Artificial Life Announces 2000 Financial Results Revenue Growth Exceeds 200%

Apr 02, 2001, 01:00 ET from Artificial Life, Inc.

    BOSTON, April 2 /PRNewswire/ -- Artificial Life, Inc. (Nasdaq:   ALIF) a
 leading provider of SmartBot(TM) Internet technology today announced its
 fiscal 2000 and Q4 2000 results.
     Revenues for the year ended December 31, 2000 were $12,464,847 as compared
 to $3,909,076 for the year ended December 31, 1999.  The increase of
 $8,555,771 or 218.87% was due to increases in license and related application
 services revenue generated by the expansion of our client base both in the
 United States and Europe.
     "We had to deal with a very tough Internet market on a global scale since
 the first quarter of 2000, but we still managed to grow revenues over
 200% compared to last year.  This was a major achievement for us under the
 circumstances.  We have also strongly broadened our customer base in 2000 and
 the relative portion of license revenues compared to service revenues," said
 CEO and Chairman of Artificial Life, Inc., Eberhard Schoneburg.
     Noteworthy achievements and implementations regarding clients and partners
 for the Artificial Life Group in 2000 include, among others, Credit Suisse
 First Boston (USA), Advance Bank (Germany), Eagle Star (Division of Zurich
 Financial Services-UK) and Pioneer Investment Management, Inc. (USA).  These
 implementations represent a wide array of our technology and capabilities and
 include components of both our eCRM and financial service product suites.
 Further, both the number of clients and amount of license fees, increased
 significantly.  Our strategic partners increased and include, among others,
 TripleHop Technologies (USA); Echzeit, noDNA, Softlab (Germany); Artificial
 Solutions (Scandinavia) and WebAgent (Italy).
     Net Loss for the year ended December 31, 2000 was $12,588,295 or $1.23 per
 share as compared to $6,758,214 or $0.70 per share for the year ended
 December 31, 1999.  This increase of $5,830,081 or 86.27% was due to the
 following factors:  the continued buildup of our infrastructure and personnel
 to support the global growth, a provision for doubtful receivables of
 $2,162,000, the increase of a net loss in a joint venture of $699,494 and the
 increased marketing effort of approximately $1,300,000.
     Revenues for the fourth quarter 2000 were $3,471,181 as compared to
 $1,373,037 for the fourth quarter 1999. The increase of $2,098,144 or
 152.81% was due to increases in license and related application services
 revenue generated by the expansion of our client base both in the United
 States and Europe.
     Net Loss for the fourth quarter 2000 was $5,533,098 or $0.54 per share as
 compared to $3,424,047 or $0.35 per share for the fourth quarter 1999.  The
 loss was due to the following factors:  the continued buildup of our
 infrastructure and personnel to support the global growth and a provision for
 doubtful accounts of $ 2,162,000, which is not expected recur and was the
 first provision for bad debt ever recorded by the Company.
     Our continued losses from operations were partially funded through three
 private placements of common stock totaling $8.9 million.  The Company has
 continued to incur losses in the first quarter of 2001 and does not anticipate
 achieving profitability until late 2001.  Our continued losses have
 substantially impacted our cash position.  In order to fund cash needs for
 2001, the Company has taken steps to reduce operating costs.  In addition,
 with the substantial completion of the development of its core technology,
 individual products and product suites, the Company will be reducing its
 research and development expenses substantially in 2001.  Without obtaining
 additional financing or capital, we will not have sufficient resources to fund
 our operations through 2001.  The Company recently entered into an irrevocable
 stock purchase agreement with an investor to provide equity financing.
 However, the Company remains engaged in discussions to obtain additional
 sources of capital to secure the future of the Company.  "We are pleased to
 have secured the long-term equity line, particularly given the current climate
 in the capital markets.  However, it will not be available until a
 registration statement is effective," said Robert E. Pantano, Chief Financial
 Officer of Artificial Life, Inc.  Therefore, to continue to meet its ongoing
 obligations, the Company needs to secure its funding in the next month.  At
 the date of the auditors report, there was no binding agreement in place for
 sufficient sources of capital.  As a result, the Company's auditors included a
 going concern emphasis in their auditors report.  The Company is in
 discussions with a number of financing sources and is confident it can obtain
 the required financing.  However, there can be no assurance of this.
     "After a strong period of revenue growth from $ 0.4 million in 1998 to
 over $12 million in 2000, we will focus this year on our goal to achieve
 profitability as we had planned since our IPO.  However, because of the
 current unpredictability in growth of the global Internet markets, this will
 require us to adjust spending on a global level, to reduce personnel expenses
 and to license some of our intellectual property.  We also plan to reduce
 global costs and expenses as we complete our transition from product
 development to a global marketing and sales organization.  In addition, we
 currently are considering and evaluating a new and more efficient corporate
 structure in which our existing subsidiaries will be organized according to
 lines of business rather than geographic area.  We will announce this new
 business strategy in a separate communication soon," concluded CEO Eberhard
 Schoneburg.
 
     About Artificial Life
     Founded in 1994, Artificial Life, Inc. (Nasdaq:   ALIF) develops, markets,
 and supports intelligent software robots for the Internet.  The company offers
 uniquely conversational bot-based products for customer service, consultative
 selling, Web-based learning, Web site navigation, automated e-mail response,
 and financial portfolio management.  Major customers of the Artificial Life
 Group include, among others, Pioneer Investment Management, Inc., Credit
 Suisse First Boston, UBS, Advance Bank, Eagle Star, and MobilCom. The Company
 recently won a Massachusetts Interactive Media Council (MIMC) award in the
 category of "Enabling Technologies-User Applications".
     Artificial Life, Inc. is headquartered in Boston, Massachusetts, U.S.A,
 and maintains subsidiaries in Switzerland, Germany, Russia, and Hong Kong.
 Detailed information about Artificial Life, Inc. and its products is available
 at http://www.artificial-life.com .
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
      of 1995:
     Statements in this press release regarding Artificial Life, Inc.'s
 business that are not historical facts are "forward-looking statements" that
 involve risks and uncertainties.  For a discussion of such risks and
 uncertainties, which could cause actual results to differ from those contained
 in the forward-looking statements, see "Risk Factors" in the Company's Annual
 Report or Form 10-K for the most recently ended fiscal year.
 
 

SOURCE Artificial Life, Inc.
    BOSTON, April 2 /PRNewswire/ -- Artificial Life, Inc. (Nasdaq:   ALIF) a
 leading provider of SmartBot(TM) Internet technology today announced its
 fiscal 2000 and Q4 2000 results.
     Revenues for the year ended December 31, 2000 were $12,464,847 as compared
 to $3,909,076 for the year ended December 31, 1999.  The increase of
 $8,555,771 or 218.87% was due to increases in license and related application
 services revenue generated by the expansion of our client base both in the
 United States and Europe.
     "We had to deal with a very tough Internet market on a global scale since
 the first quarter of 2000, but we still managed to grow revenues over
 200% compared to last year.  This was a major achievement for us under the
 circumstances.  We have also strongly broadened our customer base in 2000 and
 the relative portion of license revenues compared to service revenues," said
 CEO and Chairman of Artificial Life, Inc., Eberhard Schoneburg.
     Noteworthy achievements and implementations regarding clients and partners
 for the Artificial Life Group in 2000 include, among others, Credit Suisse
 First Boston (USA), Advance Bank (Germany), Eagle Star (Division of Zurich
 Financial Services-UK) and Pioneer Investment Management, Inc. (USA).  These
 implementations represent a wide array of our technology and capabilities and
 include components of both our eCRM and financial service product suites.
 Further, both the number of clients and amount of license fees, increased
 significantly.  Our strategic partners increased and include, among others,
 TripleHop Technologies (USA); Echzeit, noDNA, Softlab (Germany); Artificial
 Solutions (Scandinavia) and WebAgent (Italy).
     Net Loss for the year ended December 31, 2000 was $12,588,295 or $1.23 per
 share as compared to $6,758,214 or $0.70 per share for the year ended
 December 31, 1999.  This increase of $5,830,081 or 86.27% was due to the
 following factors:  the continued buildup of our infrastructure and personnel
 to support the global growth, a provision for doubtful receivables of
 $2,162,000, the increase of a net loss in a joint venture of $699,494 and the
 increased marketing effort of approximately $1,300,000.
     Revenues for the fourth quarter 2000 were $3,471,181 as compared to
 $1,373,037 for the fourth quarter 1999. The increase of $2,098,144 or
 152.81% was due to increases in license and related application services
 revenue generated by the expansion of our client base both in the United
 States and Europe.
     Net Loss for the fourth quarter 2000 was $5,533,098 or $0.54 per share as
 compared to $3,424,047 or $0.35 per share for the fourth quarter 1999.  The
 loss was due to the following factors:  the continued buildup of our
 infrastructure and personnel to support the global growth and a provision for
 doubtful accounts of $ 2,162,000, which is not expected recur and was the
 first provision for bad debt ever recorded by the Company.
     Our continued losses from operations were partially funded through three
 private placements of common stock totaling $8.9 million.  The Company has
 continued to incur losses in the first quarter of 2001 and does not anticipate
 achieving profitability until late 2001.  Our continued losses have
 substantially impacted our cash position.  In order to fund cash needs for
 2001, the Company has taken steps to reduce operating costs.  In addition,
 with the substantial completion of the development of its core technology,
 individual products and product suites, the Company will be reducing its
 research and development expenses substantially in 2001.  Without obtaining
 additional financing or capital, we will not have sufficient resources to fund
 our operations through 2001.  The Company recently entered into an irrevocable
 stock purchase agreement with an investor to provide equity financing.
 However, the Company remains engaged in discussions to obtain additional
 sources of capital to secure the future of the Company.  "We are pleased to
 have secured the long-term equity line, particularly given the current climate
 in the capital markets.  However, it will not be available until a
 registration statement is effective," said Robert E. Pantano, Chief Financial
 Officer of Artificial Life, Inc.  Therefore, to continue to meet its ongoing
 obligations, the Company needs to secure its funding in the next month.  At
 the date of the auditors report, there was no binding agreement in place for
 sufficient sources of capital.  As a result, the Company's auditors included a
 going concern emphasis in their auditors report.  The Company is in
 discussions with a number of financing sources and is confident it can obtain
 the required financing.  However, there can be no assurance of this.
     "After a strong period of revenue growth from $ 0.4 million in 1998 to
 over $12 million in 2000, we will focus this year on our goal to achieve
 profitability as we had planned since our IPO.  However, because of the
 current unpredictability in growth of the global Internet markets, this will
 require us to adjust spending on a global level, to reduce personnel expenses
 and to license some of our intellectual property.  We also plan to reduce
 global costs and expenses as we complete our transition from product
 development to a global marketing and sales organization.  In addition, we
 currently are considering and evaluating a new and more efficient corporate
 structure in which our existing subsidiaries will be organized according to
 lines of business rather than geographic area.  We will announce this new
 business strategy in a separate communication soon," concluded CEO Eberhard
 Schoneburg.
 
     About Artificial Life
     Founded in 1994, Artificial Life, Inc. (Nasdaq:   ALIF) develops, markets,
 and supports intelligent software robots for the Internet.  The company offers
 uniquely conversational bot-based products for customer service, consultative
 selling, Web-based learning, Web site navigation, automated e-mail response,
 and financial portfolio management.  Major customers of the Artificial Life
 Group include, among others, Pioneer Investment Management, Inc., Credit
 Suisse First Boston, UBS, Advance Bank, Eagle Star, and MobilCom. The Company
 recently won a Massachusetts Interactive Media Council (MIMC) award in the
 category of "Enabling Technologies-User Applications".
     Artificial Life, Inc. is headquartered in Boston, Massachusetts, U.S.A,
 and maintains subsidiaries in Switzerland, Germany, Russia, and Hong Kong.
 Detailed information about Artificial Life, Inc. and its products is available
 at http://www.artificial-life.com .
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
      of 1995:
     Statements in this press release regarding Artificial Life, Inc.'s
 business that are not historical facts are "forward-looking statements" that
 involve risks and uncertainties.  For a discussion of such risks and
 uncertainties, which could cause actual results to differ from those contained
 in the forward-looking statements, see "Risk Factors" in the Company's Annual
 Report or Form 10-K for the most recently ended fiscal year.
 
 SOURCE  Artificial Life, Inc.