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/ |