viaLink Reports Fourth Quarter and Full Year 2002 Results
Company reports record annual and quarterly revenue
Dallas, TX - March 13, 2003 -- The viaLink Company (OTCBB: VLNK), the leading provider of data synchronization and scan based trading services to the consumer packaged goods and retail industries, today reported that its full year 2002 revenue increased by 29% to $4.5 million and that its net loss declined from $24.5 million to $8.1 million from 2001 to 2002.
2002 revenues included $2.8 million in subscription revenues, a 104% increase over the previous year. Operating expenses in 2002 decreased from $26.9 million to $14.1 million. The company reported a net loss for the year of $8.1 million, or $0.08 per share and a net loss applicable to common stock of $0.17 per share, which includes dividends on preferred stock.
The trends in revenue growth and decreasing losses continued during the fourth quarter of 2002, when revenue increased 70% to $1.3 million compared to $751,000 in the fourth quarter of 2001. Subscription revenue for the fourth quarter was $751,000, a 47% increase from same quarter of the previous year. This was the company’s twelfth consecutive quarter of increased subscription revenues. The company reported a net loss and operating loss for the fourth quarter of $1.6 million, or $0.01 per share. The fourth quarter operating loss represents the company’s eighth consecutive quarter of decreased operating losses and compares to a fourth quarter operating loss in 2001 of $2.8 million.
“The company made solid progress on all fronts in 2002,” said Bob Noe, chief executive officer of viaLink. “Our business model, based on recurring revenue from monthly subscription fees for our services, gained in strength. 2002 was a banner year for both contract signings and commerce implementations. We now have more retailers than at any time in the past actively working on developing their trading communities to connect with them for all of our services, including data synchronization and scan based trading.”
“We also demonstrated the ability to manage our cost structure in a very disciplined way,” continued Noe. “ We have continued to enhance our productivity and to accelerate speed-to-value for our customers.”
viaLink achieved several important milestones during 2002. These included:
• The addition of 9 new retailer customers, including AAFES, C&K Market, ExxonMobil, Farm Fresh, Fas Mart, Kmart, Shop N Save, Shoppers/Metro and WinCo.
• An expanding critical mass of trading partner connections, highlighted by the addition of dozens of supplier customers, including such well-known companies as Bausch & Lomb, Bob Evans Farms, Chicken of the Sea, Faultless Starch/ Bon Ami, Flowers Bakeries, I&K Distributors, Marcal Paper Mills and Snyder’s of Hanover.
• Agreements with two major sales and marketing agencies – Advantage Sales and Marketing SE and CROSSMARK? -- reflecting viaLink’s unique ability to address the complexities of data synchronization for supply chain relationships involving third-party representatives.
• The deployment of viaLink’s UCCnet services. viaLink is an industry leader in successfully on-boarding clients to UCCnet, serving as the agent for eleven of its customers to manage the full range of registry and publication/subscription processes with UCCnet and those retailers who have requested to receive item data through UCCnet.
• Improved financial position. The company reached its goal of reducing operating expenses, raised an additional $3.2 million in capital during the year and continued to maintain positive stockholders’ equity at December 31, 2002.
The company’s chief executive officer, Bob Noe, and chief financial officer, Brian Carter, will host an investor conference call today at 4:30 p.m. Eastern Standard Time, to review the company’s results. The call will be broadcast live over the Internet and can be accessed by visiting www.vialink.com and referring to Pass Code 441661. For those who are not able to listen to the live broadcast, the conference call will be archived for 30 days and accessed through www.vialink.com.
The viaLink Company (OTCBB: VLNK) provides advanced e-commerce services to the CPG and retail industries. We help progressive suppliers, distributors and retailers improve their supply chain efficiency, increase sales and serve their customers more effectively. For more information about viaLink’s data synchronization, scan based trading and supply chain visibility solutions, call (972) 934-5500 or visit viaLink`s website: www.vialink.com
This release contains forward-looking statements that involve risks and uncertainties. The viaLink Company resembles a development stage company, which has commenced its planned operations but is only beginning to generate significant revenue. Risk factors affecting our business have been detailed in viaLink’s filings with the Securities and Exchange Commission.
For more information contact:
Betsy Hill
The viaLink Company
(972) 934-5500
Bhill@vialink.com
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