DELRAY BEACH, Fla--Nov. 1, 2001--Ecometry Corporation (Nasdaq:ECOM), a leading provider of integrated software solutions for multi-channel commerce, today announced financial results for the third quarter ended September 30, 2001.
Third Quarter Results
Revenues for the third quarter were $6.2 million, a decrease of $7.9 million, or 56.1%, from $14.1 million for the third quarter of 2000. The decrease was related to the continuing economic slowdown, which resulted in lower demand for Ecometry`s products and services. New and existing customer sales during the third quarter decreased approximately 75% from the third quarter of 2000.
Net loss for the third quarter was $1.6 million, or $0.13 per diluted share, compared to net income of $586,000, or $0.05 per diluted share, in the third quarter of 2000. General and administrative expenses were $2.8 million for the third quarter of 2001 compared to $2.9 million for the same period last year. Sales and marketing expenses during the quarter ended September 30, 2001 decreased to $1.2million from $1.7 million during the same period last year. This decrease is attributable to lower costs for advertising, public relations, salaries and lower commissions on sales. Research and development expenses for the third quarter of 2001 and 2000 were consistent at $1.1 million. The Company expects to continue investing in new and enhanced products during future periods.
"During the past quarter Ecometry gained seven new customers, three of which purchased the new version of Ecometry`s NT product" said the company`s president, John Marrah. "Even with these new customer acquisitions, revenue from both new and existing customers fell well short of historical trends. We are continuing to focus on the development of new products and at the same time, reducing costs wherever possible."
About Ecometry Corporation
Ecometry is a leading 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(TM), 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, 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 and its strategic partners, 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.
CONTACT:
Ecometry Corporation
Martin K. Weinbaum, 561/265-2700
Fax: 561/454-4801
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