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, 2000
CLICKACTION INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 000-26008 77-0195362
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation or organization) Identification No.)
2197 E. Bayshore Road
Palo Alto, California 94303
(Address of principal executive offices) (Zip code)
(650) 473-3600
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events
On October 31, 2000, ClickAction Inc., a Delaware corporation, issued a letter
to its stockholders for its half-year update. The stockholder letter has been
filed as an exhibit to this Report on Form 8-K, attached hereto as Exhibit 99.1.
Item 7. Financial Statements and Exhibits.
(c) 99.1 Stockholder Letter by ClickAction Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CLICKACTION INC.
Date: November 9, 2000 By: /s/ Sharon S. Chiu
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Sharon S. Chiu
Chief Financial Officer
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INDEX TO EXHIBITS
Exhibit
Number Description
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99.1 Stockholder Letter by ClickAction Inc.
October 2000
Dear Fellow Stockholders:
I'd like to update you on the progress we made on your behalf here at
ClickAction during the third quarter of 2000.
In short, Q3 was another excellent quarter. For the 11th consecutive quarter
since the new management team took over in January of 1998, we met or beat
consensus Wall Street expectations. Q3 2000 was also our 8th consecutive record
quarter, in terms of revenues, in that time frame. Total revenues were up 32%
in Q3 compared to Q2 2000 and ERM revenues were up 79% over Q2 2000. Even more
importantly, we approached breakeven (losing 4 cents per share - down from a 14
cents per share loss in Q2) and were almost cash flow neutral (closing the
quarter with $10.4 million in cash and cash equivalents as compared to $10.6
million in cash and cash equivalents at the end of Q2). This marks another
quarter of substantial progress towards our goal of continuing to significantly
increase revenues while achieving sustained profitability and cash flow positive
status starting in the fourth quarter of this year. Fortunately, Q4 looks
strong thus far, and our exposure to the dot.com fall-out is small.
There were a host of positive developments at ClickAction in Q3, all of which
are the results of the efforts put forth by the finest senior management team
with which I have ever had the privilege of working. The dedication, skill,
innovation and teamwork of the ClickAction officer corps and the great team of
ClickAction professionals is what makes this Company what it is.
Accomplishments in Q3 included:
* We continued to strengthen key technology partnerships. In one case, we
developed an XML based profile data exchange feature for BroadVision One-to-
One Enterprise clients. ClickAction's XML-Automatic Data Transfer allows
BroadVision users to synchronize their subscriber data with their ClickAction
profile database. Pitney Bowes is the first of several mutual clients to
utilize this technology.
* Our e-publishing business signed contracts with leading publications including
Business Week, Forbes and Sunset Magazine, a division of Time Inc. Enabling
some of the world's largest and best-respected publications to communicate in
real time with their subscribers about issues of direct relevance to them is
obviously an important service. The fact that ClickAction technology enables
these clients to do this without printing or mailing costs - in fact with
virtually no overhead costs at all - is clearly a winning business roposition.
* We launched our Professional Services Division to assist clients with the
deployment of our e-marketing/e-messaging solutions across the enterprise.
Led by a deeply talented team, the establishment of a strong Professional
Services Division in Q3 was an important step given the impending launch of
our eCRM 6.0 product in Q1.
* We also launched our Campaign Services Division to assist our clients and
partners with campaign development, execution, tracking and analysis as well
as marketing plan development and assessment programs. We believe that
continuing to provide outstanding, comprehensive service to our base of over
225 clients is key factor in our long-term success.
<PAGE>
* Another important development in Q3 was the launch of Elibrium, a projected
$20 million revenue leader for 2000 in the provision of effective productivity
software and Web-based services for small business professionals. This
division, formally known as MySoftware, has grown revenues, profits and cash
flow nicely over the past year. We believe that Elibrium represents a
significant corporate asset that is almost completely unvalued by Wall Street
at present. Furthermore, we believe that Elibrium - with its experienced
management team, its strong strategic position and its exceptional industry
partnerships - will continue to grow in value for our shareholders. We will
continue to explore various options to help Wall Street better understand the
value that is being created at Elibrium.
Speaking of Wall Street, despite the sharp downturn in the stock market over the
past few months for all things Internet, we are convinced that eCRM (electronic
Customer Relationship Management) represents a much more effective and
dramatically less expensive method for companies to build positive and
profitable relationships with their end-users. The fact is that marketers spent
well over $100 billion last year trying to reach and retain customers via older,
less effective and dramatically more expensive methods such as direct mail, fax
and phone. That is a sizable target market for those companies, such as
ClickAction, that are establishing themselves as industry leaders in the rapidly
growing eCRM industry.
We also see major advertisers continuing to move ad budgets online, and we
believe the failure of banner advertising, as an effective online ad medium has
actually been a positive development for well-managed companies with strong
email/e-messaging offerings like ClickAction. As client experience continues to
demonstrate, permission-based email works. Furthermore, our new eCRM 6.0
product, which we introduced on October 17 for general release in Q1 is based on
an open Java (J2EE) framework and provides a "Try-and-Buy" updated ASP and
licensed Enterprise solution. This important new product should give us a
material first mover advantage in this market, significantly strengthening our
competitive position versus primary competitors such as Kana, E.piphany and
Broadbase.
The fourth quarter is looking to be a strong quarter for us here at ClickAction.
ClickAction reported rapid revenue growth during Q3 2000, jumping over 1297%
since Q3 1999. This accelerating revenue growth and dwindling expenses as a
percentage at revenue position us for to be profitable in the current fourth
quarter. Furthermore, we feel comfortable with Wall Street revenue estimates in
Q4, which range from approximately $10.3 million to $11.3 million.
While many executives say good things about their companies, in September four
board members, Gary Daichendt, Howard Love and Ed Niehaus, and I independently
bought over $400,000 of ClickAction common stock at per share prices that ranged
between $11.50 and $13.00. This is the fifth time that I personally have
purchased ClickAction shares, and I have yet to sell a single share.
While it was another good quarter for the Company, we know very well that it was
a very tough quarter for our stockholders. When I took this job back in
December of 1997 (with the stock around $1.00/share) we said that our only goal
was to build a truly great company that provided a superior value proposition
for its clients, its employees and its partners. In doing so, we were confident
that we would produce excellent long-term returns for the people we work
for...our stockholders. As long as I am CEO and our superb team of executives
runs this Company, our complete commitment to building a truly great company -
and thereby producing exceptional returns for our stockholders - will not
change.
Thank you for your continued confidence in our Company. Thanks, too, to our
great clients and business partners, for whom and with whom we labor daily in an
effort to provide the best products, the best service and the best value
available. And thanks most of all to our talented team of ClickAction
professionals who make it all possible.
<PAGE>
Onward and Upward!!!
Gregory W. Slayton
Non nobis Dominus
Forward Looking Statements
To the extent that any of the statements contained herein relating to the
Company are forward-looking, such statements are based on current expectations
that involve a number of uncertainties and risks. Such uncertainties and risks
include, but are not limited to, the development of new products and services,
the enhancement of existing products and services, the dependence on principal
customers and partners, competitive pricing pressures, product volume and mix,
timing of orders received, introduction of competitive products and services
having technological and/or pricing advantages, and overall dynamics of the
industry and consolidation. For further information, refer to the risk factors
included in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 1999 and the Company's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2000, each as filed with the Securities and Exchange
Commission.
