Exhibit 1
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[E-Cruiter.com's Logo]
FOR IMMEDIATE RELEASE
E-CRUITER.COM ANNOUNCES FIRST QUARTER 2001 RESULTS
First quarter revenue increases 146% over previous year's quarter
OTTAWA, ONTARIO - SEPTEMBER 27, 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 quarter ended August 31, 2000.
Revenue for the first quarter increased by 146% over the previous year's first
quarter to $787,340, and by 22% over fourth quarter 2000 results of $644,732.
E-Cruiter.com signed contracts for $537,000 in the first three months of fiscal
2001, compared with $377,000 in the same period last year.
The Company's net loss for the quarter was $1,821,954 ($0.24 per share) compared
with a loss of $1,408,788 ($0.37 per share) in Q1 2000. This reflects increased
investments in research and development and sales, as the company continues to
grow its customer base, broaden its product offering and develop strategic
agreements to expand its distribution channels.
"We are pleased with our progress in the first quarter," said GERRY STANTON,
PRESIDENT & CEO, E-CRUITER.COM. "We grew revenues significantly, expanded our
distribution channels, integrated new technologies to improve our e-cruiting
solutions and added several major new clients. Looking ahead, we will continue
to pursue new distribution arrangements and we are aggressively moving to
develop alliances and partnerships to deliver more complete solutions for our
corporate clients."
Q1 HIGHLIGHTS:
o Signed a reseller agreement with HR Technologies, the Canadian leader
in mid-range human resource information system development,
implementation and support.
o Signed a lead referral agreement with Recruitad, a leader in
recruitment advertising.
o Signed 15 contracts for E-Cruiter Enterprise(TM)services and 100
contracts for E-Cruiter Express(TM)postings.
o Added Canadian Professional Sales Association (CPSA) to list of job
posting partners, broadening applicant supply for E-Cruiter.com
clients.
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One of the Company's most important achievements in the first quarter was its
alliance with netPCS Networks Inc. to integrate their Customer Interaction
Software (CIS) solution with E-Cruiter Enterprise recruiting portal solutions to
facilitate real-time communication between recruiters and qualified candidates.
This will allow E-Cruiter.com corporate clients to use telephones and wireless
devices to connect live with talent who are viewing their company's Web site.
This agreement marks the first time corporations will have the technology to
interact in real-time with qualified candidates that have entered their Web
site.
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
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.
For More Information:
Sarah Spence Maggie O'Lett
E-Cruiter.com High Road Communications
Tel: 416-222-6344 ext. 568 a Fleishman-Hillard Company
E-mail: [email protected] Tel: 613-236-0909 ext. 314
------------------- E-mail: [email protected]
-------------------
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.
UNAUDITED STATEMENTS OF LOSS AND ACCUMULATED DEFICIT
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
AUGUST 31, 2000 AUGUST 31, 1999
<S> <C> <C>
REVENUE $ 787,340 $ 320,567
COST OF REVENUE 640,611 284,798
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GROSS PROFIT 146,729 35,769
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EXPENSES
Selling 525,839 341,633
Marketing 369,927 242,986
General and administrative 359,077 200,811
Research and development 883,466 377,119
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2,138,309 1,162,549
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OPERATING LOSS (1,991,580) (1,126,780)
Interest and other income 195,620 8,666
Interest and other expense (25,994) (290,674)
-------------------------------------------------------
169,626 (282,008)
NET LOSS FOR THE PERIOD (1,821,954) (1,408,788)
ACCUMULATED DEFICIT, BEGINNING OF PERIOD (12,214,843) (4,916,440)
-------------------------------------------------------
ACCUMULATED DEFICIT, END OF PERIOD $ (14,036,797) $ (6,325,228)
-------------------------------------------------------
BASIC AND FULLY DILUTED LOSS PER COMMON SHARE $ (0.24) $ (0.37)
-------------------------------------------------------
Weighted average number of common shares outstanding
during the period 7,706,178 3,857,479
-------------------------------------------------------
</TABLE>
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E-CRUITER.COM INC.
UNAUDITED BALANCE SHEETS
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
AUGUST 31, 2000 MAY 31, 2000
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 121,484 $ 246,998
Short-term investments 11,818,748 13,597,509
Accounts receivable, net of allowance for doubtful
Accounts of $50,000 (May 31, 2000 - $50,000) 557,879 718,862
Prepaid expenses 505,226 482,957
Other receivables 70,912 65,253
-----------------------------------------
13,074,249 15,111,579
DEFERRED COSTS 69,200 83,040
CAPITAL ASSETS 1,005,055 988,341
-----------------------------------------
$ 14,148,504 $ 16,182,960
=========================================
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 647,298 $ 807,345
Accrued compensation 165,090 223,609
Deferred revenue 996,211 1,133,840
Current portion of long-term obligations 290,283 145,184
-----------------------------------------
2,098,882 2,309,978
LONG-TERM OBLIGATIONS 22,350 42,219
-----------------------------------------
2,121,232 2,352,197
-----------------------------------------
SHAREHOLDERS' EQUITY (DEFICIT)
CAPITAL STOCK
Issued and outstanding -
7,709,655 common shares
(May 31, 2000 - 7,701,628 common shares) 26,064,069 26,045,606
Accumulated deficit (14,036,797) (12,214,843)
-----------------------------------------
12,027,272 13,830,763
-----------------------------------------
$ 14,148,504 $ 16,182,960
=========================================
</TABLE>
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<TABLE>
<CAPTION>
E-CRUITER.COM INC.
UNAUDITED STATEMENTS OF CASH FLOWS
(CANADIAN DOLLARS)
----------------------------------------------------------------------------------------------------------------------
THREE THREE
MONTHS MONTHS
AUGUST 31, AUGUST 31,
2000 1999
----------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
--------------------
<S> <C> <C>
Net loss for the period $ (1,821,954) $ (1,408,788)
Items not involving cash -
Amortization of capital assets 167,312 55,099
Amortization of other long term assets 13,840 -
Non-cash interest on convertible promissory notes - 285,346
Change in operating components of working capital (223,140) (96,558)
---------------------------------------------
(1,863,942) (1,164,901)
---------------------------------------------
INVESTING ACTIVITIES
Purchase of capital assets (184,026) (116,148)
Sale of short-term investments 1,778,761 -
---------------------------------------------
1,594,735 (116,148)
---------------------------------------------
FINANCING ACTIVITIES
Proceeds from exercise of options 18,463 -
Repayment of small business loan (23,750) (49,553)
Proceeds from bank financing 160,000 190,000
Capital lease repayments (11,020) (3,137)
---------------------------------------------
143,693 137,310
---------------------------------------------
DECREASE IN CASH AND CASH EQUIVALENTS FOR THE PERIOD (125,514) (1,143,739)
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 246,998 1,505,782
---------------------------------------------
CASH AND CASH EQUIVALENTS, END OF THE PERIOD $ 121,484 $ 362,043
---------------------------------------------
</TABLE>
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