LAS VEGAS, April 26, 2001 -- PurchasePro (Nasdaq:PPRO) today reported results for its first quarter ended March 31, 2001.
For the 2001 first quarter, PurchasePro`s revenues totaled $29.8 million compared with $33.6 million posted in the fourth quarter of 2000 and, $4.6 million posted in last year`s first quarter.
Excluding non-cash charges of $16.7 million for strategic marketing expense, and amortization of equity-based compensation and goodwill, PurchasePro reported a cash operating loss for the first quarter of $1.4 million, or $0.02 per share. Net loss for the 2001 first quarter was $18.1 million, or $0.26 per share, compared to net loss of $36.8 million, or $0.55 per share, in the fourth quarter of 2000, and $15.7 million, or $0.27 per share, in the corresponding year earlier quarter.
Charles E. Johnson, Jr., chairman and chief executive officer, said, "While we recognize that our results are below expectations, we achieved a number of milestones in the quarter that are broadening our reach, strengthening our network and setting us up for solid growth into the future. Our focus continues to be on driving transactions, revenues and growth to further our position as a leading business-to-business e-commerce company."
The company said that the difference between estimates and reported revenues resulted principally from deferral of revenues associated with the sale of several marketplaces.
Mr. Johnson noted that in PurchasePro`s first quarter there was continued growth of its strategic alliances, including the enhanced development of the company`s relationship with AOL. AOL also announced a significant commitment for marketing and sales programs for both the Netbusiness Marketplace and to fund marketplace sales. Further, PurchasePro trained approximately 200 AOL sales people - all driven to produce more sales - and is working jointly with AOL on a next generation product.
Including 13 referrals from AOL, PurchasePro signed a total of 21 marketplace software licenses during the quarter with industry-leading companies such as Hewlett Packard, Spherion, Monster.com and Homestore.com, underscoring the growing mainstream acceptance of PurchasePro`s business services. The company added more than 20,000 businesses to its global marketplace during the quarter, bringing the total to approximately 160,000. Purchase orders submitted over the global marketplace nearly doubled over the fourth quarter, bringing the total for the quarter to more than 46,000.
During the quarter, PurchasePro also announced the acquisition of BayBuilder, providing the company with an immediate presence in the strategic sourcing industry. The company also closed the purchase of Stratton Warren.
Additionally, PurchasePro and Hilton`s e-Procurement marketplace continued to scale. At the close of the first quarter, there were more than 500 Hilton hotels participating in the marketplace.
Strengthened Management Team
On Tuesday, the company announced the appointment of Richard L. Clemmer, currently chief financial officer of Quantum Corporation (NYSE:DSS)(NYSE:HDD), as its next chief financial officer and vice chairman of the board, continuing the company`s ongoing process of building its leadership team. In the first quarter, Shawn McGhee, chief operating officer, assumed the additional role of president, and former J.D. Edwards (Nasdaq:JDEC) executive, Allen Winder, was named senior vice president of worldwide field operations.
About PurchasePro
PurchasePro (Nasdaq:PPRO), a leader in business-to-business e-commerce, operates the PurchasePro global marketplace that encompasses more than 160,000 businesses and powers hundreds of marketplaces with its highly scalable, browser-based e-commerce engine.
PurchasePro enables businesses of all sizes to easily buy and sell products and services, competing more effectively by enhancing sales opportunities, reducing procurement costs, and greatly increasing employee productivity. PurchasePro offers the following e-commerce solutions: e-Procurement for corporate procurement, v-Distributor for online distributors, and e-MarketMaker for Internet market makers.
The company provides extensive support and training programs. For information, call toll free at (888) 830-4600 or in Las Vegas at (702) 316-7000 or visit www.purchasepro.com.
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