PurchasePro (Nasdaq: PPRO) announced Tuesday that its net loss for the quarter was US$14.3 million more than originally reported.
The Las Vegas, Nevada-based business-to-business (B2B) e-commerce company now says that its net loss, including non-cash charges and amortization of equity-based compensation and goodwill, was $32.4 million for the quarter ended March 31st. It had previously reported a first quarter loss of $18.1 million.
The revised earnings report came a day after Charles E. Johnson, Jr., the company’s co-founder, chief executive officer and chairman of the board, left the company.
“In the near term, we will work to develop a strong course of action to reinvigorate the company and provide it with the best possible opportunity to achieve its ultimate objective: the achievement of strong financial returns,” Purchase Pro chief financial officer Richard Clemmer said in announcing Johnson’s resignation.
“It is, however, now time to inject that strategy with the fuel that will accelerate it during this demanding period in our history, as well as this difficult economic environment,” Clemmer added.
PurchasePro said that it has named board member R. Todd Bradley chairman of the board. A new CEO has not yet been chosen.
PurchasePro offered no explanation for its revised earnings statement, but the numbers show that the company’s revenues were $12.7 million less than previously reported, dropping from $29.8 million to $17.1 million. During the fourth quarter of 2000, the company had revenues of $33.6 million.
Excluding non-cash charges of $16.7 million for strategic marketing expenses, and amortization of equity-based compensation and goodwill, PurchasePro reported a cash operating loss for the first quarter of $15.9 million, or 23 cents per share.
The net loss after including all charges was 47 cents per share.
Time to Say Goodbye
Despite announcing an alliance with America Online (NYSE: AOL), PurchasePro has had a rocky few months. The company was reportedly sued in February by convicted money-launderer Russell Pike, who alleges that Johnson and PurchasePro co-founder Ranel Erickson launched PurchasePro based on a stolen business plan.
In April, the day before PurchasePro initially released its first quarter results, a judge denied the company’s motion to dismiss the Pike lawsuit, reports said.
The company has also been hit with a spate of investor lawsuits, alleging that the company defrauded investors by making misleading statements.
In morning trading Tuesday, PurchasePro was at $2.74, down 23 cents or 7.7 percent. The stock hit a 52-week low of $2.10 on May 16th, after having traded at $47.75 in September.
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