eshare communications, Inc. Reports First Quarter Earnings

Apr 26, 2001, 01:00 ET from eshare communications, Inc.

    ATLANTA, April 26 /PRNewswire/ --
 eshare communications(R), Inc. (Nasdaq:   ESHR), a leading provider of Customer
 Interaction Management (CIM) solutions, today announced its results for the
 first quarter ended March 31, 2001.
     For the first quarter ended March 31, 2001, the Company reported revenues
 of $19.1 million, as compared to $20.5 million reported for the period ended
 March 31, 2000.  Net loss for the quarter ended March 31, 2001 was $(2.3)
 million, or $(0.10) per diluted common share, compared with a net loss of
 $(0.8) million, or $(0.04) per diluted common share, for the comparable period
 ended March 31, 2000.  There were 21,975,000 and 21,435,000 average number of
 diluted common shares outstanding for the quarters ended March 31, 2001 and
 2000, respectively.
     Analyst-projected revenues for the quarter had been $17.3 million with a
 net loss of $(3.6) million or $(0.16) per common share based on an estimated
 22,302,000 shares outstanding.
     Aleksander Szlam, chairman and chief executive officer, noted, "As we
 communicated earlier in the month, we are pleased that our revenue exceeded
 projections by approximately 10% and that our losses were 36% less than
 projected.  During the quarter we took significant steps to continue the
 reduction of our operating expenses.  While many of these actions will not be
 fully effective until subsequent quarters, our total operating expenses have
 already dropped slightly below the same period last year.  Our investment in
 infrastructure and processes improvements over the past two years is beginning
 to pay off.  The benefits we are receiving from these improvements are helping
 to streamline the company's entire operations and are enabling us to introduce
 our various offerings in a more systematic and economical way.  We remain
 optimistic that demand for our customer interaction management solutions will
 continue to grow in the second quarter and beyond.  This growth, combined with
 our continued expense reduction efforts, should bring us to our goal of
 profitability."
 
     Quarterly Highlights
     The following highlights were announced or occurred since eshare
 communications' last quarterly results release:
 
     Recent Developments
     During the quarter, eshare communications launched the Beta for the March
 release of NetAgent Suite (5.0), introducing the next generation of our award-
 winning NetAgent product line.  NetAgent Suite introduces many new
 capabilities, including support for multi-national deployments, hosting
 environments, and wireless access to contact center data.  The multi-national
 capabilities enable any contact center to communicate with its customers in up
 to 13 different languages, creating broad new markets for the best-in-class
 eCIM suite.  Additionally, the wireless and hosting capabilities ensure
 industry-leading support for the features that advanced mobile users and ASPs
 require.
 
     Expansion of International Distribution
     During Q1, eshare continued its worldwide growth of distribution
 partnerships.  Building off Q4 2000 expansion in Australia, New Zealand, and
 Taiwan with companies such as Azure Information Technology and Premier
 Technologies, Pty. Ltd., eshare finalized international distribution
 agreements in Mexico and South America.  In particular, the international
 partnerships include, Ericsson Enterprise Systems, IDES, Manta Technologies
 Group, and Neoris.
     eshare communications Customer Wins:  Selected customers standardizing on
 eshare solutions in the first quarter include: AT&T Broadband, Citigroup,
 Conseco Finance, Eircom, Littlewoods Retail Ltd., Sprint, Victoria's Secret,
 and others.
 
     Awards
     NetAgent 4.0, eshare's fully featured Web customer interaction management
 solution, received an "A" rating from Communications Solutions(TM) magazine.
 According to Rich Tehrani, publisher of the monthly trade magazine, "NetAgent
 brings a new level of productivity to the multimedia call center, allowing
 agents to handle multiple Web visitors and e-mail recipients without losing
 that critical human touch.  In addition, the inclusion and enhancement of
 bi-directional Web collaboration, Web callback requests, and assisted form-
 filling bring NetAgent closer to the CRM space by supporting the leveraging of
 customer histories through Enterprise Data Access."
 
     About eshare communications, Inc.
     Norcross, Georgia-based eshare communications, Inc.
 (http://www.eshare.com ) is a premier worldwide provider of integrated
 Customer Interaction Management (CIM) solutions that power the customer
 relationship strategies of businesses conducting traditional and Internet
 commerce.  eshare leverages its expertise in both Web-based and traditional
 call center technologies to provide more than 2,500 businesses with
 comprehensive, scalable and integrated customer interaction solutions.  Its
 applications enhance a company's existing marketing, sales and service efforts
 and optimize customer lifetime value while building brand loyalty.  eshare was
 formed by the September 1999 merger of Melita International, Inc., a leader in
 telephony-based customer contact management, and eShare Technologies, Inc., a
 leader in Web-based customer care solutions.
     This press release contains forward-looking statements relating to product
 acceptance, results of certain programs; results of operations; market
 penetration and market strategies.  Such statements are made based on
 management's beliefs as well as assumptions made by, and information currently
 available to, management, pursuant to "safe-harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  While these statements reflect our
 best judgement, they are subject to risks and uncertainties that could cause a
 change in focus and direction.  A discussion of certain risk factors that may
 cause actual results to differ from these forward-looking statements can be
 found in eshare's Annual Report on Form 10-K for the period ended December 31,
 2000, on file with the SEC.
 
 
                            eshare communications, Inc.
                       Consolidated Statements of Operations
                                    (unaudited)
 
 
                                              For the three months ended
                                                      March 31,
                                                2001             2000
                                          (in thousands except per share data)
 
     Net revenues:
         Product                                   $10,074          $12,667
         Service                                     9,025            7,789
            Total revenues                          19,099           20,456
 
     Cost of revenues:
         Product                                     2,500            2,852
         Service                                     5,760            4,160
            Total cost of revenues                   8,260            7,012
 
     Gross margin                                   10,839           13,444
 
     Operating expenses:
         Engineering, research and
          development                                2,641            2,675
         Selling, general and
          administrative                            12,172           12,166
            Total operating expenses                14,813           14,841
     Loss from operations                           (3,974)          (1,397)
 
     Other income, net                                 373              113
     Loss before income taxes                       (3,601)          (1,284)
 
 
     Income tax benefit                             (1,296)            (462)
     Net loss                                      $(2,305)           $(822)
 
     Earnings per share:
         Basic earnings per share                   ($0.10)          ($0.04)
         Diluted earnings per share                 ($0.10)          ($0.04)
 
 
     Weighted average shares outstanding
         Basic                                      21,975           21,435
         Diluted                                    21,975           21,435
 
 
 
 
                            eshare communications, Inc.
                       Condensed Consolidated Balance Sheets
                                    (unaudited)
 
 
                                                March 31,        December 31,
                                                   2001              2000
                                                        (In thousands)
     Current assets:
           Cash and investments                      $9,878           $14,727
           Accounts receivable, net                  24,598            26,587
           Inventory, net                             1,913             2,157
           Deferred taxes                             1,394             1,397
           Other current assets                       6,146             5,236
                Total current assets                 43,929            50,104
 
     Property and equipment, net                     10,194            10,656
     Deferred taxes                                   9,072             7,776
     Intangible assets, net                           3,921             4,196
     Other assets                                       132               140
                Total assets                        $67,248           $72,872
 
     Current liabilities:
           Accounts payable                           5,997             7,809
           Accrued liabilities                        7,249             8,711
           Deferred revenue                          11,328            11,463
           Other current liabilities                    520               499
                Total current liabilities            25,094            28,482
 
 
     Common Stock                                        69                69
     Additional paid-in-capital                      62,355            62,166
     Accumulated other comprehensive
      income                                         (1,139)           (1,020)
     Accumulated deficit                            (19,131)          (16,825)
           Total stockholders' equity                42,154            44,390
                Total liabilities and
                 stockholders' equity               $67,248           $72,872
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X49583063
 
 

SOURCE eshare communications, Inc.
    ATLANTA, April 26 /PRNewswire/ --
 eshare communications(R), Inc. (Nasdaq:   ESHR), a leading provider of Customer
 Interaction Management (CIM) solutions, today announced its results for the
 first quarter ended March 31, 2001.
     For the first quarter ended March 31, 2001, the Company reported revenues
 of $19.1 million, as compared to $20.5 million reported for the period ended
 March 31, 2000.  Net loss for the quarter ended March 31, 2001 was $(2.3)
 million, or $(0.10) per diluted common share, compared with a net loss of
 $(0.8) million, or $(0.04) per diluted common share, for the comparable period
 ended March 31, 2000.  There were 21,975,000 and 21,435,000 average number of
 diluted common shares outstanding for the quarters ended March 31, 2001 and
 2000, respectively.
     Analyst-projected revenues for the quarter had been $17.3 million with a
 net loss of $(3.6) million or $(0.16) per common share based on an estimated
 22,302,000 shares outstanding.
     Aleksander Szlam, chairman and chief executive officer, noted, "As we
 communicated earlier in the month, we are pleased that our revenue exceeded
 projections by approximately 10% and that our losses were 36% less than
 projected.  During the quarter we took significant steps to continue the
 reduction of our operating expenses.  While many of these actions will not be
 fully effective until subsequent quarters, our total operating expenses have
 already dropped slightly below the same period last year.  Our investment in
 infrastructure and processes improvements over the past two years is beginning
 to pay off.  The benefits we are receiving from these improvements are helping
 to streamline the company's entire operations and are enabling us to introduce
 our various offerings in a more systematic and economical way.  We remain
 optimistic that demand for our customer interaction management solutions will
 continue to grow in the second quarter and beyond.  This growth, combined with
 our continued expense reduction efforts, should bring us to our goal of
 profitability."
 
     Quarterly Highlights
     The following highlights were announced or occurred since eshare
 communications' last quarterly results release:
 
     Recent Developments
     During the quarter, eshare communications launched the Beta for the March
 release of NetAgent Suite (5.0), introducing the next generation of our award-
 winning NetAgent product line.  NetAgent Suite introduces many new
 capabilities, including support for multi-national deployments, hosting
 environments, and wireless access to contact center data.  The multi-national
 capabilities enable any contact center to communicate with its customers in up
 to 13 different languages, creating broad new markets for the best-in-class
 eCIM suite.  Additionally, the wireless and hosting capabilities ensure
 industry-leading support for the features that advanced mobile users and ASPs
 require.
 
     Expansion of International Distribution
     During Q1, eshare continued its worldwide growth of distribution
 partnerships.  Building off Q4 2000 expansion in Australia, New Zealand, and
 Taiwan with companies such as Azure Information Technology and Premier
 Technologies, Pty. Ltd., eshare finalized international distribution
 agreements in Mexico and South America.  In particular, the international
 partnerships include, Ericsson Enterprise Systems, IDES, Manta Technologies
 Group, and Neoris.
     eshare communications Customer Wins:  Selected customers standardizing on
 eshare solutions in the first quarter include: AT&T Broadband, Citigroup,
 Conseco Finance, Eircom, Littlewoods Retail Ltd., Sprint, Victoria's Secret,
 and others.
 
     Awards
     NetAgent 4.0, eshare's fully featured Web customer interaction management
 solution, received an "A" rating from Communications Solutions(TM) magazine.
 According to Rich Tehrani, publisher of the monthly trade magazine, "NetAgent
 brings a new level of productivity to the multimedia call center, allowing
 agents to handle multiple Web visitors and e-mail recipients without losing
 that critical human touch.  In addition, the inclusion and enhancement of
 bi-directional Web collaboration, Web callback requests, and assisted form-
 filling bring NetAgent closer to the CRM space by supporting the leveraging of
 customer histories through Enterprise Data Access."
 
     About eshare communications, Inc.
     Norcross, Georgia-based eshare communications, Inc.
 (http://www.eshare.com ) is a premier worldwide provider of integrated
 Customer Interaction Management (CIM) solutions that power the customer
 relationship strategies of businesses conducting traditional and Internet
 commerce.  eshare leverages its expertise in both Web-based and traditional
 call center technologies to provide more than 2,500 businesses with
 comprehensive, scalable and integrated customer interaction solutions.  Its
 applications enhance a company's existing marketing, sales and service efforts
 and optimize customer lifetime value while building brand loyalty.  eshare was
 formed by the September 1999 merger of Melita International, Inc., a leader in
 telephony-based customer contact management, and eShare Technologies, Inc., a
 leader in Web-based customer care solutions.
     This press release contains forward-looking statements relating to product
 acceptance, results of certain programs; results of operations; market
 penetration and market strategies.  Such statements are made based on
 management's beliefs as well as assumptions made by, and information currently
 available to, management, pursuant to "safe-harbor" provisions of the Private
 Securities Litigation Reform Act of 1995.  While these statements reflect our
 best judgement, they are subject to risks and uncertainties that could cause a
 change in focus and direction.  A discussion of certain risk factors that may
 cause actual results to differ from these forward-looking statements can be
 found in eshare's Annual Report on Form 10-K for the period ended December 31,
 2000, on file with the SEC.
 
 
                            eshare communications, Inc.
                       Consolidated Statements of Operations
                                    (unaudited)
 
 
                                              For the three months ended
                                                      March 31,
                                                2001             2000
                                          (in thousands except per share data)
 
     Net revenues:
         Product                                   $10,074          $12,667
         Service                                     9,025            7,789
            Total revenues                          19,099           20,456
 
     Cost of revenues:
         Product                                     2,500            2,852
         Service                                     5,760            4,160
            Total cost of revenues                   8,260            7,012
 
     Gross margin                                   10,839           13,444
 
     Operating expenses:
         Engineering, research and
          development                                2,641            2,675
         Selling, general and
          administrative                            12,172           12,166
            Total operating expenses                14,813           14,841
     Loss from operations                           (3,974)          (1,397)
 
     Other income, net                                 373              113
     Loss before income taxes                       (3,601)          (1,284)
 
 
     Income tax benefit                             (1,296)            (462)
     Net loss                                      $(2,305)           $(822)
 
     Earnings per share:
         Basic earnings per share                   ($0.10)          ($0.04)
         Diluted earnings per share                 ($0.10)          ($0.04)
 
 
     Weighted average shares outstanding
         Basic                                      21,975           21,435
         Diluted                                    21,975           21,435
 
 
 
 
                            eshare communications, Inc.
                       Condensed Consolidated Balance Sheets
                                    (unaudited)
 
 
                                                March 31,        December 31,
                                                   2001              2000
                                                        (In thousands)
     Current assets:
           Cash and investments                      $9,878           $14,727
           Accounts receivable, net                  24,598            26,587
           Inventory, net                             1,913             2,157
           Deferred taxes                             1,394             1,397
           Other current assets                       6,146             5,236
                Total current assets                 43,929            50,104
 
     Property and equipment, net                     10,194            10,656
     Deferred taxes                                   9,072             7,776
     Intangible assets, net                           3,921             4,196
     Other assets                                       132               140
                Total assets                        $67,248           $72,872
 
     Current liabilities:
           Accounts payable                           5,997             7,809
           Accrued liabilities                        7,249             8,711
           Deferred revenue                          11,328            11,463
           Other current liabilities                    520               499
                Total current liabilities            25,094            28,482
 
 
     Common Stock                                        69                69
     Additional paid-in-capital                      62,355            62,166
     Accumulated other comprehensive
      income                                         (1,139)           (1,020)
     Accumulated deficit                            (19,131)          (16,825)
           Total stockholders' equity                42,154            44,390
                Total liabilities and
                 stockholders' equity               $67,248           $72,872
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X49583063
 
 SOURCE  eshare communications, Inc.