Parts.com Reports First Quarter Results

10 May 2000

Parts.com Reports First Quarter Results

    SANFORD, Fla.--May 10, 2000--Parts.com, Inc. (stock symbol: MIRM), a leading real-time business-to-business e-commerce parts exchange, today announced the results for the quarter ended March 31, 2000.
    Net loss for the three months ended March 31, 2000 was $.19 per share, as compared with a net loss of $.06 per share for the comparable three-month period in the prior year.
    At March 31, 2000, the Company reported approximately $1.3 million in Unearned Territory Fees from dealerships participating in the parts exchange. Beginning April 1, 2000, this amount will be recognized ratably as income on a quarterly basis.
    The loss was mainly attributable to non-cash expenses, including stock-based compensation, depreciation and amortization, which alone accounted for nearly 60% of total expenses for the three-month period and more than half of the total net loss. The balance of the increase in loss was due to expenses incurred in the development of the now-operational parts.com Web site and the establishment of the related dealership network. Expenses included marketing, programming/development, and other costs associated with the site.
    The Company also significantly increased its workforce to 47 full-time employees and 3 full-time consultants, from 18 full-time employees at March 31, 1999.
    The Company noted that, as of March 31, 2000, stockholders' equity totaled $7.68 million, and net tangible assets reached $5.8 million, compared to $870,000 and $140,000 respectively for March 31, 1999.
    "The first quarter of 2000 represented a landmark period for our company," stated Shawn Lucas, chairman, president and co-CEO of parts.com, Inc., "one in which we made great strides toward reaching our goals. We strengthened our board of directors with the addition of two distinguished members. We submitted our application for listing on the NASDAQ National Market System. We launched our e-commerce business-to-business-to-consumer parts exchange, and we further enhanced our internally-developed OCTANE System, which we intend to begin licensing shortly. Our results for this period were in line with our expectations," concluded Lucas.