j2 Global Communications Continuing Revenue Grows 126%; Company Forecasts Operating Cash Profitability in Q-2

Apr 23, 2001, 01:00 ET from j2 Global Communications, Inc.

    HOLLYWOOD, Calif., April 23 /PRNewswire Interactive News Release/ -- j2
 Global Communications, Inc. (Nasdaq:   JCOM), today announced its financial
 results for it's first quarter, ended March 31, 2001.  Revenue, gross profit,
 and net loss excluding acquisition related amortization of goodwill and other
 intangibles were $7.2 million, $3.7 million, and $1.3 million, respectively
 for the first quarter of fiscal 2001.  This compares to revenue, gross profit,
 and net loss excluding acquisition related amortization of goodwill and other
 intangibles of $2.9 million, $1.5 million, and $4.6 million for the first
 quarter of fiscal 2000.  Net loss for the first quarters of fiscal 2001 and
 2000 were $3.0 million and $5.3 million, respectively.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000810/LATH060LOGO )
     Excluding acquisition related amortization of goodwill and other
 intangibles per share net loss was $0.11 and $0.53 for the first quarter's of
 fiscal 2001 and 2000 respectively.  Net loss was $0.26 for the first quarter
 of fiscal 2001 compared with $.61 for the first quarter of 2000.
     Revenues increased 152% from the first quarter of 2000 to the first
 quarter of 2001 while our margins remained over 50%.  Excluding hardware
 revenue of $742,000, which will not recur, revenue grew 126%.  The company
 achieved this while operating cash burn for the first quarter of 2001 reduced
 to $727,000 compared to $2.4 million for the fourth quarter of 2000.  Cash and
 investments available for use in the business totaled $25.7 million at
 March 31, 2001.  All of the above first quarter fiscal 2001 financial results
 are inclusive of our acquisition of eFax.com on November 29, 2000.
     "These positive results are very gratifying and demonstrate that our
 business remains decisively on track as we continue to experience strong
 revenue growth and diminished expense growth.  Furthermore, our positive
 results reinforce our expectation that we will achieve cash profitability
 during the second quarter" stated Richard Ressler, chairman.
     Scott Turicchi, executive vice president of business development added "at
 current revenue levels we have achieved adequate scale to operate at breakeven
 on a cash basis.  Revenue growth beyond this point is supportable on our
 network with very little additional cost.  Therefore our financial goal will
 be to sustain revenue growth as we meticulously manage our costs to achieve
 consistent and increasing profitability.  We remain confident that even in
 these tenuous economic times, our business will continue to perform based on
 the strength of our value proposition and business model."
 
     About j2
     j2 provides a variety of business critical communications and messaging
 services through its global communications/telephony/messaging network.
 Through three distinct sales channels, Web, Corporate and OEM, j2 provides
 services to over 4.3 million users around the world through its global network
 which is capable of billing, customer support, transport, value added
 applications and local presence on a global basis (4 continents, 157 cities
 and 14 countries).  For a streaming video describing j2's corporate sales,
 click http://www.j2.com/corporate/corporate.asp.  For more information about
 j2, please visit http://www.j2.com or call 323-860-9200.
 
     Safe Harbor for Forward-Looking Statements:  This press release contains
 forward-looking statements relating to future events or future financial
 performance that involve risks and uncertainties.  Such statements can be
 identified by terminology such as "may," "will," "should," "expects," "plans,"
 "anticipates," "believes," "estimates," "predicts," "potential" or "continue"
 or the negative of such terms or comparable terms.  These statements are only
 predictions and actual results could differ materially from those anticipated
 in these statements based upon a number of factors including final adjustments
 made in closing the quarter and those identified in the Company's filings with
 the SEC.
     eFax and eFax.com are trademarks of eFax.com, a wholly-owned subsidiary of
 j2 Global Communications, Inc.
 
     For further information please contact Laura Hinson, PR Manager of j2
 Global Communications, Inc., (323) 860-9435, lhinson@j2.com; or Mary Jo Draper
 of Ink, inc. PR, 816-753-6222, mjdraper@inkincpr.com, for j2 Global
 Communications, Inc.
 
 
                         J2 GLOBAL COMMUNICATIONS, INC.
                Condensed Consolidated Statements of Operations
                                  (Unaudited)
                    (in thousands, except per share amounts)
 
 
                                                   Three months ended
                                                        March 31,
                                                  2001               2000
     Revenues
          Subscriber                            $6,169             $2,865
          Hardware                                 742                 --
          Other                                    301                 --
          Total revenue                          7,212              2,865
 
     Cost of revenue
          Subscriber                             3,055              1,362
          Hardware                                 450                 --
          Other                                     --                 --
          Total cost of revenue                  3,505              1,362
 
          Gross profit                           3,707              1,503
 
     Operating expenses:
          Sales and marketing                    1,184              2,189
          Research and development                 534                789
          General and administrative             3,716              3,962
          Amortization of goodwill and
           other intangibles                     1,736                661
 
          Total operating expenses               7,170              7,601
 
     Operating Loss                             (3,463)            (6,098)
 
     Other income, net                             423                798
 
     Net Loss                                   (3,040)            (5,300)
 
     Basic and diluted net loss
          per common share:
 
          Loss before acquisition related
           amortization of goodwill
           and other intangibles                $(0.11)            $(0.53)
          Loss from amortization
            of goodwill and other
            intangibles                          (0.15)             (0.08)
 
          Net Loss Per Share                    $(0.26)            $(0.61)
 
     Weighted average shares outstanding    11,513,744          8,671,975
 
 
                         J2 GLOBAL COMMUNICATIONS, INC.
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
                                 (in thousands)
 
     ASSETS                                 March 31, 2001    December 31, 2000
 
           Cash and cash equivalents           $24,230            $23,824
           Short-term investments                  455              1,963
           Accounts receivable                   2,251              2,443
           Prepaid expenses and other            1,825              2,047
 
           Total current assets                 28,761             30,277
 
           Furniture, fixtures and
            equipment, net                       6,208              6,214
           Goodwill, net                        19,352             20,759
           Other purchased intangibles, net      2,554              2,945
           Long-term investments                 1,000              2,320
           Other assets                          2,569              2,790
 
           Total assets                        $60,444            $65,305
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
           Accounts payable and accrued
            expenses                            $4,344             $5,298
           Accrued exit costs                    1,393              2,106
           Deferred revenue                      1,182              1,485
           Current portion of capital
            lease payable                          263                295
           Current portion of
            long-term debt                       1,114              1,285
           Other                                   583                132
 
           Total current liabilities             8,879             10,601
 
           Capital lease obligations               105                168
           Long-term debt                          269                416
 
           Total liabilities                     9,253             11,185
 
           Redeemable common stock               7,065              7,065
           Common stock subject to put option      998                998
 
           Total stockholders' equity           43,128             46,057
 
           Total liabilities and
            stockholders' equity               $60,444            $65,305
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33786997
 
 

SOURCE j2 Global Communications, Inc.
    HOLLYWOOD, Calif., April 23 /PRNewswire Interactive News Release/ -- j2
 Global Communications, Inc. (Nasdaq:   JCOM), today announced its financial
 results for it's first quarter, ended March 31, 2001.  Revenue, gross profit,
 and net loss excluding acquisition related amortization of goodwill and other
 intangibles were $7.2 million, $3.7 million, and $1.3 million, respectively
 for the first quarter of fiscal 2001.  This compares to revenue, gross profit,
 and net loss excluding acquisition related amortization of goodwill and other
 intangibles of $2.9 million, $1.5 million, and $4.6 million for the first
 quarter of fiscal 2000.  Net loss for the first quarters of fiscal 2001 and
 2000 were $3.0 million and $5.3 million, respectively.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000810/LATH060LOGO )
     Excluding acquisition related amortization of goodwill and other
 intangibles per share net loss was $0.11 and $0.53 for the first quarter's of
 fiscal 2001 and 2000 respectively.  Net loss was $0.26 for the first quarter
 of fiscal 2001 compared with $.61 for the first quarter of 2000.
     Revenues increased 152% from the first quarter of 2000 to the first
 quarter of 2001 while our margins remained over 50%.  Excluding hardware
 revenue of $742,000, which will not recur, revenue grew 126%.  The company
 achieved this while operating cash burn for the first quarter of 2001 reduced
 to $727,000 compared to $2.4 million for the fourth quarter of 2000.  Cash and
 investments available for use in the business totaled $25.7 million at
 March 31, 2001.  All of the above first quarter fiscal 2001 financial results
 are inclusive of our acquisition of eFax.com on November 29, 2000.
     "These positive results are very gratifying and demonstrate that our
 business remains decisively on track as we continue to experience strong
 revenue growth and diminished expense growth.  Furthermore, our positive
 results reinforce our expectation that we will achieve cash profitability
 during the second quarter" stated Richard Ressler, chairman.
     Scott Turicchi, executive vice president of business development added "at
 current revenue levels we have achieved adequate scale to operate at breakeven
 on a cash basis.  Revenue growth beyond this point is supportable on our
 network with very little additional cost.  Therefore our financial goal will
 be to sustain revenue growth as we meticulously manage our costs to achieve
 consistent and increasing profitability.  We remain confident that even in
 these tenuous economic times, our business will continue to perform based on
 the strength of our value proposition and business model."
 
     About j2
     j2 provides a variety of business critical communications and messaging
 services through its global communications/telephony/messaging network.
 Through three distinct sales channels, Web, Corporate and OEM, j2 provides
 services to over 4.3 million users around the world through its global network
 which is capable of billing, customer support, transport, value added
 applications and local presence on a global basis (4 continents, 157 cities
 and 14 countries).  For a streaming video describing j2's corporate sales,
 click http://www.j2.com/corporate/corporate.asp.  For more information about
 j2, please visit http://www.j2.com or call 323-860-9200.
 
     Safe Harbor for Forward-Looking Statements:  This press release contains
 forward-looking statements relating to future events or future financial
 performance that involve risks and uncertainties.  Such statements can be
 identified by terminology such as "may," "will," "should," "expects," "plans,"
 "anticipates," "believes," "estimates," "predicts," "potential" or "continue"
 or the negative of such terms or comparable terms.  These statements are only
 predictions and actual results could differ materially from those anticipated
 in these statements based upon a number of factors including final adjustments
 made in closing the quarter and those identified in the Company's filings with
 the SEC.
     eFax and eFax.com are trademarks of eFax.com, a wholly-owned subsidiary of
 j2 Global Communications, Inc.
 
     For further information please contact Laura Hinson, PR Manager of j2
 Global Communications, Inc., (323) 860-9435, lhinson@j2.com; or Mary Jo Draper
 of Ink, inc. PR, 816-753-6222, mjdraper@inkincpr.com, for j2 Global
 Communications, Inc.
 
 
                         J2 GLOBAL COMMUNICATIONS, INC.
                Condensed Consolidated Statements of Operations
                                  (Unaudited)
                    (in thousands, except per share amounts)
 
 
                                                   Three months ended
                                                        March 31,
                                                  2001               2000
     Revenues
          Subscriber                            $6,169             $2,865
          Hardware                                 742                 --
          Other                                    301                 --
          Total revenue                          7,212              2,865
 
     Cost of revenue
          Subscriber                             3,055              1,362
          Hardware                                 450                 --
          Other                                     --                 --
          Total cost of revenue                  3,505              1,362
 
          Gross profit                           3,707              1,503
 
     Operating expenses:
          Sales and marketing                    1,184              2,189
          Research and development                 534                789
          General and administrative             3,716              3,962
          Amortization of goodwill and
           other intangibles                     1,736                661
 
          Total operating expenses               7,170              7,601
 
     Operating Loss                             (3,463)            (6,098)
 
     Other income, net                             423                798
 
     Net Loss                                   (3,040)            (5,300)
 
     Basic and diluted net loss
          per common share:
 
          Loss before acquisition related
           amortization of goodwill
           and other intangibles                $(0.11)            $(0.53)
          Loss from amortization
            of goodwill and other
            intangibles                          (0.15)             (0.08)
 
          Net Loss Per Share                    $(0.26)            $(0.61)
 
     Weighted average shares outstanding    11,513,744          8,671,975
 
 
                         J2 GLOBAL COMMUNICATIONS, INC.
                     Condensed Consolidated Balance Sheets
                                  (Unaudited)
                                 (in thousands)
 
     ASSETS                                 March 31, 2001    December 31, 2000
 
           Cash and cash equivalents           $24,230            $23,824
           Short-term investments                  455              1,963
           Accounts receivable                   2,251              2,443
           Prepaid expenses and other            1,825              2,047
 
           Total current assets                 28,761             30,277
 
           Furniture, fixtures and
            equipment, net                       6,208              6,214
           Goodwill, net                        19,352             20,759
           Other purchased intangibles, net      2,554              2,945
           Long-term investments                 1,000              2,320
           Other assets                          2,569              2,790
 
           Total assets                        $60,444            $65,305
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
           Accounts payable and accrued
            expenses                            $4,344             $5,298
           Accrued exit costs                    1,393              2,106
           Deferred revenue                      1,182              1,485
           Current portion of capital
            lease payable                          263                295
           Current portion of
            long-term debt                       1,114              1,285
           Other                                   583                132
 
           Total current liabilities             8,879             10,601
 
           Capital lease obligations               105                168
           Long-term debt                          269                416
 
           Total liabilities                     9,253             11,185
 
           Redeemable common stock               7,065              7,065
           Common stock subject to put option      998                998
 
           Total stockholders' equity           43,128             46,057
 
           Total liabilities and
            stockholders' equity               $60,444            $65,305
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33786997
 
 SOURCE  j2 Global Communications, Inc.