EX-99.1 3 a2091271zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 SELECTED CONSOLIDATED FINANCIAL DATA The selected consolidated financial data as of December 31, 2001 and 2000, and for each of the years in the three-year period ended December 31, 2001 have been derived from our audited consolidated financial statements, which are included elsewhere herein. The consolidated financial statements included herein are prepared assuming the Company will continue as a going concern. The Company's independent public accountants have included a "going concern" explanatory paragraph in their audit report accompanying the 2001 consolidated financial statements indicating that, as discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses from operations since inception and has a working capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to this matter are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The selected financial data as of December 31, 1998 and 1997 and for each of the years in the two-year period ended December 31, 1998 are derived from our audited financial statements, which are not included herein. We believe that due to the many acquisitions that we made in recent years and dispositions during 2001, the period to period comparisons for 1997 through 2001 are not meaningful and should not be relied upon as indicative of future performance. 1 You should read the selected consolidated financial data stated below in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Consolidated Financial Statements and the related Notes thereto included elsewhere herein.
FOR THE YEARS ENDED DECEMBER 31, ---------------------------------------------------------------------------- 2001 2000 1999 1998 1997 ------------- ------------ ------------ ------------ --------------- (in thousands, except per share amounts) CONSOLIDATED STATEMENTS OF OPERATIONS DATA: REVENUES: Integrated media solutions................. $ 36,470 $ 121,867 $ 84,352 $ 20,747 $ 1,536 Technology solutions....................... 9,760 16,503 - - - Other...................................... - - - 119 1,681 ------------- ------------ ------------ ------------ -------------- Total revenues........................... 46,230 138,370 84,352 20,866 3,217 ------------- ------------ ------------ ------------ -------------- Cost of revenues: Integrated media solutions................. 32,213 95,020 61,472 16,149 1,669 Technology solutions....................... 2,855 5,216 - - - ------------- ------------ ------------ ------------ -------------- Total cost of revenues................... 35,068 100,236 61,472 16,149 1,669 ------------- ------------ ------------ ------------ -------------- Gross profit............................. 11,162 38,134 22,880 4,717 1,548 ------------- ------------ ------------ ------------ -------------- Operating expenses: Sales and marketing........................ 19,825 41,353 20,157 8,235 1,857 General and administrative................. 33,262 47,388 17,693 8,827 3,226 Product development........................ 11,592 16,383 1,891 2,097 1,603 Other expenses............................. - - - - 989 Amortization of goodwill, intangibles and advances........................... 14,087 110,975 15,627 5,722 - Stock-based compensation................. 1,658 4,486 313 569 32 Write off of acquired in-process technology and merger related costs... - 636 - 5,000 - Restructuring and exit costs............. 18,142 11,731 - - - Gain on sale of assets, net.............. (2,000) - Impairment of intangible assets.......... 56,707 494,858 - - - ------------- ------------ ------------ ------------ -------------- Total operating expenses............... 153,273 727,810 55,681 30,450 7,707 ------------- ------------ ------------ ------------ -------------- Loss from operations................... (142,111) (689,676) (32,801) (25,733) (6,159) Interest income (expense), net............... 790 1,359 3,005 576 (154) Gain on sale of investments.................. 4,985 52,059 - - - Gain on exchange of patent rights, net....... - 4,053 - - - Impairment of investments.................... (3,089) (101,387) - - - ------------- ------------ ------------ ------------ -------------- Loss from continuing operations.............. (139,425) (733,592) (29,796) (25,157) (6,313) Loss from discontinued operations............ (60,170) (46,330) (9,266) - - ------------- ------------ ------------ ------------ -------------- Net loss..................................... (199,595) (779,922) (39,062) (25,157) (6,313) Cumulative dividends on mandatorily convertible preferred stock.................. - - - (276) - ------------- ------------ ------------ ------------ -------------- Net loss attributable to common stockholders. $ (199,595) $ (779,922) $ (39,062) $ (25,433) $ (6,313) ============= ============ ============ ============ ============== Loss per common share: Loss from continuing operations.............. $ (3.14) $ (21.99) $ (1.49) $ (2.48) $ (3.50) Loss from discontinued operations............ (1.35) (1.39) (0.47) - - ------------- ------------ ------------ ------------ -------------- Net loss..................................... $ (4.49) $ (23.38) $ (1.96) $ (2.48) $ (3.50) ============= ============ ============ ============ ============== Weighted average shares outstanding.......... 44,438,527 33,363,613 19,972,446 10,248,677 1,802,235 ============= ============ ============ ============ ============== CONSOLIDATED BALANCE SHEET DATA: Cash and cash equivalents.................... $ 6,974 $ 24,853 $ 41,170 $ 34,049 $ 121 Working capital (deficit).................... 8,529 21,072 41,189 31,290 (1,668) Goodwill and intangible assets, net.......... 14,518 80,031 55,272 10,935 - Total assets................................. 45,588 251,843 527,854 63,108 1,463 Long-term debt............................... 4,500 - - - 2,317 Obligations under capital leases, excluding current installments............... 112 153 13 34 80 Total stockholders' equity (deficit)......... 10,852 209,569 397,791 51,087 (2,947)
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