Exhibit 1
[E-Cruiter.com's Logo]
FOR IMMEDIATE RELEASE
E-CRUITER.COM ANNOUNCES SECOND QUARTER 2001 RESULTS
Revenue increases 138% over previous year's second quarter
OTTAWA, ONTARIO - JANUARY 11, 2001 - E-CRUITER.COM INC. (NASDAQ - ECRU) a leader
of Web-powered hiring management systems - today announced its financial results
for the quarter ended November 30, 2000.
Revenue for the second quarter increased by 138% over the previous year's second
quarter to $819,524, and by 4% over first quarter 2001 results of $787,340.
E-Cruiter.com signed contracts for $581,998 in the second quarter of fiscal
2001, compared with $407,834 in the same period last year. Revenue for the first
half of fiscal 2001 totaled $1,606,864 compared to $665,370 for the same period
last year, an increase of 142%.
Gross profit increased to $226,977 in the quarter, or 28% of revenue, from
$66,250, or 19% of revenue, in the same quarter last year. Gross profit for the
first six months of fiscal 2001 totaled $373,706. This compares to gross profit
of $102,019 for the first six months of fiscal 2000.
The company's net loss for the quarter was $1,831,868 ($0.24 per share) compared
with a loss of $1,975,984 ($0.51 per share) in Q2 2000. The loss, which was
lower than the company's expected loss for the quarter, reflects the company's
continued investment in sales, marketing and research and development. On a
year-to-date basis, E-Cruiter.com's loss was $3,653,822 ($0.47 per share)
compared with a loss of $3,384,772, ($0.88 per share) for the corresponding
period last year.
At November 30, the company's working capital position remained strong, with
cash, cash equivalents and short-term investments, totaling $9,948,744.
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"During our second quarter we focused on developing a strategic alliance with
ADP Canada which will ensure new channels for our comprehensive Web-based
recruiting offering," said GERRY STANTON, PRESIDENT & CEO, E-CRUITER.COM. "This
has been a productive quarter for the company. In addition to signing the ADP
agreement, we released E-Cruiter 3.0 and appointed a new VP of sales, both of
which will assist us in driving top-line growth and business volume. Looking
ahead we will continue to pursue new distribution arrangements and solution
partnerships to create added shareholder value."
Q2 Highlights:
o Signed a reseller agreement with ADP Canada, the country's leading
provider of employer services. Under terms of the exclusive agreement, ADP
Canada will resell E-Cruiter.com's Internet recruitment solutions to its
current and prospective clients.
o E-Cruiter 3.0 released to market. New features include: streamlined
posting to job boards, newsgroups and clients' Internet and intranet
career sites, enhanced candidate tracking and enhanced reporting on our
tools' recruitment effectiveness.
o Announced a new vice president North American sales. Andrew Hinchliff, a
former Dell Computer Corporation Canadian manager for leading Preferred
Accounts business unit. Hinchliff is responsible for directing
E-Cruiter.com's corporate sales strategy, leading a team of account
executives, and managing channel distribution partners.
o Signed a lead referral agreement with Insuranceworks.com, a leading job
board, dedicated to servicing the online recruitment needs of Canada's
insurance industry.
o Signed 12 subscription service contracts for E-Cruiter 3.0 services and
received 42 orders for additional services from E-Cruiter.com's client
base.
o Expanded the company's posting service capabilities by signing posting
service agreements with JobShark.com, Moretechjobs.com and
Marketingjobs.com.
Anticipating a shift in the e-cruiting market towards more comprehensive,
Web-based recruiting solutions, E-Cruiter.com recently discontinued sales of its
lower-margin E-Cruiter Express services, and will focus resources on E-Cruiter
3.0, its higher-margin, comprehensive hiring management system. The company
expects continued strong revenue growth for the last half of this fiscal year.
Specifically, management expects that revenue will grow between 80% and 100% in
the last half of fiscal 2001 compared to the corresponding period for last
fiscal year.
ABOUT E-CRUITER.COM INC.
E-Cruiter.com (NASDAQ: ECRU-news), 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.
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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:
Media Contacts:
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]
Investor Relations Contact:
Jeff Potts
E-Cruiter.com
Tel: 613-236-2263 ext. 235
E-mail: [email protected]
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E-CRUITER.COM INC.
UNAUDITED STATEMENTS OF LOSS AND ACCUMULATED DEFICIT
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
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THREE MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 2000 NOVEMBER 30, 1999 NOVEMBER 30, 2000 NOVEMBER 30, 1999
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<S> <C> <C> <C> <C>
REVENUE $ 819,524 $ 344,828 $ 1,606,864 $ 665,370
COST OF REVENUE 592,547 278,578 1,233,158 563,351
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GROSS PROFIT 226,977 66,250 373,706 102,019
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EXPENSES
Selling 572,880 431,432 1,098,719 773,065
Marketing 453,275 628,312 823,202 871,298
General and administrative 470,206 253,505 829,283 454,316
Research and development 859,551 399,839 1,743,017 776,958
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2,355,912 1,713,088 4,494,221 2,875,637
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OPERATING LOSS (2,128,935) (1,646,838) (4,120,515) (2,773,618)
OTHER INCOME AND EXPENSES 297,067 (329,146) 466,693 (611,154)
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NET LOSS FOR THE PERIOD (1,831,868) (1,975,984) (3,653,822) (3,384,772)
ACCUMULATED DEFICIT,
BEGINNING OF PERIOD (14,036,797) (6,325,228) (12,214,843) (4,916,440)
----------------------------------------------------------------------------------------------------
ACCUMULATED DEFICIT,
END OF PERIOD (15,868,665) (8,301,212) (15,868,665) (8,301,212)
====================================================================================================
BASIC AND FULLY DILUTED
LOSS PER COMMON SHARE (0.24) (0.51) (0.47) (0.88)
====================================================================================================
Weighted average number of
common shares outstanding
during the period 7,710,479 3,863,844 7,708,317 3,860,644
====================================================================================================
</TABLE>
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E-CRUITER.COM INC.
UNAUDITED BALANCE SHEETS
(Canadian Dollars)
<TABLE>
<CAPTION>
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NOVEMBER 30, MAY 31,
2000 2000
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents 163,430 246,998
Short term investments 9,785,314 13,597,509
Accounts receivable 364,723 718,862
Prepaid expenses 642,739 482,957
Other receivables 99,638 65,253
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11,055,844 15,111,579
DEFERRED COSTS 55,360 83,040
CAPITAL ASSETS 1,257,623 988,341
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12,368,827 16,182,960
==============================================
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities 1,091,413 807,345
Accrued compensation 282,986 223,609
Deferred revenue 683,260 1,133,840
Current portion of long-term obligations 96,845 145,184
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2,154,504 2,309,978
LONG TERM OBLIGATIONS 12,923 42,219
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2,167,427 2,352,197
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SHAREHOLDER'S EQUITY (DEFICIT)
CAPITAL STOCK
Issued and outstanding - 7,712,262 common shares
(May 31, 2000 - 7,701,628 common shares) 26,070,065 26,045,606
ACCUMULATED DEFICIT (15,868,665) (12,214,843)
----------------------------------------------
10,201,400 13,830,763
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12,368,827 16,182,960
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</TABLE>
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E-CRUITER.COM INC.
UNAUDITED STATEMENTS OF CASH FLOW
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
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THREE MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
NOVEMBER 30, 2000 NOVEMBER 30, 1999 NOVEMBER 30, 2000 NOVEMBER 30, 1999
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<S> <C> <C> <C> <C>
CASH FLOWS FROM (USED IN)
OPERATING ACTIVITIES
Net loss for the period $ (1,831,868) $ (1,975,984) $ (3,653,822) $ (3,384,772)
Items not involving cash -
Amortization and depreciation 169,431 83,443 336,743 138,542
Amortization of other long term assets 13,840 - 27,680 -
Non-cash interest on convertible
Promissory notes - 285,030 - 570,376
Change in operating components
of working capital 98,915 (258,807) (124,225) (300,365)
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(1,549,682) (1,866,318) (3,413,624) (2,976,219)
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INVESTING ACTIVITIES
Purchase of capital assets (244,937) (349,322) (428,963) (465,470)
Sale of short term investments 2,033,434 - 3,812,195 -
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1,788,497 (349,322) 3,383,232 (465,470)
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FINANCING ACTIVITIES
Shareholder loan proceeds - 1,300,000 - 1,300,000
Proceeds from exercise of options 5,996 - 24,459 -
Convertible debt costs - 347,000 - 292,000
Repayment of bank financing (183,750) (34,319) (207,500) (64,581)
Proceeds from bank financing - 39,290 160,000 210,000
Proceeds from capital leases - 47,165 - 56,313
Capital lease repayments (19,115) (11,140) (30,135) (23,426)
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(196,869) 1,687,996 (53,176) 1,770,306
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INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS FOR THE PERIOD 41,946 (527,644) (83,568) (1,671,383)
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD 121,484 362,043 246,998 1,505,782
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CASH AND CASH EQUIVALENTS,
END OF THE PERIOD $ 163,430 $ (165,601) $ 163,430 $ (165,601)
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</TABLE>
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