LOUISVILLE, COLO. - (August 16, 2001) - MessageMedia, Inc. (Nasdaq:
MESG), a leader in permission-based, e-mail marketing and messaging
solutions, today announced financial results for its second quarter
ended June 30, 2001. In the 2001 second quarter, MessageMedia reported
revenues of $7.6 million, compared to $8.4 million reported in the 2000
second quarter and $8.7 million in the 2001 first quarter.
Cost reduction initiatives that began in December 2000 and continued
into the first six months of 2001 have been successful. The Company
improved its operating margins and, for the first time, its U.S.
operations registered positive EBITDA in the just-completed quarter.
(EBITDA is defined as earnings before interest, taxes, depreciation,
amortization, severance, restructuring, and net of other income and
expense, minority interest, and extraordinary item.)
The Company posted a net loss of $13.5 million in the second quarter of
2001, or a loss per share of $0.20, compared to a net loss of $19.7
million or a loss per share of $0.35 for the second quarter of 2000, and
a net loss of $13.5 million or a loss per share of $0.22 in the 2001
first quarter. These figures include a 2001 second quarter
reduction-in-force expense of $0.6 million, a restructuring charge of
$6.4 million, and an extraordinary gain of $5.2 million.
For the six months ended June 30, 2001, MessageMedia reported revenues
of $16.2 million, compared to $15.4 million reported in the same period
in 2000. Net loss for the first half of 2001 was $27.0 million or $0.41
per share, compared to a net loss of $38.6 million or $0.69 per share in
the same period in 2000.
2001 Second Quarter Restructuring Charge
In the 2001 second quarter, MessageMedia and its joint venture partner,
@viso Limited, agreed to liquidate MessageMedia Europe and terminate all
related agreements undertaken at the formation of the joint venture. Per
the agreement, @viso loaned MessageMedia $2.0 million, which was
contributed to its European subsidiary. Also provided in the agreement
was the release of MessageMedia`s obligations to @viso for the joint
venture. In consideration, MessageMedia issued @viso a promissory note
of $2.5 million. Both notes are due December 31, 2003. As a result of
these decisions, a restructuring charge of $4.6 million was recorded in
the 2001 second quarter and a gain on the exchange of debt of $5.2
million was realized.
Also during the just-completed quarter, the December 2000 restructuring
charge was increased by $1.8 million to $8.8 million, primarily to
provide for the write down of furniture and additional facilities cost
as the Company continues to seek opportunities to sublet excess
facilities.
Releases UnityMail 5.0, Its Newest Enterprise Software Solution
Recently, MessageMedia released UnityMail 5.0, the newest version of its
UnityMail enterprise software solution. This database-enabled software
offers extensive, high-performance capabilities with powerful reporting
and expanded international language messaging capabilities. This
powerful e-mail software helps marketers deliver large-scale, targeted,
permission-based campaigns.
For more information on UnityMail 5.0 and other MessageMedia products
and services, please see our web site at
http://www.messagemedia.com/solutions/unitymail/index.shtml
About MessageMedia, Inc.
MessageMedia, Inc. (Nasdaq:MESG), a leader in permission-based e-mail
marketing and messaging solutions, offers M3Platform, a powerful,
e-messaging platform, and UnityMail, an award-winning licensed software.
MessageMedia provides specialized solutions for the publishing,
ISP/portal, retail/e-tail, financial services, high-tech, and travel and
entertainment industries.
Safe Harbor Statement Under the Private Securities Litigation Reform
Act
With the exception of the historical information contained in this
release, the matters described herein contain forward-looking statements
that involve risk and uncertainties. MessageMedia`s ability to meet any
or all projections is inherently speculative, uncertain, and subject to
a high degree of risk. Specific risks include, but are not limited to:
MessageMedia`s limited operating history, the anticipated fluctuations
in operating results, demand for the Company`s products and services,
price competition, disruptions in MessageMedia`s business as a result of
its recent reduction in the number of employees, inaccuracy of certain
of the assumptions used to make these forecasts, uncertain acceptance of
new services being offered, undeveloped and rapidly changing market
conditions, and other factors detailed in MessageMedia`s filings with
the Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2000 and its most recent
Quarterly Report on Form 10-Q. The occurrence of one or more of the
risks referenced above may materially affect the Company`s financial
performance, which in turn, may cause the value of its common stock to
fall. All companies and product names are trademarks of their respective
owners. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
MessageMedia undertakes no obligation to release publicly the result of
any revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Contact Information:
William E. Buchholz
Senior Vice President, Chief Financial Officer
MessageMedia, Inc.
Tel: (303) 381-7500
Email:investor@messagemedia.com
MessageMedia, Inc.
1100 McCaslin Boulevard, Suite 100, Superior, CO. 80027
Telephone: (303) 440-7550
Fax: (303) 381-3934
www.messagemedia.com
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