Autoweb Reports Q3 Loss Up $6.2 Million to $10.8 Million
20 October 2000
Losses continue to Mount as Stock Price Falls Below $1
SANTA CLARA, Calif. - Autoweb.com, announced Friday financial results
for the third quarter and nine months ended September 30, 2000.
Net revenues for the third quarter of 2000 were $11.5 million, compared
with $8.4 million for the corresponding third quarter of 1999, and
$15.2 million for the second quarter of 2000. For the nine months ended
September 30, 2000, revenues were $42.5 million, compared with $21.2 million
in the corresponding period in 1999. Third quarter revenues were adversely
impacted by the closing of CarOrder.com, lack of dealer network growth, site
performance issues and the lower than anticipated financial performance of
Autoweb's portal relationships.
Net loss for the third quarter of 2000 was $10.8 million, or $0.37 per
share, compared with a net loss of $4.4 million, or $0.18 per share in the
third quarter of 1999. Including non-cash, stock-based compensation charges
and the amortization of intangibles, net loss for the third quarter was
$8.6 million, or $0.29 per share, compared to a $3.9 million, or $0.16 per
share in the third quarter of 1999.
"We experienced several setbacks during the third quarter that came, in
part, of the significant growth we experienced over the last few quarters.
Autoweb is taking strategic steps, some of which are already implemented,
toward addressing the challenges we faced this quarter," said Samuel Hedgpeth,
President and Chief Executive Officer of Autoweb.com.
On Thursday, Autoweb's share prices (AWEB) fell to 7/8 (87.5 cents), down
from an all time high about 19 months ago of $50. Autoweb's market cap, which
had once been about $1.5 billion is now down to $26 million.
AUTOWEB.COM, INC.
CONDENSED BALANCE SHEETS
(In Thousands)
December 31, Sept 30,
1999 2000
ASSETS
Current assets:
Cash, cash equivalents and short
term investments $32,834 $31,749
Accounts receivable, net 8,415 10,146
Prepaid expenses and other current assets 8,988 16,631
Total current assets 50,237 58,526
Investments 3,068
Property and equipment, net 2,462 2,709
Intangible assets, net 18,448 13,641
Deposits 530 176
Total assets $71,677 $78,120
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable and other accrued expenses $6,787 $6,983
Accrued payroll and related expenses 2,582 1,255
Deferred revenue 935 1,135
Current portion of notes and lease
obligations payable 326 340
Total current liabilities 10,630 9,713
Notes and lease obligations, net of
current portion 361 69
Total liabilities 10,991 9,782
Stockholders' equity 60,686 68,338
Total liabilities and stockholders'
equity $71,677 $78,120
AUTOWEB.COM, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, except per share amounts)
Three Months Ended Nine Months Ended
Sept 30, June 30,
2000 1999 2000 1999
Net revenues $11,509 $8,422 $42,495 $21,187
Cost of net revenues 1,565 841 4,732 2,140
Gross profit 9,944 7,581 37,763 19,047
Operating expenses:
Sales and marketing 13,171 8,692 40,675 21,072
Product development 2,513 1,664 6,805 2,843
General and
administrative 3,276 1,927 9,019 4,856
Stock based
compensation 419 452 1,248 1,654
Amortization of
intangibles 1,744 5,205
Total operating
expenses 21,123 12,735 62,952 30,425
Loss from
operations (11,179) (5,154) (25,189) (11,378)
Interest and other
income, net 400 804 1,181 1,634
Net loss ($10,779) ($4,350) ($24,008) ($9,744)
Net loss per share:
Basic and diluted $(0.37) $(0.18) $(0.86) $(0.49)
Weighted average
shares-basic and
diluted 29,381 24,842 27,897 19,872
Calculation of pro
forma, as adjusted,
net loss per share:(A)
Net loss, as
adjusted (8,616) (3,898) (17,555) (8,090)
Basic and diluted 29,381 24,842 27,897 19,872
Weighted average
shares-basic
and diluted $(0.29) $(0.16) $(0.63) $(0.41)
(A) Adjusted to exclude non-cash stock-based compensation and
amortization of intangibles