Cuts operating expenses, increases activity in CPG industry
Dallas, TX — August 8, 2003 — The viaLink Co., a provider of synchronization- and scan-based trading services to the retail supply chain, reported results for the second quarter ended June 30, 2003.
According to the company, subscription revenue in the second quarter was $827,000, representing an 18 percent increase over the second quarter of 2002 and a 10 percent increase over the first quarter of 2003, setting a new record for quarterly subscription revenue for the company.
However, total revenue for the quarter was $953,000, 14 percent less than total revenue in the second quarter of 2002 due to decreases in implementation revenue during the quarter.
Total operating expenses were $2.9 million, which is consistent with expenses in the previous two quarters and a 15 percent decrease from $3.4 million in expenses in the second quarter of 2002.
The company reported a net loss and net loss applicable to common stock for the second quarter of $2.7 million, or $0.02 per share, which includes $0.7 million of non-cash interest expense on notes payable.
The loss from operations for the second quarter decreased compared to the second quarter of 2002 and the first quarter of this year. Cash used in operating activities decreased to $1.7 million during the second quarter as compared to $2.9 million used in the prior year second quarter.
"Over the past few weeks we have further reduced our operating expenses, and this has been achieved through negotiation with certain vendors, reduction or elimination of relationships with other vendors and a reduction in our workforce," said Brian Carter, chief financial officer of viaLink. "These efforts were made to reduce our cash expenses to approximately $650,000 per month, which will accelerate the reduction in our quarterly operating losses for the remainder of 2003, particularly in the fourth quarter."
Bob Noe, CEO of viaLink, added, "The recently completed quarter saw an increase in activity, both in our traditional [consumer packaged goods] retail customer base and in new vertical markets." He said viaLink's mix of services has shifted with the most significant growth occurring in the company's more advanced services, such as sbtLink Scan Based Trading service and viaLink invoicing.
"About 40 percent of our subscription revenue is derived from these advanced commerce services today, compared to about 10 percent a year ago," Noe explained. "We believe this is a strong sign of the market's recognition of our role in offering new business processes and trading partner collaboration for the retail industry."
During the second quarter, viaLink also signed such new retailers as AutoZone and Ukrop's, and it added a number of new suppliers, including BlossomSelect, SALOV North America, Distribution Plus Inc., Mission Foods and Bradley Caldwell Inc.