Apropos Technology Announces First Quarter 2001 Financial Results

Apr 24, 2001, 01:00 ET from Apropos Technology, Inc.

    OAKBROOK TERRACE, Ill., April 24 /PRNewswire/ -- Apropos Technology, Inc.
 (Nasdaq:   APRS), a leading provider of real-time multi-channel interaction
 management solutions, today announced revenues of $6.1 million for the first
 quarter of 2001, a 5% increase over the same quarter a year ago.  Revenues
 were $5.8 million during the first quarter of 2000.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/19991130/APROPOS )
     Pro forma net loss for the first quarter of 2001 was $4.3 million, or a
 loss of $0.26 per share (excluding stock compensation charges).  The pro forma
 net loss for the first quarter of 2000 was $2.5 million, or a loss of $0.27
 per share (excluding stock compensation charges and amortization of stock
 warrant costs).  Including charges for stock compensation and amortization of
 stock warrant costs, the net loss for the first quarter of 2001 was
 $4.5 million, or a loss of $0.27 per share, which compares to a net loss for
 the first quarter of 2000 of $4.3 million, or a loss of $0.46 per share.
     "The financial results of the first quarter of 2001 were directly impacted
 by the overall slowdown in the economy," stated Kevin Kerns, CEO and President
 of Apropos Technology.  "Despite this slowdown in business activity, we
 continue to receive strong interest in our real-time, multi-channel customer
 interaction management solutions.  Our technology continued to receive
 favorable acceptance within the marketplace, especially with the recent
 release of our new Version 5 suite of products.  As a result, we believe our
 business will rebound as the economy begins to improve."
     "In the meantime, we have taken proactive measures to cut operating
 expenses and headcount growth to ensure the continued financial strength of
 our company and to position the company to achieve profitability by the fourth
 quarter of 2001.  Even in a slow growth environment, we believe we can deliver
 profitability by the end of this year."
     A conference call will be conducted April 24 at 5:00 p.m. Eastern Time
 (ET) to discuss first quarter results.  The conference call will be available
 to all interested parties over the Internet.  To listen to the call on the
 Internet, go to http://www.apropos.com or http://www.ccbn.com at least fifteen
 minutes early to register, download, and install any necessary audio software.
 For those who cannot listen to the live broadcast, a replay will be available
 shortly after the call at http://www.apropos.com, http://www.ccbn.com , or by
 dialing 888-266-2086 or 703-925-2435 and providing confirmation number
 5151645.  The replay will be available by phone through May 1, and over the
 Internet for one month.
 
     About Apropos Technology
     Apropos Technology, Inc. (Nasdaq:   APRS) develops and markets a leading
 real-time, multi-channel interaction management application for managing
 customer interactions across a variety of communications media, including E-
 mail, Web and Voice.  The solution enhances customer relationship management
 applications, such as sales, marketing and service, through intelligent,
 value-based management of all interactions.  It offers on-line customers the
 flexibility to interact with businesses over the Internet, through E-mail or
 Web collaboration, and provides access to human assistance through either an
 interactive Web chat or voice interaction, to help in completing a sales or
 service transaction. Apropos Technology is headquartered in Oakbrook Terrace,
 IL, and has more than 250 clients in 16 countries worldwide.  Additional
 information about Apropos and its products can be found at
 http://www.apropos.com .
 
     The Apropos Technology statements contained in this press release that are
 not purely historical are forward-looking statements within the meaning of
 Section 21E of the Securities and Exchange Act of 1934, including statements
 regarding Apropos Technology's expectations, goals, beliefs, targets, hopes,
 intentions or strategies regarding the future.  Forward-looking statements
 include statements regarding product introduction and acceptance, future
 sales, profitability and results, gross margins, additional offices and
 financial stability.  These forward-looking statements are subject to various
 risks and uncertainties as more fully set forth under the caption "Risk
 Factors" in Apropos Technology's Registration Statement on Form S-1 and under
 the caption "Risk Factors Associated with Apropos' Business and Future
 Operating Results" in Apropos Technology's Annual Report on Form 10-K for the
 year ended December 31, 2000, each as filed with the Securities and Exchange
 Commission.  Apropos Technology's actual results and the timing of certain
 events may differ significantly from the results discussed in the forward-
 looking statements.  Apropos Technology makes no commitment to disclose any
 revisions to forward-looking statements, or any facts, events or circumstances
 after the date hereof that may bear upon forward-looking statements.
 
                            Apropos Technology, Inc.
                Condensed Consolidated Statements of Operations
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                                                       Quarter ended March 31
                                                         2001           2000
     Revenue
      Software licenses                                $3,026         $3,502
      Services and other                                3,108          2,340
     Total revenue                                      6,134          5,842
 
     Cost of goods and services
      Cost of software                                    121            100
      Cost of services and other                        1,890          1,896
     Total cost of goods and services                   2,011          1,996
 
     Gross margin                                       4,123          3,846
 
     Operating expenses
      Sales and marketing                               5,258          3,141
      Research and development                          2,094          1,563
      General and administrative                        1,984          1,894
      Stock compensation charge                           189            254
     Total operating expenses                           9,525          6,852
 
     Loss from operations                              (5,402)        (3,006)
 
     Other income (expense)
      Interest income                                     904            455
      Interest expense, amortization of stock
     warrants issued with debt                             --         (1,577)
      Interest expense, other                              --           (201)
     Total other income (expense)                         904         (1,323)
 
     Net loss                                        $ (4,498)      $ (4,329)
 
     Pro forma net loss, excluding stock
      compensation charge and amortization of
      stock warrants issued with debt                 $(4,309)       $(2,498)
 
     Pro forma basic and diluted net loss
      per share, excluding stock
      compensation charge and amortization of
      stock warrants issued with debt                 $(0.26)         $(0.27)
 
     Basic and diluted net loss per share             $(0.27)         $(0.46)
 
     Weighted-average number of shares outstanding     16,381          9,370
 
 
                            Apropos Technology, Inc.
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                     March 31    December 31
                                                         2001           2000
      Assets                                      (Unaudited)      (Audited)
      Current assets:
        Cash and cash equivalents                      $6,962         $9,821
        Short-term investments                         53,765         53,910
        Accounts receivable, net                        9,477         10,976
        Inventory                                         410            412
        Prepaid expenses and other current assets       1,231          1,480
 
 
      Total current assets                             71,845         76,599
 
      Equipment, net                                    4,367          4,299
      Other assets                                        211            405
 
      Total assets                                    $76,423        $81,303
 
      Liabilities and shareholders' equity
      Current liabilities:
        Accounts payable                                 $702        $ 1,816
        Accrued expenses                                1,927          1,453
        Deferred revenues                               3,041          2,422
        Other current liabilities                       1,746          2,339
 
      Total current liabilities                         7,416          8,030
 
      Shareholders' equity
        Common Shares                                     164            163
        Additional paid-in capital                    100,098         99,866
        Accumulated deficit                           (31,255)       (26,756)
 
      Total shareholders' equity                       69,007         73,273
 
      Total liabilities and shareholders' equity      $76,423        $81,303
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X01567476
 
 

SOURCE Apropos Technology, Inc.
    OAKBROOK TERRACE, Ill., April 24 /PRNewswire/ -- Apropos Technology, Inc.
 (Nasdaq:   APRS), a leading provider of real-time multi-channel interaction
 management solutions, today announced revenues of $6.1 million for the first
 quarter of 2001, a 5% increase over the same quarter a year ago.  Revenues
 were $5.8 million during the first quarter of 2000.
     (Photo:  NewsCom:  http://www.newscom.com/cgi-bin/prnh/19991130/APROPOS )
     Pro forma net loss for the first quarter of 2001 was $4.3 million, or a
 loss of $0.26 per share (excluding stock compensation charges).  The pro forma
 net loss for the first quarter of 2000 was $2.5 million, or a loss of $0.27
 per share (excluding stock compensation charges and amortization of stock
 warrant costs).  Including charges for stock compensation and amortization of
 stock warrant costs, the net loss for the first quarter of 2001 was
 $4.5 million, or a loss of $0.27 per share, which compares to a net loss for
 the first quarter of 2000 of $4.3 million, or a loss of $0.46 per share.
     "The financial results of the first quarter of 2001 were directly impacted
 by the overall slowdown in the economy," stated Kevin Kerns, CEO and President
 of Apropos Technology.  "Despite this slowdown in business activity, we
 continue to receive strong interest in our real-time, multi-channel customer
 interaction management solutions.  Our technology continued to receive
 favorable acceptance within the marketplace, especially with the recent
 release of our new Version 5 suite of products.  As a result, we believe our
 business will rebound as the economy begins to improve."
     "In the meantime, we have taken proactive measures to cut operating
 expenses and headcount growth to ensure the continued financial strength of
 our company and to position the company to achieve profitability by the fourth
 quarter of 2001.  Even in a slow growth environment, we believe we can deliver
 profitability by the end of this year."
     A conference call will be conducted April 24 at 5:00 p.m. Eastern Time
 (ET) to discuss first quarter results.  The conference call will be available
 to all interested parties over the Internet.  To listen to the call on the
 Internet, go to http://www.apropos.com or http://www.ccbn.com at least fifteen
 minutes early to register, download, and install any necessary audio software.
 For those who cannot listen to the live broadcast, a replay will be available
 shortly after the call at http://www.apropos.com, http://www.ccbn.com , or by
 dialing 888-266-2086 or 703-925-2435 and providing confirmation number
 5151645.  The replay will be available by phone through May 1, and over the
 Internet for one month.
 
     About Apropos Technology
     Apropos Technology, Inc. (Nasdaq:   APRS) develops and markets a leading
 real-time, multi-channel interaction management application for managing
 customer interactions across a variety of communications media, including E-
 mail, Web and Voice.  The solution enhances customer relationship management
 applications, such as sales, marketing and service, through intelligent,
 value-based management of all interactions.  It offers on-line customers the
 flexibility to interact with businesses over the Internet, through E-mail or
 Web collaboration, and provides access to human assistance through either an
 interactive Web chat or voice interaction, to help in completing a sales or
 service transaction. Apropos Technology is headquartered in Oakbrook Terrace,
 IL, and has more than 250 clients in 16 countries worldwide.  Additional
 information about Apropos and its products can be found at
 http://www.apropos.com .
 
     The Apropos Technology statements contained in this press release that are
 not purely historical are forward-looking statements within the meaning of
 Section 21E of the Securities and Exchange Act of 1934, including statements
 regarding Apropos Technology's expectations, goals, beliefs, targets, hopes,
 intentions or strategies regarding the future.  Forward-looking statements
 include statements regarding product introduction and acceptance, future
 sales, profitability and results, gross margins, additional offices and
 financial stability.  These forward-looking statements are subject to various
 risks and uncertainties as more fully set forth under the caption "Risk
 Factors" in Apropos Technology's Registration Statement on Form S-1 and under
 the caption "Risk Factors Associated with Apropos' Business and Future
 Operating Results" in Apropos Technology's Annual Report on Form 10-K for the
 year ended December 31, 2000, each as filed with the Securities and Exchange
 Commission.  Apropos Technology's actual results and the timing of certain
 events may differ significantly from the results discussed in the forward-
 looking statements.  Apropos Technology makes no commitment to disclose any
 revisions to forward-looking statements, or any facts, events or circumstances
 after the date hereof that may bear upon forward-looking statements.
 
                            Apropos Technology, Inc.
                Condensed Consolidated Statements of Operations
                    (In thousands, except per share amounts)
                                  (Unaudited)
 
                                                       Quarter ended March 31
                                                         2001           2000
     Revenue
      Software licenses                                $3,026         $3,502
      Services and other                                3,108          2,340
     Total revenue                                      6,134          5,842
 
     Cost of goods and services
      Cost of software                                    121            100
      Cost of services and other                        1,890          1,896
     Total cost of goods and services                   2,011          1,996
 
     Gross margin                                       4,123          3,846
 
     Operating expenses
      Sales and marketing                               5,258          3,141
      Research and development                          2,094          1,563
      General and administrative                        1,984          1,894
      Stock compensation charge                           189            254
     Total operating expenses                           9,525          6,852
 
     Loss from operations                              (5,402)        (3,006)
 
     Other income (expense)
      Interest income                                     904            455
      Interest expense, amortization of stock
     warrants issued with debt                             --         (1,577)
      Interest expense, other                              --           (201)
     Total other income (expense)                         904         (1,323)
 
     Net loss                                        $ (4,498)      $ (4,329)
 
     Pro forma net loss, excluding stock
      compensation charge and amortization of
      stock warrants issued with debt                 $(4,309)       $(2,498)
 
     Pro forma basic and diluted net loss
      per share, excluding stock
      compensation charge and amortization of
      stock warrants issued with debt                 $(0.26)         $(0.27)
 
     Basic and diluted net loss per share             $(0.27)         $(0.46)
 
     Weighted-average number of shares outstanding     16,381          9,370
 
 
                            Apropos Technology, Inc.
                     Condensed Consolidated Balance Sheets
                                 (In thousands)
 
                                                     March 31    December 31
                                                         2001           2000
      Assets                                      (Unaudited)      (Audited)
      Current assets:
        Cash and cash equivalents                      $6,962         $9,821
        Short-term investments                         53,765         53,910
        Accounts receivable, net                        9,477         10,976
        Inventory                                         410            412
        Prepaid expenses and other current assets       1,231          1,480
 
 
      Total current assets                             71,845         76,599
 
      Equipment, net                                    4,367          4,299
      Other assets                                        211            405
 
      Total assets                                    $76,423        $81,303
 
      Liabilities and shareholders' equity
      Current liabilities:
        Accounts payable                                 $702        $ 1,816
        Accrued expenses                                1,927          1,453
        Deferred revenues                               3,041          2,422
        Other current liabilities                       1,746          2,339
 
      Total current liabilities                         7,416          8,030
 
      Shareholders' equity
        Common Shares                                     164            163
        Additional paid-in capital                    100,098         99,866
        Accumulated deficit                           (31,255)       (26,756)
 
      Total shareholders' equity                       69,007         73,273
 
      Total liabilities and shareholders' equity      $76,423        $81,303
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X01567476
 
 SOURCE  Apropos Technology, Inc.