Evoke Communications' First Quarter Results Exceed Analyst Consensus Expectations

Virtual Meeting Services Revenue Up 34% from Fourth Quarter;

Operational Efficiencies from Restructuring Plan Reduce Cash Burn Rate



First Quarter 2001 Results and Operating Highlights

- Sequential quarterly core revenue growth of 34% to $8.2 million; total

revenue of $9.0 million, ahead of consensus analyst expectations

- Net loss per share, excluding non-cash and one-time charges, of

$0.15 per share beat consensus estimates by $0.12 per share

- Cash burn rate decreased by 55% from fourth quarter

- Customer usage increased to over 45.8 million minutes, 50% growth from

prior quarter

- Customer retention remained above 90% for the fourth consecutive quarter

- Cash on hand of $34.5 million and fully-funded business plan to reach

EBITDA profitability in Q1 2002

- Named Nick Cuccaro as Chief Financial Officer to focus on accelerating

the company to profitability

- Announced new billing codes feature for Webconferencing service to

penetrate new vertical markets



Apr 25, 2001, 01:00 ET from Evoke Communications

    LOUISVILLE, Colo., April 25 /PRNewswire/ -- Evoke Communications
 (Nasdaq:   EVOK), a leading provider of interactive business communication
 services that enable virtual meetings, today announced record results for the
 first quarter of 2001 that significantly beat consensus estimates.  The
 company attributes its strong results to its highly reliable and scalable
 technology coupled with the restructuring announced in January 2001.
     "We are very pleased to beat both top- and bottom- line expectations for
 the third consecutive quarter since going public," said Paul Berberian, CEO
 and President.  "We have made tremendous progress in the last three months
 successfully implementing our restructuring plan.  Our quarterly cash burn
 rate dramatically declined by 55% from the fourth quarter and our EBITDA loss,
 excluding charges, narrowed to $5.2 million, a 58% improvement from
 $12.3 million in the fourth quarter.  "With $34.5 million of cash on hand, we
 have a fully-funded business plan to reach our EBITDA profitability target in
 the first quarter of 2002."
     Core services revenue for Webconferencing and Collaboration increased
 34% from the previous quarter and more than six times from a year ago.  Total
 revenue for the quarter increased to $9.0 million, which is almost five times
 the reported revenue from the comparable period last year.  Net loss for the
 quarter, excluding non-cash charges of goodwill amortization, stock-based
 compensation, loss on sale of common stock and one-time charges, was
 $7.2 million or $0.15 per share, exceeding consensus expectations by $0.12 per
 share.  Total loss including these charges was $18 million or $0.38 per share.
     "We are excited to report another solid quarter of growth and execution,"
 commented Nick Cuccaro, CFO.  "Increasing usage from existing customer
 accounts continues to drive revenue growth.  The average revenue from current
 accounts increased by 38% from the previous quarter while retention rates
 remained high with over 90% of our customers repeating business quarter over
 quarter, as measured by revenue.  We were also pleased with the efforts of our
 streamlined sales force as they succeeded in mining existing customers
 accounts while adding 133 new core customers in the quarter, bringing the
 total number of core customers to 1,600 from 1,467 in the fourth quarter."
 Additionally, the company's indirect channel accounted for 12% of total
 revenue in the first quarter, up from 11% in the prior quarter.
     "Our services offer customers the ability to communicate anytime, from
 anywhere with only a phone and Internet connection," added Berberian.  "This
 availability makes our offering appealing to customers in the current
 cost-conscious business environment.  Our business model continues to be
 validated as more customers and more users within these customers utilize our
 services on a daily basis.  This quarter, our customers increased usage to
 45.8 million minutes, which represents 50% growth from prior quarter."
     "With the addition of billing codes for our Webconferencing service, we
 expect to further penetrate professional services customers, such as
 accounting and legal firms as well as large companies that track expenses to
 particular projects or groups," Berberian stated.  "By targeting these
 companies, we believe we can add even more diversity and stability to our
 customer base."
 
     Outlook
     In 2001, the company expects to report revenues between $36 million and
 $44 million, a two-fold increase over 2000.  In addition, due to the strong
 results to date, the company is narrowing its guidance for EBITDA and now
 anticipates an EBITDA loss, excluding charges, between $14 million and
 $17 million in 2001.  In the second quarter of 2001, the company expects to
 report an EBITDA loss, excluding charges, between $5.0 million and
 $5.5 million, reflecting a shift of expenses from the first to the second
 quarter primarily due to the timing of the company's name change.
 
     About Evoke Communications
     Evoke Communications is a leading provider of virtual meeting services,
 offering simple, reliable tools that enable online meetings and events.  The
 company's continuum of interactive services includes automated audio
 conferencing, Webconferencing for Web presentations and online controls, and
 Collaboration, which allows users to share applications, tour the Web and
 whiteboard.  From a simple conference call to fully collaborative online
 events, Evoke Communications allows customers to choose the best solution to
 meet their communication needs.  Evoke Communications' proprietary
 architecture integrates leading-edge technologies into a single convergent
 communications platform that has been selected by leading businesses to
 increase productivity, reduce costs and strengthen business relationships.
 For more information visit www.evoke.com or call 800.878.7326
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995.
     This release contains plans, objectives and expectations that may
 constitute forward-looking statements, including, but not limited to,
 statements regarding beliefs, plans, expectations, confidence or intentions
 regarding the future.  Forward-looking statements in this release include, but
 are not limited to: our ability to reach profitability by the first quarter of
 2002 with a fully-funded business plan; our ability to improve operating
 efficiencies and reduce operating expenses; our ability to increase our
 customer base, increase revenue yields per customer, further penetrate
 existing customers and add new distribution partners and maintain high
 customer retention rates; our expectations regarding future growth and
 financial performance; our estimates for revenue and EBITDA losses in 2001,
 trends of our future performance; our ability to continue to execute our
 operational objectives; and all additional statements that confer or infer
 future demand for our core services or positive operating results from the
 provision of these services.  These statements are subject to risks and
 uncertainties, which could cause future events to differ materially.  These
 risks and uncertainties include, but are not limited to, risks with respect to
 our ability to properly forecast operating results; recent changes in the
 economy and its effect on our business; changes in our marketplace and in the
 technology being adopted for communications services like the company's
 services; competition from presently existing and new competitors; pricing
 pressure; the possibility of decreased growth in demand for Internet
 communication services in general and for our services in particular; our
 ability to control operating expenses; our ability to retain existing
 customers and increase their level of use of our service; our ability to enter
 into a capital equipment financing; our ability to successfully develop and
 introduce new services and improved features and functionalities in a timely
 manner; our ability to successfully deliver our services; possible development
 or marketing delays with these services; and potential defects in the
 services. We may not be able to address these risks, and accordingly our
 financial performance and stock price may be adversely affected.  For a
 detailed presentation of additional information, risks and uncertainties with
 respect to these forward-looking statements concerning factors that could
 cause actual results to differ materially from those contained in the
 forward-looking statements can be found in our filings with the Securities and
 Exchange Commission, including our Form 10-K filed with the SEC on March 29,
 2001. Copies of filings made with the SEC are available through the SEC's
 electronic data gather analysis and retrieval system (EDGAR) at www.sec.gov .
 All forward-looking statements made in this press release are made as of the
 date hereof, and we assume no obligation to update the forward-looking
 statements included in this document.
 
 
                           EVOKE COMMUNICATIONS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                 (IN THOUSANDS)
                                  (unaudited)
 
                                            December 31, 2000  March 31, 2001
     Assets
     Current assets:
     Cash and cash equivalents                      $43,311       $34,467
      Short-term investments                            196            --
      Accounts receivable, net                        4,891         5,848
      Prepaid expenses and other current assets       3,825         3,620
 
      Total current assets                           52,223        43,935
     Property and equipment, net                     35,330        32,297
     Intangible assets, net                          65,157        58,530
     Other assets                                     6,114         5,870
 
     Total Assets                                  $158,824      $140,632
 
 
     Liabilities and Stockholders' Equity
     Current liabilities:
      Accounts payable                               $5,919        $6,918
      Current portion of long-term debt               1,505         1,411
      Accrued expenses                                3,638         2,240
      Restructuring reserve                           1,412         1,274
      Deferred revenue                                  878           506
 
      Total current liabilities                      13,352        12,349
 
     Restructuring reserve, less current portion      2,952         2,582
     Long term debt, less current portion               810           541
 
     Total Liabilities                               17,114        15,472
 
     Stockholders' Equity
      Common stock                                       70            71
      Additional paid-in capital                    269,466       265,105
      Accumulated other comprehensive loss             (862)          (19)
      Note receivable from officer                     (483)           --
      Unearned stock option compensation            (10,659)       (6,194)
      Accumulated deficit                          (115,822)     (133,803)
 
     Total stockholders' equity                     141,710       125,160
 
      Total Liabilities and Stockholders' Equity   $158,824      $140,632
 
 
                           EVOKE COMMUNICATIONS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                  (unaudited)
 
                                                            Year to date
                                                              March 31,
 
                                                         2000           2001
 
     Revenue                                           $1,859         $9,017
     Cost of revenue                                    2,654          6,128
 
     Gross profit (loss)                                 (795)         2,889
 
     Operating expenses:
      Sales and marketing                              10,914          6,689
      Research and development                          1,104          1,509
      General and administrative                        1,289          2,278
      Amortization of intangible assets                    --          6,626
      Stock based compensation expense                  4,181            396
      Restructuring charges and
       contract termination expenses                       --          2,581
 
        Total operating expenses                       17,488         20,079
 
        Loss from operations                          (18,283)       (17,190)
 
     Other income (expense)                               935           (791)
 
     Net loss                                         (17,348)       (17,981)
     Preferred stock dividends and accretion
      to preferred stock redemption value               1,181             --
 
        Net loss attributable to common
         stockholders                                $(18,529)      $(17,981)
 
     Loss per share--basic and diluted                $(23.23)        $(0.38)
 
     Weighted average number of common
      shares outstanding--basic and diluted               798         46,962
 
     Net loss attributable to common stockholders    $(18,529)      $(17,981)
     Add: Preferred stock dividends and
      accretion to preferred stock redemption value     1,181             --
     Add: Amortization of intangible assets                --          6,626
     Add: Stock based compensation expense              4,181            396
     Add: Loss on sale of common stock                     --          1,195
     Add: Restructuring charges and contract
      termination expenses                                 --          2,581
 
     Net loss before amortization
      and one-time charges                           $(13,167)       $(7,183)
 
     Net loss per share before
      amortization and one-time charges               $(16.50)       $(0.15)
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X60331262
 
 

SOURCE Evoke Communications
    LOUISVILLE, Colo., April 25 /PRNewswire/ -- Evoke Communications
 (Nasdaq:   EVOK), a leading provider of interactive business communication
 services that enable virtual meetings, today announced record results for the
 first quarter of 2001 that significantly beat consensus estimates.  The
 company attributes its strong results to its highly reliable and scalable
 technology coupled with the restructuring announced in January 2001.
     "We are very pleased to beat both top- and bottom- line expectations for
 the third consecutive quarter since going public," said Paul Berberian, CEO
 and President.  "We have made tremendous progress in the last three months
 successfully implementing our restructuring plan.  Our quarterly cash burn
 rate dramatically declined by 55% from the fourth quarter and our EBITDA loss,
 excluding charges, narrowed to $5.2 million, a 58% improvement from
 $12.3 million in the fourth quarter.  "With $34.5 million of cash on hand, we
 have a fully-funded business plan to reach our EBITDA profitability target in
 the first quarter of 2002."
     Core services revenue for Webconferencing and Collaboration increased
 34% from the previous quarter and more than six times from a year ago.  Total
 revenue for the quarter increased to $9.0 million, which is almost five times
 the reported revenue from the comparable period last year.  Net loss for the
 quarter, excluding non-cash charges of goodwill amortization, stock-based
 compensation, loss on sale of common stock and one-time charges, was
 $7.2 million or $0.15 per share, exceeding consensus expectations by $0.12 per
 share.  Total loss including these charges was $18 million or $0.38 per share.
     "We are excited to report another solid quarter of growth and execution,"
 commented Nick Cuccaro, CFO.  "Increasing usage from existing customer
 accounts continues to drive revenue growth.  The average revenue from current
 accounts increased by 38% from the previous quarter while retention rates
 remained high with over 90% of our customers repeating business quarter over
 quarter, as measured by revenue.  We were also pleased with the efforts of our
 streamlined sales force as they succeeded in mining existing customers
 accounts while adding 133 new core customers in the quarter, bringing the
 total number of core customers to 1,600 from 1,467 in the fourth quarter."
 Additionally, the company's indirect channel accounted for 12% of total
 revenue in the first quarter, up from 11% in the prior quarter.
     "Our services offer customers the ability to communicate anytime, from
 anywhere with only a phone and Internet connection," added Berberian.  "This
 availability makes our offering appealing to customers in the current
 cost-conscious business environment.  Our business model continues to be
 validated as more customers and more users within these customers utilize our
 services on a daily basis.  This quarter, our customers increased usage to
 45.8 million minutes, which represents 50% growth from prior quarter."
     "With the addition of billing codes for our Webconferencing service, we
 expect to further penetrate professional services customers, such as
 accounting and legal firms as well as large companies that track expenses to
 particular projects or groups," Berberian stated.  "By targeting these
 companies, we believe we can add even more diversity and stability to our
 customer base."
 
     Outlook
     In 2001, the company expects to report revenues between $36 million and
 $44 million, a two-fold increase over 2000.  In addition, due to the strong
 results to date, the company is narrowing its guidance for EBITDA and now
 anticipates an EBITDA loss, excluding charges, between $14 million and
 $17 million in 2001.  In the second quarter of 2001, the company expects to
 report an EBITDA loss, excluding charges, between $5.0 million and
 $5.5 million, reflecting a shift of expenses from the first to the second
 quarter primarily due to the timing of the company's name change.
 
     About Evoke Communications
     Evoke Communications is a leading provider of virtual meeting services,
 offering simple, reliable tools that enable online meetings and events.  The
 company's continuum of interactive services includes automated audio
 conferencing, Webconferencing for Web presentations and online controls, and
 Collaboration, which allows users to share applications, tour the Web and
 whiteboard.  From a simple conference call to fully collaborative online
 events, Evoke Communications allows customers to choose the best solution to
 meet their communication needs.  Evoke Communications' proprietary
 architecture integrates leading-edge technologies into a single convergent
 communications platform that has been selected by leading businesses to
 increase productivity, reduce costs and strengthen business relationships.
 For more information visit www.evoke.com or call 800.878.7326
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995.
     This release contains plans, objectives and expectations that may
 constitute forward-looking statements, including, but not limited to,
 statements regarding beliefs, plans, expectations, confidence or intentions
 regarding the future.  Forward-looking statements in this release include, but
 are not limited to: our ability to reach profitability by the first quarter of
 2002 with a fully-funded business plan; our ability to improve operating
 efficiencies and reduce operating expenses; our ability to increase our
 customer base, increase revenue yields per customer, further penetrate
 existing customers and add new distribution partners and maintain high
 customer retention rates; our expectations regarding future growth and
 financial performance; our estimates for revenue and EBITDA losses in 2001,
 trends of our future performance; our ability to continue to execute our
 operational objectives; and all additional statements that confer or infer
 future demand for our core services or positive operating results from the
 provision of these services.  These statements are subject to risks and
 uncertainties, which could cause future events to differ materially.  These
 risks and uncertainties include, but are not limited to, risks with respect to
 our ability to properly forecast operating results; recent changes in the
 economy and its effect on our business; changes in our marketplace and in the
 technology being adopted for communications services like the company's
 services; competition from presently existing and new competitors; pricing
 pressure; the possibility of decreased growth in demand for Internet
 communication services in general and for our services in particular; our
 ability to control operating expenses; our ability to retain existing
 customers and increase their level of use of our service; our ability to enter
 into a capital equipment financing; our ability to successfully develop and
 introduce new services and improved features and functionalities in a timely
 manner; our ability to successfully deliver our services; possible development
 or marketing delays with these services; and potential defects in the
 services. We may not be able to address these risks, and accordingly our
 financial performance and stock price may be adversely affected.  For a
 detailed presentation of additional information, risks and uncertainties with
 respect to these forward-looking statements concerning factors that could
 cause actual results to differ materially from those contained in the
 forward-looking statements can be found in our filings with the Securities and
 Exchange Commission, including our Form 10-K filed with the SEC on March 29,
 2001. Copies of filings made with the SEC are available through the SEC's
 electronic data gather analysis and retrieval system (EDGAR) at www.sec.gov .
 All forward-looking statements made in this press release are made as of the
 date hereof, and we assume no obligation to update the forward-looking
 statements included in this document.
 
 
                           EVOKE COMMUNICATIONS, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                 (IN THOUSANDS)
                                  (unaudited)
 
                                            December 31, 2000  March 31, 2001
     Assets
     Current assets:
     Cash and cash equivalents                      $43,311       $34,467
      Short-term investments                            196            --
      Accounts receivable, net                        4,891         5,848
      Prepaid expenses and other current assets       3,825         3,620
 
      Total current assets                           52,223        43,935
     Property and equipment, net                     35,330        32,297
     Intangible assets, net                          65,157        58,530
     Other assets                                     6,114         5,870
 
     Total Assets                                  $158,824      $140,632
 
 
     Liabilities and Stockholders' Equity
     Current liabilities:
      Accounts payable                               $5,919        $6,918
      Current portion of long-term debt               1,505         1,411
      Accrued expenses                                3,638         2,240
      Restructuring reserve                           1,412         1,274
      Deferred revenue                                  878           506
 
      Total current liabilities                      13,352        12,349
 
     Restructuring reserve, less current portion      2,952         2,582
     Long term debt, less current portion               810           541
 
     Total Liabilities                               17,114        15,472
 
     Stockholders' Equity
      Common stock                                       70            71
      Additional paid-in capital                    269,466       265,105
      Accumulated other comprehensive loss             (862)          (19)
      Note receivable from officer                     (483)           --
      Unearned stock option compensation            (10,659)       (6,194)
      Accumulated deficit                          (115,822)     (133,803)
 
     Total stockholders' equity                     141,710       125,160
 
      Total Liabilities and Stockholders' Equity   $158,824      $140,632
 
 
                           EVOKE COMMUNICATIONS, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                  (unaudited)
 
                                                            Year to date
                                                              March 31,
 
                                                         2000           2001
 
     Revenue                                           $1,859         $9,017
     Cost of revenue                                    2,654          6,128
 
     Gross profit (loss)                                 (795)         2,889
 
     Operating expenses:
      Sales and marketing                              10,914          6,689
      Research and development                          1,104          1,509
      General and administrative                        1,289          2,278
      Amortization of intangible assets                    --          6,626
      Stock based compensation expense                  4,181            396
      Restructuring charges and
       contract termination expenses                       --          2,581
 
        Total operating expenses                       17,488         20,079
 
        Loss from operations                          (18,283)       (17,190)
 
     Other income (expense)                               935           (791)
 
     Net loss                                         (17,348)       (17,981)
     Preferred stock dividends and accretion
      to preferred stock redemption value               1,181             --
 
        Net loss attributable to common
         stockholders                                $(18,529)      $(17,981)
 
     Loss per share--basic and diluted                $(23.23)        $(0.38)
 
     Weighted average number of common
      shares outstanding--basic and diluted               798         46,962
 
     Net loss attributable to common stockholders    $(18,529)      $(17,981)
     Add: Preferred stock dividends and
      accretion to preferred stock redemption value     1,181             --
     Add: Amortization of intangible assets                --          6,626
     Add: Stock based compensation expense              4,181            396
     Add: Loss on sale of common stock                     --          1,195
     Add: Restructuring charges and contract
      termination expenses                                 --          2,581
 
     Net loss before amortization
      and one-time charges                           $(13,167)       $(7,183)
 
     Net loss per share before
      amortization and one-time charges               $(16.50)       $(0.15)
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X60331262
 
 SOURCE  Evoke Communications