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Caliber Learning Network, Inc. Reports Third Quarter 2000 Results; Twenty-Three New Client Wins Including Agway and Toshiba
BALTIMORE, Md., Oct. 25 --
Caliber Learning Network, Inc., (Nasdaq: CLBR), the leading global provider of
end-to-end corporate eLearning solutions, today reported results for its
fiscal 2000 third quarter ended September 30, 2000.
Key Operating Metrics Include:
-- Sequential eLearning revenue growth of 15%
-- Caliber added 23 new client wins bringing the total number of clients
to 87;
-- Caliber added 40 new strategic alliance partners;
eLearning revenue for the quarter increased to $4.8 million, a sequential
increase of 15% compared to $4.2 million reported in the second quarter of
2000.
Total revenue was $6.0 million, compared to $6.1 million in the second
quarter of 2000.
Net loss for the third quarter was $8.8 million, or $0.70
per diluted share, compared to a net loss of $4.7 million, or $0.38 per
diluted share in last year's comparable quarter. The weighted average common
diluted shares outstanding for the quarter were 12,517,864. eLearning revenue for the nine-month period increased to $11.5 million, an
increase of 19% compared to $9.7 million reported in the year ago period.
Total revenue decreased slightly to $17.1 million, compared to $18.5 million
in last year's comparable period, reflecting a de-emphasis of a non-eLearning
revenue stream.
Net loss for the first nine months was $23.5 million, or
$1.88 per diluted share, compared to $17.0 million or $1.38 per diluted share
in the year ago period.
The weighted average common diluted shares
outstanding for the period were 12,480,973. ``We are very excited to be posting strong gains in several key operating
metrics and we are equally excited about the appointments of Mark Yanson as
Chief Financial Officer and Dr. John Gebhardt as Chief Technology Officer.
These two key additions to our management team will provide Caliber with the
direction and knowledge needed to guide the Company forward on its current
path-to-profitability.
We continue to believe that this milestone can be
achieved during the first half of 2002,'' said Caliber President and CEO, Chris
Nguyen. Mr. Nguyen highlighted some of the key new client wins and new alliance
partners, ``Along with posting strong operating metrics, we were able to
successfully continue where we left off last quarter in regards to the signing
of strategic new clients and partnerships.
Many of these new client wins and
partnerships contributed to the strengthening of our key operating metrics.
During the third quarter we posted 23 new client wins including such
well-known names as Toshiba, Agway, Bristol-Myers Squibb and AT&T solutions.
Also during the third quarter, we formed alliances with more than 40 best-of-
breed partners including Microsoft Corporation and VerticalNet, Inc.''
New Client Wins and Expansion of Existing Clients Follow:
-- Agway, the farmer-owned cooperative, announced the launch of its first
eLearning program through Caliber. Agway is using Caliber's award-
winning eLearning solution in an effort to speed product and sales
training transfer to a large audience of remote employees.
-- Toshiba America Information Systems, Inc., Telecommunication Systems
Division, a subsidiary of Toshiba Corporation, launched its first
eLearning program, utilizing Caliber's suite of services to educate
authorized dealers nationwide on critical sales and technical
information for Toshiba's new telecommunication products.
-- Novell's Mid-Atlantic District, a regional district software and
services provider for Novell, Inc., announced the launch of a new
series of Internet-based eLearning seminars for Novell customers and
partners. RedPlanIT is a series of interactive streaming video forums
broadcast to individual desktops worldwide using Caliber's fully
outsourced hosted delivery model.
New Strategic Alliance Partner Highlights Include:
-- Caliber announced a relationship with VerticalNet, the Internet's
leading portfolio of business-to-business communities of commerce, to
provide broadband infrastructure communications technology to better
transmit eLearning content effectively and seamlessly link the supply
chains of VerticalNet users. Caliber will benefit from VerticalNet's
wide customer base and desire to provide customers with vertical-
specific training and corporate communications.
-- Caliber announced a deal with Microsoft to provide Microsoft's Windows
Media Technologies and Caliber's award-winning technology platform to
Global 2000 corporations. With Caliber's preferred support of
Microsoft's Windows Media Technology and preferred access to the
Microsoft development community, corporations will be able to deploy
Microsoft's latest technology and Caliber's eLearning solutions to
businesses in the training and education communities worldwide.
-- Sixteen new studio and production partners will resell Caliber
authorized classrooms and the Caliber LiveCast and onDemand service
lines to their corporate communications and training clients. The
addition of such studio partners as Studio Works, Multivision Video and
Film, Manhattan Center Studios and Cinecraft Productions will increase
Caliber's visibility in the marketplace nationwide.
-- Twelve new training and learning companies will augment their existing
classroom training with eLearning by reselling Caliber. Caliber will
benefit by offering both Caliber's content and conversion services to
the existing clients of such new partner companies as Citywide Computer
Training Center, For Your Instructors, Inc., Learnframe and PC
Technologies.
``During this quarter, we also continued to expand our content library with
new partnerships and we are on target to release our library of courses in
business and IT education by the end of the first quarter of 2001,'' said Mr.
Nguyen.
Content-Based Partnership Highlights:
-- Syracuse University's Crouse-Hinds School of Management added a Caliber
Express Studio to their newly built Executive Learning Center. Caliber
technology will enable faculty to present executive education programs
live over the Internet at prearranged times and dates to corporate
desktops or to Caliber learning centers, as well as to archive the
materials for onDemand access via the Internet from anywhere in the
world.
-- Caliber and Window on the World, a premier cross-cultural training firm
for multi-national corporations, agreed to provide six onDemand courses
on topics that pertain to the international workplace such as effective
communication with other cultures, the impact of cultural values on
global relationships and multi-cultural teambuilding. The partnership
with Window on the World will introduce such corporate clients as
Daimler Chrysler, ALCOA, Honeywell, and General Mills to Caliber's
unique end-to-end eLearning solution.
-- Caliber expanded its relationship with Georgetown University and began
the process of converting its courses into onDemand assets. Caliber
will produce a series of twelve international business management
courses, which can be taken by corporate clients on topics such as
international environment of business, organizational behavior,
marketing and finance.
-- The University of Southern California Marshall School of Business
created a 10-hour suite of eBusiness courses. The four-course program
is designed to put the eBusiness revolution into context by providing
broad exposure to core eCommerce concepts, value drivers and key
eCommerce trends. Companies that have utilized these courses thus far
include Arthur Andersen, Ford Motor Company, American Express, and
Sprint.
``Looking ahead we will continue to identify key opportunities in which to
further foster the growth that we have witnessed over the past two quarters.
We will look for opportunities to enhance our already strong operating
metrics, increase new client wins, enter into additional strategic
partnerships, increase our content library hours, and continue to make
improvements to our platform,'' said Mr. Nguyen. ``With the prospects for such future growth, the Company is currently
seeking additional long-term financing to provide for its anticipated cash
needs and will continue to identify sources of additional cash until cash
flows from operations are sufficient to sustain the growth of the business,''
stated Mr. Nguyen.
``We believe that based on preliminary discussions with
potential investors and lenders, sufficient capital can be obtained to support
planned operations through profitability.'' A conference call discussing third quarter results will be held today,
October 25, 2000, at 10:00 a.m. EDT.
Caliber's investors can access this
conference call via a live webcast on our website at www.caliber.com.
A
replay of the call will be maintained on the www.caliber.com website. About Caliber Learning Network, Inc. Caliber (Nasdaq: CLBR) is the leading global provider of end-to-end
corporate eLearning solutions.
Its solutions and content are delivered
through Internet-based technologies to desktops and a network of learning
centers.
Caliber enables Global 2000 companies to dramatically increase the
reach and reduce the costs of traditional training programs, using
technologies spanning a wide spectrum of delivery methods including a fully
outsourced hosted service, Internet, Intranet and digital satellite.
The
company also provides standard and custom content consulting.
Headquartered
in Baltimore, Caliber was founded in 1996 and has Internet-ready learning
centers and production facilities throughout North America and Europe.
For
more information, visit www.caliber.com. Safe harbor language: This release may include information that could
constitute forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
Any such
forward-looking statements may involve risk and uncertainties that could cause
actual results to differ materially from any future results encompassed within
the forward-looking statements.
Factors that could cause or contribute to
such differences include those matters disclosed in the Company's Securities
and Exchange Commission filings.
CALIBER LEARNING NETWORK, INC.
CONDENSED STATEMENT OF OPERATIONS
(amounts in 000s, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues
Corporate eLearning $4,794 $4,121 $11,540 $9,668
Facilities Rental 1,010 1,397 3,269 3,845
Academic 178 648 1,507 2,188
STC - 1,198 817 2,791
Total revenues 5,982 7,364 17,133 18,492
Expenses 14,296 11,989 40,128 35,326
Income before interest
and taxes (8,314) (4,625) (22,995) (16,834)
Other income (expense),
net (126) (80) 413 (107)
Net loss (8,440) (4,705) (22,582) (16,941)
Dividends accrued on
preferred stock (315) (15) (924) (45)
Net loss attributable to
common stockholders $(8,755) $(4,720) $(23,506) $(16,986)
Basic and diluted
earnings $(0.70) $(0.38) $(1.88) $(1.38)
per share
Weighted average number of
shares outstanding;
basic and diluted 12,517,864 12,349,521 12,480,973 12,324,093
Selected Balance Sheet Data:
As of September 30,
2000 1999
Total cash and short-term investments $6,150 $16,369
Current assets 11,404 22,017
Total assets 30,179 44,093
Current liabilities 14,367 12,489
Long-term debt (less current portion) 6,673 9,610
Stockholders' equity 7,955 20,677
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