Exhibit
99.1
President and
Chief Executive Officer
Net Perceptions, Inc. Announces Third Quarter 2006
Results
— Concord Steel
Purchased on October 3, 2006 —
STAMFORD, CONNECTICUT —
November 14, 2006 — Net
Perceptions, Inc. (OTC:NETP) today announced financial results for
the quarter ended September 30, 2006. Net Perceptions reported no
royalty revenues for the third quarter of 2006 compared to revenues
of $17,000 during the same period of 2006. Total revenues for the
nine-month period ended September 30, 2006 were $20,000 compared to
$60,000 for the same period of 2005. Net loss for the third quarter
of 2006 was $7.6 million or $0.25 per diluted share compared to net
income of $18,000 or $0.00 per diluted share during the same period
of 2005. Net loss for the nine-month period ended September 30,
2006 was $7.7 million or $0.26 per share compared to net income of
$338,000 or $0.01 per share for the same period in 2005. The net
losses for the three- and nine-month periods ended September 30,
2006 include a non-cash charge of $7.4 million relating to a stock
grant to Kanders & Company, Inc. for advisory services provided
to Net Perceptions since Kanders and Company’s investment in
April 2004.
On September
22, 2006, Net Perceptions entered into an Asset Purchase Agreement
("Purchase Agreement") with CRC Acquisition Co., LLC (doing
business as Concord Steel) to acquire substantially all of the
assets and to assume certain of the liabilities of Concord Steel
upon the terms and subject to the conditions contained in the
Purchase Agreement ("Concord Acquisition"). The aggregate purchase
price for the Concord Acquisition was approximately $45.2 million
and the acquisition closed on October 3, 2006. For more information
regarding this transaction and compensation to Kanders &
Company, Inc., please see the Net Perceptions’ Current
Reports on Form 8-K filed with the Securities and Exchange
Commission on September 28, 2006 and October 10, 2006.
Net Perceptions
estimates that it has available federal net operating loss
carry-forwards of approximately $121.3 million and research and
development credit carry-forwards of approximately $151,000 which
expire in varying amounts beginning in the year 2011, to the extent
not limited under Section 382 of the Internal Revenue
Code.
Concord Steel
is a leading independent manufacturer of counter-weights that are
incorporated into a variety of industrial equipment, including
aerial work platforms, cranes, elevators and material handling
equipment. The acquisition of Concord Steel is the initial step in
the corporate strategy to develop a diversified, global industrial
products group.
This press
release contains forward-looking statements within the meaning of
the Securities Act of 1933 and the Exchange Act of 1934.
Information in this release includes Net Perceptions’
beliefs, expectations, intentions and strategies regarding Net
Perceptions, its future and its products and services. Assumptions
relating to the forward-looking statements involve judgments with
respect to, among other t
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