Exhibit 99.1
[PROSOFTTRAINING.COM LOGO]
Investor Relations: Jim Stapleton
ProsoftTraining.com
(512) 225-6792
jstapleton@prosofttraining.com
ProsoftTraining.com Offers Business and Financial Update
Austin, Texas, April 17, 2001 -- ProsoftTraining.com (Nasdaq: POSO)
announced today a revision in expectations for its fiscal third quarter ended
April 30, 2001. The company currently expects revenues to be between $7.0
million and $8.0 million, substantially softer than its previous expectations.
The new estimate represents 35% to 55% revenue growth compared to its fiscal
third quarter the previous year. The company also announced it expects to report
a loss for the quarter.
"In the face of recent economic uncertainty, many corporations have
virtually eliminated discretionary spending," said Jerry Baird, Chairman and CEO
of ProsoftTraining.com. "This near-term trend negatively affected spending for
all of our major products except certification during the quarter. We have
historically seen strong sequential monthly revenue growth in our third fiscal
quarter. This year, our February revenue was softer than expected followed by
only minor sequential revenue growth in March. As a result, March revenue was
significantly below expectations. We expect only moderate revenue growth in
April and have therefore lowered our expectations for the quarter."
(more)
Page 2--ProsoftTraining.com offers Business and Financial Update
April 17, 2001
During the quarter, the company has been able to defer some planned
marketing expenditures, but a lower overall gross margin caused by a continued
slowdown in the company's services business and previous investments to support
expected growth will prevent the company from reporting a profit. The company
intends to make adjustments to its cost structure that should return it to
profitability, possibly as early as next quarter, given moderate growth from
current revenue levels. Detail concerning the cost reduction measures and
specific guidance for the fiscal fourth quarter will be provided at the time of
the company's formal third-quarter earnings release in early June. Management is
comfortable that cost adjustments, operating leverage and the Company's current
cash position are sufficient to keep the company financially strong.
Baird continued, "Despite the near-term decline in spending for our
products, we remain very encouraged about the outlook for the future. A very
positive sign for us is the continued growth in CIW testing revenue, which has
set new records during the early months of calendar 2001. In fact, March
represented the best testing month in the history of the certification by a
substantial degree. We have also seen unit growth in our new A+ product when
compared to the previous year; we believe this growth indicates an increase in
our share of this market. These trends and the results of a detailed survey of
our customers in March encourage us that our products are well positioned and
our market opportunity, though delayed, has not changed. We believe that after
companies adjust for reduced economic expectations, their continued need for
skilled IT professionals will renew demand for our products. Furthermore, laid-
off individuals looking to create and validate technical skills will be
attracted to CIW and other certifications we support. Though slower revenue
growth will likely continue through fiscal year end, we expect to see a return
to much stronger growth in our business as the economic uncertainty abates."
(more)
Page 3--ProsoftTraining.com offers Business and Financial Update
April 17, 2001
The company encourages all interested investors to join a conference call
today, during which company management will discuss this business and financial
update and comment on future expectations. The call is scheduled for 5:00 p.m.
ET/4:00 p.m. CT on April 17, 2001. The phone number for the call is 801/983-
4017, pass code 300. This is a "listen-only" phone number. Re-broadcast will
be available for two weeks at 402/220-1490, PIN 1228.
Prosoft plans to report its fiscal year 2001 third quarter results on June
6, 2001 at 4:00 p.m. Eastern Time.
The actual results for the Company's third fiscal quarter ending April 30, 2001
will be available in early June. The estimates contained in this release were
prepared without the benefit of the operating results for April or the normal
quarterly review of financial and operating results that could materially affect
the estimates provided herein. Accordingly, the actual results for the quarter
could vary from the estimates in this release.
This press release contains forward-looking information relating to revenue
growth and future demand, which relate to the success of our products. Readers
are cautioned that these forward-looking statements are only predictions and may
differ materially from actual future events or results. Risk factors that could
cause actual results to differ from those contained in these forward-looking
statements include but are not limited to risks associated with business and
economic conditions, lack of growth in information technology training which
would materially affect demand for our products, a decline in certification
testing activity, a lack of revenue growth, the inability to increase market
share, the inability to make timely adjustments to cost structures, the impact
of competition and downward pricing pressure, the Company's ability to attract
and retain key management and other personnel, and the other risks and
uncertainties outlined in the Company's filings with the Securities and Exchange
Commission, including but not limited to the Company's Annual Report on Form 10-
K. The Company undertakes no obligation to update this forward-looking
information.
(more)
Page 4--ProsoftTraining.com offers Business and Financial Update
April 17, 2001
About ProsoftTraining.com
ProsoftTraining.com (Nasdaq: POSO) supplies educational materials and
certification programs for today's information technology (IT) work force.
Prosoft content is distributed through one of the world's largest channels of
learning centers, as well as corporations, e-learning organizations and
universities. ProsoftTraining.com's two major brands, CIW (Certified Internet
Webmaster) and ComputerPREP, provide courseware that helps professionals
validate their technical skills to advance their careers, thus remaining
competitive in a dynamic, technology-focused environment.
A vendor-neutral IT certification program for the knowledge economy, CIW
establishes and certifies the skills required to compete in today's critical
Internet, Web and e-business job market. Individuals can earn CIW certification
at the Associate, Professional and Master levels. CIW job roles encompass a wide
variety of skills, including basic Internet, internetworking, Web site design,
Java, Internet server administration, security and e-commerce. CIW-authorized
preparatory materials are available in classroom, e-learning, distance learning
and self-study formats through the CIW Authorized Training Providers (ATP)
network. To date, more than 15,000 CIW certifications have been awarded. Learn
more about CIW at www.CIWcertified.com.
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Prosoft's ComputerPREP brand provides integrated technology training solutions
to serve today's learning centers, corporate universities and academic
marketplaces. ComputerPREP training and certification materials teach advanced
technologies, programming languages and desktop applications to support leading
IT certification programs, including A+, Network +, Cisco, Microsoft, Linux and
Oracle. Learn more about ComputerPREP and its products at www.ComputerPREP.com.
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Prosoft also offers the TIA-sponsored (Telecommunications Industry Association)
CCNT (Certified in Convergent Network Technologies) vendor-neutral training and
certification program. Any professional requiring knowledge of data convergence,
computer telephony and telecommunications will benefit from CCNT job-role
focused training and certification. The CCNT curriculum includes topics such as
basic data communications, basic telecommunications, broadband technologies,
computer-telephony integration essentials and local area networks. Currently,
more than 3,000 people have already earned the vendor-neutral CCNT credential.
ProsoftTraining.com is headquartered at 3001 Bee Caves Road, Suite 300, Austin,
Texas, 78746. For information about Prosoft and its other programs visit
www.ProsoftTraining.com.
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