Webhire Announces Record First Quarter Internet Revenues; Recruiting Solutions Leader Makes Significant Progress on the Road to Profitability

Business Wire, Jan 30, 2001

                             WEBHIRE, INC.
                      CONSOLIDATED BALANCE SHEETS
                 (in thousands, except share amounts)

                                           Dec. 31          Sept. 30
                                            2000              2000
                                         (unaudited)
                                ASSETS
Current Assets:

 Cash and cash equivalents                 $6,058            $12,135

  Short-term investments
                                            1,413              2,410
 Accounts and installments receivable,
  less allowance for doubtful accounts
  of $1,645 at December 31, 2000 and
   $1,587 at September 30, 2000
                                            3,153              4,772

 Other current assets                       2,074              1,684

  Total current assets                    $12,698            $21,001

 Long-term installments receivable,
  net                                         131                153

 Property and equipment, net                4,119              4,248

 Acquired technologies, net of
  accumulated amortization of $17,623
  at December 31, 2000 and $15,909 at
  September 30, 2000
                                            1,875              3,589
 Intangible assets, net of accumulated
  amortization of $2,293 at December
  31, 2000 and $1,748 at September 30,
  2000
                                            4,258              4,803

 Other assets, net                            499                509

  Total Assets                            $23,580            $34,303


                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
 Current portion of capital lease
  obligations
                                             $254               $254

 Convertible notes payable                    925              3,425

 Accounts payable                           2,372              1,504

 Accrued expenses                           2,493              4,502

Deferred revenue                            6,679              8,145

  Total current liabilities               $12,723            $17,830

 Deferred rent                                172                176
Stockholders' Equity:

 Preferred stock, $.01 par value.
 Authorized-5,000,000 shares, Issued
  and outstanding-none
                                               -                  -
 Common stock, $.01 par value.
 Authorized-30,000,000 shares, Issued
  - 23,213,934 shares at December 31,
  2000 and 22,109,971 shares at
  September 30, 2000
                                               -                  -
 Outstanding - 22,527,034 shares at
  December 31, 2000 and 21,423,071
  shares at September 30, 2000
                                              232                221

 Additional paid-in capital                69,719             68,763

  Subscriptions receivable                 (1,000)
 Treasury stock, at cost - 686,900
  shares at December 31, 2000 and
  September 30, 2000
                                             (831)              (831)

 Accumulated deficit                      (57,435)           (51,856)

  Total stockholders' equity               10,685             16,297

Total Liabilities and Stockholders'
 Equity                                   $23,580            $34,303


                             WEBHIRE, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          (in thousands, except share and per share amounts)
                              (Unaudited)

                                               Three Months Ended
                                                  December 31,
                                             2000              1999
Revenue:

 Product revenue                             $646             $1,401

 Services revenue - Enterprise              2,188              3,216

 Services revenue - Internet                3,261              1,877

  Total revenue                             6,095              6,494

Cost of revenue:

 Product revenue                              215                178

 Services - Enterprise                        432              1,151

 Services - Internet                        2,675              2,105

 Amortization of acquired technologies      1,714              2,212

  Total cost of revenue                     5,036              5,646

Gross profit                                1,059                848

Operating expenses:

 Research and development                   2,456              2,946

 Sales and marketing                        2,193              4,614

 General and administrative                 1,600              1,820

 Amortization of intangible assets            545                113

  Total operating expenses                  6,794              9,493

Loss from operations                      $(5,735)           $(8,645)

Other income, net                             156                264

Loss before provision (benefit) for
 income taxes                             $(5,579)           $(8,381)

Provision (benefit) for income taxes           -                  -

Net loss                                  $(5,579)           $(8,381)

Basic and diluted net loss per share       $(0.26)            $(0.58)

Basic and diluted weighted average
 number of common shares outstanding
                                       21,462,817         14,443,974
Net loss excluding amortization and
 stock based consideration
                                          $(3,320)           $(5,072)

Basic and diluted loss per common
 share                                     $(0.15)            $(0.35)

Basic and diluted weighted average
 number of common shares outstanding
                                       21,462,817         14,443,974