InfoNow Reports Solid First Quarter Revenue Growth, Revenue Up 24 Percent Versus Prior Quarter

Leading Enterprise Channel Management Company Delivers Solid Results

Despite Challenging Economic Conditions



Apr 26, 2001, 01:00 ET from InfoNow Corporation

    DENVER, April 26 /PRNewswire/ -- InfoNow Corporation (Nasdaq:   INOW), a
 leading provider of Enterprise Channel Management (ECM) solutions, today
 announced record revenue for the first quarter of 2001.
     Revenue for the first quarter was $2.5 million, an increase of 24 percent
 sequentially over fourth quarter 2000. Revenues for the quarter represent the
 highest quarterly revenues in the company's history. Net loss for the quarter
 was $1.5 million, or ($0.18) per share, reflecting a nine percent improvement
 relative to the fourth quarter 2000 net loss of $1.6 million, or ($0.20) per
 share. The company also reported a March 31, 2001, cash balance of
 approximately $3.0 million, reflecting a first quarter cash use of $1.04
 million, a 13 percent decrease from the fourth quarter's cash use of $1.19
 million.
     "We delivered against our target of 20+ percent revenue growth in the
 first quarter, and we remain on track to achieve cash-flow-positive and
 profitable operations in the fourth quarter," said Michael Johnson, CEO of
 InfoNow. "Despite an unfavorable economic environment, we're developing solid
 revenue opportunities across all of our target markets, with both new and
 existing customers. In fact, recent sales include more than $1.6 million in
 contracts with two major companies. The first, with an existing
 telecommunications client, closed in the first quarter, and the second, with a
 new Fortune 200 client, closed earlier this week," Johnson added.
 
     Additional highlights for the first quarter include:
 
     -- Customers -- The company expanded the breadth of the services it
        provides to clients, including Ariens, Avaya, Bank One, Compaq, Federal
        Express, Hewlett-Packard, Kenwood, Toronto Dominion, and Visa, and
        consequently grew its average trailing-twelve-month revenue per
        customer 11 percent sequentially, from $125,000 at the end of the
        fourth quarter 2000 to $139,000 at the end of the first quarter 2001.
 
     -- iChannel Solution -- The company continued to expand the depth of its
        product offering and deployment experience.  To date, InfoNow has
        completed more than 90 deployments of its iChannel solution localized
        in 29 countries and 26 languages, including, most recently, Hebrew.
        InfoNow also piloted a software license purchase option during the
        quarter, designed to expand the potential market for iChannel
        technology by providing either licensed or hosted services to companies
        that wish to purchase iChannel software.
 
        With nearly 400 distributor locations on line, InfoNow's iCommerce
        deployment with Miller Electric, a major subsidiary of Illinois Tool
        Works, is moving from the pilot to national rollout phase. InfoNow's
        iCommerce solution has enabled both  Miller and its distributors to
        realize the benefits of Internet commerce.
 
     -- Company Leadership -- InfoNow continued to strengthen its team, with
        key additions in finance, sales and business development leadership
        roles.  Additions during the quarter included: Harry Herbst as chief
        financial officer, bringing more than 25 years of experience in
        corporate finance and senior financial leadership positions with
        leading public companies; Vickie Lenny, vice president of Eastern
        sales, a 20 year technology sales veteran and formerly with Nortel
        Networks and Clarify; and Laurie Visocky, director of alliances,
        formerly with Hyperion.
 
     "I'm encouraged by our first quarter results and excited about the
 opportunities before us," Johnson noted. "We are focused on a multibillion
 dollar market opportunity for channel management and commerce technology; we
 have great products, great clients, and an outstanding team; and we continue
 to invest in sales, marketing and other key areas that will drive our growth.
 These strengths will serve us well in the long term. In the near-term, the
 uncertain state of the economy argues for additional caution in how we manage
 the business and provide guidance to our investors. Therefore, we have taken
 proactive steps to manage expenses in line with more conservative revenue
 growth projections and revised our guidance for 2001. With these actions, we
 believe that we remain on track to achieve profitable and cash-flow-positive
 operations in the fourth quarter of this year."
     The company provided the following guidance for InfoNow's expected
 performance in 2001:
     Revenue growth in the range of 70 to 75 percent -- Revenue is currently
 expected to grow by 70 to 75 percent in 2001.  The company expects sequential
 quarterly revenue growth of 10 to 15 percent for the second quarter of 2001.
     Profitability by the end of 2001 -- InfoNow expects to achieve profitable
 and cash-flow-positive operations during the fourth quarter of 2001.  In the
 second quarter of 2001, net losses are expected to decline relative to the
 first quarter of 2001.
     Sufficient cash and assets to fund operations through profitability --
 With approximately $3.0 million of cash on hand at the end of the first
 quarter, a 13 percent decrease in the use of cash in the first quarter of 2001
 to $1.04 million, and planned reductions in future cash requirements, the
 company believes that it has sufficient cash and assets to fund its current
 business plan through profitability.
     InfoNow will host a conference call today at 9:00 a.m. Mountain Daylight
 Time (MDT), to review the results of operations for the first quarter 2001,
 and to provide guidance on the company's expectations for the upcoming
 quarter.
     To participate, domestic callers may dial 1-866-328-4268 and international
 callers may dial 001-303-262-0060 to access this listen-only call. Interested
 parties may also go to the main page of the company's Web site at
 www.infonow.com and click on the conference call announcement button to access
 a live audiocast of the call. Questions may be submitted prior to and during
 the live call via e-mail to investor@infonow.com. An audio replay of the call
 will also be available at the above Web address shortly after the call.
 
     About InfoNow Corporation
     InfoNow, based in Denver, Colo., provides an Enterprise Channel Management
 solution (ECM) for increasing revenue and market share by enabling companies
 to leverage their brand and empower their sales channels. As part of a
 comprehensive solution, InfoNow delivers business services for e-Commerce,
 lead generation and management, customer profiling, loyalty programs, and
 traditional Partner Relationship Management (PRM).  InfoNow has amassed proven
 channel experience by providing solutions to leading clients including Apple,
 Ariens, Bank of America, Compaq, Hewlett-Packard, IBM, Miller Electric,
 Novell, Sony, The Hartford, and Visa. For more information, please visit the
 company's Web site at www.infonow.com.
     Except for historical information contained herein, certain matters
 discussed in this release are forward-looking statements that involve risks
 and uncertainties, and actual results may be materially different. These
 projections were based on assumptions held by the company at the end of the
 first quarter 2001. While many factors could cause those assumptions to
 change, InfoNow plans to provide revised guidance on assumptions and company
 projections only once per quarter. Factors that could cause actual results to
 differ include the following:  an extended macroeconomic slowdown could have
 an adverse affect on demand for the company's iChannel solution; sales of the
 company's services may not develop as expected;  the company may not be
 successful in forecasting and meeting customers' demands for its iChannel
 solution; and/or the Company may not develop and deploy its services as
 expected. Additional information on factors that could cause actual results to
 differ materially from forward-looking statements made in this release are
 contained in the Company's reports on form 10-K and 10-Q filed with the
 Securities and Exchange Commission.
     InfoNow is a registered trademark of InfoNow Corporation. All other
 trademarks are the property of their respective owners.
 
 
 FINANCIAL HIGHLIGHTS
 (000s of U.S. dollars except per share amounts - Unaudited)
 
 
                                       First          Fourth      % change
                                     Quarter         Quarter           Q/Q
                                        2001            2000
 
     Statement of Operations
 
     Revenues                         $2,487          $1,998           24%
     Cost of Goods Sold                1,535           1,362           13%
     Gross Margin                        952             636           50%
     Selling & Marketing Expenses      1,357           1,149           18%
     Product Development Costs           433             478          (9%)
     General & Administrative            677             709          (5%)
     Total Operating Expenses          2,467           2,336            6%
     Operating Profit(Loss)          (1,515)         (1,700)         (11%)
     Other Income (Expenses)              32              65         (51%)
     Income (Loss) Before
      cumulative effect SAB 101      (1,483)         (1,635)          (9%)
     Cumulative Effect (SAB 101)           0               0             -
     Net Income (Loss)              $(1,483)        $(1,635)          (9%)
     Average Shares
      Outstanding Basic            8,146,244       8,146,000             -
     Net Income (Loss)
      Per Share Basic and Diluted    $(0.18)         $(0.20)
 
     Before Cumulative Effect
     Net Income (Loss) Per Share
     Basic and Diluted               $(0.18)         $(0.20)
 
 
                                               March 31, 2001  Dec. 31, 2000
     Balance Sheet
 
 
     Assets:
     Cash                                              $2,970         $4,013
     Other Current Assets                               1,990          2,253
     Total Current Assets                               4,960          6,266
     Other Assets                                       2,306          2,542
     Total Assets                                      $7,266         $8,808
     Liabilities and Stockholders' Equity:
 
     Total Current Liabilities                         $3,104         $2,967
     Other Liabilities                                  1,317          1,518
     Stockholders' Equity                               2,845          4,323
     Total Liabilities and Stockholders' Equity        $7,266         $8,808
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE InfoNow Corporation
    DENVER, April 26 /PRNewswire/ -- InfoNow Corporation (Nasdaq:   INOW), a
 leading provider of Enterprise Channel Management (ECM) solutions, today
 announced record revenue for the first quarter of 2001.
     Revenue for the first quarter was $2.5 million, an increase of 24 percent
 sequentially over fourth quarter 2000. Revenues for the quarter represent the
 highest quarterly revenues in the company's history. Net loss for the quarter
 was $1.5 million, or ($0.18) per share, reflecting a nine percent improvement
 relative to the fourth quarter 2000 net loss of $1.6 million, or ($0.20) per
 share. The company also reported a March 31, 2001, cash balance of
 approximately $3.0 million, reflecting a first quarter cash use of $1.04
 million, a 13 percent decrease from the fourth quarter's cash use of $1.19
 million.
     "We delivered against our target of 20+ percent revenue growth in the
 first quarter, and we remain on track to achieve cash-flow-positive and
 profitable operations in the fourth quarter," said Michael Johnson, CEO of
 InfoNow. "Despite an unfavorable economic environment, we're developing solid
 revenue opportunities across all of our target markets, with both new and
 existing customers. In fact, recent sales include more than $1.6 million in
 contracts with two major companies. The first, with an existing
 telecommunications client, closed in the first quarter, and the second, with a
 new Fortune 200 client, closed earlier this week," Johnson added.
 
     Additional highlights for the first quarter include:
 
     -- Customers -- The company expanded the breadth of the services it
        provides to clients, including Ariens, Avaya, Bank One, Compaq, Federal
        Express, Hewlett-Packard, Kenwood, Toronto Dominion, and Visa, and
        consequently grew its average trailing-twelve-month revenue per
        customer 11 percent sequentially, from $125,000 at the end of the
        fourth quarter 2000 to $139,000 at the end of the first quarter 2001.
 
     -- iChannel Solution -- The company continued to expand the depth of its
        product offering and deployment experience.  To date, InfoNow has
        completed more than 90 deployments of its iChannel solution localized
        in 29 countries and 26 languages, including, most recently, Hebrew.
        InfoNow also piloted a software license purchase option during the
        quarter, designed to expand the potential market for iChannel
        technology by providing either licensed or hosted services to companies
        that wish to purchase iChannel software.
 
        With nearly 400 distributor locations on line, InfoNow's iCommerce
        deployment with Miller Electric, a major subsidiary of Illinois Tool
        Works, is moving from the pilot to national rollout phase. InfoNow's
        iCommerce solution has enabled both  Miller and its distributors to
        realize the benefits of Internet commerce.
 
     -- Company Leadership -- InfoNow continued to strengthen its team, with
        key additions in finance, sales and business development leadership
        roles.  Additions during the quarter included: Harry Herbst as chief
        financial officer, bringing more than 25 years of experience in
        corporate finance and senior financial leadership positions with
        leading public companies; Vickie Lenny, vice president of Eastern
        sales, a 20 year technology sales veteran and formerly with Nortel
        Networks and Clarify; and Laurie Visocky, director of alliances,
        formerly with Hyperion.
 
     "I'm encouraged by our first quarter results and excited about the
 opportunities before us," Johnson noted. "We are focused on a multibillion
 dollar market opportunity for channel management and commerce technology; we
 have great products, great clients, and an outstanding team; and we continue
 to invest in sales, marketing and other key areas that will drive our growth.
 These strengths will serve us well in the long term. In the near-term, the
 uncertain state of the economy argues for additional caution in how we manage
 the business and provide guidance to our investors. Therefore, we have taken
 proactive steps to manage expenses in line with more conservative revenue
 growth projections and revised our guidance for 2001. With these actions, we
 believe that we remain on track to achieve profitable and cash-flow-positive
 operations in the fourth quarter of this year."
     The company provided the following guidance for InfoNow's expected
 performance in 2001:
     Revenue growth in the range of 70 to 75 percent -- Revenue is currently
 expected to grow by 70 to 75 percent in 2001.  The company expects sequential
 quarterly revenue growth of 10 to 15 percent for the second quarter of 2001.
     Profitability by the end of 2001 -- InfoNow expects to achieve profitable
 and cash-flow-positive operations during the fourth quarter of 2001.  In the
 second quarter of 2001, net losses are expected to decline relative to the
 first quarter of 2001.
     Sufficient cash and assets to fund operations through profitability --
 With approximately $3.0 million of cash on hand at the end of the first
 quarter, a 13 percent decrease in the use of cash in the first quarter of 2001
 to $1.04 million, and planned reductions in future cash requirements, the
 company believes that it has sufficient cash and assets to fund its current
 business plan through profitability.
     InfoNow will host a conference call today at 9:00 a.m. Mountain Daylight
 Time (MDT), to review the results of operations for the first quarter 2001,
 and to provide guidance on the company's expectations for the upcoming
 quarter.
     To participate, domestic callers may dial 1-866-328-4268 and international
 callers may dial 001-303-262-0060 to access this listen-only call. Interested
 parties may also go to the main page of the company's Web site at
 www.infonow.com and click on the conference call announcement button to access
 a live audiocast of the call. Questions may be submitted prior to and during
 the live call via e-mail to investor@infonow.com. An audio replay of the call
 will also be available at the above Web address shortly after the call.
 
     About InfoNow Corporation
     InfoNow, based in Denver, Colo., provides an Enterprise Channel Management
 solution (ECM) for increasing revenue and market share by enabling companies
 to leverage their brand and empower their sales channels. As part of a
 comprehensive solution, InfoNow delivers business services for e-Commerce,
 lead generation and management, customer profiling, loyalty programs, and
 traditional Partner Relationship Management (PRM).  InfoNow has amassed proven
 channel experience by providing solutions to leading clients including Apple,
 Ariens, Bank of America, Compaq, Hewlett-Packard, IBM, Miller Electric,
 Novell, Sony, The Hartford, and Visa. For more information, please visit the
 company's Web site at www.infonow.com.
     Except for historical information contained herein, certain matters
 discussed in this release are forward-looking statements that involve risks
 and uncertainties, and actual results may be materially different. These
 projections were based on assumptions held by the company at the end of the
 first quarter 2001. While many factors could cause those assumptions to
 change, InfoNow plans to provide revised guidance on assumptions and company
 projections only once per quarter. Factors that could cause actual results to
 differ include the following:  an extended macroeconomic slowdown could have
 an adverse affect on demand for the company's iChannel solution; sales of the
 company's services may not develop as expected;  the company may not be
 successful in forecasting and meeting customers' demands for its iChannel
 solution; and/or the Company may not develop and deploy its services as
 expected. Additional information on factors that could cause actual results to
 differ materially from forward-looking statements made in this release are
 contained in the Company's reports on form 10-K and 10-Q filed with the
 Securities and Exchange Commission.
     InfoNow is a registered trademark of InfoNow Corporation. All other
 trademarks are the property of their respective owners.
 
 
 FINANCIAL HIGHLIGHTS
 (000s of U.S. dollars except per share amounts - Unaudited)
 
 
                                       First          Fourth      % change
                                     Quarter         Quarter           Q/Q
                                        2001            2000
 
     Statement of Operations
 
     Revenues                         $2,487          $1,998           24%
     Cost of Goods Sold                1,535           1,362           13%
     Gross Margin                        952             636           50%
     Selling & Marketing Expenses      1,357           1,149           18%
     Product Development Costs           433             478          (9%)
     General & Administrative            677             709          (5%)
     Total Operating Expenses          2,467           2,336            6%
     Operating Profit(Loss)          (1,515)         (1,700)         (11%)
     Other Income (Expenses)              32              65         (51%)
     Income (Loss) Before
      cumulative effect SAB 101      (1,483)         (1,635)          (9%)
     Cumulative Effect (SAB 101)           0               0             -
     Net Income (Loss)              $(1,483)        $(1,635)          (9%)
     Average Shares
      Outstanding Basic            8,146,244       8,146,000             -
     Net Income (Loss)
      Per Share Basic and Diluted    $(0.18)         $(0.20)
 
     Before Cumulative Effect
     Net Income (Loss) Per Share
     Basic and Diluted               $(0.18)         $(0.20)
 
 
                                               March 31, 2001  Dec. 31, 2000
     Balance Sheet
 
 
     Assets:
     Cash                                              $2,970         $4,013
     Other Current Assets                               1,990          2,253
     Total Current Assets                               4,960          6,266
     Other Assets                                       2,306          2,542
     Total Assets                                      $7,266         $8,808
     Liabilities and Stockholders' Equity:
 
     Total Current Liabilities                         $3,104         $2,967
     Other Liabilities                                  1,317          1,518
     Stockholders' Equity                               2,845          4,323
     Total Liabilities and Stockholders' Equity        $7,266         $8,808
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X85362285
 
 SOURCE  InfoNow Corporation