Exhibit 1
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[E-Cruiter.com Logo]
E-CRUITER.COM REPORTS Q4 AND FISCAL YEAR END 2000
FINANCIAL RESULTS
FOURTH QUARTER REVENUE INCREASES 139% OVER PREVIOUS YEAR'S QUARTER
OTTAWA, CANADA, JULY 12, 2000 - E-Cruiter.com Inc. (NASDAQ - ECRU) a leading
application service provider (ASP) offering Internet recruiting solutions to
corporations of all sizes, today announced its financial results for the fourth
quarter and fiscal year ended May 31, 2000. All figures are in Canadian dollars.
Revenue for fiscal 2000 increased 25% to $1,752,730 and orders booked increased
103% to $2,777,589. Net loss for the year was $7,298,403 ($1.29 per share)
compared with a loss of $2,212,410 ($0.57 per share) in fiscal 1999. This
reflects substantial investments in sales and marketing and research and
development in anticipation of increased business in fiscal 2001. During the
year, the company added 47 new employees, significantly improved the scalability
of its network operations and signed important strategic agreements that enhance
its products and broaden its path to market.
"Our strong revenue growth reflects our continued expansion across new
verticals, new customers, new alliance partners and new geographical markets,"
said GERRY STANTON, CEO AND FOUNDER, E-CRUITER.COM. "We are focused on
aggressively seeking out new partnerships, building a wider distribution
channel, building the E-Cruiter.com brand and developing or acquiring new
technologies to help increase the value of on-line recruiting for our corporate
clients."
Revenue for the fourth quarter increased by 139% over the same period last year
and by 46% over the third quarter of fiscal 2000 to $644,732. This is primarily
attributable to a sharp increase in sales of the company's E-Cruiter
Enterprise(TM) end-to-end Internet recruiting service. The company signed 28
customers to this service and sold 106 E-Cruiter Express(TM) packages to 89
customers. At the end of the fourth quarter the Company had 153 active
customers. Net loss for the fourth quarter was $ 2,050,249 ($0.27 per share),
compared with a net loss of $843,792 ($0.22 per share) for the corresponding
period last year.
"Our results are in line with our expectations and reflect our commitment to
invest in the business to secure our leadership position in the fast growing
market for on-line recruiting solutions," said STANTON. "E-Cruiter.com is the
leading Canadian provider of Internet recruiting services, and we will continue
to build on this strong foundation to increase market share significantly."
FISCAL 2000 HIGHLIGHTS:
o Customer orders totaled $2.8M for the year compared with $1.4M for
fiscal 1999
o Increased order backlog by 237% to $1.6 million
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o Increased revenue by 25% to $1.8 million
o Signed contracts for E-Cruiter Enterprise with 68 customers
o Received 324 orders for E-Cruiter Express posting services
o Recognized as one of the top Canadian IT companies by the Branham Group
o Signed agreements with top testing providers Brainbench and The Self
Management Group, enhancing E-Cruiter.com selection services
o Extended posting reach through arrangements with CanadaCareers.com,
Monster.ca, JobBoom, Campus WorkLink, employmentinVancouver.com and
InsuranceWorks.com
o Released Enterprise 2.4, with enhanced training, applicant tracking,
searching and identification functionality.
The company's balance sheet remains strong. As of May 31, the company had cash,
cash equivalents and short-term investments of $13.8 million. We believe that we
have sufficient working capital to sustain operations for a period of at least
two years.
During the fourth quarter, E-Cruiter.com landed key customers in a number of its
target markets. New clients include KPMG Canada, Watson Wyatt Worldwide, Zurich
Canada Inc., Ballard Power Systems, Dofasco Inc., York Region District School
Board, and netPCS Networks.
The Company also announced that Rob Richards, previously vice-president of
product management, has been named vice-president, technology and product and
has assumed responsibility for the company's research and development activities
following the departure of Rajesh Rao, the former vice-president of research and
development.
ABOUT E-CRUITER.COM INC.
E-Cruiter.com (NASDAQ: ECRU), a leading Internet recruiting application service
provider (ASP), offers corporate recruiting portals that empower companies to
attract, select, and retain talent more quickly and cost effectively than
traditional recruiting methods.
E-Cruiter.com's corporate recruiting portals link a company's Internet career
site with the entire applicant supply chain. The recruiting portal provides a
central, multi-functional hiring platform to greatly enhance recruitment
performance by harmonizing the management of all candidate sources with an
e-communications and workflow solution.
The company's expertise has driven Bell Canada, Dell Computer Corporation
(Canada), SAS Institute Canada Inc., Sony Music Canada and numerous high-growth
start-ups to select E-Cruiter.com's solutions. For more information visit
http://www.ecruiter.com or call toll free 1-877-ECRUITER.
Except for the factual information contained in this press release, within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 certain of the matters regarding product and
services and market dynamics herein may constitute forward-looking statements
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that involve risks and uncertainties. The Company's actual results could differ
materially from those set forth in the forward-looking statements. Factors that
might cause such a difference include changes in technology and industry
standards, increased competition and market acceptance of the Company's products
and services and those of its competitors.
Media Contacts:
Sarah Spence Maggie O'Lett
E-Cruiter.com High Road Communications
Tel: 416-653-6531 A Fleishman-Hillard Company
E-mail: [email protected] Tel: 613-236-0909
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E-mail: [email protected]
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Investor Relations Contacts:
Jeff Potts Craig Armitage
E-Cruiter.com Fleishman-Hillard
Tel: 613-236-2263 ext. 235 Tel: 416-214-0701 ext. 322
E-mail: [email protected] E-mail: [email protected]
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E-CRUITER.COM INC.
CONSOLIDATED BALANCE SHEETS
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
MAY 31, MAY 31,
2000 1999
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents 246,998 1,505,782
Short term investments 13,597,509 -
Accounts receivable, net of allowance for doubtful 718,862 211,757
accounts of $50,000 (1999 - $20,000)
Prepaid expenses 482,957 101,700
Other receivables 65,253 68,904
------------------------------------------
15,111,579 1,888,143
DEFERRED ADVERTISING EXPENSES 83,040 -
CAPITAL ASSETS 988,341 288,067
------------------------------------------
TOTAL ASSETS 16,182,960 2,176,210
==========================================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities 807,345 411,159
Accrued compensation 223,609 65,650
Accrued debt issue costs 330,000
-
Deferred revenue 1,133,840 323,469
Current portion of long-term obligations 145,184 84,173
Convertible promissory notes - debt component 2,162,063
-
------------------------------------------
2,309,978 3,376,514
LONG-TERM OBLIGATIONS 42,219 40,000
------------------------------------------
2,352,197 3,416,514
------------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
CAPITAL STOCK
Issued and outstanding - 7,701,628 common shares
(1999 - 3,857,479 common shares) 26,045,606 3,541,040
CONVERTIBLE PROMISSORY NOTES - EQUITY COMPONENT 135,096
-
ACCUMULATED DEFICIT (12,214,843) (4,916,440)
------------------------------------------
13,830,763 (1,240,304)
------------------------------------------
16,182,960 2,176,210
==========================================
</TABLE>
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E-CRUITER.COM INC.
CONSOLIDATED STATEMENTS OF LOSS
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS THREE MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 2000 MAY 31, 1999
(UNAUDITED) (UNAUDITED)
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE 644,732 270,217 1,752,730 1,399,557
COST OF REVENUE 631,276 167,760 1,624,770 848,769
------------------------------------------ ------------------------------------------------
GROSS PROFIT 13,456 102,457 127,960 550,788
------------------------------------------ ------------------------------------------------
EXPENSES
Selling 438,694 300,440 1,625,434 818,601
Marketing 676,668 234,708 2,014,684 612,796
General and administrative 570,866 232,101 1,401,991 619,265
Research and development 951,723 77,545 2,460,600 606,088
------------------------------------------ ------------------------------------------------
2,637,951 844,794 7,502,709 2,656,750
------------------------------------------ ------------------------------------------------
OPERATING LOSS (2,624,495) (742,337) (7,374,749) (2,105,962)
Interest and other income 588,335 1,564 767,499 16,311
Interest and other expense (14,089) (103,019) (691,153) (122,759)
------------------------------------------ ------------------------------------------------
NET LOSS FOR THE PERIOD (2,050,249) (843,792) (7,298,403) (2,212,410)
------------------------------------------ ------------------------------------------------
BASIC AND FULLY DILUTED LOSS PER SHARE (0.27) (0.22) (1.29) (0.57)
Weighted average number of common shares 7,699,206 3,861,783 5,649,783 3,854,579
</TABLE>
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