eshare communications, Inc. Reports Second Quarter Financial Results
ATLANTA, GA- (July 25, 2001) eshare® communications, Inc. (Nasdaq: ESHR), a leading provider of Customer Interaction Management (CIM) solutions, today announced its results for the second quarter and six months ended June 30, 2001.
For the second quarter ended June 30, 2001, the Company reported revenues of $18.6 million, in line with the Company`s forecast of between $18 million and $20 million. This compares to approximately $21.3 million as reported for the comparable period ended June 30, 2000. Net loss for the quarter ended June 30, 2001, was $(892,000), or $(0.04) per diluted common share. On an EBITDA basis, the Company reported positive earnings of approximately $133,000. This compares with a net loss of $(1.2) million, or $(0.06) per diluted common share for the comparable period ended June 30, 2000. There were 21,959,000 and 21,756,000 diluted common shares outstanding for the quarters ended June 30, 2001, and 2000, respectively.
Revenues for the six-month period ended June 30, 2001, were $37.7 million, compared with $41.8 million during the six months ended June 30, 2000. Net loss for the six months was $(3.2) million, compared with $(2.1) million during the same period last year. Loss per share for the period was $(0.15), compared with a loss of $(0.10) during the first half of 2000.
Aleksander Szlam, chairman and chief executive officer, noted, "In spite of a continuing soft economy for capital spending, we were able to make tremendous financial progress in the second quarter of 2001. In addition to our revenues being in line with our forecast and becoming EBITDA positive, we increased our gross profit margins by 10% over the first quarter of this year, reduced expenses by $1.6 million from the same time period, ended the quarter with approximately $14 million in cash, and reduced DSO to 95 days.``
Mr. Szlam continued, "Our loss of ($.04) per share is $.03 better than analyst-forecasted losses. These overall financial results exceed expectations and propel eshare toward its goal of profitability, as we push to close out the previously announced merger with divine, inc. late in the third quarter of this year.``
Quarterly Highlights
The following highlights were announced or occurred since eshare communications` last quarterly results release:
Recent Developments
During the quarter, eshare communications announced a definitive agreement to enter into a stock-for-stock merger with divine, inc. Under the terms of the agreement, divine will acquire all outstanding shares of eshare common stock at a price per share of between $3.12 and $3.653, depending on divine`s trading price prior to the closing of the transaction. Pending Shareholder and regulatory approval, the transaction is expected to close late in the third quarter or early in the fourth quarter of this year.
Also, eshare communications officially debuted the company`s new Web site. In the several months of design and testing leading to www.eshare.com`s unveiling, the company placed special emphasis on the site`s usability, upgraded content, new interactive features, and providing relevant, personalized information to each user.
Additionally, eshare received two important certifications from Siebel Systems, Inc. during Q2. Both eshare NetAgent™ and eshare Conversations™ received validation to integrate with Siebel eBusiness Applications software.
eshare NetAgent Suite was released to international markets this quarter, after debuting domestically at the end of Q1. NetAgent Suite is a grouping of customer interaction management applications that provides contact center users with a unified interface to coordinate e-mail, voice, VoIP, multi-lingual chat, live Web interactions, and wireless contact center monitoring, while also tracking Web site visitors and generating easy-to-follow reports.
Partnerships
Q2 saw eshare finalize a reseller/integration partnership contract with Austin Logistics. The partnership will merge eshare Conversations with the features and benefits of Austin Logistics` OnQ(TM) technology.
Expansion of International Distribution
On June 29, 2001, the Company released NetAgent ANSWER, the intelligent e-mail auto-response component of its NetAgent Suite, as a stand-alone module to domestic and international markets.
While the pending merger with divine, inc. awaits shareholder and SEC approval, the Company has finalized a reseller agreement with divine, inc. Effective immediately, divine has commenced sales efforts offering eshare`s entire line of solutions, with particular emphasis on eshare Conversations, eshare`s premier predictive dialer and voice platform, and eshare NetAgent Suite, the company`s Internet-based, Web collaboration solution.
eshare communications Customer Wins
Some of the companies standardizing on eshare solutions since Q1 include: AT&T Broadband, CIGNA Healthcare, Citibank Argentina, Citibank Manila, CJ Garland and Company, Sykes Enterprises, Inc., Dun & Bradstreet, Direct Energy, Express Med, LBM, Ron Weber & Associates, Citifinancial, and others.
Awards
During Q2 eshare was recognized in the Atlanta Journal-Constitution`s ranking of Georgia`s largest revenue-producing companies. The list, compiled as part of the AJC`s "Best of Business`` Sunday extra, ranked the top Georgia-based businesses in terms of Year 2000 revenue. With revenue of $83.96 million for the year, eshare maintained its place among the companies included in the rankings despite a year when many businesses saw shrinking revenues.
Also, Customer Interactions Solutions™ magazine honored eshare with the publication`s "CRM Excellence Award`` for eshare NetAgent. The magazine stated it was rewarding an industry leader that is "leading the pack in developing software and programs that measurably make customers` lives easier and their interactions with companies more pleasant.``
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