NEW YORK, NY - July 25, 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 June 30, 2002.
Revenue for the three months ended June 30, 2002 was $1.9 million, a 2.6% increase from $1.8 million in the prior quarter ended March 31, 2002, and flat vs. $1.9 million in the corresponding period of 2001.
EBITDA, or earnings/(loss) before interest, taxes, depreciation and amortization, for the three months ended June 30, 2002, was $122,000, as compared to $47,000 for the three months ended March 31, 2002, and $(3.2) million in the corresponding quarter of 2001.
Commenting on the results for the second quarter, Chief Executive Officer Robert LoCascio said, "We are pleased that we continued to make steady operating progress on both revenue and the bottom line this quarter. We increased EBITDA vs. the prior quarter and announced a number of new customers, including new contracts or added business with eBay, American Airlines Credit Union, EarthLink and Kinko's. We expect revenue to grow by approximately 15% in the third quarter, driven by both organic sales growth from new and existing clients, as well as from the previously announced acquisition of certain client contracts of NewChannel, Inc."
For the three months ended June 30, 2002, net loss was $(51,000) as compared to $(5.4) million for the three months ended March 31, 2002, and $(4.3) million in the corresponding quarter of 2001. Net loss included non-cash depreciation and stock compensation amortization charges of $207,000 for the quarter ended June 30, 2002, and $192,000 and $454,000 for the quarters ended March 31, 2002 and June 30, 2001, respectively. Net loss for the quarter ended March 31, 2002 also included a $5.3 million charge for the cumulative effect of an accounting change related to goodwill implemented in that quarter. Net loss for the quarter ended June 30, 2001 also included non-cash amortization of goodwill of $0.7 million and restructuring charges of $0.1 million.
Basic and diluted net loss per share for the three months ended June 30, 2002 was $(0.00), as compared to $(0.16) for the three months ended March 31, 2002, and $(0.13) for the corresponding quarter in 2001. Net loss per share for the period ending March 31, 2002 included a $(0.16) loss per share due to the cumulative effect of an accounting change related to goodwill implemented during that quarter.
The Company's cash balance at June 30, 2002 remained flat vs. the prior quarter at $10.4 million.
LivePerson, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Share and Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
(Unaudited) (Unaudited)
2002 2001 2002 2001
Total revenues $1,873 $1,915 $3,699 $4,283
Operating expenses:
Cost of revenues 318 2,144 656 4,826
Product development 281 883 577 2,135
Sales and marketing 493 1,178 1,057 3,294
General and
administrative 750 1,626 1,421 3,568
Amortization of goodwill
and other intangibles -- 743 -- 1,485
Non-cash compensation,
net of reversals 116 (332) 218 43
Non-cash compensation
credit related to
restructuring, net -- -- -- (1,720)
Restructuring charges -- 117 -- 3,508
Total operating
expenses 1,958 6,359 3,929 17,139
Loss from operations (85) (4,444) (230) (12,856)
Other income, net 34 185 71 418
Net loss before cumulative
effect of accounting
change (51) (4,259) (159) (12,438)
Cumulative effect of
accounting change -- -- (5,338) --
Net loss $(51) $(4,259) $(5,497) $(12,438)
Basic and diluted net loss
per share:
Loss before cumulative
effect of accounting
change $(0.00) $(0.13) $(0.00) $(0.37)
Cumulative effect of
accounting change -- -- (0.16) --
Net loss $(0.00) $(0.13) $(0.16) $(0.37)
Weighted average shares
outstanding used in basic
and diluted
net loss per share
calculation 34,029,588 33,992,277 34,016,671 33,972,180
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 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
this type of information 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.
Net loss in accordance
with generally
accepted accounting
principles $(51) $(4,259) $(5,497) $(12,438)
Add/(Less)
(a) Amortization of goodwill and
other intangibles -- 743 -- 1,485
(b) Non-cash compensation, net of
reversals 116 (332) 218 43
(c) Non-cash compensation credit
related to restructuring, net -- -- -- (1,720)
(d) Depreciation 91 786 181 1,642
(e) Cumulative effect of
accounting change -- -- 5,338 --
(f) Interest income, net (34) (185) (71) (418)
EBITDA (1) $122 $(3,247) $169 $(11,406)
(1) Earnings before interest, taxes, depreciation and amortization.
LivePerson, Inc.
Condensed Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data)
June 30, 2002 December 31, 2001
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
marketable securities $10,426 $10,136
Accounts receivable, net 245 620
Prepaid expenses and
other current assets 509 389
Total current assets 11,180 11,145
Property and equipment, net 763 915
Goodwill and other
intangibles, net -- 5,338
Security deposits 119 122
Other assets 148 107
Total assets $12,210 $17,627
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $672 $592
Accrued expenses 1,879 2,115
Deferred revenue 527 560
Total current liabilities 3,078 3,267
Other liabilities 129 89
Commitments and contingencies
Total stockholders' equity 9,003 14,271
Total liabilities and
stockholders' equity $12,210 $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.
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 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 the Nasdaq Small Cap Market; 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.
Contact:
Maria Gomez
LivePerson, Inc.
212-609-4200
mgomez@liveperson.com
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SOURCE: LivePerson
CONTACT: Younjee Kim, +1-212-609-4222, ykim@liveperson.com
Web site: http://www.liveperson.com/
Mike Tague
mtague@liveperson.com