<PAGE>
EXHIBIT 2
For More Information:
Tiffany O'Brien,
pcOrder.com
512.684.1171
[email protected]
FOR IMMEDIATE RELEASE
PCORDER.COM ANNOUNCES THIRD QUARTER RESULTS
AUSTIN, Texas, October 25, 2000 - pcOrder.com, Inc. (Nasdaq: PCOR) today
announced financial results for the quarter and nine months ended September 30,
2000. pcOrder announced under a separate press release that Trilogy Software,
Inc. and pcOrder have entered into a definitive agreement under which Trilogy
will commence a cash tender offer to acquire all of pcOrder's outstanding Class
A Common Stock.
pcOrder reported third quarter revenues of $13.4 million, representing 3 percent
growth when compared to revenues for the same period last year and a 13 percent
decline from the prior quarter. Software and subscriptions revenues totaled
$6.9 million and content and services revenues totaled $6.5 million for the
quarter. Approximately $1.4 million of the software and subscriptions revenues
came from non-recurring license and subscription revenues, primarily related to
contracts terminated during the quarter. In addition, approximately $1.2
million of the content and services revenues came from non-recurring consulting
services rendered to its affiliate, Trilogy.
pcOrder reported a net loss of $0.2 million or $0.01 per share for the third
quarter compared with a net loss of $0.7 million or $0.05 per share for the same
period in 1999. Excluding the non-recurring software and services revenues
recorded during the quarter, the Company's net loss would have totaled
approximately $2.8 million or $0.17 per share for the quarter. Fourth quarter
revenues are expected to decline below $10 million.
For the nine months ended September 30, 2000, revenues totaled $44.1 million
versus $29.6 million for the same period last year. pcOrder also reported a net
loss of $4.8 million or $0.29 per share for the nine months ended September 30,
2000. This compares with a net loss of $6.5 million or $0.43 per share for the
same period in 1999.
pcOrder security holders and any potential investors in pcOrder stock are
advised to carefully read the tender offer/going private statement on Schedule
TO, the solicitation/recommendation statement on Schedule 14D-9 and any other
documents pcOrder or Trilogy files with the Securities and Exchange Commission
in connection with the proposed tender offer or merger when they become
available because they will contain important information about the proposed
transaction. Investors and security holders may obtain free copies of these
documents (when available) and other documents filed by pcOrder or Trilogy at
the SEC's website at www.sec.gov. These documents (when available) may also be
obtained
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for free by contacting Tiffany O'Brien at pcOrder (512.684.1171) or Jeanne
McNeil at Trilogy (512.794.5900).
There will not be a quarterly earnings call following this press release.
Forward Looking Statements
Portions of this press release contain "forward-looking" statements, including
statements regarding future events, results or performance. Actual results may
differ materially from any forward-looking statements made in this press
release. Such statements involve risks and uncertainties such as the potential
reduction in demand for pcOrder's products and services from current or
prospective customers, the potential introduction and market acceptance of
competitive offerings, the potential delays and difficulties in the deployment
of products and services and the potential failure of pcOrder's customers to
realize the expected benefits from their relationship with pcOrder. pcOrder's
business, financial condition and results of operations are subject to other
risks and uncertainties described in pcOrder's filings with the Securities and
Exchange Commission. All forward-looking statements included in this earnings
release speak as of today's date, and pcOrder assumes no obligation to update
any forward-looking statements.
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pcOrder.com, Inc.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
2000 1999 2000 1999
----------- ----------- ----------- -----------
Revenues:
Software and subscriptions $ 6,912 $ 6,257 $20,975 $14,489
Content and services 6,540 6,800 23,161 15,136
----------- ----------- ----------- -----------
Total revenues 13,452 13,057 44,136 29,625
Cost of revenues:
Software and subscriptions 1,198 1,387 3,877 3,710
Content and services 5,953 5,066 20,640 11,166
----------- ----------- ----------- -----------
Total cost of revenues 7,151 6,453 24,517 14,876
Gross profit
Software and subscriptions 5,714 4,870 17,098 10,779
Content and services 587 1,734 2,521 3,970
----------- ----------- ----------- -----------
Total gross profit 6,301 6,604 19,619 14,749
Operating expenses:
Research and development 3,754 1,959 11,430 4,727
Selling and marketing 1,967 4,388 9,342 13,086
General and administrative 1,839 1,503 6,620 4,306
Amortization of deferred stock compensation 174 259 645 953
----------- ----------- ----------- -----------
Total operating expenses 7,734 8,109 28,037 23,072
Operating loss (1,433) (1,505) (8,418) (8,323)
Interest income 1,187 764 3,613 1,605
----------- ----------- ----------- -----------
Loss before income taxes (246) (741) (4,805) (6,718)
Income tax benefit - - - (243)
----------- ----------- ----------- -----------
Net loss $ (246) $ (741) $(4,805) $(6,475)
=========== =========== =========== ===========
Basic and diluted net loss per share $(0.01) $(0.05) $(0.29) $(0.43)
=========== =========== =========== ===========
Weighted average shares outstanding 16,714 15,602 16,735 15,019
=========== =========== =========== ===========
</TABLE>
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pcOrder.com, Inc.
Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 69,135 $ 54,113
Short-term investments 8,852 27,364
Accounts receivable, net 7,193 16,427
Prepaid expenses and other assets 1,561 1,030
------------- ------------
Total current assets 86,741 98,934
Property and equipment, net 2,870 3,592
Other assets 3,218 3,212
------------- ------------
Total assets $ 92,829 $105,738
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,180 $ 1,508
Accrued liabilities 4,091 8,814
Payable to Trilogy, net 5,322 4,119
Deferred revenue 21,555 28,686
------------- ------------
Total current liabilities 32,148 43,127
Deferred revenue 6,272 2,694
Stockholders' equity
Common stock 169 166
Treasury stock (2,293) -
Additional paid-in capital 81,293 80,401
Deferred stock compensation (653) (1,350)
Unrealized loss on investments (3) (1)
Accumulated deficit (24,104) (19,299)
------------- ------------
Total stockholders' equity 54,409 59,917
------------- ------------
Total liabilities and stockholders' equity $ 92,829 $105,738
============= ============
</TABLE>
pcOrder.com and pcOrder are registered trademarks of pcOrder.com, Inc. Product
and company names mentioned herein maybe be trademarks and/or registered
trademarks of their respective companies.
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