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EXHIBIT (a)(9)
FIREPOND, INC.
FROM: MARGOT OERTEL
SUBJECT: OFFER TO EXCHANGE OPTIONS
DATE: JULY 20, 2001
In connection with Firepond, Inc.'s offer to all eligible employees of the
Company to exchange their outstanding options for new options, attached is a
revised "Summary Consolidated Financial Data" from section 9 of the Offer to
Exchange Options. Information regarding book value per common share as of April
30, 2001 has been added to the table.
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The financial information included in our Annual Report on Form 10-K for
the fiscal year ended October 31, 2000 and in our Quarterly Report on Form 10-Q
for the quarter ended April 30, 2001, is incorporated herein by reference. If
you would like a paper copy of our Annual Report or Quarterly Report, please
contact Margot Oertel by phone at (781) 487-8463 or by e-mail at
margot.oertel@firepond.com or you may refer to the section titled "Additional
Information" beginning on page 19 for instructions on how you can obtain copies
of our SEC filings, including filings that contain our financial statements.
The following table sets forth selected consolidated financial data for
Firepond. The selected historical statements of operations data for the years
ended October 31, 1998, 1999 and 2000, and the selected historical balance sheet
data as of October 31, 1999 and 2000, have been derived from the audited
consolidated financial statements included in our Annual Report on Form 10-K for
the year ended October 31, 2000, as filed with the SEC. The selected historical
statements of operations data for the six months ended April 30, 2000 and 2001,
and the selected balance sheet data as of April 30, 2001, have been derived from
the consolidated financial statements included in our Quarterly Report on Form
10-Q for the period ended April 30, 2001, as filed with the SEC. Such statements
are unaudited, but in management's opinion, the statements include all
adjustments necessary (which are of a normal and recurring nature) for the fair
presentation of the results of such period. The operating results for the six
months ended April 30, 2001 are not necessarily indicative of the results that
may be expected for the fiscal year ending October 31, 2001. The information
presented below should be read together with our consolidated financial
statements and related notes.
SUMMARY CONSOLIDATED FINANCIAL DATA
(in thousands, except for per share data)
FISCAL YEARS ENDED SIX-MONTHS ENDED
OCTOBER 31, APRIL 30,
1998 1999 2000 2000 2001
---- ---- ---- ---- ----
(UNAUDITED)
CONSOLIDATED STATEMENT OF OPERATIONS DATA:
Revenues:
Product-related revenues $ 6,860 $ 18,381 $ 47,393 $ 18,344 $ 23,845
Custom development services 22,142 15,904 14,579 7,220 3,017
Total revenues 29,002 34,285 61,972 25,564 26,862
Gross profit 17,352 17,734 39,215 17,180 8,021
Loss from operations (8,715) (28,224) (19,582) (9,894) (37,347)
Net loss before extraordinary item (9,041) (28,855) (14,905) (8,967) (35,249)
Loss on extinguishment of debt -- -- (1,437) (1,437) --
Net loss (9,041) (28,855) (16,342) (10,404) (35,249)
Stock dividend paid to preferred stockholders -- -- (65,542) (65,542) --
Net loss applicable to common stockholders (9,041) (28,855) (81,884) (75,946) (35,249)
Basic and diluted net loss per share before
extraordinary item $ (0.91) $ (2.88) $ (0.52) $ (0.41) $ (0.98)
Extraordinary item $ -- $ -- $ (0.05) $ (0.07) $ --
Stock dividend paid to preferred stockholders $ -- $ -- $ (2.32) $ (3.01) $ --
Basic and diluted net loss per share
applicable to common stockholders $ (0.91) $ (2.88) $ (2.89) $ (3.49) $ (0.98)
Basic and diluted weighted average common
shares outstanding 9,925 10,024 28,286 21,748 35,821
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SUMMARY CONSOLIDATED FINANCIAL DATA
(in thousands, except for per share data)
OCTOBER 31, APRIL 30,
1999 2000 2001
---- ---- ----
(UNAUDITED)
CONSOLIDATED BALANCE SHEET DATA:
Cash, cash equivalents and short-term investments $ 2,120 $116,233 $ 67,040
Working (deficit) capital (11,380) 101,907 59,282
Total assets 21,660 144,320 116,781
Long-term debt, less current portion 702 -- --
Convertible preferred stock 191 -- --
Total stockholders' equity (deficit) (5,354) 110,464 84,295
Book value per common share 3.10 2.17