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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 9, 1999
ARTIFICIAL LIFE, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-25075 04-3253298
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
Four Copley Place, Suite 102, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 266-5542
Not Applicable
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(Former name or former address, if changed since last report)
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TABLE OF CONTENTS
FORM 8-K
November 9, 1999
Item Page
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Item 5. Other Events 3
Item 7. Financial Statements and Exhibits 3
Signatures 4
Exhibits 5
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ITEM 5. OTHER EVENTS.
On November 9, 1999, the Registrant publicly disseminated a press release
announcing its results from the third quarter of 1999 and a revision to properly
classify components of its second quarter 1999 results . The information
contained in the press release is incorporated herein by reference and filed as
Exhibit 99.1 hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 The Registrant's Press Release dated November 9, 1999.
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EXHIBIT 99.1
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PRESS RELEASE
FOR IMMEDIATE RELEASE-
Artificial Life Announces Third Quarter 1999 Results and Revised Second
Quarter Results: Licensing income in third quarter exceeds services revenues;
growth and expansion continues
BOSTON, MASS. NOVEMBER 9, 1999 - Artificial Life, Inc. (NASDAQ: ALIF), a
leading provider of intelligent software bots for the Internet, today announced
financial results for the quarter ended September 30, 1999 and a revision to
properly classify components of its second quarter results. Revenues for the
third quarter were $1,211,488 compared to $0 (zero) revenues for the third
quarter of 1998, and an increase of 37% over the revenues of the second quarter
of 1999. The net loss for the quarter was $1,417,729 a 17% increase over the
second quarter of 1999. Cumulative revenues through the third quarter exceeded
revenues for the entire fiscal year 1998 by $2,085,271 or 463%.
Eberhard Schoneburg, President and CEO of Artificial Life said, "The third
quarter of this fiscal year was very motivating for all of us in several ways.
First of all, for the first time since the company went public, revenues derived
from product licenses about a million Dollars for this quarter alone - where
much higher than revenues derived from services. Secondly, even though our
products have just been released and our sales efforts are just starting,
revenues where up for the third time in a row this year. We are very pleased
with these results. Our products were also very well received by our clients
which led to the 3.5 Mio USD agreement with LGT bank and the cooperation
agreement with PricewaterhouseCoopers."
The second quarter results were revised to reflect an omitted intercompany
elimination entry. The revision reduces application service revenues during the
second quarter by $251,849 from $784,093 to $532,244 and decreases engineering
expenses during the second quarter by $251,849 from $829,115 to $577,266. The
revision does not affect the loss reported for the second quarter.
During the third quarter, Artificial Life finalized the development of its
latest financial services product, the ALIFE-PortfolioManager bot, which will
start shipping at the end of November 1999, the direct marketing tool ALIFE-
SmartTextAnalyzer (available now) for the analysis of human-bot conversations,
and the development of the first bot based e-commerce shopping application net-
tissimo.com in Switzerland in co-operation with HP and Swisscom, which is one of
the most complex live web applications in Switzerland according to HP and
Swisscom representatives.
The company has currently released funds to foster a worldwide sales and
marketing campaign with print-ads, web and TV-commercials. This is to support
the new solution oriented sales approach of bundling the bot based products
into client oriented solution suites.
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"After having already released a half a dozen products thus far this year, the
focus of the last quarter will be on marketing and sales, especially in the US
market. We are currently launching a significant marketing campaign with web-
banner-ads and TV-commercials to boost the sales of the available products. We
believe our new hires in international sales and marketing and our new sales
team in New York will contribute to that. The bundling of our bots into four
distinct solution suites for Internet-based customer relationship management (e-
CRM), e-Commerce, Internet based financial services and knowledge management
will give them a clear profile and allows us to position them with a strong
client focus in their respective markets. The success we had at the latest DCI
CRM fair here in Boston several days ago, indicates that we are on the right
track for the remainder of the year and the next millennium" Schoneburg said.
ABOUT ARTIFICIAL LIFE
Founded in 1994, Artificial Life, Inc. (NASDAQ: ALIF) develops, markets and
supports intelligent software (ro-)bots for e-business applications. The company
focuses on the development of smart bots for customer relationship management
(e-CRM), knowledge management, e-commerce and financial services applications.
Artificial Life is headquartered in Boston, Massachusetts, U.S.A, and maintains
subsidiaries in Switzerland, Germany and Russia.
Detailed information about Artificial Life, Inc. and its products is available
at http://www.artificial-life.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding Artificial Life, Inc.'s
business which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those contained
in the forward-looking statements, see "Risk Factors" in the Company's Annual
Report or Form 10-K for the most recently ended fiscal year.
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