ATG Announces First-Quarter 2005 Financial Results; Company Grows Revenues 31% Year Over Year and 7% Sequentially; Achieves GAAP Profitability.CAMBRIDGE, Mass. -- 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ARTG ARTG Australian Register of Therapeutic Goods ) today announced its financial results for the first quarter ended March 31, 2005. Total revenues for the first quarter of 2005 were $22.0 million, a 31 percent increase from $16.8 million in the first quarter of 2004 and a 7 percent increase from $20.6 million in the fourth quarter of 2004. ATG's financial results for the first quarter of 2005 reflect a full quarter of contribution from Primus Knowledge Solutions, Inc. (Primus). The company reported first-quarter 2005 net income of $1.4 million, or $0.01 per diluted share, in accordance with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). During the first quarter of 2005, ATG incurred $204,000 in net 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. for employee severance in international geographies related to the integration of Primus. The first-quarter results compare with a net loss of $1.8 million, or $(0.02) per diluted share, in the year-ago quarter and a net loss of $3.6 million, or $(0.04) per diluted share, for the fourth quarter of 2004. Excluding amortization of intangibles and net restructuring charges in the first quarter of 2005, ATG reported net income (non-GAAP) of $2.2 million, or $0.02 per diluted share. This compares with non-GAAP net income of $1.0 million, or $0.01 per diluted share, in the fourth quarter of 2004. The first quarter of 2005 marked the third consecutive quarter of non-GAAP profitability for ATG.
FIRST-QUARTER FINANCIALS
(In millions, except per share data and percentages)
Three Months Ended
-----------------------------------
March 31, December 31, March 31,
2005 2004 2004
-----------------------------------
Total revenues $22.0 $20.6 $16.8
License revenue 7.4 7.6 6.4
Percent of total revenues 34% 37% 38%
Services revenue 14.6 13.0 10.4
Percent of total revenues 66% 63% 62%
Net income/(loss) (GAAP) 1.4 (3.6) (1.8)
=========== ============ ==========
Net income/(loss) per diluted share
(GAAP) $0.01 $(0.04) $(0.02)
=========== ============ ==========
Amortization of intangible assets 0.6 1.0 --
Net restructuring expense 0.2 3.6 --
Net income/(loss) (non-GAAP)(a) 2.2 1.0 --
=========== ============ ==========
Net income/(loss) per share (non-
GAAP)(a) $0.02 $0.01 $(0.02)
=========== ============ ==========
Basic weighted average shares
outstanding 108,685 96,548 73,053
Diluted weighted average shares
outstanding 110,866 97,716 73,053
Cash, cash equivalents and
marketable securities $27.4 $30.5 $35.2
----------------------------------------------------------------------
(a) For further details surrounding non-GAAP financial information,
please refer to the Financial Presentation section
"The first quarter of 2005 marked the first full quarter that ATG and Primus operated as one company, and we are pleased with both our revenue and operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. performance," said Bob Burke, ATG's president and chief executive officer. "We completed our integration of Primus' operations and realized significant benefits from the synergies that were created by the acquisition. From an expense perspective, we improved our gross margin to 73% by more effectively managing our cost of services." RECENT HIGHLIGHTS --Generated business from new and repeat customers including AT&T Business Services, Cablevision, Casual Male, CPPIH CPPIH Commission for Patient and Public Involvement in Health (UK) (UK Dept. of Health), DirecTV, The Finish Line, Fujitsu, Hyatt, La Petite Academy, Louis Vuitton The Louis Vuitton Company (more commonly known simply as Louis Vuitton) is a luxury French fashion and leather goods brand and company, headquartered in Paris, France. It is a division of the French holding company, LVMH Louis Vuitton Moët Hennessy S.A. , Sony Entertainment, Viking Range This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. , Sephora, Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy. Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. , TKK TKK Teknillinen korkeakoulu (Helsinki University of Technology) TKK My Life With The Thrill Kill Kult (band) TKK Truk, Caroline Islands, Micronesia - Truk (Airport Code) TKK Toa Kila Kitu Insurance and USDA USDA, n.pr See United States Department of Agriculture. . --Launched ATG Adaptive Customer Assistance 2005, an advanced Web self-service solution that combines ATG's transaction and personalization Custom tailoring information to the individual. On the Web, personalization means returning a page that has been customized for the user, taking into consideration that person's habits and preferences. technology with award-winning search technology from Primus, which ATG acquired in November 2004. This product release represents the first results of the ATG/Primus technology integration plan. ATG Adaptive Customer Assistance (ACA ACA - Application Control Architecture ) allows Web visitors to ask questions and receive answers that include not only text, but also personal transaction information (such as account balances) and links to other relevant documents. --Announced ATG On-Demand, a suite of application hosting services that provide ATG customers with unprecedented flexibility, convenience and performance. ATG On-Demand delivers ATG's award-winning e-marketing, e-commerce and e-service solutions via application hosting and managed services An umbrella term for third-party monitoring and maintaining of computers, networks and software. The actual equipment may be inhouse or at the third-party's facilities, but the "managed" implies an ongoing effort; for example, making sure the equipment is running at a certain quality , enabling customers to reap the benefits of an application service provider (ASP) model without traditional limitations on customization, integration and security. --Enhanced its service resolution capabilities with the addition of ATG Forum, a support application designed to create and manage online communities. With ATG Forum, companies empower their customers to share answers, insights and ideas; and in turn they are able to gain valuable insight regarding the interests, needs and behaviors of their customers for use in future marketing and service campaigns. --Won awards and recognition for ATG KnowledgeCenter, including Customer Inter@ction Solutions Magazine's 2004 Product of the Year and the WSA WSA Web Services Architecture (Bow Street) WSA Wilderness Study Areas WSA Wilbur Smith Associates WSA Washington Software Alliance WSA World Shoe Association WSA Workers Solidarity Alliance Industry Achievement Award for 2005 Business Product of the Year. --Attained the highest rating possible from Gartner, besting all other vendors, for the company's e-mail response management system See e-mail response management. product, ATG Communications Center An agency charged with the responsibility for handling and controlling communications traffic. The center normally includes message center, transmitting, and receiving facilities. Also called COMCEN. See also telecommunications center. . --Named as "a leader" in Web Self-Service for the CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. Magazine Service Leader Awards 2005. --Met existing ATG customers and those coming from Primus, at the company's annual conference, Insight Live. Customers attending to speak, exchange information or learn about new products included Allstate Insurance, American Eagle Outfitters, Best Buy, Cingular Wireless, Conseco, Dreyfus, Elsevier, EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. , Friends Provident Friends Provident plc (LSE: FP.) manages a life assurance business mainly based in the United Kingdom and with offices throughout the world. Friends Provident is a financial services group and a member of the FTSE100 Index. , HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , Hyatt Hotels, InterContinental Hotels Group InterContinental Hotels Group (IHG) (LSE: IHG NYSE: IHG) is a multinational company which operates several hotel brands. The largest hotel company by number of rooms (556,000 as of March 2007 [1]), its headquarters are in Windsor just outside Greater London and , Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , Procter & Gamble, Symantec, Target, Verisign and Warner Music. FINANCIAL GUIDANCE AND BUSINESS OUTLOOK ATG is reaffirming the financial guidance it originally provided in late December 2004 for the full year 2005. The company expects to grow revenue by 30 percent to 45 percent over 2004 to a range of $90 million to $100 million. The total of cost of revenues and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , excluding the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and restructuring charges, is expected to be in the range of $85 million to $86 million for the year ending December 31, 2005. The company continues to anticipate that it will be profitable and cash flow positive for the full year 2005. Since the close of the first quarter, the company has relocated its San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden office and reduced the amount of space that it now occupies in San Francisco. As a result of this action and other minor facilities changes, the company anticipates that it will incur a restructuring charge in the second quarter of 2005 in the range of $1.5 to $2.0 million. Of this amount, approximately $1.2 million will be non-cash related. The relocation will result in an aggregate net cash savings of approximately $400,000 through 2007, and, beginning in the third quarter of 2005, reduce the company's annual operating expenses by approximately $700,000 to $800,000. "With the integration of Primus complete, our attention is now focused on sales and marketing, and the continued expansion of our product set," said Burke. "In the months ahead, we will build upon our commerce, marketing and service offerings with additional product rollouts and enhancements. We also will aggressively pursue up-selling and cross-selling opportunities with organizations in our customer base while cultivating relationships with new customers." CONFERENCE CALL REMINDER ATG management will discuss the company's first-quarter financial results, recent highlights and business outlook for 2005 on its quarterly conference call for investors at 5:30 p.m. ET today, April 28, 2005. The conference call will be broadcast live over the Internet. Investors interested in listening to the Webcast should log onto the "Investors" section of the ATG Website, www.atg.com. FINANCIAL PRESENTATION ATG is providing non-GAAP financial measures as the company believes that these figures are helpful in allowing individuals to better assess the ongoing nature of ATG's core operations. A "non-GAAP financial measure" is a numerical measure of a company's historical or future financial performance that excludes amounts that are included in the most directly comparable measure calculated and presented in the GAAP statement of operations See Income statement. . Net income/(loss) (non-GAAP) and net income/(loss) per share (non-GAAP), as we present them in the financial data included in this press release, exclude the net effects of restructuring actions and the amortization of intangible assets. The net restructuring charge in the first quarter relates to integration actions taken by ATG in international geographies that were not finalized See finalization. until the first quarter. Management believes that these non-GAAP financial measures better reflect its operating performance as these non-GAAP figures exclude the effects of non-cash or non-recurring charges. Further, management believes that these charges are not necessarily representative of underlying trends in the company's performance and their exclusion provides individuals with additional information to compare the company's results over multiple periods. The company uses the presented non-GAAP financial measures internally to focus management on period-to-period changes in the company's core business. Therefore, the company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ABOUT ATG ATG (Art Technology Group, Inc.)(NASDAQ:ARTG) delivers innovative software to help high-end consumer-facing companies create a richer, more adaptive interactive experience for their customers and partners online, via email and messaging, and through contact centers. ATG has delivered category-leading commerce, marketing and customer service solutions to hundreds of the world's best-known brands including A&E Networks, Airbus, American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the , American Eagle Outfitters, AT&T Wireless, Best Buy, Boeing, France Telecom, Friends Provident, GE, Hewlett-Packard, HSBC, InterContinental Hotels Group, 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. , Merrill Lynch, 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. , Philips, Procter & Gamble, SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. , Target, T-Mobile, US Army, US Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control , Warner Music, Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. , Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. and Yahoo!. The company is headquartered in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). 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, and Asia. For more information about ATG, please visit www.atg.com. (C) 2005 Art Technology Group, Inc., ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners. The statements in the section labeled "Financial Guidance and Business Outlook" include 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. . These statements involve known and unknown risks and uncertainties 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 risks include that ATG may not be successful in integrating Primus' products with its own; that depreciation, amortization and potential impairment charges associated with the acquisition could adversely affect the combined company's results of operations; the effect of weakened or 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 risk of longer sales cycles for ATG's products and ATG's ability to conclude sales based on purchasing decisions that are delayed; satisfaction levels of customers regarding the implementation and performance of ATG's products; ATG's need to maintain, enhance and leverage business relationships with resellers and other parties who may be affected by changes in the economic climate; ATG's ability to attract and maintain qualified executives and other personnel and to motivate employees; activities by ATG and others related to the protection of intellectual property; potential adverse financial and other effects of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the 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 (SEC), including the company's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC for the period ended December 31, 2004. These filings are available free of charge on a Web site maintained by the SEC at http://www.sec.gov.
Art Technology Group, Inc.
Condensed Consolidated Statements of Operations
(In thouands of dollars, except per share data)
(Unaudited)
Three Months Ended
March 31, March 31,
2005 2004
Revenues:
Product license $ 7,383 $ 6,364
Services 14,611 10,446
------------- ------------
Total Revenues 21,994 16,810
Cost of Revenues:
Product license 593 399
Services 5,411 4,785
------------- ------------
Total Cost of Revenues 6,004 5,184
Gross Profit 15,990 11,626
Gross profit % 73% 69%
Operating Expenses:
Research & development 4,589 4,130
Sales & marketing 6,799 7,341
General & administrative 2,988 1,930
Restructuring expense 204 -
------------- ------------
Total Operating Expenses 14,580 13,401
Profit (Loss) from Operations 1,410 (1,775)
Interest and Other Income, net 11 (47)
------------- ------------
Income (Loss) before provision for
(benefit from) income taxes 1,421 (1,822)
Provision for (benefit from) income
taxes 13 (35)
------------- ------------
Net Income (loss) $ 1,408 $ (1,787)
============= ============
Basic net income/(loss) per common
share $ 0.01 $ (0.02)
Diluted net income/(loss) per common
share $ 0.01 $ (0.02)
Weighted average common
shares outstanding - Basic 108,685 73,053
------------- ------------
Weighted average common
shares outstanding - Diluted 110,866 73,053
------------- ------------
Art Technology Group, Inc.
Condensed Consolidated Balance Sheets
(In thousands of dollars)
(Unaudited)
Three Months Ended
March 31, December 31,
2005 2004
Assets
Current assets:
Cash, cash equivalents and marketable
securities $ 27,350 $ 26,507
Accounts receivable, net 20,734 24,430
Prepaid expenses and other current assets 2,554 1,694
------------ ------------
Total current assets 50,638 52,631
Property and equipment, net 2,705 3,120
Long-term marketable securities - 4,001
Intangible assets 6,598 7,177
Other assets 2,970 3,416
Goodwill 27,458 27,458
------------ ------------
Total assets $ 90,369 $ 97,803
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts Payable 1,989 5,186
Accrued Expenses 11,891 13,156
Deferred revenue 22,344 25,355
Accrued restructuring short-term 5,398 6,095
Other current liabilities 327 651
------------ ------------
Total current liabilities 41,949 50,443
Accrued restructuring long-term 3,903 5,063
Long-term lease payable 99 112
------------ ------------
Total long-term liabilities 4,002 5,175
Stockholders' equity 44,418 42,185
------------ ------------
Total liabilities and stockholders'
equity $ 90,369 $ 97,803
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion