ATG Announces Third-Quarter Results; Company Meets Its Guidance on Revenue, EPS and Cash Position for the Fifth Consecutive Quarter.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 24, 2002 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 ), a leading developer of Online CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. applications for commerce, portals, and relationship management, today announced its results for the third quarter ended September 30, 2002. Total revenues for the quarter were $24.5 million compared with total revenues in the third quarter of 2001 of $30.5 million. The company's net loss was $3.1 million, or ($0.04) per share, in the third quarter of 2002. This compares with a net loss of $9.0 million, or ($0.13) per share, in the third quarter of 2001. ATG's closing balance of cash, cash equivalents and restricted cash as of September 30, 2002 was $72.5 million compared with a closing balance as of June 30, 2002 of $77.8 million and $80.3 million as of December 31, 2001. For the nine months ended September 30, 2002, total revenues were $77.0 million compared with total revenues for the nine months ended September 30, 2001 of $109.2 million. The company's net loss for the nine months ended September 30, 2002 was $8.7 million, or ($0.12) per share, compared with a net loss for the nine months ended September 30, 2001 of $63.8 million, or ($0.93) per share, which included 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. of $44.2 million, or ($0.65) per share.
THIRD-QUARTER FINANCIAL HIGHLIGHTS
(In millions, except per share data,
and percentages)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2002 2001 2002 2001
Total revenues $ 24.5 $ 30.5 $ 77.0 $ 109.2
License revenue 11.8 13.4 36.6 58.0
Percent of total revenues 48% 44% 48% 53%
Services revenue 12.7 17.0 40.4 51.2
Percent of total revenues 52% 56% 52% 47%
Net loss (3.1) (9.0) (8.7) (63.8)(a)
Loss per share (0.04) (0.13) (0.12) (0.93)(a)
Cash, cash equivalents
and short-term marketable
securities $ 72.5 $ 85.0 $ 72.5 $ 85.0
(a) Includes restructuring charges of $44.2 million, or $0.65 per
share.
"I am very pleased with our continued ability to execute and successfully deliver business value for both new and existing customers," said Paul Shorthose, ATG president, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and chairman of the board. "By delivering on our commitments to the marketplace, ATG has for the fifth consecutive quarter met or exceeded our guidance with regard to revenue, EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. and our closing cash balance. "ATG generated wins worldwide, successfully launched ATG 6 and increased reseller channel revenue in the third quarter. During the quarter, we also recognized three transactions over $1 million, one of which was greater than 10% of revenue. These solid results are indicative of the hard work and dedication of ATG employees worldwide." "We continue to demonstrate our commitment to profitability by effectively managing our cost structure," said Ed Terino, ATG chief financial officer. "In the third quarter, the company made good progress with a number of performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. , including improved gross margin percentage, increased average deal size, and improved collections." THIRD-QUARTER BUSINESS HIGHLIGHTS
-- ATG added 17 new customers, including a major global entertainment
company, a North American government agency, Best of Micro,
Countryside Properties, Dennis Kirk, Hwajin Cosmetics, Nurun,
Inc., Signal Iduna, Techniker Krankenkasse, Telefonica, and Tokyo
Broadcasting System.
-- ATG earned repeat business from existing customers, including
Charles Schwab, Consignia, Dresdner Bank AG, Eastman Kodak, EDB
Teamco AS, Fidelity, Fusura, Intuit Canada Ltd., J. Crew, Merrill
Lynch, Premier Farnell, Procter and Gamble, Target, Viacom,
Vodafone, Walgreens, Warner Music Group, and Wells Fargo.
-- The company unveiled its product roadmap and delivered the initial
beta for ATG 6, a robust and flexible application software suite
for Online CRM that offers world-class portal and commerce
solutions for online marketing, sales, and support. ATG 6 will
include major enhancements to ATG Commerce, ATG Portal and the ATG
Relationship Management Platform, as well as new ATG integrations
with SAP and Siebel and new product modules, including:
-- ATG Publishing - ATG Publishing manages all types of assets, from text and graphics to catalogs, price lists and promotions, to e-Business Scenarios. Specifically designed to manage the entire lifecycle of content with one tool, ATG Publishing allows companies to accelerate the creation, approval, deployment, and maintenance of the assets required for successful Online CRM. -- ATG Analytics - Through a strategic alliance with Hyperion, ATG Analytics will facilitate the aggregation, investigation, and visualization of data to help business users identify trends and customer behavior patterns. ATG Analytics will extend ATG Scenario 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. to enhance the tracking of business metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , manage the processing of data, and close the marketing loop. -- ATG Search - Through an OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and reseller relationship with Autonomy, ATG Search will provide customers with a best-of-breed search engine that integrates fully with ATG Commerce, ATG Portal, and the ATG Relationship Management Platform. ATG Search will allow queries across multiple data sources and provide advanced features such as concept-searching and fuzzy search An inexact search for data that finds answers that come close to the desired data. It can get results when the exact spelling is not known or help users obtain information that is loosely related to a topic. , while also enabling searches of document text and multi-indexed data. -- ATG Integrations - Solutions include a broad collection of EAI (Enterprise Application Integration) Refers to various techniques used to share data and business processes in large enterprises. When companies acquire another organization, disparate information systems have to be made to work together. and direct integration functionality that works with ATG's Data Anywhere Architecture(TM) to connect to leading ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. and CRM systems such as SAP and Siebel. With pre-built integrators, template applications, backing services and best practices, ATG Integrations dramatically shortens time to benefit and mitigates project risks. BUSINESS OUTLOOK "By working closely with our customers, we continue to develop and improve upon our comprehensive Online CRM offering," said Shorthose. "ATG 6 is a significant milestone in our product evolution, and with over 50 participants in our beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the program, I am confident that ATG 6 will be one of our primary growth drivers. By driving incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. growth from new product sales, increasing traction with our government solutions group, and continuing to leverage our partner channel, we maintain our target of profitability in the fourth quarter." For the fourth quarter of 2002, the company anticipates total revenues of between $24 million and $29 million. ATG expects that its bottom-line results will range from ($0.03) to $0.01 per share. ATG anticipates that, as of December 31, 2002, its balance of cash, cash equivalents 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 will be in the range of $68 million to $72 million. CONFERENCE CALL REMINDER ATG management will discuss the company's third-quarter 2002 financial results, business outlook for the fourth quarter of 2002 and continued product rollout plans on its quarterly conference call for investors at 5:00 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today, October 24, 2002. 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, located at www.atg.com, at least 15 minutes before the event's broadcast. ABOUT ATG ATG (Art Technology Group, Inc.) is a leading developer of Online CRM applications that deliver an integrated, personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. experience for customers, partners and employees: the frontline front·line also front line n. 1. A front or boundary, especially one between military, political, or ideological positions. 2. Basketball See frontcourt. 3. Football The linemen of a team. of every business. Customers around the globe rely on ATG for the frontline applications that help build and manage mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" relationships. Deployed on the industry's most popular application servers, ATG solutions for commerce, portals, and relationship management are ideal for integrated e-business initiatives across the enterprise. Today, ATG has delivered solutions to blue-chip companies Blue-chip company Used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends. Gilt-edged security. worldwide, including Aetna Services, Inc., Alcatel, 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 , Barclays Global Investors Barclays Global Investors is a subsidiary of British-based Barclays Bank which is in the investment management industry. It is the largest corporate money manager in the world, with over £936 billion (US$1.77 trillion) under management as of March 2006[1]. , Best Buy, BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass Direct, Eastman Kodak, Ford Motor Credit, HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) , J. Crew, 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. , Walgreens, and WellsFargo and government organizations including the United States Army United States Army Major branch of the U.S. military forces, charged with preserving peace and security and defending the nation. The first regular U.S. fighting force, the Continental Army, was organized by the Continental Congress on June 14, 1775, to supplement local and the USDA USDA, n.pr See United States Department of Agriculture. . 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 our Web site at www.atg.com. (c) 2002 ATG and Art Technology Group are registered trademarks of Art Technology Group, Inc. Scenario Personalization is a trademark of ATG. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners. The statements in bullet points bullet point n → punto; bullet points → elenco sg puntato 3, 4, 5, 6, and 7 of the section labeled "Third-Quarter Business Highlights" and the statements in paragraphs 1 and 2 of the section labeled "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. . When and if ATG 6 will be made available remains at the sole discretion of ATG, and any references to ATG 6 should be considered forward-looking statements. 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 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 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 resellers 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; 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, which are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov.
Art Technology Group, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2002 2001 2002 2001
Revenues:
Product license $11,825 $ 13,411 $ 36,573 $ 57,975
Services 12,677 17,042 40,404 51,267
Total Revenues 24,502 30,453 76,977 109,242
Cost of Revenues:
Product license 1,118 1,075 3,257 3,222
Services 8,119 10,546 25,941 38,941
Total Cost of Revenues 9,237 11,621 29,198 42,163
Gross Profit 15,265 18,832 47,779 67,079
Gross profit % 62% 62% 62% 61%
Operating Expenses:
Research & development 5,419 7,218 16,552 24,397
Sales & marketing 9,713 20,506 33,270 77,341
General & administrative 3,021 5,299 7,777 20,359
Stock-based compensation 246 298 775 1,002
Restructuring -- -- (89) 44,235
Total Operating Expenses 18,399 33,321 58,285 167,334
Loss from Operations (3,134) (14,489) (10,506) (100,255)
Interest and Other
Income, net 77 809 1,849 4,161
Net loss before benefit
from income taxes (3,057) (13,680) (8,657) (96,094)
Benefit from income taxes -- 4,651 -- 32,273
Net loss $(3,057) $ (9,029) $ (8,657) $ (63,821)
Basic and diluted net loss
per share $ (0.04) $ (0.13) $ (0.12) $ (0.93)
Basic and diluted weighted
average common shares
outstanding 69,954 68,762 69,737 68,512
Art Technology Group, Inc.
Condensed Consolidated Balance Sheet
(In thousands, except per share data)
(Unaudited)
As of the period ended
Sept. 30, Dec. 31,
2002 2001
Assets
Current Assets:
Cash, cash equivalents,
marketable securities,
and restricted cash $ 72,461 $ 80,307
Accounts receivable, net 20,412 30,532
Prepaid expenses and other current assets 6,771 5,815
Total current assets 99,644 116,654
Property and equipment, net 11,204 16,171
Intangibles and other assets, net 1,520 4,663
Total assets $112,368 $137,488
Liabilities and Stockholders' Equity
Current Liabilities:
Current maturities of long-term obligations $ 500 $ 2,000
Accounts payable 4,626 4,160
Accrued expenses 18,981 24,718
Deferred revenue 13,646 17,628
Accrued restructuring short-term 9,125 13,398
Total current liabilities 46,878 61,904
Accrued restructuring long-term 28,779 32,675
Stockholders' Equity 36,711 42,909
Total liabilities and
stockholders' equity $112,368 $137,488
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion