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EXHIBIT 99.1
CONTACT:
Jerry Wong
POET Holdings, Inc.
(650) 577-2500
[email protected]
POET HOLDINGS, INC. ANNOUNCES RECORD THIRD QUARTER REVENUES OF $3.3 MILLION
SAN MATEO, CALIF. -- OCTOBER 19, 2000 -- POET Holdings, Inc. (Neuer Markt: POXA)
announced today record revenues for the third quarter of fiscal 2000 of $3.3
million, an increase of $506,000, or 18%, from revenues for the quarter ended
September 30, 1999. The net loss for the quarter ended September 30, 2000 was
$2.5 million, or $0.24 per share, based on weighted average shares outstanding
of 10,691,000 shares, compared to a net loss of $1.9 million, or $0.29 per
share, based on pro-forma weighted average shares outstanding of 6,639,000
shares, for the quarter ended September 30, 1999. Revenues from the sale of
products for the quarter ended September 30, 2000 increased $487,000, or 23%,
from the quarter ended September 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 product revenues
attributable from Novell, Inc., product revenues for the quarter ended September
30, 2000 increased $1,202,000, or 88% from the same period in 1999.
Product license revenues attributable to POET's strategic Business-to-Business
product line, the electronic Catalog Suite (eCS), reached approximately $1.0
million, representing approximately 133% growth compared to the quarter ended
June 30, 2000. Product license revenues attributable to POET's object database
product line, the Object Server Suite (OSS), were approximately $1.4 million,
representing approximately 7% growth compared to the quarter ended June 30,
2000. The Company closed a total of 15 new eCS accounts during the quarter, of
which nine were end users and six were system integrators. The results for the
quarter ended September 30, 2000 for POET eCS appear to represent further
evidence of the market acceptance for the eCS product line. Total consulting and
training revenues decreased from $375,000 for the quarter ended September 30,
1999 to $280,000 for the quarter ended September 30, 2000 due primarily to one
significant consulting engagement in the quarter ended September 30, 1999 not
repeated in the quarter ended September 30, 2000.
Total operating expenses for the quarter ended September 30, 2000 were $5.8
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. Research and development expenses increased primarily due to increased
headcount in the research and development group, and general and administrative
expenses increased primarily due to non-recurring corporate development
activities and an increase in bad debt expense.
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"We are very pleased with the record results of the third quarter and, in
particular, with the increased demand of our B2B eCS product line that resulted
in eCS revenue growth of 133% in the third quarter compared to the second
quarter," said Dirk Bartels, president and CEO of POET Holdings, Inc. "Closing
fifteen new eCS accounts in the third quarter is a tremendous success. In
addition, POET launched the service provider edition of eCS in the third
quarter, which allows companies to offer a hosted B2B catalog and content
service, thereby creating opportunities for potential future revenue streams
based upon a revenue sharing business model with these service providers."
About POET Holdings, Inc.
POET Holdings, Inc. offers solutions for the data management and emerging B2B
eCommerce markets. POET eCatalog Suite (eCS) is a self-service application
allowing supplier organizations and Net Marketplaces to efficiently create,
manage and distribute customized catalog data over the Internet. The Company's
award-winning object database solution, Object Server Suite (OSS) is embedded in
various next-generation packaged applications and smart devices. POET Holdings,
Inc. is headquartered in San Mateo, Calif., with offices throughout the US and
Western Europe. POET Holdings, Inc. is publicly traded on the Frankfurt Stock
Exchange (Neuer Markt: POXA). For more information visit www.poet.com or call
650-577-2500.
###
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 and market acceptance of products and services, development of markets for
POET Holdings, Inc. products and services, and other risks identified in POET
Holdings, Inc. 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 Holdings, Inc.'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, Inc. 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, Inc. Form 10-K 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>
September 30, December 31,
2000 1999
------------- ------------
<S> <C> <C>
Assets
Current assets:
Cash and equivalents $ 18,695 $ 35,039
Short term investments 15,630 9,311
Accounts receivable, net 2,807 2,125
Inventories and other current assets 2,959 320
-------- --------
Total current assets 40,091 46,795
Property and equipment, net 1,238 581
Other assets 221 224
-------- --------
Total assets $ 41,550 $ 47,600
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts Payable $ 1,302 $ 933
Accrued Liabilities 2,179 2,149
Deferred Revenue 1,083 845
Current Portion of Debt 234 283
-------- --------
Total current liabilities 4,798 4,210
-------- --------
Long Term Obligation 145 326
Stockholders' equity:
Common Stock 11 11
Additional Paid in Capital 65,799 65,582
Deferred Stock Compensation (435) (927)
Retained Earnings (29,141) (22,058)
Accumulated other comprehensive income 373 456
-------- --------
Total stockholders' equity 36,607 43,064
-------- --------
Total liabilities and stockholders' equity $ 41,550 $ 47,600
======== ========
</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, Nine Months Ended,
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues:
Product $ 2,568 $ 2,081 $ 6,566 $ 5,555
Consulting and Training 280 375 916 1,213
Support and Maintenance 445 331 1,244 935
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Total Revenues: 3,293 2,787 8,726 7,703
Cost of Revenues
Products 86 63 262 170
Consulting and training 250 269 789 799
Support and maintenance 335 254 906 768
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Total cost of revenues 671 586 1,957 1,737
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Gross profit 2,622 2,201 6,769 5,966
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Operating Expenses:
Selling and marketing 3,393 1,827 9,297 5,300
Research and development 1,231 727 3,420 2,353
General and administrative 1,081 547 2,608 1,345
Amortization of deferred stock compensation 92 210 362 439
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Total operating expenses 5,797 3,311 15,687 9,437
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Operating loss (3,175) (1,110) (8,918) (3,471)
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Other income (expense):
Interest Expense (8) (887) (29) (1,079)
Interest Income and Other, net 640 74 1,909 244
-----------------------------------------------------
Total other income (expense), net 632 (813) 1,880 (835)
-----------------------------------------------------
Loss before income taxes (2,543) (1,923) (7,038) (4,306)
Income taxes (5) (1) (46) 8
-----------------------------------------------------
Net Loss $ (2,548) $ (1,924) $ (7,084) $ (4,298)
=====================================================
Basic and diluted net loss per share $ (0.24) $ (1.16) $ (0.67) $ (2.71)
Shares used in computing basic and diluted
net loss per share 10,691 1,657 10,623 1,589
Pro forma basic and diluted net loss per share $ (0.29) $ (0.66)
Shares used in computing pro forma basic and
diluted net loss per share 6,639 6,540
</TABLE>
