Corporate Contact
Dawn Scardina
ClickAction Inc.
650.463.3948
dawns@clickaction.com
For Immediate Release
October 24, 2000
CLICKACTION ANNOUNCES RECORD REVENUES FOR Q3 2000;
TOTAL REVENUES UP 32% SEQUENTIALLY OVER Q2;
ERM REVENUES UP 79% SEQUENTIALLY OVER Q2
Accelerating Revenue Growth Drives Loss Down to 4 Cents Per Share
From 14 Cents Per Share in Q2 2000 and Positions Company for Q4 Profitability
PALO ALTO, Calif. (October 24, 2000) – ClickAction, Inc. (Nasdaq: CLAC), a leader in permission-based email marketing/e-messaging, announced today record results for the quarter ended September 30, 2000. This is ClickAction's eighth consecutive record revenue quarter.
For the third quarter, ClickAction reported record quarterly revenue of $9.0 million, an increase of 32% over Q2 2000 and up 73% over Q3 1999. ClickAction reported Email Relationship Management (ERM) revenues of $3.6 million, an increase of 79% over Q2 2000 and up 1,297% over Q3 1999. ClickAction's accelerating year-over-year revenue growth and declining expenses as a percentage of revenues caused the company's net loss to fall to $543,000 or $0.04 per share, compared to a loss of $1.7 million or $0.14 per share for Q2 2000 and a loss of $788,000 or $0.08 per share for Q3 1999.
As of September 30, 2000, ClickAction had approximately $10.4 million in cash and cash equivalents, down slightly from $10.6 million in cash and cash equivalents as of June 30, 2000. As of September 30, 2000 the Company had working capital of $12.9 million, up from $12.2 million in working capital as of June 30th. ClickAction continues to have no interest-bearing debt.
"The third quarter was simply another great quarter on every dimension" said Gregory Slayton, president and CEO of ClickAction. "Once again, we significantly increased revenues in all parts of the business while positioning ourselves for profitability in Q4. We initiated major new partnerships with numerous industry leading clients, technology partners and marketing agencies. Although early in the quarter, management feels that the fourth quarter looks strong from a revenue and profitability perspective, and our exposure to the dot.com fall-out is minimal. Our new eCRM 6.0 product, which we introduced on October 17 for general release in Q1, should be the first J2EE, XML based product for the eCRM, enterprise software market. This important new product should provide us a material first mover advantage in this important market while significantly strengthening our competitive position against competitors such as Kana, E.piphany and Broadbase in the future."
About ClickAction
ClickAction Inc. (Nasdaq: CLAC) is a leading provider of email marketing/e-messaging services that help businesses retain and grow profitable, one-to-one customer relationships. ClickAction Email Relationship Management (ERM) is a comprehensive service that enables marketers to conduct targeted permission-based email campaigns, collect and profile customer data, and access real-time results in an entirely Web-hosted environment. The service easily integrates with legacy databases, advancing the real-time management of customer data across all channels. ClickAction has developed thousands of email campaigns for over 225 world class clients and partners including: Brooks Brothers, Nabisco, Adforce/CMGI, Sara Lee, Vicinity, Boise Cascade Office Products, and Dean and Deluca. ClickAction is a founding member of RECA, the Responsible Electronic Communication Alliance, and is a member of TRUSTe, an independent, non-profit organization whose mission is to build users' trust and confidence in the Internet. For more information, visit www.clickaction.com.
Forward Looking Statements
To the extent that any of the statements contained herein relating to the Company are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, the development of new products and services, the enhancement of existing products and services, the dependence on principal customers and partners, competitive pricing pressures, product volume and mix, timing of orders received, introduction of competitive products and services having technological and/or pricing advantages, and overall dynamics of the industry and consolidation. For further information, refer to the risk factors included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2000, each as filed with the Securities and Exchange Commission.
CLICKACTION INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
September 30, 2000 and 1999
(Unaudited)
(in thousands except per share data)
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||||||||||||
|
September
30, |
September 30, 1999 |
September 30, 2000 |
September
30, |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Net desktop revenues |
|
$5,381 |
|
$4,943 |
|
|
$15,087 |
|
$14,115 |
|||||||||||||
|
Email marketing services |
|
3,632 |
|
260 |
|
|
6,778 |
|
335 |
|||||||||||||
|
Gross revenues Cost of revenues |
|
$9,013 2,503 |
|
$5,203 1,368 |
|
|
$21,865 6,016 |
|
$14,450 4,107 |
|||||||||||||
|
Gross profit |
|
6,510 |
|
3,835 |
|
|
15,849 |
|
10,343 |
|||||||||||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Product development |
|
2,401 |
|
747 |
|
|
6,512 |
|
2,088 |
|||||||||||||
|
Sales and marketing |
|
3,662 |
|
2,803 |
|
|
10,938 |
|
6,744 |
|||||||||||||
|
General and administrative Merger related expenses |
|
1,120 0 |
|
904 232 |
|
|
3,026 0 |
|
2,216 232 |
|||||||||||||
|
|
|
7,183 |
|
4,686 |
|
|
20,476 |
|
11,280 |
|||||||||||||
|
Operating income (loss) |
(673) |
(851) |
(4,627) |
(937) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Interest income, net |
|
130 |
|
63 |
|
|
235 |
|
184 |
|||||||||||||
|
Income (loss) before taxes |
|
(543) |
|
(788) |
|
|
(4,392) |
|
(753) |
|||||||||||||
|
Income taxes expense (benefit) |
|
---- |
|
0 |
|
|
---- |
|
19 |
|||||||||||||
|
Net income (loss) |
|
($543) |
|
($788) |
|
|
($4,392) |
|
($772) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Basic net income (loss) per share |
($0.04) |
($0.08) |
($0.38) |
|
($0.08) | |||||||||||||||||
|
Shares used in computing net income(loss) per share |
|
12,404 |
|
10,255 |
|
|
11,581 |
|
9,819 | |||||||||||||
|
Diluted net income (loss) per share |
($0.04) |
($0.08) |
($0.38) | ($0.08) | ||||||||||||||||||
|
Shares used in computing diluted net income (loss) per share |
|
12,404 |
10,255 |
11,581 |
9,819 |
|||||||||||||||||
CLICKACTION INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2000 and December 31, 1999
(Unaudited)
(in thousands except share data)
|
September 30, |
December 31, |
|||
|
2000 |
1999 |
|||
|
ASSETS |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
$ |
10,392 |
$ |
3,214 |
|
Accounts receivable, net |
9,569 |
6,633 |
||
|
Inventories |
2,078 |
1,538 |
||
|
Other current assets |
338 |
288 |
||
|
Total current assets |
22,377 |
11,673 |
||
|
Property and equipment, net |
4,494 |
780 |
||
|
Prepaid royalties and other assets |
427 |
197 |
||
|
Total assets |
$ |
27,298 |
$ |
12,650 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
|
Current liabilities: |
||||
|
Accounts payable |
$ |
4,089 |
$ |
3,309 |
|
Accrued compensation |
1,069 |
745 |
||
|
Other accrued liabilities |
4,325 |
3,090 |
||
|
Deferred revenues |
--- |
193 |
||
|
Total current liabilities |
9,483 |
7,337 |
||
|
Stockholders™ equity: |
||||
|
Preferred stock; $0.001 par value; 2,000,000 |
||||
|
shares authorized; none outstanding |
----- |
----- |
||
|
Common stock; $0.001 par value; 20,000,000 |
||||
|
shares authorized; 12,456,855; 10,567,066 |
||||
|
shares issued and outstanding |
12 |
11 |
||
|
Deferred compensation |
(131) |
(171) |
||
|
Additional paid-in capital |
28,217 |
11,364 |
||
|
Accumulated deficit |
(10,283) |
(5,891) |
||
|
Total stockholders' equity |
17,815 |
5,313 |
||
|
Total liabilities and stockholders' equity |
$ |
27,298 |
$ |
12,650 |
# # #
