EXHIBIT 99.1
FRONT PORCH DIGITAL ANNOUNCES RESULTS FOR 2003
--PROJECTIONS FOR FIRST QUARTER 2004 REFLECT CONTINUED RECORD GROWTH--
MOUNT LAUREL, NJ - APRIL 1ST, 2004 - Front Porch Digital Inc. (OTCBB:FPDI) today
announced results for the year ended December 31, 2003, and also provided
guidance for the first quarter of 2004. Management believes these results
provide further evidence of a successful restructuring and a positive outlook
for 2004.
Annual revenues from sales of DIVArchive and BitScream software totaled $2.9
million, an increase of 71 percent over the $1.7 million in revenue achieved in
2002. Revenues for the fourth quarter of 2003 totaled $1.0 million, representing
an approximate 40 percent increase over $0.7 million in revenue recorded in the
third quarter of 2003.
As reported earlier, Front Porch closed new orders totaling more than $1.5
million during fourth quarter 2003, reflecting a new record in contracts closed
for new business. The Company also reported that as of December 31, 2003 it had
a contracted order backlog of $2.2 million, which should all be realized as
revenue during 2004.
Projected results for the first quarter of 2004 demonstrate the continued
improvement of Front Porch's business fundamentals. The Company signed $1.7
million in new orders for DIVArchive and BitScream software in the first
quarter, another record high for the second consecutive quarter.
Revenue for the first quarter of 2004 is projected to be between $1.4 and $1.5
million, representing at least a 40 percent increase over the previous quarter,
and the third consecutive quarter of double-digit growth. The Company estimates
its contracted backlog as of April 1, 2004 to be $2.4 million, which will be
delivered in 2004. Revenues from this backlog, combined with the revenue already
delivered in the first quarter, would represent a 134 percent increase over the
previous year's revenue.
"2003 represented a transition year for Front Porch, but the actions taken were
necessary to position the Company for future growth," said Tom Sweeney, Chairman
of the Board of Front Porch. "The results achieved over the past six months are
evidence that Management made the right moves, and the Company is gaining
momentum. We are also seeing a significant increase in potential deal-flow from
the Media and Entertainment market, and we believe Front Porch is
well-positioned to compete for those contracts."
"The accounting and auditing for 2003 was complicated by the many actions taken
during the restructuring, particularly the treatment of non-recurring losses for
discontinued operations," said Front Porch CFO Matt Richman. "We have filed for
a 15-day extension in order to ensure that all issues related to 2003 have been
worked through. We want to be certain that all accounting and disclosures are
complete, accurate and in compliance with SEC requirements."
The Company's request for extension on form 12-b25 filed with the Securities and
Exchange Commission describes changes in the expected financial results as a
result of the Company's restructuring and discontinued operations in 2003. The
increased net loss of $3.2 million in 2003 reflected from discontinued
operations included non-cash charges of $3.3 million for an asset impairment
taken June 30, 2003. It also included a $1.0 million non-cash loss on the
disposition of a business segment taken in the fourth quarter. Both were offset
by the operations of the discontinued business unit.
"We will file our Annual Report on form 10-KSB within the extension period
without further delay," Mr. Richman added. "Beginning in the first quarter of
2004, our reported results will only reflect activities of the ongoing software
business, as all costs and charges related to the restructuring and disposed
business units have been accounted for in 2003."
ABOUT FRONT PORCH DIGITAL: Front Porch Digital Inc. (www.fpdigital.com) is
transforming the digital world by developing unique software and services that
convert audio, video, images, text and data into digital formats that enable
searching, browsing, editing, archive management and on-demand delivery of
content in nearly any other digital format through a single capture. Front Porch
is the number one provider of archive management software in Europe and Asia.
FRONT PORCH DIGITAL FORWARD LOOKING STATEMENTS: This news release contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, which reflect Front Porch Digital's current views
with respect to future events and financial performance. Such statements are
subject to certain risks and uncertainties that could cause actual events or
results to differ materially from those indicated from such forward-looking
statements. The potential risk factors include Front Porch Digital's limited
operating history and experience in the archive management and video digital
conversion business, Front Porch Digital's ability to attract significant
additional financing and risks associated with expansion. Additional risk
factors are set forth in Front Porch Digital's reports and documents filed with
the Securities and Exchange Commission.
TRADEMARKS: All products or company names mentioned are used for identification
purposes only and may be trademarks of their respective owners.
CONTACT:
Mike Knaisch, Chief Executive Officer
Front Porch Digital, Inc.
(303) 440-7122
mike.knaisch@fpdigital.com
Matthew Richman, Chief Financial Officer
Front Porch Digital, Inc.
(303) 440-8846
mattr@fpdigital.com