry`s subsidiaries, whose operations were discontinued or sold in the fourth quarter of 2001. Also contributing to the decrease was the overall decline in the economy and the extreme impact the events of September 11, 2001 have had on the economy, resulting in lower sales of support and services.
License fees for the first quarter were $1.6 million, an increase of 63.3% from $986,000 for the quarter ended March 31, 2001. Third party software and hardware revenues were $1.2 million, a decrease of 2.0% from $1.3 million for quarter ended March 31, 2001. Support revenues were $2.5 million in the first quarter, a decrease of 13.2% from $2.9 million during the quarter ended March 31, 2001. Services revenues were $606,000 a decrease of 43.1% from $1.1 million for the quarter ended March 31, 2001.
License fees and third party software and hardware revenue from new customers was $1.4 million, an increase of 46.9% from $976,000 for the three months ended March 31, 2001. License fees and third party software and hardware revenue from existing customers was $1.4 million, an increase of 11.1%, from $1.3 million for the three months ended March 31, 2001.
Net loss for the first quarter was $1.9 million, or $0.16 per diluted share, compared to a net loss of $2.5 million or $0.20 per diluted share, in the first quarter of 2001. General and administrative expense was $2.7 million for the first quarter of 2002, unchanged from the first quarter of 2001. Expense savings realized from the sale and disposition of the subsidiaries were offset by expenses related to Ecometry`s pending merger transactions. Sales and marketing expense during the quarter ended March 31, 2002 decreased from $1.8 million to $933,000 for the same period last year due to lower costs for salaries, trade shows, advertising, and lower expenses as a result of the sale and disposition of the subsidiaries. Research and development expense for the first quarter of 2002 was $1.2 million compared to $1.3 million for the first quarter of 2001. The decrease was due to lower personnel costs, combined with the absence of development costs associated with the Company`s subsidiaries, offset by higher outside consulting costs. The Company expects to continue its investments in new products and operating system platforms in future periods.
First Quarter Highlights
During the first quarter, Ecometry Corporation acquired five new customers; two running Ecometry Retail Enterprise™ on the NT platform, one on the Unix platform, and two in the MPE/ix environment. These customers include Yankee Candle, Massage Warehouse, Winterthur Museum, Rochester Big and Tall a/k/a Milepost Four, and Special Times Gifts.
As the installation process was completed, four companies went live with Ecometry Retail Enterprise during the first quarter. These customers are Teacher`s Discovery, Affinity Express, Chaparral Motor Sports, and A-Three Services.
About Ecometry Corporation
Ecometry is a provider of multi-channel commerce solutions worldwide. The Ecometry family of products ensures customer satisfaction throughout the multi-channel shopping and buying experience. Its flagship product, Ecometry Retail Enterprise™, is a customer-centric, high volume suite of business applications designed to completely automate front-end and back-end operations across multiple channels. It enables retailers to acquire, retain and manage customers, suppliers and partners from one centralized database. Headquartered in Delray Beach, Florida, Ecometry`s client roster includes industry-leading retailers such as Nordstrom, Time Life, Brookstone, Zales, Hickory Farms, Levenger, KBKids.com, Nine West, Coldwater Creek, Hallmark, Urban Outfitters and RedEnvelope.com.
Safe Harbor
This news release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding future financial performance, management`s plans and objectives for future operations, product plans and performance, management`s assessment of market factors, as well as statements regarding the strategy and plans of the Company, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, risks associated with the Company`s business, including the following risks: the unpredictability of revenues due to large dollar amounts of the Company`s individual license transactions and the lengthy and unpredictable sales cycles for these transactions; the Company`s dependence on the development, introduction and client acceptance of new and enhanced versions of the Ecometry software products; the ability to control costs, the Company`s dependence on new product development; uncertainties regarding the outcome of pending class action litigation against the Company; the Company`s reliance on a combination of trade secrets, copyright and trademark law, nondisclosure agreements and technical measures to protect its proprietary technology; the Company`s ability to sell its products in new markets within the direct commerce industry; the Company`s dependence on proprietary technology licensed from third parties; the Company`s ability to continue to resell a variety of hardware and software developed and manufactured by third parties; the Company`s ability to maintain margins on the sale of hardware and software developed and manufactured by third parties; significant competition in the software and direct commerce industry and competitive pricing for the Company`s products; customer concentration; fluctuations in demand for the Company`s products which are dependent upon the condition of the software and direct commerce industries; the Company`s ability to collect receivables; and other risks and uncertainties described in the Company`s prospectus dated January 29, 1999, Forms 10-K and 10-Q and other documents filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
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