Webb Interactive Services Announces First Quarter Results; Quarter-over-Quarter Net Revenues Up 54 Percent

May 04, 2001, 01:00 ET from Webb Interactive Services, Inc.

    DENVER, May 4 /PRNewswire/ -- Webb Interactive Services Inc.
 (Nasdaq: WEBB), a provider of innovative communications and commerce
 solutions, today announced financial results for the first quarter ended March
 31, 2001.  For the period, net revenues from continuing operations increased
 over the same period in the prior year by 21 percent and increased over the
 fourth quarter of 2000 by 54 percent.
     Perry Evans, President and Chief Executive Officer stated, "We are pleased
 with our progress against AccelX revenue and distribution goals for 2001 and
 with the continued progress of our Jabber.com business.  Landing key new
 AccelX customer relationships with SwissOnline and Smart Online continues to
 demonstrate that our products remain in demand, particularly during a climate
 of significant change in web-based infrastructure services for the small and
 medium-size business markets."
     Evans added, "With the general release of its v 2.0 Jabber Commercial
 Server product in March, 2001, Jabber.com is now positioned to finalize
 negotiations with a number of marquis customers that will demonstrate the
 underlying license revenue model of Jabber.com."
     "Assuming all the necessary financing is in place," Evans continued, "we
 remain confident that we will achieve our target of more than doubling
 consolidated net revenues from continuing operations in 2001 over 2000.
 Similarly, cost controls implemented during the past two quarters are intended
 to accelerate our consolidated profitability goals in 2002."
 
     Financial Highlights
     Net revenues from continuing operations for the three months ended March
 31, 2001 were $0.98 million versus $0.81 million for the three months ended
 March 31, 2000.  Including various non-cash charges of $6.3 million, the net
 loss applicable to common stockholders for the quarter was $10.8 million or
 $1.05 per share.  This compares to a net loss of $18.3 million, or $2.11 per
 share for the prior year period that included $15.2 million of such non-cash
 charges.
     Bill Cullen, CFO of Webb Interactive, commented, "Compared to the fourth
 quarter of 2000, operating expenses, excluding depreciation and amortization
 and impairment loss, were reduced by $1.1 million, or 21%, reflecting our
 efforts to align our cost and revenue structures while continuing to position
 ourselves to meet and exceed our customers' expectations.  Our funding
 requirements remain a high priority for our management team in terms of
 obtaining additional working capital to support future operating shortfalls.
 However, we are confident that external financing arrangements concluded last
 February and a strategic investment currently in negotiations for Jabber will
 serve to offset these requirements, and set the stage for improved financial
 security with which to achieve our business strategy."
 
     Strategic Events in Review
     During the fourth quarter and recent weeks, Webb has made several
 announcements related to the Company, and in particular, to the momentum
 quickly building around its Jabber.com, Inc. subsidiary:
 
     -- Webb announced the acquisition of the source code to technology from a
        company that was pioneering exciting new techniques for the creation of
        online yellow page advertising. The technology employs Macromedia's
        Flash and XML for content publishing -- two leading choices for next
        generation promotion and advertising.
 
     -- Webb announced it retained Genesis Select Corp. to initiate a
        comprehensive institutional investor relations program.  Genesis Select
        will work closely with Webb to provide financial advisory services to
        portfolio managers, buy- and sell-side analysts, and the financial
        industry at large.
 
     -- Webb announced a 238% increase in year-over-year results for the year
        ended December 31, 2000.
 
     -- Webb announced that it closed on the first half of a $5.0 million
        private placement of Series C-1 and Series C-2, 0%, Convertible
        Preferred Stock and warrants with Castle Creek Technology Partners,
        LLC.
 
     -- Jabber.com, Inc., in cooperation with leaders of the Jabber.org open
        source project, announced the formation of the Jabber Foundation, a new
        organization dedicated to the interests of the Jabber community at
        large in developing an Open Source Instant Messaging and Presence
        Standard.
 
     -- Jabber.com, Inc. announced the release of Jabber Instant Messenger
        v1.7, including several new features specifically required by
        enterprises looking to deploy instant messaging solutions behind their
        firewalls.
 
     -- Jabber.com, Inc. announced that the Jabber network has now surpassed
        35,000 server installations. Demand for Jabber as an instant messaging
        and embedded communications platform continues to grow.
 
     Outlook
     Looking forward, Evans observed, "Small businesses spent more than
 $7.5 Billion on web access and applications last year, reinforcing how deeply
 entrenched the Internet is becoming to that segment's operating and marketing
 performance.  While the industry goes through considerable change and
 consolidation, the attractiveness of SME commerce services remains very high.
 In that light, we remain confident that an upswing in demand and a strong
 growth opportunity will develop in the second half of 2001 although the timing
 of buying decisions by our distribution partners and active prospects remains
 uncertain for the next few months.  Thus, the focus of AccelX today and going
 forward is on controlling expenses while enhancing our core product
 positioning and closely partnering with our customers in accelerating their
 sell-through success."
     Evans added, "Jabber is experiencing very significant demand growth from
 enterprise and service providers who view instant messaging as a key
 communications application, and ultimately as a strategic communications
 platform.  Jabber is at the very center of the largest and fastest growing
 Internet communications application today with a growth trajectory that is
 eclipsing e-mail.  While the focus to date has been on exploiting
 opportunities to meet the demand for robust and extensible instant messaging
 solutions, the Jabber platform is poised for market leadership in meeting the
 emerging demand for communications between devices, applications and systems.
 We are confidently looking forward to announcing many exciting developments
 that validate our business model and industry position over the next several
 weeks and months."
 
     Other Developments
     The Company has announced the resignation of Ed Flaherty from the Board of
 Directors, effective immediately, due to investor-imposed policy restrictions
 on Mr. Flaherty's new business venture.  Evans stated, "In just the few short
 months Ed has served Webb as a Director, his experience and insight has
 contributed greatly to the Board's role in setting our growth strategies.
 Ed's advice and counsel will be missed but we will continue to seek out
 additional external leaders to help Webb to successfully navigate our key
 emerging markets.  On behalf of the Board and all our shareholders, I want to
 publicly thank Ed for his service to Webb."
 
     Conference Call
     Webb Interactive Services, Inc., will host a conference call on Monday,
 May 7, 2001 at 4:15 p.m. EST to discuss results during the first quarter as
 well as to provide guidance for the second quarter and beyond.  To access the
 listen-only call, dial 1-888-478-9472 toll-free.  The call will also be
 broadcast live on our corporate website, www.webb.net/irhome.htm.  Questions
 may be submitted prior to and during the live call via e-mail to
 kdurand@webb.net.  A replay of the call will be available at the above web
 address shortly after the call.
 
     Annual Meeting
     The Company's annual meeting will be held on May 15, 2001 at 2:30 p.m. MDT
 at the Company's headquarters office that is located at 1899 Wynkoop St.,
 Suite 600, Denver, CO 80202.  Shareholders are cordially invited to attend.
 
     About Webb Interactive Services, Inc.
     Webb Interactive Services (http://www.webb.net) provides innovative online
 commerce solutions that help small businesses generate leads, increase buyer-
 seller interaction and strengthen customer relationships.  Webb has pioneered
 an advanced XML-based technology platform, upon which it provides application
 services that lead the convergence of instant messaging and commerce.  Webb
 clients have included CBS Switchboard, Inc., Bell Canada's ActiMedia, VNU
 World Directories, British Telecom's Yell.com, SmallOffice.com, Corel
 Corporation, VetConnect, AdvisorWorld and RE/MAX International, Inc.
 
     About Jabber.com, Inc.
     Jabber.com, Inc., a subsidiary of Webb Interactive Services
 (Nasdaq: WEBB), is the premiere provider of commercial Jabber solutions,
 products and services targeting the enterprise and service provider markets.
 Jabber is the only open source instant messaging (IM) platform that leverages
 XML technology and a distributed client/server architecture to give each
 company complete control over their IM services, applications and branding.
 Jabber's robust development tools and extensible architecture make it ideal
 for deploying any application that requires real-time XML messaging and
 presence management.  Jabber's web site can be found at www.jabber.com.
 
     Business Risks and Forward-Looking Statements
     This press release contains forward-looking statements relating to the
 business outlook for Webb Interactive Services, Inc. for the current quarter
 and the balance of the current fiscal year, trends in business conditions,
 revenues, expenses and earnings, actions to be taken with the objective of
 improving business efficiency, availability of financing, improved sales and
 marketing productivity and other factors affecting growth in sales and
 earnings. Statements regarding market conditions and Webb's business outlook
 are based largely on our current expectations and are necessarily subject to
 associated business risks related to, among other things, the speed which with
 the market for our services develops, our ability to further expand the sales
 of existing products and to up-sell our existing customers, and the ability to
 productively integrate the people and technologies of any current or future
 acquisitions into our business, some of which are outside of Webb's control.
 We have a limited operating history, which limits the ability of past
 performance to act as a predictor of future events.
     Sales and earnings trends are also affected by many other factors
 including, among others, general economic conditions, the availability and
 terms of external financing and the effectiveness of our pricing, sales and
 technology strategies.  In light of these risks, there can be no assurance
 that the forward-looking statements contained in this press release will in
 fact be realized.  The statements made by management above represent Webb's
 views as of the date of this press release, and it should not be assumed that
 the statements made herein remain accurate as of any future date.  Webb does
 not presently intend to update these statements and undertakes no duty to any
 person to effect any such update under any circumstances.
     For a further discussion of risks associated with Webb's business, please
 see the discussion under the caption "Risk Factors" contained under the
 caption, "Factors That May Affect Future Results" in the Company's Annual
 Report on Form 10-KSB for the fiscal year ended December 31, 2000, and other
 reports that have been filed by Webb with the Securities and Exchange
 Commission and may be accessed through the EDGAR database maintained by the
 SEC at www.sec.gov.
 
                               FINANCIAL SUMMARY
                                  (Unaudited)
 
                                                      Three Months Ended
                                                           March 31,
                                                      2001           2000
 
     Net revenues from continuing operations         $978,754       $812,553
     Loss from operations                         $(5,527,344)   $(5,346,648)
     Net loss applicable to
      common stockholders                        $(10,836,527)  $(18,267,668)
     Loss per share, basic and diluted                $(1.05)        $(2.11)
     Weighted average shares outstanding           10,354,473      8,667,640
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38400747
 
 

SOURCE Webb Interactive Services, Inc.
    DENVER, May 4 /PRNewswire/ -- Webb Interactive Services Inc.
 (Nasdaq: WEBB), a provider of innovative communications and commerce
 solutions, today announced financial results for the first quarter ended March
 31, 2001.  For the period, net revenues from continuing operations increased
 over the same period in the prior year by 21 percent and increased over the
 fourth quarter of 2000 by 54 percent.
     Perry Evans, President and Chief Executive Officer stated, "We are pleased
 with our progress against AccelX revenue and distribution goals for 2001 and
 with the continued progress of our Jabber.com business.  Landing key new
 AccelX customer relationships with SwissOnline and Smart Online continues to
 demonstrate that our products remain in demand, particularly during a climate
 of significant change in web-based infrastructure services for the small and
 medium-size business markets."
     Evans added, "With the general release of its v 2.0 Jabber Commercial
 Server product in March, 2001, Jabber.com is now positioned to finalize
 negotiations with a number of marquis customers that will demonstrate the
 underlying license revenue model of Jabber.com."
     "Assuming all the necessary financing is in place," Evans continued, "we
 remain confident that we will achieve our target of more than doubling
 consolidated net revenues from continuing operations in 2001 over 2000.
 Similarly, cost controls implemented during the past two quarters are intended
 to accelerate our consolidated profitability goals in 2002."
 
     Financial Highlights
     Net revenues from continuing operations for the three months ended March
 31, 2001 were $0.98 million versus $0.81 million for the three months ended
 March 31, 2000.  Including various non-cash charges of $6.3 million, the net
 loss applicable to common stockholders for the quarter was $10.8 million or
 $1.05 per share.  This compares to a net loss of $18.3 million, or $2.11 per
 share for the prior year period that included $15.2 million of such non-cash
 charges.
     Bill Cullen, CFO of Webb Interactive, commented, "Compared to the fourth
 quarter of 2000, operating expenses, excluding depreciation and amortization
 and impairment loss, were reduced by $1.1 million, or 21%, reflecting our
 efforts to align our cost and revenue structures while continuing to position
 ourselves to meet and exceed our customers' expectations.  Our funding
 requirements remain a high priority for our management team in terms of
 obtaining additional working capital to support future operating shortfalls.
 However, we are confident that external financing arrangements concluded last
 February and a strategic investment currently in negotiations for Jabber will
 serve to offset these requirements, and set the stage for improved financial
 security with which to achieve our business strategy."
 
     Strategic Events in Review
     During the fourth quarter and recent weeks, Webb has made several
 announcements related to the Company, and in particular, to the momentum
 quickly building around its Jabber.com, Inc. subsidiary:
 
     -- Webb announced the acquisition of the source code to technology from a
        company that was pioneering exciting new techniques for the creation of
        online yellow page advertising. The technology employs Macromedia's
        Flash and XML for content publishing -- two leading choices for next
        generation promotion and advertising.
 
     -- Webb announced it retained Genesis Select Corp. to initiate a
        comprehensive institutional investor relations program.  Genesis Select
        will work closely with Webb to provide financial advisory services to
        portfolio managers, buy- and sell-side analysts, and the financial
        industry at large.
 
     -- Webb announced a 238% increase in year-over-year results for the year
        ended December 31, 2000.
 
     -- Webb announced that it closed on the first half of a $5.0 million
        private placement of Series C-1 and Series C-2, 0%, Convertible
        Preferred Stock and warrants with Castle Creek Technology Partners,
        LLC.
 
     -- Jabber.com, Inc., in cooperation with leaders of the Jabber.org open
        source project, announced the formation of the Jabber Foundation, a new
        organization dedicated to the interests of the Jabber community at
        large in developing an Open Source Instant Messaging and Presence
        Standard.
 
     -- Jabber.com, Inc. announced the release of Jabber Instant Messenger
        v1.7, including several new features specifically required by
        enterprises looking to deploy instant messaging solutions behind their
        firewalls.
 
     -- Jabber.com, Inc. announced that the Jabber network has now surpassed
        35,000 server installations. Demand for Jabber as an instant messaging
        and embedded communications platform continues to grow.
 
     Outlook
     Looking forward, Evans observed, "Small businesses spent more than
 $7.5 Billion on web access and applications last year, reinforcing how deeply
 entrenched the Internet is becoming to that segment's operating and marketing
 performance.  While the industry goes through considerable change and
 consolidation, the attractiveness of SME commerce services remains very high.
 In that light, we remain confident that an upswing in demand and a strong
 growth opportunity will develop in the second half of 2001 although the timing
 of buying decisions by our distribution partners and active prospects remains
 uncertain for the next few months.  Thus, the focus of AccelX today and going
 forward is on controlling expenses while enhancing our core product
 positioning and closely partnering with our customers in accelerating their
 sell-through success."
     Evans added, "Jabber is experiencing very significant demand growth from
 enterprise and service providers who view instant messaging as a key
 communications application, and ultimately as a strategic communications
 platform.  Jabber is at the very center of the largest and fastest growing
 Internet communications application today with a growth trajectory that is
 eclipsing e-mail.  While the focus to date has been on exploiting
 opportunities to meet the demand for robust and extensible instant messaging
 solutions, the Jabber platform is poised for market leadership in meeting the
 emerging demand for communications between devices, applications and systems.
 We are confidently looking forward to announcing many exciting developments
 that validate our business model and industry position over the next several
 weeks and months."
 
     Other Developments
     The Company has announced the resignation of Ed Flaherty from the Board of
 Directors, effective immediately, due to investor-imposed policy restrictions
 on Mr. Flaherty's new business venture.  Evans stated, "In just the few short
 months Ed has served Webb as a Director, his experience and insight has
 contributed greatly to the Board's role in setting our growth strategies.
 Ed's advice and counsel will be missed but we will continue to seek out
 additional external leaders to help Webb to successfully navigate our key
 emerging markets.  On behalf of the Board and all our shareholders, I want to
 publicly thank Ed for his service to Webb."
 
     Conference Call
     Webb Interactive Services, Inc., will host a conference call on Monday,
 May 7, 2001 at 4:15 p.m. EST to discuss results during the first quarter as
 well as to provide guidance for the second quarter and beyond.  To access the
 listen-only call, dial 1-888-478-9472 toll-free.  The call will also be
 broadcast live on our corporate website, www.webb.net/irhome.htm.  Questions
 may be submitted prior to and during the live call via e-mail to
 kdurand@webb.net.  A replay of the call will be available at the above web
 address shortly after the call.
 
     Annual Meeting
     The Company's annual meeting will be held on May 15, 2001 at 2:30 p.m. MDT
 at the Company's headquarters office that is located at 1899 Wynkoop St.,
 Suite 600, Denver, CO 80202.  Shareholders are cordially invited to attend.
 
     About Webb Interactive Services, Inc.
     Webb Interactive Services (http://www.webb.net) provides innovative online
 commerce solutions that help small businesses generate leads, increase buyer-
 seller interaction and strengthen customer relationships.  Webb has pioneered
 an advanced XML-based technology platform, upon which it provides application
 services that lead the convergence of instant messaging and commerce.  Webb
 clients have included CBS Switchboard, Inc., Bell Canada's ActiMedia, VNU
 World Directories, British Telecom's Yell.com, SmallOffice.com, Corel
 Corporation, VetConnect, AdvisorWorld and RE/MAX International, Inc.
 
     About Jabber.com, Inc.
     Jabber.com, Inc., a subsidiary of Webb Interactive Services
 (Nasdaq: WEBB), is the premiere provider of commercial Jabber solutions,
 products and services targeting the enterprise and service provider markets.
 Jabber is the only open source instant messaging (IM) platform that leverages
 XML technology and a distributed client/server architecture to give each
 company complete control over their IM services, applications and branding.
 Jabber's robust development tools and extensible architecture make it ideal
 for deploying any application that requires real-time XML messaging and
 presence management.  Jabber's web site can be found at www.jabber.com.
 
     Business Risks and Forward-Looking Statements
     This press release contains forward-looking statements relating to the
 business outlook for Webb Interactive Services, Inc. for the current quarter
 and the balance of the current fiscal year, trends in business conditions,
 revenues, expenses and earnings, actions to be taken with the objective of
 improving business efficiency, availability of financing, improved sales and
 marketing productivity and other factors affecting growth in sales and
 earnings. Statements regarding market conditions and Webb's business outlook
 are based largely on our current expectations and are necessarily subject to
 associated business risks related to, among other things, the speed which with
 the market for our services develops, our ability to further expand the sales
 of existing products and to up-sell our existing customers, and the ability to
 productively integrate the people and technologies of any current or future
 acquisitions into our business, some of which are outside of Webb's control.
 We have a limited operating history, which limits the ability of past
 performance to act as a predictor of future events.
     Sales and earnings trends are also affected by many other factors
 including, among others, general economic conditions, the availability and
 terms of external financing and the effectiveness of our pricing, sales and
 technology strategies.  In light of these risks, there can be no assurance
 that the forward-looking statements contained in this press release will in
 fact be realized.  The statements made by management above represent Webb's
 views as of the date of this press release, and it should not be assumed that
 the statements made herein remain accurate as of any future date.  Webb does
 not presently intend to update these statements and undertakes no duty to any
 person to effect any such update under any circumstances.
     For a further discussion of risks associated with Webb's business, please
 see the discussion under the caption "Risk Factors" contained under the
 caption, "Factors That May Affect Future Results" in the Company's Annual
 Report on Form 10-KSB for the fiscal year ended December 31, 2000, and other
 reports that have been filed by Webb with the Securities and Exchange
 Commission and may be accessed through the EDGAR database maintained by the
 SEC at www.sec.gov.
 
                               FINANCIAL SUMMARY
                                  (Unaudited)
 
                                                      Three Months Ended
                                                           March 31,
                                                      2001           2000
 
     Net revenues from continuing operations         $978,754       $812,553
     Loss from operations                         $(5,527,344)   $(5,346,648)
     Net loss applicable to
      common stockholders                        $(10,836,527)  $(18,267,668)
     Loss per share, basic and diluted                $(1.05)        $(2.11)
     Weighted average shares outstanding           10,354,473      8,667,640
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X38400747
 
 SOURCE  Webb Interactive Services, Inc.