Contact:
Larry Marshall
Director of Corporate Communications
The viaLink Company
(972) 934-5500
lmarshall@vialink.com
Subscription revenue grows for 10th consecutive quarter, net loss narrows
Dallas, TX - August 13, 2002
The viaLink Company (OTCBB: VLNK), the leading provider of synchronization and scan based trading services to the consumer packaged goods, retail and foodservice industries, today reported results for the second quarter ended June 30, 2002, highlighted by continued subscription revenue growth and a narrowing net loss.
Subscription revenue for the second quarter increased for the tenth consecutive quarter to $703,000. This compares to $275,000 for the second quarter of 2001, and is an 11 percent increase from the preceding quarter. Implementation revenue for the quarter was $401,000, down from the second quarter a year ago, but up 22 percent from the first quarter of this year. Total revenue was $1.1 million, compared to $876,000 for the second quarter a year ago, and a 15 percent increase from the preceding quarter.
The company reported a net loss for the second quarter of $2.3 million, or $0.03 per share, and a net loss applicable to common stock of $0.03 per share, which includes dividends on preferred stock. This is the seventh consecutive quarter of decreased operating losses for the company.
"Our revenues continued to increase through new signings and expanded relationships with our customers, fueling the company`s tenth consecutive quarter of increased subscription revenue -- despite continuing economic uncertainty," said Warren D. Jones, viaLink`s chief executive officer.
Highlights for the second quarter include the following:
* Subscription revenue growth: the company achieved its highest subscription revenue base ever, and recorded its tenth consecutive quarter of subscription revenue growth.
* Continued customer signings: the company signed 21 new agreements, including Advantage Sales & Marketing, Bausch & Lomb, Bob Evans Farms, Hallmark Cards, I&K Distributors and WinCo, and expanded its agreement with Flowers Bakeries to include scan based trading.
* Scan based trading growth: sales of products sold at retail using viaLink`s SBT service continued to increase at an average compound monthly rate of more than 30 percent, and jumped more than 45 percent between April and May. The number of store-supplier connections doubled during the quarter.
* Category penetration: several aggressive retailers have now built synchronized supplier communities in specific categories like dairy that further extends viaLink`s penetration in these categories.
* Brokerage inroads: two of the three largest food brokerage firms (Advantage Sales & Marketing and CROSSMARK Sales Agency) have signed with viaLink over the past three months. Brokerage-represented brands account for 65-70 percent of total supermarket sales.
For the six-month period ended June 30, 2002, viaLink reported revenues of $2.1 million and a net loss of $5 million, or $0.11 cents per share applicable to common stock, compared to the prior year period in which the company reported revenues of $2.0 million and a net loss of $18 million or $1.30 per share applicable to common stock.
Chief Executive Officer Warren D. Jones, Chief Financial Officer Brian Carter and President Bob Noe will host an investor conference call today at 4:30 p.m. Eastern Daylight 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. 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 retail/CPG and foodservice 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.
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