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EXHIBIT 99.1
PRESS RELEASE ISSUED ON NOVEMBER 30, 2000
Rainmaker Systems Announces Stock Repurchase Program
Program is Subject to Timing and Volume Restrictions
SCOTTS VALLEY, Calif., Nov. 30 /PRNewswire/ -- Rainmaker Systems Inc. (Nasdaq:
RMKR - news), a leading outsource provider of Internet-enabled sales and
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marketing services, today announced that its Board of Directors has authorized a
program to repurchase up to 2,000,000 shares, approximately 5 percent, of the
company's outstanding common stock.
Restricted Trading
The company's ability to purchase stock is subject to certain timing and volume
restrictions imposed by regulations. The company may not begin purchasing shares
until 48 hours after the distribution of this announcement. Subject to price and
market conditions, these purchases will be made from time to time in open market
transactions or unsolicited transactions using the company's available cash
balances. The shares repurchased will be retired.
Cash Position
Rainmaker exited the third quarter, ended Sept. 30, 2000, with cash and short-
term investments totaling approximately $28 million. The company's operating
cash burn rate in the third quarter was $3.4 million. The company believes that
it will see improving cash flow throughout 2001, returning to positive cash flow
and profitability in the second half of the year.
"The Board and management team believe that the company's common shares are
significantly undervalued at the current price and do not reflect the true value
of Rainmaker's future prospects," said Michael Silton, chief executive officer.
"This stock repurchase program is indicative of our confidence in our business,
the progress we've made on the three key initiatives we outlined in June and our
ability to execute on that plan."
Silton continued, "We are very proud of our achievements regarding these
initiatives that we believe will guide our path back to profitability and
positive cash flow: we made significant improvements in our sales processes and
we recently signed three new clients, 3Com, Hewlett-Packard and Motorola.
Additionally, we are demonstrating progress towards our return to profitability
in the financial milestones we have outlined. We believe that the repurchase of
our stock represents an attractive opportunity for the utilization of a small
portion of our cash, and will allow us to enhance shareholder value without
compromising the financial flexibility required to achieve our goals."
About Rainmaker Systems
Rainmaker Systems is a leading outsource provider of Internet-enabled sales and
marketing services. Rainmaker delivers targeted programs to maximize revenue per
customer and strengthen customer loyalty. The company's Contract Renewals Plus
and Education Sales Plus services optimize the sales and management of support
contracts, software subscriptions and training offerings. By integrating
technology, processes and people, Rainmaker provides a transparent customer
relationship infrastructure for its clients, who include such high tech notables
as 3Com, Gateway, Hewlett-Packard, Motorola, Novell, Parametric Technology
Corporation and Sybase. For more information, visit www.rmkr.com.
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This release may contain forward-looking statements that involve risks and
uncertainties. Among the important factors which could cause actual results to
differ materially from those in the forward-looking statements are elements of
risk and uncertainty associated with market acceptance of new service
enhancements, the Company's ability to execute on its initiatives and
successfully deliver services to its clients, the market's acceptance of the
Company's announced Stock Repurchase Program, the Company's cash position from
time to time, volatility of the equities markets and other factors detailed in
the Company's filings with the Securities and Exchange Commission including its
recent filings on Forms 10-K and 10-Q.
NOTE: Rainmaker Systems, the Rainmaker logo, Contract Renewals Plus and
Education Sales Plus are trademarks of Rainmaker Systems, Inc. All other
trademarks are the property of their respective owners.
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