Autobytel.com on April 26 reported financial results for the quarter ended March 31, 2001.

Revenue for the first quarter was $16.7 million, up 10 percent from revenue of $15.1 million in the same quarter of the prior year, and down 1 percent sequentially from revenue of $16.8 million in the quarter ended Dec. 31, 2000.

In the quarter, for the first time, the company recognized $1.4 million related to an automotive consulting project. The portion of total revenue from international fees and licenses and from services such as finance, insurance and web site development was 14 percent for the quarter.

The operating loss in the quarter declined to $5.3 million, compared with an operating loss of $9.6 million in the same quarter a year ago, and an operating loss of $6.7 million in the quarter ended Dec. 31, 2000. It was the third consecutive quarter Autobytel.com significantly lowered its operating loss.

The net loss in the first quarter was $4.1 million, or $0.20 per share, compared with a net loss of $8.1 million, or $0.42 per share, in the same quarter of the prior year, and with a net loss of $3.3 million, or $0.16 per share, in the quarter ended Dec. 31, 2000.

As of March 31, 2001, Autobytel.com's cash and cash equivalents were $75.1 million, including $34.6 million that is reserved for the operation of Autobytel Europe. The company used $6.9 million in cash in the first quarter.

"In light of the difficult economic environment, we continue to be pleased with our results and progress," said Mark Lorimer, president and CEO of Autobytel.com. "We maintained stable revenue and significantly reduced our operating loss and cost of customer acquisition by aligning our marketing costs and other expenses with the current opportunities in the marketplace."

Outlook for 2001

The company expects for the second quarter of 2001 revenue in the range of $16.0 to $16.5 million, with a per share loss in the range of $0.09 to $0.11.

"We expect to continue to lower our customer acquisition cost, and take further steps to decrease overall expenses," Lorimer said. "Those steps may include continued reduction in advertising, marketing and other costs, and renegotiation of supplier and portal relationships on more favorable terms."

"Given an uncertain outlook for both the auto industry and e-commerce in general, and our potential combination with Autoweb, we lack sufficient visibility to provide specific revenue and EPS guidance for the third and fourth quarters at this time," Lorimer said. "However, as a result of our success in reducing costs, we moved closer to our goal of profitability, which we expect to achieve in the third quarter of this year. Our strong cash position, increasingly efficient operations, and market leadership position should allow us to aggressively pursue opportunities as the market improves."

First Quarter Highlights

According to Lorimer, two recent developments highlight the company's market leadership position.

"Our recent agreement to combine with Autoweb, which we expect to close early in the third quarter, will not only expand our market share lead and extend our dealer network, it should make Autobytel.com a leader in automotive information services and provide us with significant manufacturer relationships," he said. "Furthermore, we reiterate our belief that the combined companies will achieve profitability in the third quarter."

"Also, our recent agreement with General Motors to test the locate-to-order business model in the Washington, D.C. market demonstrates our unique ability to partner with and provide valuable services to the auto manufacturers," Lorimer continued. "We believe that our brand and marketing strengths, technology development expertise, and ability to work with dealer networks through training, management and customer services make Autobytel.com an attractive partner for others in the industry, potentially providing a source of high margin growth in the future."

About Autobytel.com Inc.

Autobytel.com Inc. brings car buyers, owners, and sellers together, empowered by the Internet.

Through its automotive content and multiple purchasing, financing, insurance and service options, Autobytel.com offers consumers choice throughout the automotive lifecycle, while providing its network of accredited dealers and automotive services partners an efficient way to reach online car buyers and owners.

Autobytel.com and its wholly-owned subsidiary, A.I.N. Corporation (Carsmart), have a network of dealers nationwide and are the seventh largest generator of automotive sales in the United States, just behind GM, Ford, DaimlerChrysler, Toyota, Honda and Nissan.

Autobytel.com has been ranked #1 in Dealer Satisfaction with Online Buying Services for three years in a row by J.D. Power and Associates.

Autobytel.com's low-cost, no-haggle car-buying program is available in the U.S., Canada (www.autobytel.ca), the United Kingdom (www.autobytel.co.uk), Sweden (www.autobytel.se), Netherlands (www.autobytel.nl), Japan (www.autobytel-japan.com), Australia (www.autobytel.com.au) and Spain (www.autobytel.es).