Engage Announces Q3 Results, Profits and Revenue Slides
Press release from the issuing company
ANDOVER, Mass.--June 10, 2002--Engage, Inc., a leading provider of software solutions and services for advertisers, marketers and publishers, today announced operating and financial results for its third fiscal quarter of 2002, ended April 30, 2002.
In line with the Company's previous announcement, revenue for the third fiscal quarter was $5.3 million, compared to $6.1 million for the second fiscal quarter of 2002. Gross profit for the third fiscal quarter, excluding non-cash amortization, was $1.6 million, or 30% of revenue, compared to $2.5 million, or 41% of revenue, for the previous quarter. Total gross profit for the third fiscal quarter, including amortization, was $142,000, or 3% of revenue, compared to $1.0 million, or 17% of revenue, for the previous quarter.
On a cash basis (a), Engage's 2002 third quarter net loss from continuing operations before amortization, restructuring costs and stock compensation was $7.9 million, or $0.04 per share, using a weighted average share count of 196.5 million. This compared to a loss of $5.6 million, or $0.03 per share, for the second fiscal quarter 2002. For the third fiscal quarter 2002, Engage's cash basis net loss from continuing operations included a charge of approximately $2.6 million related to the accrual of future lease costs for certain facilities that are no longer occupied by the Company. The accrual is based upon total future lease costs under the facility lease, less estimated proceeds from possible subleasing arrangements that the Company may be able to enter into during future periods. Total net loss for the third fiscal quarter was $15.4 million, or $0.08 per share, compared to a loss of $13.2 million, or $0.07 per share, in the previous quarter.
"Throughout the third quarter, we continued to invest in the business to best position Engage for future long-term growth," said Christopher Cuddy, president and CEO of Engage. "We listened to our customers and the market and made significant investments in sales hires, marketing and product initiatives. We believe these investments better align our products and services with the current economic realities of today's market. Given these conditions, we believe we have not yet begun to see the impact of our investments."
Cash utilization rate for the third quarter was $3.9 million, compared to $5.7 million in the prior quarter. As of April 30, 2002, Engage's cash and cash equivalents totaled $20.4 million.
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