SmartForce meldt 1e kwartaal resultaten.
REDWOOD CITY, Calif. – April 18, 2002 -- SmartForce (Nasdaq: SMTF), the world’s largest e-Learning company, today announced financial results for the first quarter ended March 31, 2002. These results were in line with the expected first quarter results that the Company previously announced on April 2, 2002. The Company also announced today that it is implementing a detailed restructuring plan to return to profitability, and that execution of the plan has already begun.
For the first quarter of 2002, the Company posted revenues of $43.0 million, within the $42 to $43 million range previously announced. Net loss before amortization of acquired intangibles and one-time charges in connection with the termination of the Company’s proposed merger with Centra, was $14.9 million, or a loss of $0.26 per share, which is also consistent with the previously announced range of a loss of $0.26 to $0.27 per share.
SmartForce disclosed that it has formulated a detailed operating plan designed to reduce costs, to focus the business on the Company’s core strategies and to eliminate peripheral activities, and has undertaken immediate execution of the initial steps in that process. Under the plan, SmartForce will reduce its staff by 421 people, or approximately 20% of its workforce. The Company has also identified substantial non-headcount related cost savings, which are also being pursued without delay.
As previously announced, the Company expects to record a substantial restructuring charge during the second quarter in connection with the headcount reductions, facilities consolidation and other activities under the new operating plan. The Company estimates that the charge will be approximately $30 million.
“Our company, our industry, and enterprise software generally, face a challenging market environment,” said Greg Priest, Chairman and Chief Executive Officer of SmartForce. “SmartForce is the world’s leading corporate e-Learning company, but we did not get where we are by taking half measures in the face of business challenges. Our cost base is simply too high for current market realities. At the same time, we have both the need—and, in light of recent events, the opportunity—to renew the Company’s focus on our core business strategies. Although we face real challenges, if we execute well in the face of them, we can emerge leaner, stronger and more focused. We are, in short, fully committed to take the steps that must be taken to ensure that we retain and build upon our position of market leadership and return to profitability.”
SmartForce will conduct a conference call today at 5:00 pm EDT to discuss the Company’s first quarter financial results as well as to provide additional information about the restructuring and the Company’s plans for the remainder of the year. The live web cast of the call can be accessed by visiting the web site: http://www.shareholder.com/smtf/medialist.cfm. A taped recording of the conference call will be available for replay beginning at approximately 9:00 pm EDT today. The dial-in number for the replay is (303) 590-3000, passcode 458646.
Note to Editors:
Statement of Operations and Balance Sheet to Follow
About SmartForce
SmartForce, the world"s largest and most experienced e-Learning company, provides integrated e-Learning solutions that enable enterprises to generate concrete, significant business outcomes by more effectively distributing knowledge around the extended enterprise. With more than 2,500 corporate customers, including many of the world"s largest organizations, SmartForce e-Learning solutions bring the power of the Internet to business processes involving learning, skills development and knowledge transfer. SmartForce is quoted on the Nasdaq National Market under the symbol ``SMTF."" The company has corporate headquarters at 900 Chesapeake Drive, Redwood City, Calif., 94063. Phone: 650-817-5900. Fax: 650-817-5061. Web site: www.smartforce.com.
NOTE: SmartForce, SmartForce e-Learning and the SmartForce logo are trademarks of SmartForce. All other company and product names may be trademarks of the respective companies with which they are associated.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements concern the Company’s future financial results and profitability, actions to be taken to return to profitability, and the timing and amount of restructuring charges. All forward-looking statements in this release are subject to risks and uncertainties. Actual results or events could differ materially from the forward-looking statements. Factors that could cause actual results or events to differ materially include, but are not limited to: the anticipated restructuring charges may be materially greater than current estimates; the restructuring plan may not return the Company to profitability; additional cost reduction measures may be required; the Company’s restructuring plan may not result in financial results consistent with the Company’s expectations. Additional factors that could cause actual results or events to differ materially from those in the forward-looking statements are included in the Company"s filings with the Securities and Exchange Commission, specifically the Company"s annual report on Form 10-K for the year ended December 31, 2001. The Company will not update its forward-looking statements at any time.