The E-learning market buzzed with activity Wednesday, as learning-management system provider Click2Learn.com Inc. acquired content-management system developer Intelliprep Technologies Inc. and reported first-quarter earnings that beat analyst expectations.

In the $4-million-dollar stock transaction, Click2Learn gains Intelliprep's flagship product, iX Learning Systems, a Web-based content-management platform that personalizes users' learning experiences based on preferences and skill needs. For example, the system will customize a different learning format for selling Microsoft 2000, depending on whether the user's a customer-service representative or a sales engineer.

The integration of iX Learning Systems with Click2Learn's Ingenium Learning Management System and ReDS Content Development platform, scheduled for this summer, gives Click2Learn "an end-to-end solution in the E-learning space," says CEO and President Kevin Oakes.

That's good news, because "the major players these days don't want to buy a piece here, buy another piece here, and buy another piece here. They want to find some integrated solutions," says Elliott Masie, director of market research firm The Masie Group.

On the financial side, Click2Learn reported earnings that beat estimates for the quarter ending March 31, 2001. That's especially good news, after missing analyst estimates last quarter. Net revenues were announced at $10.7 million, up from $9.9 million the same quarter last year, while net loss for the quarter was $4.4 million, or $0.24 per share, compared to a net loss of $3.3 million, or $0.20 per share the year before.

Meanwhile, content provider SmartForce LLC delivered continued good news for investors Wednesday: It reported profits for its first quarter, ended March 31, 2001. On sales of $61.3 million--an increase of 115% over revenues reported the year before--the company made $2.3 million, or $0.04 per share. It beat analyst expectations by a penny. "Training budgets are under pressure right now," says Urdan. "You have to do more with less, and SmartForce plays well with this case."

For more on E-learning:

Online-Training Market Sees More Consolidation

Centra Software 1Q Revenue Up, To Buy Mindlever.com