NEW YORK, NY - May 2, 2002 - LivePerson, Inc. (NASDAQ: LPSN), a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet, today announced financial results for the quarter ended March 31, 2002.
Revenue for the three months ended March 31, 2002 was $1.8 million, a 2% increase from the prior quarter ended December 31, 2001, and down from $2.4 million in the corresponding period of 2001.
EBITDA, or earnings/(loss) before interest, taxes, depreciation and amortization, for the three months ended March 31, 2002, was $47,000, as compared to $(283,000) for the three months ended December 31, 2001, and $(8.2) million in the corresponding quarter of 2001. EBITDA per share was $0.00 as compared to $(0.01) per share for the quarter ended December 31, 2001, and $(0.24) per share in the corresponding quarter of 2001.
Commenting on the results for the first quarter, Chief Executive Officer Robert LoCascio said, "We continue to be pleased with the Company's consistent operating progress. We achieved positive EBITDA for the full quarter and announced a number of new customers in the quarter, including new contracts or added business with Ameritrade, Radian Guaranty and Republic Bank. While we expect revenues to be flat in the second quarter, we are seeing much stronger interest from larger companies than we saw during the latter half of 2001 and early 2002. We are beginning to gain better visibility into the second half of the year as we are seeing a strong and growing roster of clients entering testing and pilot programs with our products."
For the three months ended March 31, 2002, loss before the cumulative effect of an accounting change was $(108,000). The Company adopted Statement of Financial Accounting Standard No. 142 - "Goodwill and Other Intangible Assets," effective January 1, 2002. The standard eliminates goodwill amortization upon adoption and requires an initial assessment for goodwill impairment within six months of adoption and at least annually thereafter.
Adopting this standard resulted in a non-cash expense related to goodwill impairment of $5.3 million. Net loss including the effect of this accounting change was $(5.4) million, as compared to $(1.2) million for the three months ended December 31, 2001, and $(8.2) million in the corresponding quarter of 2001. In addition, net loss includes non-cash goodwill amortization of approximately $0.7 million for both the quarter ended December 31, 2001 and the quarter ended March 31, 2001.
Basic and diluted net loss for the three months ended March 31, 2002, before the cumulative effect of the accounting change, was $(0.00) per share. The impact of the accounting change was a loss of $(0.16) per share for the quarter ended March 31, 2002. Net loss including the effect of the accounting change was $(0.16) per share, as compared to $(0.03) per share for the three months ended December 31, 2001, and $(0.24) per share for the corresponding quarter in 2001. In addition, net loss includes non-cash goodwill amortization of $(0.02) per share for both the quarter ended December 31, 2001 and the quarter ended March 31, 2001.
The Company's cash balance increased to $10.4 million at March 31, 2002, from $10.1 million at December 31, 2001.
LivePerson, Inc. Condensed Consolidated Statements of Operations (In Thousands, Except Share and Per Share Data) Three Months Ended March 31, (Unaudited) 2002 2001 Total revenues $1,826 $2,368 Operating expenses: Cost of revenues 338 2,682 Product development 296 1,252 Sales and marketing 564 2,116 General and administrative 671 1,941 Amortization of goodwill and other intangibles -- 743 Non-cash compensation, net of reversals 102 375 Non-cash compensation credit related to restructuring, net -- (1,720) Restructuring charges -- 3,391 Total operating expenses 1,971 10,780 Loss from operations (145) (8,412) Other income, net 37 233 Loss before cumulative effect of accounting change (108) (8,179) Cumulative effect of accounting change 5,338 -- Net loss $(5,446) $(8,179) Basic and diluted net loss per share: Loss before cumulative effect of accounting change $(0.00) $(0.24) Cumulative effect of accounting change $(0.16) $-- Net loss $(0.16) $(0.24) Weighted average shares outstanding used in basic and diluted net loss per share calculation 34,003,610 33,951,476 Unaudited Supplemental Data The following information is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with generally accepted accounting Net loss in accordance with generally accepted accounting principles $(5,446) $(8,179) Add/(Less) (a) Amortization of goodwill and other intangibles -- 743 (b) Non-cash compensation, net of reversals 102 375 (c) Non-cash compensation credit related to restructuring, net -- (1,720) (d) Depreciation 90 856 (e) Cumulative effect of accounting change 5,338 -- (f) Interest income, net (37) (228) EBITDA (1) $47 $(8,153) Basic and diluted EBITDA per share $0.00 $(0.24) Weighted average shares used in basic and diluted EBITDA per share 34,003,610 33,951,476 (1) Earnings/(loss) before interest, taxes, depreciation and amortization. LivePerson, Inc. Condensed Consolidated Balance Sheets (In Thousands, Except Share and Per Share Data) March 31, December 31, 2002 2001 (unaudited) ASSETS Current assets: Cash, cash equivalents and marketable securities $10,443 $10,136 Accounts receivable, net 361 620 Prepaid expenses and other current assets 178 389 Total current assets 10,982 11,145 Property and equipment, net 832 915 Goodwill, net -- 5,338 Security deposits 115 122 Other assets 125 107 Total assets $12,054 $17,627 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $563 $592 Accrued expenses 1,890 2,115 Deferred revenue 568 560 Total current liabilities 3,021 3,267 Other liabilities 106 89 Commitments and contingencies Total stockholders' equity 8,927 14,271 Total liabilities and stockholders' equity $12,054 $17,627 About LivePerson
LivePerson (http://www.liveperson.com/) is a leading Application Service Provider (ASP) of technology facilitating real-time sales and customer service for companies doing business on the Internet. The LivePerson service enables online businesses to communicate with Internet users in real time, thereby enhancing the online experience. The LivePerson services, consisting of Chat, FAQ, Email and Document Management tools, offer clients the opportunity to increase sales, reduce customer service costs and increase responsiveness to customer needs. LivePerson is headquartered in New York City, with R&D facilities in Tel Aviv, Israel.
EBITDA Financial Disclosure:
Investors are cautioned that the EBITDA, or earnings/(loss) before interest, taxes, depreciation and amortization, information contained in this press release is not a financial measure under generally accepted accounting principles. In addition, it should not be construed as an alternative to any other measures of performance determined in accordance with generally accepted accounting principles, or as an indicator of our operating performance, liquidity or cash flows generated by operating, investing and financing activities, as there may be significant factors or trends that it fails to address. We present this financial information because we believe that it is helpful to some investors as one measure of our operations. We caution investors that pro forma and other non-GAAP financial information such as EBITDA, by its very nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare our results with our results from other reporting periods and with the results of other companies.
Forward Looking Statements:
Statements in this press release regarding LivePerson, Inc. that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. It is routine for our internal projections and expectations to change as the quarter progresses, and therefore it should be clearly understood that the internal projections and beliefs upon which the Company bases its expectations may change prior to the end of the quarter. Although these expectations may change, we are under no obligation to inform you if they do. Our company policy is generally to provide our expectations only once per quarter, and not to update that information until the next quarter. Actual events or results may differ materially from those contained in the projections or forward-looking statements. The following factors, among others, could cause LivePerson's actual results to differ materially from those described in a forward-looking statement: our possible delisting from Nasdaq; the limited history of providing the LivePerson services; our limited historical annual revenue and history of losses; the possible unavailability of financing as and if needed; an unproven business model; our dependence on the success of the LivePerson chat service; continued use by our clients of the LivePerson services; potential fluctuations in our quarterly and annual results; risks related to adverse business conditions experienced by our clients; our dependence on key employees; risks related to our international operation, particularly our operations in Tel Aviv, Israel, and the current civil and political unrest in that region; competition both for qualified personnel and in the market for real-time sales and customer service technology; building awareness of the LivePerson brand name; technology systems beyond LivePerson's control and technology-related defects that could disrupt the LivePerson services; our dependence on the growth of the Internet as a medium for commerce and the viability of the infrastructure of the Internet; and responding to rapid technological change. This list is intended to identify only certain of the principal factors that could cause actual results to differ from those discussed in the forward-looking statements. Readers are referred to the reports and documents filed from time to time by LivePerson with the Securities and Exchange Commission for a discussion of these and other important risk factors that could cause actual results to differ from those discussed in forward-looking statements.
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SOURCE: LivePerson, Inc.
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