CLICKACTION INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the three and six months ended June 20, 2002 and 2001 (Unaudited) (in thousands except per share data) For the three months ended For the six months ended June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001 Revenues $2,353 $5,103 $4,538 $10,417 Cost of revenues 480 165 609 403 Gross profit 1,873 4,938 3,929 10,014 Operating expenses: Product development 1,150 1,797 2,396 3,573 Sales and marketing 788 2,062 1,703 4,577 General and administrative 719 1,520 1,393 2,684 Merger and acquisition related ---- 94 ---- 94 Settlement of claimes ---- ---- 240 ---- 2,657 5,473 5,732 10,928 Operating loss (784) (535) (1,803) (914) Interest income, net (6) 32 (7) 60 Loss from continuing operations before income tax expense (790) (503) 1,810 (854) Income tax expense 7 ---- 18 ---- Loss from continuing operations (797) (503) 1,828 (854) Gain on sale of discontinued operations ---- (3,352) ---- 3,352 Loss from discontinued operations ---- (10,933) ---- (13,134) Net loss $(797) $(8,084) $1,828 (10,636) Redeemable preferred stock dividend expense (60) (30) (60) (30) Loss applicable to common stockholders (857) (8,114) (1,888) (10,666) Basic and diluted net loss per share: Net loss from continuing operations $(0.06) $(0.04) $(0.14) $(0.07) Net loss from discontinued operations ---- (0.60) ---- $(0.77) Net loss $(0.06) $(0.64) $(0.14) $(0.84) Weighted average shares of common stock outstanding: Basic and diluted 13,282 12,770 13,155 12,696 CLICKACTION INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2002 and December 31, 2001 (Unaudited) (in thousands except share data) June 30, 2002 December 31, 2001 ASSETS Current assets: Cash and cash equivalents $1,593 $2,137 Note receivable ---- 250 Accounts receivable, net 1,967 2,409 Prepaid operating lease obligation 428 641 Other current assets 1,251 267 Total current assets 5,239 5,704 Property and equipment, net 1,233 1,593 Other assets 144 231 Total assets $6,616 $7,528 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $684 $1,303 Accrued compensation 505 385 Other accrued liabilities 749 1,359 Current portion of capital lease obligation 131 115 Deferred revenues 1,799 110 Total current liabilities 3,868 3,272 Long term liabilities - Capital lease obligation - less current portion 55 67 Total long term liabilities 55 67 Stockholders' equity: Preferred stock; $0.001 par value; 2,000,000 shares authorized; 3,500 shares issued in 2001; 3,000 shares outstanding in 2002 and 2001, respectively; (aggregate liquidation preference of $3,060,333 as of June 30, 2002) 1 1 Common stock; $0.001 par value; 60,000,000 shares authorized; 13,303,580 and 12,923,603 shares issued and outstanding, respectively 13 13 Additional paid-in capital 32,841 32,449 Accumulated deficit (30,162) (28,274) Total stockholders' equity 2,693 4,189 Total liabilities and stockholders' equity $6,616 $7,528