Newgen Results Corporation Reports First Quarter 2000 Results
27 April 2000
Newgen Results Corporation Reports First Quarter 2000 Results
SAN DIEGO--April 26, 2000--for the First Quarter of 2000;
Core Business Database Marketing Revenue Increased 83%
Newgen Results Corporation (NASDAQ: NWGN), a leading provider of Customer Relationship Management (CRM) and e-CRM services to automotive dealerships, today announced results for the three months ended March 31, 2000.
For the three months ended March 31, 2000, total revenues rose to a record $19.8 million, from $12.1 million in the same quarter a year ago. Income from operations increased to $964,052, from $629,984 for last year's first quarter. Newgen's reported net income was $1.1 million, or $0.10 per share (diluted) for the first quarter 2000, compared to $524,162, or $0.03 per share (diluted) for the same quarter last year. Newgen's net income for the first quarter on a fully taxed basis was $723,039 or $0.07 per share (diluted) compared to $95,434, or $0.02 per share (diluted) in the same quarter a year ago.
Gerald Benowitz, Chairman, President and CEO of Newgen said, "During the quarter, we successfully completed the closure of Computer Care's Amityville, New York facility, which is already resulting in cost efficiencies for Newgen. One of our goals for 2000 is to encourage dealerships using Computer Care's program to convert to our RESULTS system. We are making substantial progress with this effort and to date we have converted more dealerships than we originally anticipated."
Benowitz continued, "We believe we are the number one provider of CRM and e-CRM services to the automobile dealership industry. We are going to continue to invest in our new initiatives, Carabunga.com and Newgen Management Services, in order to maintain our leadership position and provide dealerships the broadest product offering available."
Sam Simkin, Senior Vice President and Chief Financial Officer said, "Sales of our core business database marketing grew at a rate of 83% from the first quarter of 1999 to the first quarter of 2000. As expected, Newgen's gross margin decreased slightly in the first quarter due to the high variable costs attributable to the Computer Care operation. We anticipate that our gross margin will increase in future quarters now that we will be producing all letters from our San Diego facility."
About Newgen Results Corporation
Newgen Results Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
March 31, December 31,
2000 1999
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Assets
Current Assets:
Cash, Cash Equivalents and
Short-term Investments $21,658,474 $23,267,877
Accounts Receivable, Net 11,829,280 9,471,175
Prepaids and Other Current
Assets 1,510,206 972,301
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Total Current Assets 34,997,960 33,711,353
Property and Equipment, Net 6,660,004 5,719,542
Goodwill, Net 11,293,240 11,444,279
Other Assets 1,195,467 219,337
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Total Assets $54,146,671 $51,094,511
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Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable $ 5,410,974 $ 4,395,736
Accrued and Other Current Liabilities 2,288,143 2,059,773
Current Portion of Equipment
Loan Payable 199,902 0
Current Portion of Capital Leases 948,261 976,429
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Total Current Liabilities 8,847,280 7,431,938
Long-term Liabilities 1,470,121 1,315,962
Stockholders' Equity 43,829,270 42,346,611
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Total Liabilities and
Stockholders' Equity $54,146,671 $51,094,511
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Newgen Results Corporation and Subsidiaries
Consolidated Statement of Income
Three Months Ended
March 31,
2000 1999
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Revenues:
Database Marketing Services $19,312,377 $10,571,515
Consulting Services 508,169 1,532,137
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Total Revenues 19,820,546 12,103,652
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Cost of Revenues:
Cost of Database Marketing Services 11,402,058 6,215,530
Cost of Consulting Services 628,511 1,339,970
Installation Costs 477,550 363,997
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Total Cost of Revenues 12,508,119 7,919,497
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Gross Profit 7,312,427 4,184,155
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Operating Costs:
Selling, General and Administrative 4,810,683 2,926,858
Technology and Product Development 1,057,159 627,313
Amortization of Goodwill
and Acquisition Related Costs 480,533 --
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Total Operating Costs 6,348,375 3,554,171
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Income from Operations 964,052 629,984
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Interest Income (Expense), Net 241,013 (105,822)
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Income, Before Taxes 1,205,065 524,162
Income Taxes 73,200 0
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Net Income(a) 1,131,865 524,162
Adjustment for Accretion of Redeemable
Convertible Preferred Stock: -- (365,105)
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Income Applicable to Common Stockholders $1,131,865 $ 159,057
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Basic Income per Share $ 0.11 $ 0.04
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Diluted Income per Share $ 0.10 $ 0.03
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Shares Used in Basic
per Share Calculation 10,131,867 3,829,995
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Shares Used in Diluted
per Share Calculation 11,112,984 4,681,047
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(a) As a result of net operating loss carryforwards, the above net
income and diluted earnings per share amounts do not include a tax
provision. Had the Company provided for income taxes, income would
have been as follows:
Q1/00 Q1/99
Income Applicable to Common Stockholders,
Before Taxes $ 1,205,065 $ 159,057
Income Taxes 482,026 63,623
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Net Income $ 723,039 $ 95,434
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Diluted Income per Share $ 0.07 $ 0.02
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