eCollege(SM) Announces 2001 First Quarter Results; First Quarter Revenue Increased 93 Percent With Strong Bottom Line Improvement

Apr 30, 2001, 01:00 ET from eCollege

    DENVER, April 30 /PRNewswire/ -- eCollege(SM) (Nasdaq:   ECLG), a leading
 provider of eLearning software and services to the higher education market,
 today announced its financial results for the first quarter ending
 March 31, 2001.  Revenues for the first quarter increased 93 percent to
 $4.2 million, up from $2.2 million reported in the first quarter of 2000, and
 net loss for the first quarter was $4.9 million, compared to a net loss of
 $7.7 million for the same period last year.
     The net loss per share for the quarter was $0.30, calculated on an average
 of 16.1 million shares.  This compares to a net loss per share of $0.52 for
 the same quarter last year, which included a $0.07 per share loss due to a
 cumulative adjustment for a change in accounting principle.  The EBITDA
 adjusted for deferred compensation significantly improved to a negative
 $4.0 million, compared to a negative $6.2 million in the first quarter of 2000
 and a negative $5.5 million in fourth quarter of 2000.
     "We nearly doubled revenue over the same quarter last year, while
 significantly reducing our loss for the second quarter in a row," said
 Oakleigh Thorne, chairman and CEO.  "Our results demonstrate the leverage in
 our business model, and are consistent with our plans to reach cash flow
 break-even in the fourth quarter."
     On March 31, 2001, the company had cash and short-term investments of
 $18.7 million and deferred revenue of $5.0 million.  Total assets were
 $35.2 million and shareholder equity totaled $21.4 million.
 
     The following are highlights from eCollege's first quarter:
 
     -- eCollege signed 16 new clients during the first quarter, including
        University of Massachusetts Boston, California State University
        Long Beach, The National Association of Insurance Commissioners, and
        ExxonMobil Research and Engineering Company, bringing the total number
        of current customers to 222.
 
     -- The number of total course enrollments increased by 128 percent in the
        spring term, to more than 55,000.
 
     -- The number of courses running increased by 128 percent to more than
        4,000 in the spring term of 2001, compared to the spring term of 2000.
 
     -- eCollege announced a new suite of products and services designed to
        meet the needs of the on-campus market.
 
     -- eCollege successfully released its new campus product,
        CampusPortal(SM), with five beta customers.
 
     -- eCollege strengthened its board of directors with the addition of
        Robert Mundheim.  Mundheim brings an extensive career in both academia
        and Wall Street.
 
     -- eCollege launched its Campus Author(SM) tool, enabling administrators
        to easily update their online campus content in real time, without any
        knowledge of HTML.
 
     Conference Call
     eCollege will hold a conference call to discuss first quarter results at
 5:00 p.m. EDT today.  Interested parties can listen to the conference call
 live on the Internet by going to the investor relations section of eCollege's
 website at www.ecollege.com and clicking on the "Live Web cast" link.  Please
 access the website at least 15 minutes prior to the start of the call to
 register, download and install any necessary audio software.
     For those unable to listen at the designated time, the archived Web cast
 will be available on eCollege's website.  A conference call replay will also
 be available from approximately 7:00 p.m. EDT on April 30, 2001 until
 midnight EDT on May 7, 2001.  To listen to the replay, participants in the
 U.S. should dial 1-800-374-0934, and international callers should dial
 1-402-220-0680.  The confirmation code is: eCollege.
 
     About eCollege
     eCollege (Nasdaq:   ECLG) is an eLearning software and services provider.
 Comprised of educators and technologists, eCollege partners with colleges,
 universities, schools and corporations to design, build and support high
 quality learning communities.  eCollege's Educational Partners include such
 institutions as National University; Seton Hall University; University of
 Colorado; DeVry University, Inc.; Kentucky Virtual High School; and
 Microsoft Faculty Center.  The company was founded in 1996 and is
 headquartered in Denver.  For more information, visit www.eCollege.com.
 
     The statements set forth above include forward-looking statements that
 involve risks and uncertainties, including those relating to the Company's
 financial outlook for future periods, including revenue, operating losses,
 expenses and cost reduction plans, and financial position and outlook for
 future results.  The Company wishes to advise readers that a number of
 important factors could cause actual results to differ materially from those
 in the forward-looking statements.  Those factors include: the Company's
 limited operating history, which makes it difficult to evaluate its business
 and prospects; the possibility that the market in which the Company operates,
 which is at an early stage, may not develop to the extent or at the rate the
 Company anticipates; the Company's lengthy sales cycle; substantial and
 increasing competition in the online education market; disruptions to
 operations and negative accounting charges that could occur if the Company
 decided to pursue an acquisition; technological developments, emerging
 industry standards and customer requirements, which continually require the
 Company to improve its software and services.  These and other factors, which
 could cause actual results to differ materially, are also discussed in the
 Company's filings with the SEC, including its form 10-K for 2000, which was
 filed on April 2, 2001.  The forward-looking statements in this press release
 are made as of the day hereof and the Company assumes no obligation to update
 their forward-looking statements.
 
     eCollege, CampusPortal, Campus Author, and eCollege System are service
 marks of eCollege.  All other trademarks or registered trademarks are the
 property of their respective owners.
 
 
                                  eCollege(SM)
                            Condensed Balance Sheets
                                 (in thousands)
 
                                                   March 31,   December 31,
                                                      2001         2000
                                                   Unaudited
 
     Assets
     Current Assets:
       Cash, Cash Equivalents, and
        Short-term Investments                      $18,679       $28,415
       Accounts Receivable and
        Other Current Assets                          5,692         5,638
         Total Current Assets                        24,371        34,053
 
     Property and Equipment (Net),
      Software Development Costs,
      and Other Assets                               10,793        10,695
     Total Assets                                   $35,164       $44,748
 
     Liabilities and Shareholders' Equity
     Current Liabilities:
       Accounts Payable and Accrued Liabilities      $6,906        $9,704
       Deferred Revenue                               4,165         3,839
       Capital Lease Obligations                        661           630
       Line of Credit                                    --         2,000
         Total Current Liabilities                   11,732        16,173
 
     Long-term Capital Lease Obligations              1,206         1,389
     Deferred Revenue                                   842           894
     Other Liabilities                                    3             5
     Total Liabilities                               13,783        18,461
     Shareholders' Equity                            21,381        26,287
     Total Liabilities and
      Shareholders' Equity                          $35,164       $44,748
 
 
                                    eCollege(SM)
                         Condensed Statements of Operations
                  (in thousands, except share and per share data)
 
                                                      Three Months Ended
                                                           March 31
                                                      2001          2000
                                                           Unaudited
 
     Revenues:
       Student Fees                                  $2,754        $1,167
       Campus and Course Development
        Revenue and Other                             1,461         1,017
         Total Revenues                               4,215         2,184
 
     Cost of Revenue                                  3,783         2,854
 
     Gross Profit (Loss)                                432          (670)
 
     Operating Costs and Expenses:
       Product Development                            1,368         1,316
       Selling and Marketing                          2,354         2,869
       General and Administrative                     1,834         2,288
         Total Operating Costs and Expenses           5,556         6,473
 
     Loss from Operations                            (5,124)       (7,143)
     Interest and Other Income, Net                     203           698
     Net Loss before Cumulative Effect
      of Change in Accounting Principle              (4,921)       (6,445)
     Cumulative Effect of Change
      in Accounting Principle                            --        (1,205)
     Net Loss                                       $(4,921)      $(7,650)
 
     Basic and Diluted Net Loss per Share            $(0.30)       $(0.52)
 
     Weighted Average Shares Outstanding
      - Basic and Diluted                        16,146,153    14,745,694
 
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SOURCE eCollege
    DENVER, April 30 /PRNewswire/ -- eCollege(SM) (Nasdaq:   ECLG), a leading
 provider of eLearning software and services to the higher education market,
 today announced its financial results for the first quarter ending
 March 31, 2001.  Revenues for the first quarter increased 93 percent to
 $4.2 million, up from $2.2 million reported in the first quarter of 2000, and
 net loss for the first quarter was $4.9 million, compared to a net loss of
 $7.7 million for the same period last year.
     The net loss per share for the quarter was $0.30, calculated on an average
 of 16.1 million shares.  This compares to a net loss per share of $0.52 for
 the same quarter last year, which included a $0.07 per share loss due to a
 cumulative adjustment for a change in accounting principle.  The EBITDA
 adjusted for deferred compensation significantly improved to a negative
 $4.0 million, compared to a negative $6.2 million in the first quarter of 2000
 and a negative $5.5 million in fourth quarter of 2000.
     "We nearly doubled revenue over the same quarter last year, while
 significantly reducing our loss for the second quarter in a row," said
 Oakleigh Thorne, chairman and CEO.  "Our results demonstrate the leverage in
 our business model, and are consistent with our plans to reach cash flow
 break-even in the fourth quarter."
     On March 31, 2001, the company had cash and short-term investments of
 $18.7 million and deferred revenue of $5.0 million.  Total assets were
 $35.2 million and shareholder equity totaled $21.4 million.
 
     The following are highlights from eCollege's first quarter:
 
     -- eCollege signed 16 new clients during the first quarter, including
        University of Massachusetts Boston, California State University
        Long Beach, The National Association of Insurance Commissioners, and
        ExxonMobil Research and Engineering Company, bringing the total number
        of current customers to 222.
 
     -- The number of total course enrollments increased by 128 percent in the
        spring term, to more than 55,000.
 
     -- The number of courses running increased by 128 percent to more than
        4,000 in the spring term of 2001, compared to the spring term of 2000.
 
     -- eCollege announced a new suite of products and services designed to
        meet the needs of the on-campus market.
 
     -- eCollege successfully released its new campus product,
        CampusPortal(SM), with five beta customers.
 
     -- eCollege strengthened its board of directors with the addition of
        Robert Mundheim.  Mundheim brings an extensive career in both academia
        and Wall Street.
 
     -- eCollege launched its Campus Author(SM) tool, enabling administrators
        to easily update their online campus content in real time, without any
        knowledge of HTML.
 
     Conference Call
     eCollege will hold a conference call to discuss first quarter results at
 5:00 p.m. EDT today.  Interested parties can listen to the conference call
 live on the Internet by going to the investor relations section of eCollege's
 website at www.ecollege.com and clicking on the "Live Web cast" link.  Please
 access the website at least 15 minutes prior to the start of the call to
 register, download and install any necessary audio software.
     For those unable to listen at the designated time, the archived Web cast
 will be available on eCollege's website.  A conference call replay will also
 be available from approximately 7:00 p.m. EDT on April 30, 2001 until
 midnight EDT on May 7, 2001.  To listen to the replay, participants in the
 U.S. should dial 1-800-374-0934, and international callers should dial
 1-402-220-0680.  The confirmation code is: eCollege.
 
     About eCollege
     eCollege (Nasdaq:   ECLG) is an eLearning software and services provider.
 Comprised of educators and technologists, eCollege partners with colleges,
 universities, schools and corporations to design, build and support high
 quality learning communities.  eCollege's Educational Partners include such
 institutions as National University; Seton Hall University; University of
 Colorado; DeVry University, Inc.; Kentucky Virtual High School; and
 Microsoft Faculty Center.  The company was founded in 1996 and is
 headquartered in Denver.  For more information, visit www.eCollege.com.
 
     The statements set forth above include forward-looking statements that
 involve risks and uncertainties, including those relating to the Company's
 financial outlook for future periods, including revenue, operating losses,
 expenses and cost reduction plans, and financial position and outlook for
 future results.  The Company wishes to advise readers that a number of
 important factors could cause actual results to differ materially from those
 in the forward-looking statements.  Those factors include: the Company's
 limited operating history, which makes it difficult to evaluate its business
 and prospects; the possibility that the market in which the Company operates,
 which is at an early stage, may not develop to the extent or at the rate the
 Company anticipates; the Company's lengthy sales cycle; substantial and
 increasing competition in the online education market; disruptions to
 operations and negative accounting charges that could occur if the Company
 decided to pursue an acquisition; technological developments, emerging
 industry standards and customer requirements, which continually require the
 Company to improve its software and services.  These and other factors, which
 could cause actual results to differ materially, are also discussed in the
 Company's filings with the SEC, including its form 10-K for 2000, which was
 filed on April 2, 2001.  The forward-looking statements in this press release
 are made as of the day hereof and the Company assumes no obligation to update
 their forward-looking statements.
 
     eCollege, CampusPortal, Campus Author, and eCollege System are service
 marks of eCollege.  All other trademarks or registered trademarks are the
 property of their respective owners.
 
 
                                  eCollege(SM)
                            Condensed Balance Sheets
                                 (in thousands)
 
                                                   March 31,   December 31,
                                                      2001         2000
                                                   Unaudited
 
     Assets
     Current Assets:
       Cash, Cash Equivalents, and
        Short-term Investments                      $18,679       $28,415
       Accounts Receivable and
        Other Current Assets                          5,692         5,638
         Total Current Assets                        24,371        34,053
 
     Property and Equipment (Net),
      Software Development Costs,
      and Other Assets                               10,793        10,695
     Total Assets                                   $35,164       $44,748
 
     Liabilities and Shareholders' Equity
     Current Liabilities:
       Accounts Payable and Accrued Liabilities      $6,906        $9,704
       Deferred Revenue                               4,165         3,839
       Capital Lease Obligations                        661           630
       Line of Credit                                    --         2,000
         Total Current Liabilities                   11,732        16,173
 
     Long-term Capital Lease Obligations              1,206         1,389
     Deferred Revenue                                   842           894
     Other Liabilities                                    3             5
     Total Liabilities                               13,783        18,461
     Shareholders' Equity                            21,381        26,287
     Total Liabilities and
      Shareholders' Equity                          $35,164       $44,748
 
 
                                    eCollege(SM)
                         Condensed Statements of Operations
                  (in thousands, except share and per share data)
 
                                                      Three Months Ended
                                                           March 31
                                                      2001          2000
                                                           Unaudited
 
     Revenues:
       Student Fees                                  $2,754        $1,167
       Campus and Course Development
        Revenue and Other                             1,461         1,017
         Total Revenues                               4,215         2,184
 
     Cost of Revenue                                  3,783         2,854
 
     Gross Profit (Loss)                                432          (670)
 
     Operating Costs and Expenses:
       Product Development                            1,368         1,316
       Selling and Marketing                          2,354         2,869
       General and Administrative                     1,834         2,288
         Total Operating Costs and Expenses           5,556         6,473
 
     Loss from Operations                            (5,124)       (7,143)
     Interest and Other Income, Net                     203           698
     Net Loss before Cumulative Effect
      of Change in Accounting Principle              (4,921)       (6,445)
     Cumulative Effect of Change
      in Accounting Principle                            --        (1,205)
     Net Loss                                       $(4,921)      $(7,650)
 
     Basic and Diluted Net Loss per Share            $(0.30)       $(0.52)
 
     Weighted Average Shares Outstanding
      - Basic and Diluted                        16,146,153    14,745,694
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27678563
 
 SOURCE  eCollege