For the first quarter, the Company reported total revenues of $8.6 million, an increase of 360% from $1.9 million reported in the comparable year-ago period and an increase of 9% from $7.9 million reported in the fourth quarter 2000. Support.com licenses its software primarily through term license agreements. Revenue is recognized monthly over the life of the contract, which is typically 36 months. This creates an order backlog that has ranged between six and ten times the quarterly reported revenues, adding predictability and visibility into future performance License revenue represented 75% of total revenues in the first quarter, with the remaining 25% of total revenue coming from services. License revenue was $6.5 million, which represents growth of 391% over first quarter 2000 and 8% over fourth quarter 2000. Service revenue was $2.1 million, which represents growth of 284% over first quarter 2000 and 14% over fourth quarter 2000. Our services team reached profitability in the quarter, a milestone that was ahead of expectations.
Net loss and net loss per share, excluding certain non-cash charges, were $5.2 million and $0.17 per share, respectively, for the quarter ended March 31, 2001, compared to net loss of $5.5 million and $0.23 per share in the same period of 2000. The Company continued to reduce its operating losses as it moves forward on its path to profitability. The Company reported first quarter cash, cash equivalents and short-term investment balances of $45.1 million compared to $51.5 million at year-end. Deferred revenue was $12.2 million at March 31, 2001 compared to $12.1 million at year-end.
We are pleased with our performance this past quarter in the face of the challenging economic environment, said Radha Basu, Chairman and Chief Executive Officer of Support.com. We see our customers and partners embracing a back-to-business basics approach, seeking ways to reduce costs and enhance efficiencies. Our laser focus on delivering ROI to our customers has led us to meet our increased guidance for this quarter. We continued to execute on our five key corporate initiatives with emphasis on prudent spending to deliver bottom-line results.
SOURCE: COMPANY PRESS RELEASE
