Ventro Corporation Reports First Quarter 2001 Results

Apr 30, 2001, 01:00 ET from Ventro Corporation

    MOUNTAIN VIEW, Calif., April 30 /PRNewswire/ --
 Ventro(TM) Corporation (Nasdaq:   VNTR), a provider of technology and services
 for business-to-business e-commerce, today announced its financial results for
 the three month period ended March 31, 2001.
     First quarter 2001 net income which includes a one-time gain of
 $125.8 million from retirement of bonds and a net loss from continuing
 operations of $28.8 million, was $97.0 million, or $2.10 per basic share.
 During the quarter, Ventro launched and completed a tender offer for
 $250 million of 6% Convertible Subordinated Notes due 2007. Ventro accepted
 for purchase from holders a principal amount of approximately $184.7 million,
 yielding an extraordinary gain of approximately $125.8 million.  The first
 quarter of the prior year presented net income of $29.4 million, or $0.77 per
 basic share, which included a $74.5 million one-time gain on Ventro's
 investment in Tradex stock and a loss on discontinued operations of
 $33.3 million, or $0.87 per basic share.
     In connection with its ongoing efforts to improve efficiencies and
 accelerate cost cutting activities, Ventro recently announced it had reduced
 its workforce by approximately two-thirds.  The company anticipates this
 action, as well as write-downs and reserves with respect to certain assets and
 commitments, will result in an aggregate charge of between $10 million and
 $20 million during the second quarter.  The company anticipates that less than
 $10 million of this charge will require use of cash.  The ultimate amount of
 restructuring charges will be finalized in connection with the determination
 of financial results for the quarter ending June 30, 2001.
     "During the first quarter we made progress towards defining our target
 market and thus, our future business model.  We also strengthened our
 management team with the hiring of David Zechnich as CFO," said David Perry,
 President and CEO of Ventro Corporation.  "We ended the quarter with
 approximately $96 million in cash and investments, which, together with the
 $11 million Broadlane note receivable, provide adequate funding to execute on
 our business plan.  Additionally, we are continuing to focus on streamlining
 our organization to fit the needs of our transitioning business model; we
 expect to reduce our ongoing operating cash expenses to less than $7 million
 per quarter, once our restructuring actions are completed.  There are many
 challenges that remain, but I am encouraged by the progress we have made to
 date."
 
     Webcast
     Ventro will be offering a live webcast of the earnings conference call at
 www.ventro.com under investors or www.streetfusion.com. This webcast will also
 be available after the call via the Ventro and StreetFusion websites until
 May 4, 2001.
 
     Replay Information
     An audio replay of the Ventro first quarter 2001 earnings conference call
 will be available until May 4, 2001. Access number for the replay is
 888-203-1112; access code is 762247.
 
     About Ventro
     Ventro is a provider of B2B e-commerce solutions. Ventro offers a variety
 of products and services to enable marketplaces and enterprises to develop and
 implement effective e-commerce solutions. For more information about Ventro,
 visit www.ventro.com.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  Statements in this press release regarding Ventro's business which
 are not historical facts are "forward-looking statements" that involve risks
 and uncertainties. These potential risks and uncertainties could cause actual
 results to differ from those contained in the forward-looking statements and
 include, without limitation, Ventro's ability to prove its business model,
 generate revenues and gain operating efficiencies, its history of losses, its
 high debt level, its ability to hire and retain key personnel, its reliance on
 the technology of others, the possible delisting of our common stock and its
 estimates of operating results. These and other risk factors are described in
 detail in the company's filings with the Securities and Exchange Commission.
 
 
                                 VENTRO CORPORATION
                        CONDENSED CONSOLIDATED BALANCE SHEET
                       (in thousands, except per share data)
 
                                                       March 31,    Dec. 31,
                                                          2001        2000
                                                      (Unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                         70,967       91,348
       Short-term investments                            19,477       94,987
       Due from marketplace companies, net                4,068        4,269
       Other current assets                               4,127        6,303
       Current assets relating to discontinued
        operations                                       18,847       15,620
         Total current assets                           117,486      212,527
     Restricted cash                                      5,687        5,687
     Property and equipment, net                         19,838       21,797
     Ownership interest in marketplace companies          9,366        6,103
     Other long-term assets, net                          4,339        9,333
     Long-term assets relating to discontinued
      operations                                          1,620        1,861
         Total assets                                  $158,336     $257,308
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                   6,146        2,931
       Accrued compensation                               6,536        3,699
       Accrued expenses                                   7,519       14,423
       Customer advance                                   5,000        5,000
       Other current liabilities                            394          419
       Accrued liabilities relating to discontinued
        operations                                       16,515       27,703
         Total current liabilities                       42,110       54,175
     Notes payable, less current portion                 65,321      250,000
     Other long-term liabilities                             75          206
     Commitments and contingencies                           --           --
     Stockholders' equity:
       Common stock                                           9            9
       Additional paid-in capital                       630,150      630,140
       Deferred compensation                               (918)      (1,051)
       Accumulated deficit                             (578,561)    (675,562)
       Accumulated other comprehensive income (loss)        150         (609)
         Total stockholders' equity                      50,830      (47,073)
         Total liabilities and stockholders' equity    $158,336     $257,308
 
 
                                 VENTRO CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
                                    (Unaudited)
 
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     Net revenues                                         $--            $--
     Cost of revenues                                      --             --
       Gross profit                                        --             --
 
     Operating Expenses:
       Research and development                        13,401          4,315
       Sales and marketing                              4,984          6,355
       General and administrative                       6,054            914
       Amortization of deferred stock based
        compensation                                      133            133
       Total operating expenses                        24,572         11,717
     Operating loss                                   (24,572)       (11,717)
     Interest expenses                                 (4,022)           (47)
     Interest income and other, net                     2,491          1,683
     Gain on investment                                    --         74,532
     Equity Loss                                       (2,736)        (1,702)
     Gain / loss from continuing operations           (28,839)        62,749
 
     Discontinued operations:
       Loss from discontinued operations, net
        of tax                                             --        (33,336)
 
     Extraordinary item - gain from retirement
      of bonds, net                                   125,840             --
     Net income                                       $97,001        $29,413
 
     Basic income (loss) per share from
      continuing operations                            $(0.63)         $1.64
     Diluted income (loss) per share from
      continuing operations                               $--          $1.49
     Basic (loss) per share from discontinued
      operations                                          $--         $(0.87)
     Diluted loss per share from discontinued
      operations                                          $--         $(0.79)
     Basic income per share from extraordinary
      item                                              $2.73            $--
 
     Basic net income per share                         $2.10          $0.77
     Diluted net income per share                         $--          $0.70
     Weighted average common shares outstanding
      used in computing basic net income per share     46,086         38,159
     Weighted average common shares outstanding
      used in computing diluted net income per share       --         42,184
 
 
 

SOURCE Ventro Corporation
    MOUNTAIN VIEW, Calif., April 30 /PRNewswire/ --
 Ventro(TM) Corporation (Nasdaq:   VNTR), a provider of technology and services
 for business-to-business e-commerce, today announced its financial results for
 the three month period ended March 31, 2001.
     First quarter 2001 net income which includes a one-time gain of
 $125.8 million from retirement of bonds and a net loss from continuing
 operations of $28.8 million, was $97.0 million, or $2.10 per basic share.
 During the quarter, Ventro launched and completed a tender offer for
 $250 million of 6% Convertible Subordinated Notes due 2007. Ventro accepted
 for purchase from holders a principal amount of approximately $184.7 million,
 yielding an extraordinary gain of approximately $125.8 million.  The first
 quarter of the prior year presented net income of $29.4 million, or $0.77 per
 basic share, which included a $74.5 million one-time gain on Ventro's
 investment in Tradex stock and a loss on discontinued operations of
 $33.3 million, or $0.87 per basic share.
     In connection with its ongoing efforts to improve efficiencies and
 accelerate cost cutting activities, Ventro recently announced it had reduced
 its workforce by approximately two-thirds.  The company anticipates this
 action, as well as write-downs and reserves with respect to certain assets and
 commitments, will result in an aggregate charge of between $10 million and
 $20 million during the second quarter.  The company anticipates that less than
 $10 million of this charge will require use of cash.  The ultimate amount of
 restructuring charges will be finalized in connection with the determination
 of financial results for the quarter ending June 30, 2001.
     "During the first quarter we made progress towards defining our target
 market and thus, our future business model.  We also strengthened our
 management team with the hiring of David Zechnich as CFO," said David Perry,
 President and CEO of Ventro Corporation.  "We ended the quarter with
 approximately $96 million in cash and investments, which, together with the
 $11 million Broadlane note receivable, provide adequate funding to execute on
 our business plan.  Additionally, we are continuing to focus on streamlining
 our organization to fit the needs of our transitioning business model; we
 expect to reduce our ongoing operating cash expenses to less than $7 million
 per quarter, once our restructuring actions are completed.  There are many
 challenges that remain, but I am encouraged by the progress we have made to
 date."
 
     Webcast
     Ventro will be offering a live webcast of the earnings conference call at
 www.ventro.com under investors or www.streetfusion.com. This webcast will also
 be available after the call via the Ventro and StreetFusion websites until
 May 4, 2001.
 
     Replay Information
     An audio replay of the Ventro first quarter 2001 earnings conference call
 will be available until May 4, 2001. Access number for the replay is
 888-203-1112; access code is 762247.
 
     About Ventro
     Ventro is a provider of B2B e-commerce solutions. Ventro offers a variety
 of products and services to enable marketplaces and enterprises to develop and
 implement effective e-commerce solutions. For more information about Ventro,
 visit www.ventro.com.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995:  Statements in this press release regarding Ventro's business which
 are not historical facts are "forward-looking statements" that involve risks
 and uncertainties. These potential risks and uncertainties could cause actual
 results to differ from those contained in the forward-looking statements and
 include, without limitation, Ventro's ability to prove its business model,
 generate revenues and gain operating efficiencies, its history of losses, its
 high debt level, its ability to hire and retain key personnel, its reliance on
 the technology of others, the possible delisting of our common stock and its
 estimates of operating results. These and other risk factors are described in
 detail in the company's filings with the Securities and Exchange Commission.
 
 
                                 VENTRO CORPORATION
                        CONDENSED CONSOLIDATED BALANCE SHEET
                       (in thousands, except per share data)
 
                                                       March 31,    Dec. 31,
                                                          2001        2000
                                                      (Unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                         70,967       91,348
       Short-term investments                            19,477       94,987
       Due from marketplace companies, net                4,068        4,269
       Other current assets                               4,127        6,303
       Current assets relating to discontinued
        operations                                       18,847       15,620
         Total current assets                           117,486      212,527
     Restricted cash                                      5,687        5,687
     Property and equipment, net                         19,838       21,797
     Ownership interest in marketplace companies          9,366        6,103
     Other long-term assets, net                          4,339        9,333
     Long-term assets relating to discontinued
      operations                                          1,620        1,861
         Total assets                                  $158,336     $257,308
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                                   6,146        2,931
       Accrued compensation                               6,536        3,699
       Accrued expenses                                   7,519       14,423
       Customer advance                                   5,000        5,000
       Other current liabilities                            394          419
       Accrued liabilities relating to discontinued
        operations                                       16,515       27,703
         Total current liabilities                       42,110       54,175
     Notes payable, less current portion                 65,321      250,000
     Other long-term liabilities                             75          206
     Commitments and contingencies                           --           --
     Stockholders' equity:
       Common stock                                           9            9
       Additional paid-in capital                       630,150      630,140
       Deferred compensation                               (918)      (1,051)
       Accumulated deficit                             (578,561)    (675,562)
       Accumulated other comprehensive income (loss)        150         (609)
         Total stockholders' equity                      50,830      (47,073)
         Total liabilities and stockholders' equity    $158,336     $257,308
 
 
                                 VENTRO CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
                                    (Unaudited)
 
                                                         Three Months Ended
                                                               March 31,
                                                         2001           2000
 
     Net revenues                                         $--            $--
     Cost of revenues                                      --             --
       Gross profit                                        --             --
 
     Operating Expenses:
       Research and development                        13,401          4,315
       Sales and marketing                              4,984          6,355
       General and administrative                       6,054            914
       Amortization of deferred stock based
        compensation                                      133            133
       Total operating expenses                        24,572         11,717
     Operating loss                                   (24,572)       (11,717)
     Interest expenses                                 (4,022)           (47)
     Interest income and other, net                     2,491          1,683
     Gain on investment                                    --         74,532
     Equity Loss                                       (2,736)        (1,702)
     Gain / loss from continuing operations           (28,839)        62,749
 
     Discontinued operations:
       Loss from discontinued operations, net
        of tax                                             --        (33,336)
 
     Extraordinary item - gain from retirement
      of bonds, net                                   125,840             --
     Net income                                       $97,001        $29,413
 
     Basic income (loss) per share from
      continuing operations                            $(0.63)         $1.64
     Diluted income (loss) per share from
      continuing operations                               $--          $1.49
     Basic (loss) per share from discontinued
      operations                                          $--         $(0.87)
     Diluted loss per share from discontinued
      operations                                          $--         $(0.79)
     Basic income per share from extraordinary
      item                                              $2.73            $--
 
     Basic net income per share                         $2.10          $0.77
     Diluted net income per share                         $--          $0.70
     Weighted average common shares outstanding
      used in computing basic net income per share     46,086         38,159
     Weighted average common shares outstanding
      used in computing diluted net income per share       --         42,184
 
 
 SOURCE  Ventro Corporation