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EXHIBIT 99.1
CONTACT:
Jerry Wong
POET Holdings, Inc.
(650) 286-4640
[email protected]
POET HOLDINGS, INC. ANNOUNCES SECOND QUARTER REVENUES OF $2.7 MILLION
SAN MATEO, CALIFORNIA -- JULY 25, 2000 -- POET Holdings, Inc. (Neuer Markt:
POXA) announced today revenues for the second quarter of fiscal 2000 of $2.7
million, an increase of $124,000, or 5%, from revenues for the quarter ended
June 30, 1999. Net loss for the quarter ended June 30, 2000 was $2.8 million, or
$0.26 per share, based on pro-forma weighted average shares outstanding of
10,618,000, compared to a net loss of $1.3 million, or $0.20 per share, based on
pro-forma weighted average shares outstanding of 6,534,000, for the quarter
ended June 30, 1999. Revenues from the sale of products for the quarter ended
June 30, 2000 increased $190,000, or 11%, from the quarter ended June 30, 1999.
As planned, the Company's contract with Novell, Inc. was fulfilled and all
revenues attributable to Novell, Inc. were recognized completely as of September
30, 1999. Excluding revenues attributable from Novell, Inc., revenues for the
quarter ended June 30, 2000 increased $573,000, or 27% from the same period in
1999.
Total consulting and training revenues decreased from $444,000 for the quarter
ended June 30, 1999 to $267,000 for the quarter ended June 30, 2000 due
primarily to one non-recurring consulting engagement not repeated in the current
quarter. Total operating expenses for the quarter ended June 30, 2000 were $5.3
million compared to $3.3 million for the same period in 1999. Total operating
expenses increased primarily due to increased sales and marketing expenses,
which in turn were primarily due to increased headcount and new marketing
programs.
These revenues are below the company's expectations primarily due to lower than
anticipated revenues in the POET Content Management Suite (CMS) product line,
and to a lesser extent, in the POET Object Server Suite product line and
consulting services. POET's strategic Business-to-Business product line, the
electronic Catalog Suite (eCS), slightly exceeded the company's expectations and
reached approximately $430,000 in product license revenues, representing
approximately 116% growth compared to the quarter ended March 31, 2000. The
company closed a total of seven new eCS accounts during the quarter including
Deutsche Telecom and Icenter, a subsidiary of Siemens AG. The results for the
quarter ended June 30, 2000 for POET CMS and POET eCS represent further evidence
that the market for the CMS product line remained difficult, while the market
acceptance for the eCS product line continued to expand rapidly. As a result of
the continued slow revenue growth for the CMS product line, the company is
reallocating resources from the CMS product line to the eCS product line. The
company will continue to maintain and support its current CMS customer base.
However, the company will not pursue new CMS sales opportunities.
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"We are obviously disappointed about the revenue shortfall of our CMS product
line," said Dirk Bartels, President and CEO of POET Holdings, Inc. "However, we
have experienced tremendous progress in our efforts to develop the market for
our eCS product line by establishing a number of strategic accounts and building
a strong sales pipeline for the coming quarters. In addition, we believe that
the tighter focus on our eCS and OSS product lines will help us in the long run
to build more visibility and leadership in those markets."
ABOUT POET HOLDINGS, INC.
POET Holdings, Inc., an international software company with offices throughout
the US and Western Europe, develops data management software and Business to
Business eCommerce solutions that allow organizations to share, manage and
manipulate complex information to facilitate effective business-to-business
processes and information exchange over the Internet. POET's product offerings
consist of the POET Object Server Suite database management system and the POET
eCatalog Suite. POET Holdings, Inc. is publicly traded on the Frankfurt Stock
Exchange (Neuer Markt: POXA).
Organizations around the world, such as, Lucent, Perkin-Elmer and TAKKT AG use
POET's software to efficiently manage and share complex information. POET
Holdings, Inc. has partnerships with leading technology companies such as Ariba,
Commerce One, Ericsson LM, Microsoft and SAP.
POET Holdings, Inc. maintains headquarters in San Mateo, California and Hamburg,
Germany. For more information, visit the company at http://www.poet.com.
###
This press release contains forward-looking statements based on current
expectations that involve risks and uncertainties, including risks associated
with uncertainties pertaining to the timing and level of customer orders, demand
for products and services, development of markets for POET Holdings products and
services, and other risks identified in POET Holdings SEC filings, including our
report filed on form 10-K for the year ended December 31, 1999, filed with the
Securities and Exchange Commission. Due to these risks and uncertainties, POET's
actual results, events and performance may differ materially from the results
discussed in the forward-looking statements. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. POET Holdings undertakes no obligation to release publicly the
result of any revisions to these forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
The unaudited financial statements that follow should be read in conjunction
with the notes set forth in POET Holdings Forms 10-K and S-1 filed with the
United States Securities and Exchange Commission.
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POET HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
-------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 1,728 $ 35,039
Short term investments 35,123 9,311
Accounts receivable, net 2,712 2,125
Inventories and other current assets 2,779 320
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Total current assets 42,342 46,795
Property and equipment, net 1,058 581
Other assets 259 224
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Total assets $ 43,659 $ 47,600
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts Payable $ 1,287 $ 934
Accrued Liabilities 1,871 2,057
Deferred Revenue 1,072 845
Current Portion of Debt 259 282
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Total current liabilities 4,489 4,118
Long Term Obligation 218 418
Stockholders' equity:
Common Stock 11 11
Additional Paid in Capital 65,781 65,582
Deferred Stock Compensation (547) (927)
Retained Earnings (26,593) (22,058)
Accumulated other comprehensive income 300 456
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Total stockholders' equity 38,952 43,064
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Total liabilities and stockholders' equity $ 43,659 $ 47,600
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</TABLE>
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POET HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED, SIX MONTHS ENDED,
----------------------- -----------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Product $ 1,981 $ 1,790 $ 3,998 $ 3,474
Consulting and Training 267 444 635 838
Support and Maintenance 414 304 800 604
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Total Revenues: 2,662 2,538 5,433 4,916
Cost of Revenues
Products 99 68 177 107
Consulting and training 266 283 538 530
Support and maintenance 338 232 570 514
-------- -------- -------- --------
Total cost of revenues 703 583 1,285 1,151
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Gross profit 1,959 1,955 4,148 3,765
Operating Expenses:
Selling and marketing 3,071 1,827 5,901 3,473
Research and development 1,232 869 2,189 1,626
General and administrative 903 446 1,527 798
Amortization of deferred stock
compensation 128 125 273 229
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Total operating expenses 5,334 3,267 9,890 6,126
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Operating loss (3,375) (1,312) (5,742) (2,361)
Other income (expense):
Interest Expense (10) (99) (21) (191)
Interest Income and Other, net 639 84 1,269 171
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Total other income (expense), net 629 (15) 1,248 (20)
-------- -------- -------- --------
Loss before income taxes (2,746) (1,327) (4,494) (2,381)
Income taxes (41) (1) (41) 7
-------- -------- -------- --------
Net Loss $ (2,787) $ (1,328) $ (4,535) $ (2,374)
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Basic and diluted net loss per share $ (0.26) $ (0.84) $ (0.43) $ (1.52)
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Shares used in computing basic and
diluted net loss per share 10,618 1,576 10,595 1,566
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Pro forma basic and diluted net loss per share $ (0.20) $ (0.37)
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Shares used in computing pro forma basic
and diluted net loss per share 6,534 6,501
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</TABLE>
