Poet Holdings, Inc. Announces First Quarter Revenues of $2.7 Million, Cost Reductions, and Revised $16 Million Revenue Target for CY 2001

Apr 24, 2001, 01:00 ET from Poet Holdings, Inc.

    SAN MATEO, Calif., April 24 /PRNewswire Interactive News Release/ --
 Poet Holdings, Inc. (Neuer Markt: POXA) announced today revenues for the
 first quarter of calendar 2001 of $2.7 million.  Revenues remained relatively
 unchanged in the quarter as compared with revenues for the quarter ended
 March 31, 2000.  The net loss for the quarter ended March 31, 2001 was
 $3.6 million, or $0.34 per share, based on weighted average shares outstanding
 of 10,784,000, compared to a net loss of $1.8 million, or $0.17 per share,
 based on pro-forma weighted average shares outstanding of 10,574,000, for the
 quarter ended March 31, 2000.  The Company is implementing cost reduction
 measures to lower budgetary operating expenses by approximately 15% or
 $3 million for the remainder of CY 2001 to address the current uncertainties
 in the economic climate.  The Company is maintaining its plans to reach the
 break even point by the end of 2001 with targeted revenues for CY 2001 of
 approximately $16 million.
     Product license revenues attributable to Poet's strategic
 Business-to-Business Supplier Enablement product line, the electronic Supplier
 Solutions (eSS), increased approximately 262%, to $719,000 in the quarter
 ended March 31, 2001, from approximately $199,000 in the quarter ended
 March 31, 2000.  The Company closed a total of four new eSS end-user accounts
 during the quarter.  Product license revenues attributable to Poet's object
 database product line, FastObjects, decreased approximately 34%, to
 $1.1 million in the quarter ended March 31, 2001, from approximately
 $1.6 million in the quarter ended March 31, 2000.  Total consulting and
 training revenues increased approximately 26%, to $465,000 in the quarter
 ended March 31, 2001, from $369,000 in the quarter ended March 31, 2000.
 Total maintenance and support revenues increased approximately 28%, to
 $495,000 in the quarter ended March 31, 2001, from $385,000 in the quarter
 ended March 31, 2000.
     Total operating expenses for the quarter ended March 31, 2001 were
 $6.1 million compared to $4.6 million for the same period in 2000.  Total
 operating expenses increased primarily due to increased sales and marketing
 expenses, which in turn were primarily due to increased headcount and new
 marketing programs.  Research and development expenses as well as general and
 administrative expenses increased primarily due to increased headcounts.
     The Company is implementing cost reduction measures in response to the
 uncertainties in the economy in North America and Western Europe.  These
 measures will aim to reduce budgetary operating expenses over the next
 three quarters by a total of approximately $3 million, or 15%.  This reduction
 in spending will be accomplished primarily by normal employee attrition,
 eliminating open positions and future planned hires and implementing tighter
 controls on discretionary spending and programs.  The Company plans to achieve
 revenues of $16 million in calendar year 2001, with an annual loss of
 approximately $8 million.  The Company also is maintaining its plans to
 approach the break-even point by the end of calendar 2001.  With approximately
 $30 million in cash and liquid investments, the Company believes it is in a
 very strong position to weather the current economic slow down.
     "We continue to be encouraged by the solid growth of our product license
 revenues for eSupplier Solutions, which more than tripled compared to the
 first quarter of 2000, despite the difficult economic environment during this
 past quarter," said Dirk Bartels, president and CEO of Poet Holdings, Inc.
 "Several large transactions unexpectedly did not close during the last few
 days of the quarter, which attributed to lower than expected revenues and
 higher losses.  None of these transactions were lost to competition, but
 rather delayed and we hope to close these deals over the next few months.
 Nevertheless, new accounts such as the Siemens Vertacross marketplace and
 International Paper, one of the biggest SAP R3 implementations in
 North America, and our announced partnership with Deutsche Telekom are adding
 to our momentum in the B2B Supplier Enablement space.  We are cautiously
 bullish about our short and mid term outlook.  We also completed a major
 project with Nortel Networks, a provider of high-end telecommunication
 equipment for our object database business, which underlines our position in
 the embedded database systems market.  We are addressing the current economic
 slowdown by reducing our budgetary operating expenses for the next
 three quarters by approximately $3 million, or 15%.  We also feel that our
 current cash position is sufficient to get us through the uncertainties in the
 economic climate.  We expect quarter over quarter improvements in top and
 bottom line and expect to reach the break-even point around the end of 2001.
 As a result of the current economic conditions, we have lowered our revenue
 targets for the calendar year 2001 from $19 million to $16 million and
 continue to expect a loss of approximately $8 million."
 
     About Poet Holdings, Inc.
     Poet Holdings, Inc. offers comprehensive supplier enablement applications
 for B2B eCommerce.  The Poet eSupplier Solutions (formerly named eCS) product
 family helps enterprises to establish new business relationships with their
 partners, customers and buying organizations, and to efficiently develop new
 distribution channels through electronic marketplaces.
     The Company also provides "FastObjects by Poet" (formerly named OSS), the
 award-winning object database designed for management of complex data in
 embedded systems and applications.
     Poet Holdings, Inc. is headquartered in San Mateo, California, with
 offices throughout the U.S. and Western Europe.  The Company is traded on the
 Frankfurt Stock Exchange (Neuer Markt: POXA).  For more information, visit
 www.poet.com or call 650-577-2500.
 
     This press release contains forward-looking statements based on current
 expectations that involve risks and uncertainties, including risks associated
 with uncertainties pertaining to the timing and level of customer orders,
 demand for and market acceptance of products and services, development of
 markets for Poet Holdings, Inc. products and services, the U.S. and global
 economies, currency exchange fluctuations, revenue projections and other risks
 identified in Poet Holdings, Inc.  SEC filings, including our report filed on
 Form 10-K for the year ended December 31, 2000, filed with the Securities and
 Exchange Commission.  Due to these risks and uncertainties,
 Poet Holdings, Inc.'s actual results, events and performance may differ
 materially from the results discussed in the forward-looking statements.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements, which speak only as of the date hereof.  Poet Holdings, Inc.
 undertakes no obligation to release publicly the result of any revisions to
 these forward-looking statements that may be made to reflect events or
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
     The unaudited financial statements that follow should be read in
 conjunction with the notes set forth in Poet Holdings, Inc. Form 10-K filed
 with the United States Securities and Exchange Commission.
 
                      POET HOLDINGS, INC. AND SUBSIDIARIES
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and par value amounts)
 
                                       Assets
                                                      March 31,   December 31,
                                                       2001           2000
 
     Current assets:
       Cash and equivalents                           $21,337        $18,747
       Short term investments                              --         10,421
       Accounts receivable (net of allowances of
        $440 and $478 in 2001 and 2000, respectively)   2,910          3,751
       Inventories and other current assets               464            438
         Total current assets                          24,711         33,357
     Property, furniture and equipment, net             1,478          1,308
     Long term investments                              9,013          4,003
     Other assets                                         335            239
     Total assets                                     $35,537        $38,907
 
                        Liabilities and Stockholders' Equity
 
     Current liabilities:
       Accounts payable                                $1,359         $1,252
       Accrued liabilities                              2,054          1,891
       Deferred revenue                                 1,247          1,043
       Current portion of debt
        (including capital lease obligations)             225            244
         Total current liabilities                      4,885          4,430
     Long term obligation                                                 95
     Commitments and contingencies (Note 9)
     Stockholders' equity:
       Preferred stock, $0.001 par value;
        3,000,000 shares authorized; no
        shares outstanding                                 --             --
 
       Common stock, $0.001 par value;
        100,000,000 shares authorized
       Shares outstanding: 2001 - 10,819,845;
         2000 - 10,818,867;                                11             11
       Additional paid in capital                      66,218         66,217
       Deferred stock compensation                      (295)          (353)
       Accumulated deficit                           (35,509)       (31,893)
       Accumulated other comprehensive income             227            400
         Total stockholders' equity                    30,652         34,382
     Total liabilities and stockholders' equity       $35,537        $38,907
 
 
                      POET HOLDINGS, INC. AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                           Three Months Ended
                                                                March 31,
                                                         2001           2000
     Revenues:
       Product                                         $1,790         $2,017
       Consulting and training                            464            369
       Support and maintenance                            495            385
     Total revenues                                     2,749          2,771
     Costs and Operating expenses:
       Cost of product                                     66             78
       Cost of consulting and training                    260            272
       Cost of support and maintenance                    319            232
       Selling and marketing                            4,080          2,830
       Research and development                         1,146            957
       General and administrative                         865            624
       Amortization of deferred stock compensation (*)     56            145
         Total costs and operating expenses             6,792          5,138
     Operating loss                                   (4,043)        (2,367)
     Other income (expense):
       Interest expense                                   (9)           (11)
       Interest income and other, net                     475            630
       Total other income (expense), net                  466            619
     Loss before income taxes                         (3,577)        (1,748)
     Income tax benefit (expense)                        (39)             --
 
     Net loss                                        $(3,616)       $(1,748)
     Other comprehensive income (loss)                  (173)           (23)
     Comprehensive loss                              $(3,789)       $(1,771)
     Basic and diluted net loss per share (Note 1)    $(0.34)        $(0.17)
     Shares used in computing basic and
      diluted net loss per share                       10,784         10,574
 
     (*) Amortization of deferred stock compensation
       Cost of consulting and training                     $6            $17
       Cost of support and maintenance                      3              7
       Selling and marketing                               24             66
       Research and development                            17             41
       General and administrative                           6             14
                                                          $56           $145
 
     CONTACT:  Jerry Wong of Poet Holdings, Inc., 650-577-2500, or
 jwong@poet.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X43513235
 
 

SOURCE Poet Holdings, Inc.
    SAN MATEO, Calif., April 24 /PRNewswire Interactive News Release/ --
 Poet Holdings, Inc. (Neuer Markt: POXA) announced today revenues for the
 first quarter of calendar 2001 of $2.7 million.  Revenues remained relatively
 unchanged in the quarter as compared with revenues for the quarter ended
 March 31, 2000.  The net loss for the quarter ended March 31, 2001 was
 $3.6 million, or $0.34 per share, based on weighted average shares outstanding
 of 10,784,000, compared to a net loss of $1.8 million, or $0.17 per share,
 based on pro-forma weighted average shares outstanding of 10,574,000, for the
 quarter ended March 31, 2000.  The Company is implementing cost reduction
 measures to lower budgetary operating expenses by approximately 15% or
 $3 million for the remainder of CY 2001 to address the current uncertainties
 in the economic climate.  The Company is maintaining its plans to reach the
 break even point by the end of 2001 with targeted revenues for CY 2001 of
 approximately $16 million.
     Product license revenues attributable to Poet's strategic
 Business-to-Business Supplier Enablement product line, the electronic Supplier
 Solutions (eSS), increased approximately 262%, to $719,000 in the quarter
 ended March 31, 2001, from approximately $199,000 in the quarter ended
 March 31, 2000.  The Company closed a total of four new eSS end-user accounts
 during the quarter.  Product license revenues attributable to Poet's object
 database product line, FastObjects, decreased approximately 34%, to
 $1.1 million in the quarter ended March 31, 2001, from approximately
 $1.6 million in the quarter ended March 31, 2000.  Total consulting and
 training revenues increased approximately 26%, to $465,000 in the quarter
 ended March 31, 2001, from $369,000 in the quarter ended March 31, 2000.
 Total maintenance and support revenues increased approximately 28%, to
 $495,000 in the quarter ended March 31, 2001, from $385,000 in the quarter
 ended March 31, 2000.
     Total operating expenses for the quarter ended March 31, 2001 were
 $6.1 million compared to $4.6 million for the same period in 2000.  Total
 operating expenses increased primarily due to increased sales and marketing
 expenses, which in turn were primarily due to increased headcount and new
 marketing programs.  Research and development expenses as well as general and
 administrative expenses increased primarily due to increased headcounts.
     The Company is implementing cost reduction measures in response to the
 uncertainties in the economy in North America and Western Europe.  These
 measures will aim to reduce budgetary operating expenses over the next
 three quarters by a total of approximately $3 million, or 15%.  This reduction
 in spending will be accomplished primarily by normal employee attrition,
 eliminating open positions and future planned hires and implementing tighter
 controls on discretionary spending and programs.  The Company plans to achieve
 revenues of $16 million in calendar year 2001, with an annual loss of
 approximately $8 million.  The Company also is maintaining its plans to
 approach the break-even point by the end of calendar 2001.  With approximately
 $30 million in cash and liquid investments, the Company believes it is in a
 very strong position to weather the current economic slow down.
     "We continue to be encouraged by the solid growth of our product license
 revenues for eSupplier Solutions, which more than tripled compared to the
 first quarter of 2000, despite the difficult economic environment during this
 past quarter," said Dirk Bartels, president and CEO of Poet Holdings, Inc.
 "Several large transactions unexpectedly did not close during the last few
 days of the quarter, which attributed to lower than expected revenues and
 higher losses.  None of these transactions were lost to competition, but
 rather delayed and we hope to close these deals over the next few months.
 Nevertheless, new accounts such as the Siemens Vertacross marketplace and
 International Paper, one of the biggest SAP R3 implementations in
 North America, and our announced partnership with Deutsche Telekom are adding
 to our momentum in the B2B Supplier Enablement space.  We are cautiously
 bullish about our short and mid term outlook.  We also completed a major
 project with Nortel Networks, a provider of high-end telecommunication
 equipment for our object database business, which underlines our position in
 the embedded database systems market.  We are addressing the current economic
 slowdown by reducing our budgetary operating expenses for the next
 three quarters by approximately $3 million, or 15%.  We also feel that our
 current cash position is sufficient to get us through the uncertainties in the
 economic climate.  We expect quarter over quarter improvements in top and
 bottom line and expect to reach the break-even point around the end of 2001.
 As a result of the current economic conditions, we have lowered our revenue
 targets for the calendar year 2001 from $19 million to $16 million and
 continue to expect a loss of approximately $8 million."
 
     About Poet Holdings, Inc.
     Poet Holdings, Inc. offers comprehensive supplier enablement applications
 for B2B eCommerce.  The Poet eSupplier Solutions (formerly named eCS) product
 family helps enterprises to establish new business relationships with their
 partners, customers and buying organizations, and to efficiently develop new
 distribution channels through electronic marketplaces.
     The Company also provides "FastObjects by Poet" (formerly named OSS), the
 award-winning object database designed for management of complex data in
 embedded systems and applications.
     Poet Holdings, Inc. is headquartered in San Mateo, California, with
 offices throughout the U.S. and Western Europe.  The Company is traded on the
 Frankfurt Stock Exchange (Neuer Markt: POXA).  For more information, visit
 www.poet.com or call 650-577-2500.
 
     This press release contains forward-looking statements based on current
 expectations that involve risks and uncertainties, including risks associated
 with uncertainties pertaining to the timing and level of customer orders,
 demand for and market acceptance of products and services, development of
 markets for Poet Holdings, Inc. products and services, the U.S. and global
 economies, currency exchange fluctuations, revenue projections and other risks
 identified in Poet Holdings, Inc.  SEC filings, including our report filed on
 Form 10-K for the year ended December 31, 2000, filed with the Securities and
 Exchange Commission.  Due to these risks and uncertainties,
 Poet Holdings, Inc.'s actual results, events and performance may differ
 materially from the results discussed in the forward-looking statements.
 Readers are cautioned not to place undue reliance on these forward-looking
 statements, which speak only as of the date hereof.  Poet Holdings, Inc.
 undertakes no obligation to release publicly the result of any revisions to
 these forward-looking statements that may be made to reflect events or
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
     The unaudited financial statements that follow should be read in
 conjunction with the notes set forth in Poet Holdings, Inc. Form 10-K filed
 with the United States Securities and Exchange Commission.
 
                      POET HOLDINGS, INC. AND SUBSIDIARIES
                UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and par value amounts)
 
                                       Assets
                                                      March 31,   December 31,
                                                       2001           2000
 
     Current assets:
       Cash and equivalents                           $21,337        $18,747
       Short term investments                              --         10,421
       Accounts receivable (net of allowances of
        $440 and $478 in 2001 and 2000, respectively)   2,910          3,751
       Inventories and other current assets               464            438
         Total current assets                          24,711         33,357
     Property, furniture and equipment, net             1,478          1,308
     Long term investments                              9,013          4,003
     Other assets                                         335            239
     Total assets                                     $35,537        $38,907
 
                        Liabilities and Stockholders' Equity
 
     Current liabilities:
       Accounts payable                                $1,359         $1,252
       Accrued liabilities                              2,054          1,891
       Deferred revenue                                 1,247          1,043
       Current portion of debt
        (including capital lease obligations)             225            244
         Total current liabilities                      4,885          4,430
     Long term obligation                                                 95
     Commitments and contingencies (Note 9)
     Stockholders' equity:
       Preferred stock, $0.001 par value;
        3,000,000 shares authorized; no
        shares outstanding                                 --             --
 
       Common stock, $0.001 par value;
        100,000,000 shares authorized
       Shares outstanding: 2001 - 10,819,845;
         2000 - 10,818,867;                                11             11
       Additional paid in capital                      66,218         66,217
       Deferred stock compensation                      (295)          (353)
       Accumulated deficit                           (35,509)       (31,893)
       Accumulated other comprehensive income             227            400
         Total stockholders' equity                    30,652         34,382
     Total liabilities and stockholders' equity       $35,537        $38,907
 
 
                      POET HOLDINGS, INC. AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share data)
 
                                                           Three Months Ended
                                                                March 31,
                                                         2001           2000
     Revenues:
       Product                                         $1,790         $2,017
       Consulting and training                            464            369
       Support and maintenance                            495            385
     Total revenues                                     2,749          2,771
     Costs and Operating expenses:
       Cost of product                                     66             78
       Cost of consulting and training                    260            272
       Cost of support and maintenance                    319            232
       Selling and marketing                            4,080          2,830
       Research and development                         1,146            957
       General and administrative                         865            624
       Amortization of deferred stock compensation (*)     56            145
         Total costs and operating expenses             6,792          5,138
     Operating loss                                   (4,043)        (2,367)
     Other income (expense):
       Interest expense                                   (9)           (11)
       Interest income and other, net                     475            630
       Total other income (expense), net                  466            619
     Loss before income taxes                         (3,577)        (1,748)
     Income tax benefit (expense)                        (39)             --
 
     Net loss                                        $(3,616)       $(1,748)
     Other comprehensive income (loss)                  (173)           (23)
     Comprehensive loss                              $(3,789)       $(1,771)
     Basic and diluted net loss per share (Note 1)    $(0.34)        $(0.17)
     Shares used in computing basic and
      diluted net loss per share                       10,784         10,574
 
     (*) Amortization of deferred stock compensation
       Cost of consulting and training                     $6            $17
       Cost of support and maintenance                      3              7
       Selling and marketing                               24             66
       Research and development                            17             41
       General and administrative                           6             14
                                                          $56           $145
 
     CONTACT:  Jerry Wong of Poet Holdings, Inc., 650-577-2500, or
 jwong@poet.com.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X43513235
 
 SOURCE  Poet Holdings, Inc.