- Increases Revenue 62% for the Quarter
on Year Over Year Basis
- Achieves Second Consecutive Quarter of Profitability
- Introduces Fiscal 2004 Outlook With Over 50% EPS Growth
NASHUA, N.H., May 15, 2002 /PRNewswire-FirstCall via COMTEX/ -- SkillSoft Corporation (Nasdaq: SKIL), a leading provider of e-Learning courseware and ReferenceWare(R) for business and IT professionals, reported financial results today for its fiscal first quarter ended April 30, 2002.
The Company reported total revenue of $13.8 million for the first quarter of the fiscal year ending January 31, 2003 (fiscal 2003), which represented a 62% year-over-year increase from $8.5 million in the fiscal 2002 first quarter. Gross margin remained at 94% in both quarters.
The Company continued its profitability as net income was $282 thousand, or $0.02 per basic share and $0.02 per diluted share for its fiscal 2003 first quarter. For the year ago period, the Company had a net loss of $3.6 million, or ($0.27) per basic and diluted share.
"I am very pleased that we met our goals and continued our profitability for the second consecutive quarter," commented Chuck Moran, Chairman, President and CEO. "Our results clearly indicate that SkillSoft's e-learning solutions are being adopted across many industries as corporations realize that providing training for critical business skills is an important element of their own success. We continue to see strong interest in our e-Learning solutions as evidenced by a record attendance at our recent Customer Advisory Forum Event (CAFE). Given the cost savings of e-Learning, especially during these economically challenging times, we believe that properly designed and implemented e-Learning solutions can effectively and economically address the needs of companies seeking to provide comprehensive enterprise wide training."
SkillSoft introduced 304 new training products and 353 new ReferenceWare titles during the fiscal 2003 first quarter, and at April 30, 2002 had a total of 1,524 courses and over 2,000 books. With this substantial and rapidly growing library, along with continued market penetration, SkillSoft is clearly positioned to be an industry leader in providing Web-based critical business skills content and ReferenceWare to the Global 2000.
SkillSoft's days sales outstanding (DSO) continued to be in the Company's previously stated targeted range, both on a net and a gross basis. On a net basis, which considers only receivable balances for which revenue has been recorded, DSO was 39 days in the fiscal 2003 first quarter, as compared to 35 days in the year ago period, and 34 days in the fiscal 2002 fourth quarter. On a gross basis, which considers all items billed as receivables, DSO was 99 days in the fiscal first quarter of 2003, compared to 80 days in the year ago quarter, and 106 days in the fourth quarter of fiscal 2002. The gross DSO numbers have decreased sequentially, because of deferred revenue decreasing in accounts receivable, and net DSO remains below the Company's historical target range (45 to 60 days).
In order to adequately assess the Company's collection efforts, due to the seasonality of the company's business, DSO analysis must compare current period results to the results of the prior year period. Given the quarterly seasonality of bookings, the deferral from revenue of subscription billings may increase or decrease the DSO on subsequent quarterly comparisons.
The Company is raising the top end of its revenue target by $1.0 million for fiscal 2003, with revenue now anticipated to be between $72 and $75 million. Quarterly revenue distribution for 2003, Q1 through Q4, is now targeted at 18%, 20%, 27%, 35% of the annual range, respectively.
For the fiscal year 2003, the Company is also raising the top end of its earnings range by $0.01 and is anticipated to be between $0.54 and $0.57 per diluted share. Quarterly basic EPS targets for Q2 through Q4 are $0.05, $0.18 to $0.19, and $0.30 to $0.31, respectively. The diluted share count for January 31, 2003 is expected to be in the range of 18.6 to 18.9 million shares, excluding the effect of any future acquisitions.
For the fiscal year ending January 31, 2004, the Company is introducing its revenue and EPS outlook. The Company anticipates revenue to be between $92 and $97 million, and earnings to be between $0.83 and $0.91 per diluted share. The diluted share count for January 31,2004 is expected to be in the range of 20.0 to 21.0 million shares.
The Company's outlook for fiscal 2003 and 2004 excludes the impact of any future financing and acquisitions including any potential non-recurring acquisition-related expenses, as well as the impact of amortization of any purchased intangibles and deferred compensation charges resulting from a transaction.
SkillSoft will be hosting a conference call to discuss earnings on Thursday, May 16, 2002, at 10:00 AM EDT. To participate in the conference call, local and international callers can dial 952-556-2804. The live conference call will be available via the Internet by accessing the SkillSoft Web site at http://www.skillsoft.com. Please go to the Web site at least fifteen minutes prior to the call to register, download and install any necessary audio software.
A replay will be available approximately one hour after the call, until 11:59 p.m. EDT on May 23, 2002. The replay number is 703-326-3020, passcode: 5979774. A webcast replay will also be available on the Company's web site.
With more than 500 corporate customers and 2.5 million user seats, SkillSoft is a leading provider of comprehensive, integrated e-learning solutions for Global 2000 companies and government organizations. Customers receive comprehensive learning and performance support solutions for their workforce through SkillSoft's courseware library, comprised of more than 1,500 courses and simulations for global business markets, of which more than 650 are in U.S. English. The library, which includes more than 4,000 hours of interactive instruction, encompasses a wide array of business skills, such as management, communication, project management, customer service, finance, sales, desktop application software and other subjects relevant to today's business environment. The library also includes more than 12,000 learning objects, 3,000 job aids, 3,500 SkillBriefs.
SkillSoft complements SkillSoft courses with SkillSimulations, Web-based simulations designed to reinforce skills newly acquired through specific courses. SkillSoft courses can be managed and tracked through SkillPort, an e-learning management platform that offers rapid implementation at a cost-efficient price point, or through third-party learning management systems. SkillSoft's subsidiary, Books 24x7, offers subscription clients detailed online searches to more than 2,000 unabridged IT and business titles and 300,000 knowledge objects. Books24x7's patent-pending technology platform gives users the ability to perform multi-tier searches of the company's ReferenceWare: ITPro, BusinessPro and OfficeEssentials. The Books 24x7 ReferenceWare libraries include offerings from more than 65 publishers, including AMACOM, ASTD, Harvard Business School Publishing, McGraw-Hill, Microsoft Press, and Sybex and Wiley.
For more information call SkillSoft at (603) 324-3000
SkillSoft, SkillPort, RolePlay, Search-and-Learn, e-Learning for the Knowledge Economy, NetUniversity, and Accelerated Path are trademarks and/or servicemarks of SkillSoft Corporation. Books24x7.com and ReferenceWare are servicemarks of Books247x.com, Inc. All brand names, trademarks, or registered trademarks are the property of their respective holders.
Safe harbor language: This release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements 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 competitive pressures, changes in customer demands or industry standards, adverse economic conditions, loss of key personnel, litigation and other matters disclosed under the heading "Risk Factors" in the Company's most recent Quarterly Report on Form 10-K filed with the Securities and Exchange Commission. The forward-looking financial information provided by the Company in this press release represents the Company's estimates as of May 15, 2002. We anticipate that subsequent events and developments will cause the Company's estimates to change. However, while the Company may elect to update this forward-looking financial information at some point in the future, the Company specifically disclaims any obligation to do so. This forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this release.
603/324-3000 Ext. 232
Morgen-Walke Associates, Inc.
Michael Polyviou or Melissa Jaffin of