JUNO ONLINE SERVICES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
Revenues:
Billable services $7,069 $709 $12,875 $1,174
Advertising and
transaction fees 2,703 1,540 4,968 2,768
Direct product sales 1,350 2,035 2,999 4,612
Total revenues 11,122 4,284 20,842 8,554
Cost of revenues:
Billable services 5,481 580 10,159 967
Advertising and
transaction fees 1,162 875 2,242 1,700
Direct product sales 1,165 1,709 2,589 4,135
Total cost of
revenues 7,808 3,164 14,990 6,802
Operating expenses:
Operations, free
service 1,771 2,356 3,617 5,180
Sales and marketing 2,716 2,884 5,028 7,154
Product development 1,977 1,630 3,831 3,465
General and
administrative 982 676 1,686 1,590
Loss from operations
before subscriber
acquisition costs (4,132) (6,426) (8,310) (15,637)
Subscriber acquisition
costs 13,920 427 16,620 1,880
Loss from operations (18,052) (6,853) (24,930) (17,517)
Interest income, net 795 (14) 906 60
Net loss $(17,257) $(6,867) $(24,024) $(17,457)
Pro forma loss per
share from operations
before subscriber
acquisition costs $(0.14) $(0.32)
Pro forma net
loss per share $(0.56) $(0.93)
Weighted average shares
outstanding used in
pro forma per
share calculation 30,601 25,939
JUNO ONLINE SERVICES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, 1999 December 31, 1998
(unaudited)
Assets
Current assets:
Cash and cash equivalents $111,383 $8,152
Accounts receivable, net of allowance for
doubtful accounts of $421 and $296 in
1999 and 1998, respectively 3,411 2,115
Merchandise inventories, net 24 60
Prepaid expenses and other current assets 11,370 108
Total current assets 126,188 10,435
Fixed assets, net 4,027 4,086
Other assets 111 182
Total assets $130,326 $14,703
Liabilities and partners' capital
(deficiency)/stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $15,604 $11,166
Current portion of capital lease
obligations 735 450
Current portion of senior note -- 1,560
Deferred revenue 8,973 5,602
Total current liabilities 25,312 18,778
Capital lease obligations 825 609
Senior note -- 7,569
Deferred rent 296 335
Deferred revenue 1,000 --
Commitments and contingencies
Partners' capital (deficiency) (12,588)
Stockholders' equity (deficit):
Preferred stock -- $.01 par value; 5,000,000
authorized, none issued and outstanding
Common stock -- $.01 par value; 133,333,334
authorized, 34,629,709 issued
and outstanding 346
Additional paid-in capital 123,265
Unearned compensation (1,043)
Cumulative translation adjustment (1)
Accumulated deficit (19,674)
Total shareholders' equity 102,893
Total liabilities and partners' capital
(deficiency)/stockholders' equity $130,326 $14,703
JUNO ONLINE SERVICES, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
1999 1998
Cash flows from operating activities:
Net loss $(24,024) $(17,457)
Adjustments to reconcile net
loss to net cash
used in operating activities:
Depreciation and amortization 1,159 1,164
Amortization of deferred rent (39) 184
Amortization of unearned compensation 210 --
Changes in operating assets and
liabilities:
Accounts receivable (1,296) (836)
Merchandise inventories 36 647
Prepaid expenses and other current assets (11,262) 315
Accounts payable and accrued expenses 4,437 (1,957)
Deferred revenue 4,371 3,549
Net cash used in operating activities (26,408) (14,391)
Cash flows from investing activities:
Purchases of fixed assets (229) (1,488)
Proceeds from sale of fixed assets -- 287
Other assets 71 2
Net cash used in investing activities (158) (1,199)
Cash flows from financing activities:
Payments on capital lease obligations (370) (239)
Proceeds from senior note -- 10,000
Payments on senior note (9,129) --
Net proceeds from issuance of redeemable
convertible preferred stock 61,859 --
Capital contributions -- 8,500
Proceeds from issuance of common stock
upon completion of IPO 77,285 --
Proceeds from issuance of common stock
upon exercise of stock options 152 --
Net cash provided by financing
activities 129,797 18,261
Net increase (decrease) in cash and
cash equivalents 103,231 2,671
Cash and cash equivalents,
beginning of period 8,152 13,770
Cash and cash equivalents, end of period $111,383 $16,441
Supplemental disclosure of
cash flow information:
Cash paid for interest $293 $68
Supplemental schedule of noncash
investing and financing activities:
Accretion of preferred stock $151 $--
Capital lease obligations incurred for
network equipment 871 869
JUNO ONLINE SERVICES, INC. AND SUBSIDIARY
SELECTED SUBSCRIBER DATA
Selected Subscriber Data:June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
1999 1999 1998 1998 1998
Total subscriber
accounts as of (A) 7,175,000 6,817,0006,336,000 5,852,0005,298,000
Subscriber accounts
that connected in
the three-month
period ended 2,920,000 3,108,000 3,108,000 3,121,0003,032,000
Subscriber accounts
that connected in
the month ended 2,277,000 2,438,000 2,434,000 2,409,0002,361,000
Average subscriber
accounts that
connected per day
in the month ended 810,000 912,000 887,000 889,000 836,000
Billable subscription
service accounts as
of (B) 270,000 207,000 144,000 64,000 --
(A) Includes all user accounts created since Juno's inception,
regardless of activity level, if any, net of accounts that have
been cancelled.
(B) Billable subscription service accounts are a subset of total
subscriber accounts and, to the extent applicable, are also included
in the number of subscriber accounts shown as having connected during
the periods described.
SOURCE Juno Online Services, Inc.
/CONTACT: Becky Yeamans of Juno Online Services, Inc., 212-597-9005,
email, ir@support.juno.com; or Paul Henning or Barbara Manley of The Financial
Relations Board, Inc., 212-661-8030/ |
