’s High Revenues Fall Short of Expectations

Despite recording their highest revenues to date,, Inc. announced the company will report lower than anticipated financial results.

The Company expects to report revenues for the quarter of approximately $11.2 million, up approximately 17% from 1999, resulting in a pro forma net loss of between $0.25 and $0.27 per share.

This compares to revenue of $9.6 million and a pro forma net loss of $0.20 per share reported for the fourth quarter of fiscal 1999.

“Although we are disappointed that our revenue growth and EPS did not match expectations, we can point to several orders that had a direct impact on our performance,” says Kevin Oakes, CEO of Click2learn. “While some of these orders may have been affected by the overall state of the economy, we believe that there are a number of issues within our control we can address that will improve our performance.”

As a result of several orders that were delayed, lowered in dollar amount or not closed in the quarter, the Company has taken steps to reduce operational costs while continuing to strengthen the company’s sales organization through additional hiring and organizational realignment.

“We have taken several organizational steps that will position Click2learn to fully capitalize on our sales opportunities, and will benefit our investors, customers, employees, and partners,” say Oakes. “The entire company remains focused and excited about providing the industry’s most integrated e-Learning solution available today, and we look forward to the upcoming year.”

In line with previous guidance, officials at Click2Learn still expect to report positive cash flow in the fiscal first quarter of 2002, and anticipate its current working capital, approximately $21 million, to be sufficient to reach this target.

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