Net Perceptions to Miss Q4 Revenue Estimates
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Personalization marketer Net Perceptions said Friday that it expects to miss its earlier fourth-quarter estimates.
The company said it would likely report fourth quarter revenues ranging between $6.3 million and $7.3 million. That's down from the $8 million to $9 million it originally predicted in October.
Minneapolis-based Net Perceptions also said it expects to report a net loss ranging from $9.5 million to $11 million, or $0.36 to $0.41 per share, before charges. These results compare with revenues of $6.3 million for the fourth quarter ended Dec. 31, 1999, and a net loss of $2.7 million, or $0.13 per share.
"We again saw deals [being postponed to] future quarters," said chief executive officer Steven Snyder. "And we incurred greater-than-anticipated costs associated with our recent reorganization. Those factors combined with the current economic conditions impacted our quarterly financial performance."
Despite the troubles, management said that Net Perceptions -- which makes personalization software allowing companies to target messaging and Web pages to specific customer profiles -- had performed well.
"Although we did not meet our anticipated financial goals, I'm pleased with the progress we've made this quarter," Snyder said. "Specifically, we restructured our field operations organization, implemented new sales processes to focus on larger transactions within the retail sector, and we built a solid sales pipeline for next year."
The company, which did not give guidance for 2001, also said it anticipates finishing the year with more than $96 million in cash and marketable securities, which should be enough to carry it through to profitability in late 2001.
At press time, shares of NETP were up 4.6 percent in heavy trading, at $2.16. However, that's well off the company's 52-week high of $66.5.