eCollegeSM Announces Record Revenues of $5.8 Million
eCollegeSM [Nasdaq: ECLG], ], the leading provider of technology and services for online higher education programs, today announced it achieved record revenues for the second quarter ending June 30, 2002. Revenue for the second quarter increased 24 percent to $5.8 million, from $4.6 million for the second quarter of 2001. The net loss for the second quarter was $1.6 million, compared to a net loss of $3.8 million for the same period last year.
The net loss per share for the quarter was $.10, calculated on an average of 16.3 million shares. This compares to a net loss per share of $.24, on an average of 16.2 million shares for the same quarter last year. The Company’s second quarter EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was a negative $340 thousand, a significant improvement over last year’s negative $2.6 million for the same period.
“Online education is gaining wide acceptance, as is evident with the strong enrollment and program growth of our customers,” said Oakleigh Thorne, chairman and CEO of eCollege. “Not only does our business model support this growth, but it also provides institutions that may be constrained by budget cuts with an economical solution to build and grow online programs.”
Revenue for the six months ended June 30, 2002 increased to $11.4 million, from $8.8 million for the same period in 2001. The net loss for the six month period was $3.4 million, or $.21 per share, marking considerable progress towards profitability, compared to a net loss of $8.7 million, or $.54 per share for the same period last year. The Company’s EBITDA for the six months ended June 30, 2002 was a negative $910 thousand, compared to last year’s negative $6.7 million for the same period.
The Company’s cash and cash equivalents were $14.3 million as of June 30, 2002. This represents a decrease of $1.5 million from March 31, 2002, reflecting $1.0 million used in operating activities (including $200 thousand paid to the Company’s educational grant recipients), and an additional $330 thousand spent on capital expenditures to enhance the Company’s development and production environment. On June 30, 2002, total assets were $26.1 million, deferred revenue was $4.5 million, the Company had drawn $2.9 million under its line of credit, and shareholders’ equity totaled $11.8 million.
The following are highlights from eCollege’s second quarter:
For the 2002 spring academic term, which primarily impacts both the first and second quarters, the total number of student enrollments was 127,000, compared to approximately 65,000 enrollments for the 2001 spring term. More than 89,000 of the 2002 spring enrollments represent distance student enrollments, up from 59,000 distance enrollments last spring.
For the 2002 summer academic term, which primarily impacts both the second and third quarters, the total number of student enrollments is expected to be more than 66,000, compared to approximately 31,000 enrollments for the 2001 summer term. More than 51,000 of the 2002 summer enrollments represent distance student enrollments, up from approximately 30,000 distance enrollments last summer.
The number of distance courses that began running this spring academic term was more than 6,000, an increase of 56 percent, compared with the spring term of 2001.
eCollege signed 10 new customers, bringing its total number of customers to 267, from 257 at the end of the first quarter. Additionally, the Company completed 28 significant up-sales to existing customers.
As part of its international expansion plan, eCollege announced its first joint venture with Dubai Internet City to form “Knowledge Access,” a company that will make education more accessible to the Gulf Region and surrounding areas.
eCollege announced plans to launch eCollege AU+SM, the Company’s second major product release of 2002, providing more modularity and customization in its Teaching SolutionsSM and Campus SolutionsSM.
Chairman and CEO, Oakleigh Thorne, agreed to remain in his position on a permanent basis, suspending the Company’s search for a COO and a potential successor to the CEO.
eCollege announced that Silicon Valley Bank renewed and increased its line of credit to $3 million, increasing the Company’s total credit facility to approximately $6.6 million.
eCollege launched its Publisher ToolkitSM, providing publishers with an industry-leading infrastructure, professional services, PIN technology, and end-user support to deliver their content online.
eCollege will hold a conference call to discuss second quarter 2002 results at 12:00 noon Eastern Time on July 23, 2002. Interested parties can listen to the conference call live on the Internet by going to the Investor Relations section of eCollege’s website at www.eCollege.com and clicking on the “Live Webcast” link. Please access the website at least 15 minutes prior to the call to register, download and install any necessary audio software.
For those unable to listen at the designated time, the archived Webcast will be available on eCollege’s website through August 6, 2002. A conference call replay will also be available from approximately 3:00 p.m. Eastern Time on July 23, 2002 until midnight Eastern Time on July 30, 2002. To listen to the replay, participants should dial 800-642-1687. The confirmation ID is: 4839403.
eCollege [Nasdaq: ECLG] is the leading eLearning technology and services provider to educational markets. eCollege designs, builds and supports high quality online degree, certificate/diploma and professional development programs for colleges, universities, school districts and state departments of education. eCollege’s clients include such institutions as National University; Seton Hall University; University of Colorado; DeVry University, Inc.; Kentucky Virtual High School; and Microsoft Faculty Center. The company was founded in 1996 and is headquartered in Denver. For more information, visit www.ecollege.com.
The statements set forth above include forward-looking statements that involve risks and uncertainties, including those relating to the Company’s financial outlook for future periods, including revenue, operating losses, EBITDA, expenses, and financial position and outlook for future results including profitability. The Company wishes to advise readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include: the difficulty in predicting future growth due to the undeveloped and rapidly changing market for our products and services; the market for online learning in higher education is in an early stage and may not continue to develop; the possibility that we may not be able to achieve continued growth or maintain current levels of revenue; the Company’s lengthy sales cycle; substantial and increasing competition in the online education market; technological developments, emerging industry standards and customer requirements, which continually require the Company to improve its software and services, which could lead to increased costs and expenses. These and other factors, which could cause actual results to differ materially, are also discussed in the Company’s filings with the SEC, including its form 10-K for 2001, which was filed on March 28, 2002. The forward-looking statements in this press release are made as of the day hereof and the Company assumes no obligation to update their forward-looking statements.
eCollege, eCollege AU+, Teaching Solutions, Campus Solutions, and Publisher Toolkit are service marks of eCollege. All other trademarks or registered trademarks are the property of their respective owners.