Netcentives Reports Second-Quarter Results
Revenue Up 68% Year-Over-Year, Net Loss Improves Sequentially to $0.26 Per Share
SAN FRANCISCO, July 24, 2001 -- Netcentives Inc. (Nasdaq: NCNT), a leader in providing personalized email, rewards and recognition solutions, today announced results for the second quarter ended June 30, 2001. During the period, the Company narrowed its pro forma losses to $0.26 per share. "During the second quarter, we achieved our revenue targets and decreased our total operating expenses by 15%. We are making good progress towards bringing our burn rate down, in line with the reality of the current economic environment, but we will not meet our cash flow breakeven projections for the fourth quarter of 2001. During the period, total cash burn declined to $15.3 million, compared to $17.4 million last quarter, and we ended the period with $10.5 million in cash and equivalents," said Eric Larsen, who became Netcentives` Chairman and CEO in April. "At our current cash level, we have come to a critical point in the Company`s history where continued operations are contingent on an additional cash infusion and further managing down our cost structure, which includes workforce reductions."
Netcentives reported revenues of $15.0 million during the second quarter, a 68% increase from $8.9 million reported in the second quarter of 2000. During the three-month period, the Company reported a pro forma net loss of $11.4 million, or $0.26 per share. This compares to a pro forma net loss on the same basis of $15.4 million, or $0.38 per share, reported in the second quarter of 2000. Second-quarter 2001 results exclude non-cash charges of $272.9 million. These non-cash charges include a one-time $203.7 million charge to write off a majority of goodwill and other intangible assets associated primarily with the acquisition of Post Communications. The Company lost $0.31 per share during its first quarter of 2001.
Quarterly Conference Call
The Company will hold a live Webcast presentation at 2:00 pm Pacific Time today to review earnings results and future guidance. The Webcast can be accessed by visiting www.netcentives.com. For audio only, in the United States please dial 800.618.9728 using "NCNT" as the password; international callers, please dial 415.908.4718, using "NCNT" as the password. For access to the call reply, which will run until July 27, please dial 800.633.8284 (Domestic) or 858.587.5842 (International) and enter the reservation number 19188002.
About Netcentives Inc.
San Francisco-based Netcentives Inc. is a leading provider of personalized email, rewards and recognition solutions. The company offers a broad suite of offline and online products including email communications, sales force incentives, and loyalty and rewards solutions for retail and financial institutions. Netcentives continues to differentiate itself through its integrated marketing approach, which includes experienced client service teams, leading-edge technology and expert consulting. More than 300 companies have partnered with Netcentives to drive their revenue and reduce costs. For more information, visit www.netcentives.com.
©2001 Netcentives Inc. All rights reserved. Netcentives is a trademark of Netcentives Inc. Other product and company names herein may be trademarks of their respective owners.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding Netcentives` business and financial strategy and future plans and projected results of operations and actual results and performances could differ materially from the results and performances expressed in forward looking statements. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These risks and uncertainties include, but are not limited to, the following: the ability to raise additional financing in the current economic environment; the effect of continued weakness of general economic factors on the overall demand for products and services which could result in decreased revenues or lower revenue growth rates and increased uncertainty as to revenues in future periods; the uncertainty of timing of redemption of loyalty currencies which could deplete cash reserves sooner than anticipated; intense competition for products and services; and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by Netcentives. The forward-looking statements contained in this press release speak only as of the date hereof and Netcentives expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in Netcentives` expectations or future events.
For More Information Contact:
Stacey Levitz
Senior Director, Investor Relations
Netcentives Inc.
415.615.2365
stacey@netcentives.com
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