E.piphany Reports First-Quarter Net Loss of $295M
However, the San Mateo, CA, company said its total revenue for the quarter rose 164 percent to $38.1 million, from $14.4 million a year ago. It attributed much of that revenue to product licenses, which brought in $22.4 million in the first quarter, nearly triple the $8.2 million in license revenue reported a year earlier. License revenue accounted for 59 percent of E.piphany's total revenue for the quarter.
The company still expects to reach profitability in the fourth quarter. However, analysts are not convinced this is possible, given the deteriorating economy and the shrinking market for eCRM products and services.
"We remain concerned about E.piphany's ability to reach its stated goal of profitability in the fourth quarter of 2001, as management is still considering detailed cost reduction measures which will not take effect until the third quarter of 2001," said Patrick Mason, an analyst at Wit SoundView Corp.
Mason said E.piphany is undertaking an extensive cost benefit analysis of each of its divisions. He said the company may announce cost reductions and layoffs as well as slow its international expansion.
"However, E.piphany's cash position of $368 million should allow the company to eventually reach profitability, and its fully Web-architected product offering continues to see strong demand," he said.