ATG Announces First-Quarter 2001 Financial Results.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--April 26, 2001 ATG ATG antithymocyte globulin. lymphocyte immune globulin (antithymocyte globulin equine, ATG, ATG equine, LIG) Atgam Pharmacologic class: Immunoglobulin Therapeutic class: Immunosuppressant (Art Technology Group, Inc.; Nasdaq: ARTG ARTG Australian Register of Therapeutic Goods ), developer of the ATG Dynamo A family of e-commerce and CRM applications from Art Technology Group, Inc., Cambridge, MA (www.atg.com). Part of ATG's core marketing Adaptive Scenario Engine, Dynamo comprises a comprehensive set of Java-based products that enable an organization to deploy a fully-integrated customer (R) e-Business Platform for customer management and electronic commerce, today announced financial results for the first quarter of 2001.
First-quarter Financial Performance
(In millions, except per share data and
percentages) Q1, Q1, % Q4, %
2001 2000 Growth 2000 Growth
Total Revenue $ 42.8 $ 21.6 98% $ 62.8 (32)%
Product Revenue $ 25.4 $ 16.3 56% $ 47.2 (46)%
% of Total Revenue 59% 75% 75%
Services Revenue $ 17.4 $ 5.3 228% $ 15.6 12%
% of Total Revenue 41% 25% 25%
Operating (Loss) Income $(22.5) $ (2.8) $ 6.6
Net Income (Loss) $(12.9) $( 0.6) $ 7.2
Diluted Net Income
(Loss) Per Share $(0.19) $(0.01) $ 0.10
"As we announced earlier this month, the selling environment changed dramatically in the final weeks of the first quarter as customers delayed orders or put IT budgets on hold," stated Jeet Singh, co-founder and chief executive officer, ATG. "From a competitive perspective, however, our win rate throughout the quarter remained consistently high, particularly among larger organizations. First-quarter customer wins were composed primarily of Global 2000 companies such as Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, , FILA fila /fi·la/ (fi´lah) [L.] plural of filum. fila [L.] plural of filum. , and Neiman Marcus Neiman Marcus U.S. department-store chain. It was founded in Dallas, Texas, in 1907 by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband, A.L. Neiman. ." Cost Savings Plan "Because of the challenging economic environment and our limited visibility, we have instituted a comprehensive cost-savings plan," commented Singh. "In addition to the 12 percent workforce reduction that we announced on April 12, we are consolidating our offices globally, temporarily reducing salaries, and eliminating many discretionary expenses. Second-quarter charges associated with this restructuring are anticipated to be in the range of $30 million to $40 million. We anticipate that these cost reductions will result in an annual savings of between $32 million and $35 million, and we are confident that these initiatives will accelerate our return to profitability." RECENT HIGHLIGHTS: Alliances and Channel Sales In recent days, ATG announced significant global alliances with two of the world's largest technology platform providers: Hewlett Packard and Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. . The alliances enable these respective partners to jointly sell and market ATG products with their existing technologies. Announcements such as these underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the company's strategy to strengthen its relationships with strategic partners. Other companies that ATG added to its 300-strong alliances in recent months include Alta Vista See AltaVista. (World-Wide Web) Alta Vista - A World-Wide Web site provided by Digital which features a very fast Web and Usenet search engine. As of April 1996 its word index is 33GB in size. , Appian, Ascential Software, Eprise, Found Inc., IMC (Internet Mail Consortium, Santa Cruz, CA, www.imc.org) An industry trade association founded in 1996 by Paul Hoffman and Dave Crocker that promotes Internet e-mail standards and features. , Mercury Interactive For another company with a similar name, see Mercury Computer Systems. HP Mercury (formerly Mercury Interactive) is a subsidiary of Hewlett-Packard that is a market leader in automated software quality assurance and offers products in other areas such as diagnostics, , Patricia Seybold Group, and Totality. New Customer Wins ATG gained 63 new customers during the first quarter. As of March 31, 2001, the company's customer list increased to more than 730 companies worldwide. Significant customer wins during the first quarter included Boston Scientific, Dresdner Bank Dresdner Bank AG is one of Germany's largest banking corporations and is based in Frankfurt. History 19th century Dresdner Bank was established on 12 November 1872 through the conversion of financial institution Michael Kaskel. , FILA, Neiman Marcus, Newell Rubbermaid “Rubbermaid” redirects here. For the Marvel comics character, see Rubbermaid (comics). Newell Rubbermaid (NYSE: NWL) is a global marketer of consumer and commercial products, including such well-known brands as Rubbermaid food storage, home organization, and refuse , Pioneer Investment Management, Sageo, and Telstra. Repeat Business ATG expanded relationships with existing customers during the first quarter such as Adobe Systems Adobe Systems Incorporated (pronounced a-DOE-bee IPA: /əˈdoʊbiː/) (NASDAQ: ADBE) (LSE: ABS) is an American computer software company headquartered in San Jose, California, USA. Inc., Barclays, Britannic Assurance, Bunge Corporation, Canon USA, Harcourt, HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , Kingfisher kingfisher, common name for members of the family Alcedinidae, essentially tropical and subtropical land birds, with affinities to trogons and swifts and related to the hornbill. , Loudcloud, MTVi Group, and Xigo Inc. BUSINESS OUTLOOK "While we continue to see positive market opportunities for ATG, the economic climate has greatly reduced our visibility into future financial results," stated Ann Brady, chief financial officer. "However, based on the information that we have today, we are anticipating flat to modest top-line growth and moderate bottom-line improvement, before restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , sequentially for the second quarter of 2001. We are committed to profitability and will implement the necessary cost control measures to achieve this goal. We currently anticipate a return to profitability during the fourth quarter of 2001. With approximately $117 million in cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has as of March 31, we believe ATG has ample resources to weather this challenging period." Singh concluded, "Despite many customers' first-quarter budget shutdowns, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future for two primary reasons. First, customer interest remains strong, and the deployment of more efficient customer management and e-commerce infrastructure continues to be a high priority across most vertical sectors that we serve, and in an increasing number of geographies. Second, our competitive position is as strong as ever. This is clearly evident from the increasing amount of interest in the ATG Dynamo product suite, not only from customers, but also from blue-chip partners. We will continue to focus our efforts on building stronger ties with system integrators as well as leading hardware and software vendors such as HP, Sun, and TIBCO TIBCO The Information Bus Company . Backed by this support, we remain confident that ATG will emerge from the current downturn a stronger company with its excellent market position intact." Conference Call Reminder ATG management will discuss the company's first-quarter 2001 financial results on its quarterly conference call for investors at 5:00 p.m. ET today, April 26. The call will be broadcast live over the Internet. Investors interested in listening to the Webcast should log onto the "Investors" section of the ATG Web site, located at www.atg.com, at least 15 minutes prior to the event's broadcast. About ATG ATG is a leading provider of customer relationship management and electronic commerce products and services. ATG offers an integrated suite of Java(TM) application server-based products, as well as related application development, integration, and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . The ATG Dynamo(R) e-Business Platform enables Global 2000 enterprises, as well as new businesses using the Internet as their primary business channel, to understand, manage, and build their online customer relationships and to more effectively market, sell, and support their products and services over the Internet. With its network of 300 partners, ATG delivers e-business solutions to more than 730 companies worldwide including 3M, Aetna Services, AT&T, Bluelight.com, Eastman Kodak, General Motors, Herman Miller Herman Miller may refer to:
Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , with additional locations throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, Asia, and Australia. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. for purposes of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve factors that may cause ATG's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. These factors include: the effect of weakening economic conditions or perceived conditions on the level of spending by customers and prospective customers for ATG's software and services; financial and other effects of cost control measures; quarterly fluctuations in ATG's revenues or other operating results; customization and deployment delays or errors associated with ATG's products; the result of longer sales cycles for ATG's products; satisfaction levels of customers regarding the implementation and performance of ATG's products; ATG's need to maintain and enhance business relationships with systems integrators and other parties who may be affected by changes in the economic climate; ATG's abilities to attract and maintain qualified executives and other personnel and to motivate employees; activities by ATG and others related to protection of intellectual property; and release of competitive products and other activities by competitors. Further details on these risks are set forth in ATG's filings with the Securities and Exchange Commission, which are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Dynamo is a registered trademark of Art Technology Group.
ART TECHNOLOGY GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(UNAUDITED)
Three Months Ended
March 31 March 31
2001 2000
REVENUES:
Product license $ 25,481 $ 16,247
Services 17,365 5,325
Total revenues 42,846 21,572
COST OF REVENUES:
Product license 1,047 708
Services 15,508 4,992
Total cost of revenues 16,555 5,700
Gross profit 26,291 15,872
OPERATING EXPENSES:
Research and development 9,033 3,595
Sales and marketing 30,110 11,052
General and administrative 9,277 3,675
Stock-based compensation 381 304
Total operating expenses 48,801 18,626
LOSS FROM OPERATIONS (22,510) (2,754)
INTEREST INCOME, NET 1,684 2,147
Net loss before benefit
for income taxes (20,826) (607)
BENEFIT FOR INCOME TAXES 7,914 --
Net loss $(12,912) $ (607)
Basic and diluted net loss
per share $ (0.19) $ (0.01)
Basic and diluted weighted
average common shares
outstanding 68,180 66,023
ART TECHNOLOGY GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(UNAUDITED)
March 31, December 31,
2001 2000
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 49,911 $ 53,255
Marketable securities 55,525 73,218
Accounts receivable, net 41,365 52,440
Prepaid expenses and other
current assets 13,115 9,051
Total current assets 159,916 187,964
Property and equipment, net 29,867 23,492
Long-term marketable securities 17,734
Intangible and other assets, net 11,556
Deferred tax asset 12,202 13,246
25,691 17,079
$239,232 $259,515
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of
long-term obligations $ 1,750 $ 2,000
Accounts payable 8,952 11,375
Accrued expenses 23,759 29,402
Deferred revenue 21,559 22,765
Total current liabilities 56,020 65,542
Long-term obligations, less
current maturities 1,500 2,000
Stockholders' equity 181,712 191,973
$239,232 $259,515
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion