L90 Reports Q1 Results in Line With Analyst Expectations

- Company Adds 225 New Marketing Clients and 163 New Publishing Clients

During The Quarter -



Apr 26, 2001, 01:00 ET from L90, Inc.

    LOS ANGELES, April 26 /PRNewswire/ -- L90, Inc. (Nasdaq:   LNTY), a
 marketing, technology, and media company, today announced its financial
 results for the first quarter of 2001.  The Company's revenue and EPS were in
 line with analyst expectations.
     L90 produced system revenue of $10.6 million in the first quarter, which
 represents a small increase over the first quarter of last year.  The
 Company's GAAP revenue of $9.8 million was 14 percent higher than Q1 of last
 year.  In addition, L90's gross profit in the first quarter increased
 71 percent to $5.4 million.  The Company's gross margin also expanded to a
 record 54.8 percent of GAAP revenue or 50.8 percent of system revenue.
     "We are very pleased to see that our gross margin continues to expand,"
 said John Bohan, CEO and President of L90.  "The first quarter's strong gross
 margin was driven primarily by the growth of our adMonitor technology revenues
 as well as the expansion of our commission rates on the L90 Network.  The
 expansion of our gross margin is a reflection of the increasing value that L90
 is delivering to our clients."
     During the first quarter, L90 added 225 new marketing clients to its
 portfolio, including large traditional companies such as 3Com, Epson Latin
 America, Ikea, Lego, and Quaker Oats.  L90 has a very diversified customer
 base with over 1,500 marketing clients, none of which accounts for more than
 5% of the Company's revenue.  "L90 continues to add to our blue chip customer
 base because of our marketing technology expertise and our digital marketing
 solutions, ProfiTools, that deliver results," said Bohan.  "We are very well
 positioned to take advantage of the further expansion and evolution of this
 market."
     L90 also added a record 163 new publishing clients to the L90 Network
 during the quarter, including brand names such as Aerosmith and Sports
 Illustrated for Kids.  "We are extremely excited about the continued rapid
 growth of the L90 Network," said Bohan.  "Today we reach nearly 1 out of every
 2 Internet users which makes L90 one of the largest online media companies in
 the world.  We plan to continue to grow our network rapidly so that we can
 better serve our marketing clients and continue to grow our market share."
     The Company will be hosting a conference call and live webcast on
 Thursday, April 26, 2001 at 5:00 p.m. EST to further discuss the first quarter
 2001 financial results.  Investors who would like to listen to the conference
 call may dial 1-888-868-9080 (domestic) or 973-628-6885 (international).  A
 replay of the conference call will be available at the following numbers:
 888-394-8168 (domestic) and 402-220-5652 (international).  Investors who are
 interested in accessing the live webcast are invited to visit www.L90.com.
 The webcast will also be made available as a replay via the investor relations
 section of the L90 Web site.
 
     adMonitor
     The Technology for Business Success
     adMonitor is L90's proprietary, centralized ad-serving and tracking
 technology.  adMonitor was developed to power L90's next-generation
 ProfiTools, which help marketers and Web publishers build deeper and more
 powerful relationships with opt-in consumers by delivering targeted offers and
 promotions.  ProfiTools include sponsorships, rich media and direct marketing
 components as well as traditional banner advertisements.  Features include
 advanced targeting and tracking, real-time inventory management, comprehensive
 financials and revenue forecasting.  Direct marketing capabilities include
 serving and tracking of opt-in newsletter sponsorships, viral marketing
 programs, direct e-mail marketing, user registration and opt-in consumer
 profiling.  adMonitor has served over 1,500 marketing clients, currently
 serves nearly 7 billion impressions a month, and reaches over 40% of the
 Internet audience.
 
 
     About L90
     L90 is a marketing, technology, and media company that works with
 marketers and Web publishers to build valuable relationships with customers on
 the Internet.  The Company's ProfiTools solution integrates adMonitor, L90's
 proprietary serving, tracking and marketing technology with a global sales and
 service team.  ProfiTools offer L90's customers the ability to build targeted,
 high-value relationships with Internet users, thereby further monetizing their
 customer base.  By converting Internet users into loyal customers, L90 helps
 marketers build brands, acquire customers, increase traffic, drive sales, and
 retain customers.  L90's ProfiTools include sponsorships, microsites, content
 integration, rich media, sweepstakes, viral marketing, opt-in e-mail,
 newsletters, and many more next-generation marketing tools.  L90 currently
 works with over 500 Web publishers and over 1,500 marketers worldwide,
 including Visa, Microsoft, General Motors, Warner Brothers and Procter &
 Gamble.  Headquartered in Los Angeles, L90 has additional offices in New York,
 San Francisco, Chicago, Miami, Seattle and London.
 
     Statements included within this press release, which are not historical in
 nature, constitute forward-looking statements for purposes of the safe harbor
 provided by the Private Securities Litigation Reform Act of 1995.  Such
 statements involve risk and uncertainties that could cause actual results to
 differ materially from those described herein.  Careful consideration should
 be given to cautionary statements made in L90 documents and reports filed with
 the Securities and Exchange Commission.
 
 
                                   L90, INC.
                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
 
                                                            March 31,
                                                        2001           2000
                                                          (in thousands)
 
                 ASSETS
     Current Assets:
      Cash and cash equivalents                       $68,823       $103,693
      Accounts receivable, net                         12,331          7,228
      Prepaid expenses and other assets                 5,578          1,780
 
      Total current assets                             86,732        112,701
 
      Restricted cash                                   2,619          1,869
      Goodwill, net                                    19,320             --
      Property and equipment, net                      11,202          6,871
 
      Total assets                                   $119,873       $121,441
 
 
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable and accrued expenses            $9,365         $9,822
      Current portion of capital leases
       and notes payable                                  883            502
      Deferred revenues                                 1,870            191
      Accrued dividends                                    --             --
 
      Total current liabilities                        12,118         10,515
 
     Long-term debt                                       553          1,825
 
      Total liabilities                                12,671         12,340
 
      Stockholders' equity                            107,202        109,101
 
      Total liabilities and stockholders' equity     $119,873       $121,441
 
 
                                   L90, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                            For the quarters ended March 31,
                                                        2001           2000
 
                                       (in thousands, except per share data)
 
 
     System revenue (a)                               $10,551        $10,387
 
     Revenue                                           $9,775         $8,583
 
     Operating expenses:
      Cost of service fee and other revenue             4,415          5,456
 
      Sales and marketing                               6,304          2,908
      Research and development                          3,664          2,181
      General and administrative                        3,404          4,014
      Amortization of goodwill                            260             --
     Total operating expenses                          18,047         14,559
 
     Operating loss                                    (8,272)        (5,976)
 
     Interest income, net                                 951            978
 
     Gain on sale of equipment                            229             --
 
     Loss before provision for income taxes            (7,092)        (4,998)
     Provision for income taxes                            --             --
     Cumulative dividends on participating
      preferred stock                                      --             (2)
     Net loss                                         $(7,092)       $(5,000)
 
     Net loss excluding amortization of goodwill      $(6,832)       $(5,000)
 
     Net loss per share:
      Basic/Diluted                                   $(0.30)        $(0.30)
 
     Pro forma net loss per share:
      Excluding amortization of goodwill              $(0.28)        $(0.30)
 
     Weighted average number of common shares
      outstanding:
       Basic/Diluted                                   23,999         16,584
 
 
     (a)   System revenue represents the full value of gross billings for ads
           sold under either commission-based contracts or service-fee based
           contracts.  Although system revenue is not recognized under
           accounting principles generally accepted in the United States,
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46645547
 
 

SOURCE L90, Inc.
    LOS ANGELES, April 26 /PRNewswire/ -- L90, Inc. (Nasdaq:   LNTY), a
 marketing, technology, and media company, today announced its financial
 results for the first quarter of 2001.  The Company's revenue and EPS were in
 line with analyst expectations.
     L90 produced system revenue of $10.6 million in the first quarter, which
 represents a small increase over the first quarter of last year.  The
 Company's GAAP revenue of $9.8 million was 14 percent higher than Q1 of last
 year.  In addition, L90's gross profit in the first quarter increased
 71 percent to $5.4 million.  The Company's gross margin also expanded to a
 record 54.8 percent of GAAP revenue or 50.8 percent of system revenue.
     "We are very pleased to see that our gross margin continues to expand,"
 said John Bohan, CEO and President of L90.  "The first quarter's strong gross
 margin was driven primarily by the growth of our adMonitor technology revenues
 as well as the expansion of our commission rates on the L90 Network.  The
 expansion of our gross margin is a reflection of the increasing value that L90
 is delivering to our clients."
     During the first quarter, L90 added 225 new marketing clients to its
 portfolio, including large traditional companies such as 3Com, Epson Latin
 America, Ikea, Lego, and Quaker Oats.  L90 has a very diversified customer
 base with over 1,500 marketing clients, none of which accounts for more than
 5% of the Company's revenue.  "L90 continues to add to our blue chip customer
 base because of our marketing technology expertise and our digital marketing
 solutions, ProfiTools, that deliver results," said Bohan.  "We are very well
 positioned to take advantage of the further expansion and evolution of this
 market."
     L90 also added a record 163 new publishing clients to the L90 Network
 during the quarter, including brand names such as Aerosmith and Sports
 Illustrated for Kids.  "We are extremely excited about the continued rapid
 growth of the L90 Network," said Bohan.  "Today we reach nearly 1 out of every
 2 Internet users which makes L90 one of the largest online media companies in
 the world.  We plan to continue to grow our network rapidly so that we can
 better serve our marketing clients and continue to grow our market share."
     The Company will be hosting a conference call and live webcast on
 Thursday, April 26, 2001 at 5:00 p.m. EST to further discuss the first quarter
 2001 financial results.  Investors who would like to listen to the conference
 call may dial 1-888-868-9080 (domestic) or 973-628-6885 (international).  A
 replay of the conference call will be available at the following numbers:
 888-394-8168 (domestic) and 402-220-5652 (international).  Investors who are
 interested in accessing the live webcast are invited to visit www.L90.com.
 The webcast will also be made available as a replay via the investor relations
 section of the L90 Web site.
 
     adMonitor
     The Technology for Business Success
     adMonitor is L90's proprietary, centralized ad-serving and tracking
 technology.  adMonitor was developed to power L90's next-generation
 ProfiTools, which help marketers and Web publishers build deeper and more
 powerful relationships with opt-in consumers by delivering targeted offers and
 promotions.  ProfiTools include sponsorships, rich media and direct marketing
 components as well as traditional banner advertisements.  Features include
 advanced targeting and tracking, real-time inventory management, comprehensive
 financials and revenue forecasting.  Direct marketing capabilities include
 serving and tracking of opt-in newsletter sponsorships, viral marketing
 programs, direct e-mail marketing, user registration and opt-in consumer
 profiling.  adMonitor has served over 1,500 marketing clients, currently
 serves nearly 7 billion impressions a month, and reaches over 40% of the
 Internet audience.
 
 
     About L90
     L90 is a marketing, technology, and media company that works with
 marketers and Web publishers to build valuable relationships with customers on
 the Internet.  The Company's ProfiTools solution integrates adMonitor, L90's
 proprietary serving, tracking and marketing technology with a global sales and
 service team.  ProfiTools offer L90's customers the ability to build targeted,
 high-value relationships with Internet users, thereby further monetizing their
 customer base.  By converting Internet users into loyal customers, L90 helps
 marketers build brands, acquire customers, increase traffic, drive sales, and
 retain customers.  L90's ProfiTools include sponsorships, microsites, content
 integration, rich media, sweepstakes, viral marketing, opt-in e-mail,
 newsletters, and many more next-generation marketing tools.  L90 currently
 works with over 500 Web publishers and over 1,500 marketers worldwide,
 including Visa, Microsoft, General Motors, Warner Brothers and Procter &
 Gamble.  Headquartered in Los Angeles, L90 has additional offices in New York,
 San Francisco, Chicago, Miami, Seattle and London.
 
     Statements included within this press release, which are not historical in
 nature, constitute forward-looking statements for purposes of the safe harbor
 provided by the Private Securities Litigation Reform Act of 1995.  Such
 statements involve risk and uncertainties that could cause actual results to
 differ materially from those described herein.  Careful consideration should
 be given to cautionary statements made in L90 documents and reports filed with
 the Securities and Exchange Commission.
 
 
                                   L90, INC.
                            CONDENSED BALANCE SHEETS
                                  (Unaudited)
 
                                                            March 31,
                                                        2001           2000
                                                          (in thousands)
 
                 ASSETS
     Current Assets:
      Cash and cash equivalents                       $68,823       $103,693
      Accounts receivable, net                         12,331          7,228
      Prepaid expenses and other assets                 5,578          1,780
 
      Total current assets                             86,732        112,701
 
      Restricted cash                                   2,619          1,869
      Goodwill, net                                    19,320             --
      Property and equipment, net                      11,202          6,871
 
      Total assets                                   $119,873       $121,441
 
 
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
      Accounts payable and accrued expenses            $9,365         $9,822
      Current portion of capital leases
       and notes payable                                  883            502
      Deferred revenues                                 1,870            191
      Accrued dividends                                    --             --
 
      Total current liabilities                        12,118         10,515
 
     Long-term debt                                       553          1,825
 
      Total liabilities                                12,671         12,340
 
      Stockholders' equity                            107,202        109,101
 
      Total liabilities and stockholders' equity     $119,873       $121,441
 
 
                                   L90, INC.
                       CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)
 
                                            For the quarters ended March 31,
                                                        2001           2000
 
                                       (in thousands, except per share data)
 
 
     System revenue (a)                               $10,551        $10,387
 
     Revenue                                           $9,775         $8,583
 
     Operating expenses:
      Cost of service fee and other revenue             4,415          5,456
 
      Sales and marketing                               6,304          2,908
      Research and development                          3,664          2,181
      General and administrative                        3,404          4,014
      Amortization of goodwill                            260             --
     Total operating expenses                          18,047         14,559
 
     Operating loss                                    (8,272)        (5,976)
 
     Interest income, net                                 951            978
 
     Gain on sale of equipment                            229             --
 
     Loss before provision for income taxes            (7,092)        (4,998)
     Provision for income taxes                            --             --
     Cumulative dividends on participating
      preferred stock                                      --             (2)
     Net loss                                         $(7,092)       $(5,000)
 
     Net loss excluding amortization of goodwill      $(6,832)       $(5,000)
 
     Net loss per share:
      Basic/Diluted                                   $(0.30)        $(0.30)
 
     Pro forma net loss per share:
      Excluding amortization of goodwill              $(0.28)        $(0.30)
 
     Weighted average number of common shares
      outstanding:
       Basic/Diluted                                   23,999         16,584
 
 
     (a)   System revenue represents the full value of gross billings for ads
           sold under either commission-based contracts or service-fee based
           contracts.  Although system revenue is not recognized under
           accounting principles generally accepted in the United States,
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X46645547
 
 SOURCE  L90, Inc.