Ecometry Corporation Reports Second Quarter 2001 Results
DELRAY BEACH, FL., July 26, 2001 - Ecometry Corporation (Nasdaq: ECOM), a leading provider of integrated software solutions for multi-channel commerce, today announced financial results for the second quarter ended June 30, 2001.
Second Quarter Results
Revenues for the second quarter were $8.2 million, a decrease of $2.1 million, or 20.3%, from $10.2 million for the second quarter of 2000. The decrease was related to the continuing economic slowdown, which resulted in lower demand for Ecometry`s products and services. New customer sales decreased 18.6% from $3.2 million for the three months ended June 30, 2000 to $2.6 million in 2001, and sales to existing customers decreased 44.6%, from $3.2 million to $1.8 million for the same period.
Net loss for the second quarter was $669,000, or $0.05 per diluted share, compared to a net loss of $1.3 million, or $0.10 per diluted share, in the second quarter of 2000. General and administrative expense was $2.6 million for the second quarter of 2001 compared to $3.6 million for the second quarter of 2000. The decrease reflects last year`s increase to the Company`s provision for doubtful accounts during the second quarter. Sales and marketing expense during the quarter ended June 30, 2001 decreased from $2.3 million to $1.8 million for 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 expense for the second quarter of 2001 was $1.1 million compared to $1.2 million for the second quarter of 2000. This decrease was due primarily to lower fees for outside services. The Company expects to continue significant investments in new and enhanced products in future periods to ensure competitive positioning as global economic conditions improve.
"Although this year has presented challenges for our industry as well as our company, the second quarter included significant accomplishments by Ecometry Corporation," said the company`s president, John Marrah. "Thirteen new customers purchased Ecometry Retail Enterprise, many of whom run the applications on NT and UNIX platforms. However, sales to existing customers fell well below historical trends and we have concerns regarding our pipeline for both new and upgrade business. We continue to implement expense control and cash management measures, and we remain focused on investments in the development and delivery of our new products."
Second Quarter Highlights
During the quarter, Ecometry hosted a seminar series focusing on technology advances to Ecometry Retail Enterprise, including Full View Functionality (FVF) within customer service, order management, campaign management and content management, Parallel Web Shopper, Knowledge Center, E-Mail Executive and Inventory Forecasting. The series presented in Los Angeles, San Francisco, Denver and Seattle, was attended by numerous Ecometry Clients. Ecometry intends to continue the series in additional cities during the third quarter.
Ecometry`s annual World Conference and Expo was held in Boca Raton, Florida June 17-21. More than 200 clients attended a variety of educational breakout sessions and keynote addresses and also had the opportunity to visit with nearly 60 vendors who displayed products and services that enhance the power of Ecometry Retail Enterprise.
Ecometry Alliance Network welcomed NetbyTel as a Strategic Partner, offering NetByTel`s entire suite of voice commerce services to retail and manufacturing customers worldwide. These services will give Ecometry`s customers a quick way to join the voice commerce world and voice-enable their systems in a low-risk, cost-effective way.
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™, 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, MicroWarehouse, 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.
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