OAKBROOK TERRACE, Ill., Oct. 23 -- Apropos Technology (Nasdaq: APRS), a leading provider of real time multi-channel interaction management solutions, today announced revenues of $4.8 million for the third quarter ending September 30, 2001, compared with revenues of $8.2 million for the third quarter of 2000. Revenues for the first nine months of 2001 and 2000 were $16.6 million and $21.1 million, respectively.
Pro forma net loss for the third quarter of 2001 was $3.1 million or a loss of $0.19 per share (excluding stock compensation and restructuring charges). The pro forma net loss for the third quarter of 2000 was $0.6 million, or a loss of $0.04 per share (excluding stock compensation charges). Including charges for restructuring and stock compensation, the net loss for the third quarter of 2001 was $4.5 million, or a loss of $0.27 per share, which compares to a net loss for the third quarter of 2000 of $0.9 million, or a loss of $0.06 per share.
"A combination of weak economic conditions, the tragic events of September 11th, and the adverse effects of our sales reorganization in the first half of this year, have had a significant impact on our results for the third quarter," stated Kevin Kerns, CEO and president of Apropos Technology. "Over the past six months, the Company has undertaken numerous measures aimed at rebuilding its revenue momentum and putting itself on the path to profitability."
In the third quarter, the Company took decisive steps to decrease its operating expense structure in order to offset lower revenue levels over the short term. In July, the Company completed a 30% reduction in its workforce and put in tight financial controls to limit expense growth. As a result of these steps, the Company has significantly reduced its expense levels and is in extremely strong financial condition with over $56 million in cash and investments as of September 30, 2001. The Company anticipates reaching profitability in the first half of 2002.
The key to reaching profitability is improved sales execution. Over the past three months, the Company has put in place several initiatives to increase revenue momentum starting with the placement of two strong sales executives to lead the Americas and Asia Pacific markets. In addition, the Company has refocused its sales energies on deeper penetration of a few select international markets (which represent the largest long term market potential), implemented a new major accounts program that builds on the Company`s success in specific vertical industries, such as financial services, communications, and manufacturing, and revamped its sales education to make our sales people more productive in the field. These initiatives, along with new incentive programs to accelerate sales activity in the field, are expected to produce positive results over the next several quarters.
"Despite the slowdown in revenue growth, we remain confident of our business and in the products and strategy we are executing to drive profitability," stated Kerns. "We believe strongly that the measures we are taking to improve sales execution, the continued investment in our research and development programs, and the solid financial discipline exercised over the past several quarters, has put Apropos in an excellent position to turn the corner on profitability as business conditions improve."
We are committed to building a profitable business and leveraging our "best of breed" technology position to provide our customers, partners, and prospects with the knowledge and confidence that Apropos will remain a strong strategic partner for many years to come.
A conference call will be conducted by the Company at 5:00 p.m. Eastern Time (ET) on Tuesday, October 23rd, 2001. The conference call will be available to all interested parties over the Internet. To listen to the call on the Internet, go to www.apropos.com or www.ccbn.com at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call at www.apropos.com, www.ccbn.com, or by dialing 703-925-2435 or 888-266-2086 and providing confirmation number 5582644. The replay will be available by phone through October 31, and over the Internet for 30 days.
About Apropos Technology
Apropos Technology,Inc. (Nasdaq: APRS) develops and markets real time, multi-channel interaction management applications that provide the critical application infrastructure essential to manage both traditional voice and Internet-based customer communications. Multi-channel interaction management enables companies to personalize and intelligently manage all of their real time interactions, providing a common infrastructure that companies can leverage across their eCommerce, CRM, and Supply Chain initiatives. It offers on-line customers the flexibility to interact with businesses over the Internet, through E-mail or Web collaboration, and provides access to human assistance through either an interactive Web chat or traditional voice interaction, to help in completing a sales or service transaction. Apropos Technology is headquartered in Oakbrook Terrace, IL, and has more than 280 clients worldwide. Additional information about Apropos and its products can be found at http://www.apropos.com .
The Apropos Technology statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding Apropos Technology`s expectations, anticipates, goals, aims, beliefs, targets, hopes, intentions or strategies regarding the future. Forward-looking statements include statements regarding product introduction and acceptance, future sales and sales growth, profitability and results, gross margins, additional offices and financial stability. These forward-looking statements are subject to various risks and uncertainties as more fully set forth under the caption "Risk Factors" in Apropos Technology`s Registration Statement on Form S-1 and under the caption "Risk Factors Associated with Apropos` Business and Future Operating Results" in Apropos Technology`s Annual Report on Form 10-K for the year ended December 31, 2000, each as filed with the Securities and Exchange Commission. Apropos Technology`s actual results and the timing of certain events may differ significantly from the results discussed in the forward-looking statements; Apropos Technology makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.
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