Accrue Software Announces Fiscal 2nd Quarter Financial Results; Revenues Increase for 3rd Consecutive Quarter; Operating Loss Declines.Business Editors and High Tech Writers FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--Oct. 24, 2001 Accrue To increase; to augment; to come to by way of increase; to be added as an increase, profit, or damage. Acquired; falling due; made or executed; matured; occurred; received; vested; was created; was incurred. (TM) Software, 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 : ACRU ACRU American Civil Rights Union ACRU Active Confirmed Registered User (eBay) ), said today that its fiscal second quarter results were marked by the company's third consecutive quarterly revenue increase, a reduced operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , and wins for its new next-generation Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the analytics platform. For the second quarter ended September 29, 2001, Accrue reported net revenues of $3.8 million, a 5.5 percent increase over $3.6 million in revenue reported in the previous quarter ended June 30, 2001, compared to $10.0 million for the same quarter last fiscal year. Product license revenue was $1.4 million, a 25% increase over $1.1 million reported in the prior quarter, compared to $6.7 million for the same quarter last fiscal year. The pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss for the second fiscal quarter was $2.7 million, or ($0.09) per share, compared to a pro forma net loss of $3.4 million, or ($0.11) per share reported in the prior quarter, and a pro forma net gain of $1.8 million, or $0.06 per share, reported for the same quarter last fiscal year. The pro forma results exclude non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for amortization of intangibles, in process research and development and stock-based compensation. The company indicated that through September 30 it had repurchased 150,000 of its shares on the open market under a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. plan that had been announced in May. Jeffrey Walker
Jeffrey Walker (born March 25, 1969) is a bass guitarist and singer from St Helens, UK. , Accrue Software's President and 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. , said, "Our results for the quarter demonstrate gradual but continuing progress toward our three-pointed strategic plan to build our financial resources, continue an upward revenue trend while introducing our new major analytics platform, and measurably meas·ur·a·ble adj. 1. Possible to be measured: measurable depths. 2. Of distinguished importance; significant: a measurable figure in literature. improve customer satisfaction and delivery. "In addition to increasing revenues for the third consecutive quarter, our maintenance renewal rates more than doubled from the first quarter and bookings were substantially higher than the first quarter, with a book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can that indicates we are restoring our pipeline," he said. He added that 8 customers have already committed to the company's new G2 second-generation platform--Citicorp, Lycos Europe Introduction LYCOS Europe is a pan-European network of websites, offering a broad variety of content channels and online services, e.g. communication tools & communities, websearch, e-commerce, webhosting, homepagebuilding and Internet access. , Dow Jones Dow Jones the best known of several U.S. indexes of movements in price on Wall Street. [Am. Hist.: Payton, 202] See : Finance , Kodak, Lands End, Bridges, Knight Ridder
Knight Ridder (IPA: /ˈrɪdɚ/) was an American media company, specializing in newspaper and Internet publishing. and the Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). . Outlook "As I said last quarter, we remain enthusiastic about Accrue's near and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. market opportunities. Management's plan is working and the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. is clearly underway. Despite the current economic environment and the limited visibility that results, our goal for the next quarter is slight revenue growth followed by a return to a quarterly growth rate of 5 to 10%. "We expect to further reduce our cash expenses to $5.8 to $6.0 million in the third quarter. That reduction, coupled with our anticipated improvement in quarterly revenues and our $6.5 million cash position, should provide us with cash sufficient to achieve profitability," Walker said. Amendment of Quarterly Report In the course of reviewing the financial statements to be included in its quarterly report on Form 10-Q Form 10-Q See 10-Q. for the period ended September 30, 2001, Accrue Software determined there had been an overstatement o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o of 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. recorded in the quarter ended June 30, 2001. Accordingly, on October 24, 2001, Accrue Software filed with the Securities and Exchange Commission an amendment to its quarterly report on Form 10-Q for the period ended June 30, 2001. Investor Conference Call As previously announced, Accrue Software will be holding a conference call today, October 24, 2001 at 2:00 p.m. PT. To participate in the call, please dial (646) 862-1042 approximately 10 minutes prior to the start of the call. A replay of the call will be available from approximately 4:00 p.m. PT today until 4:00 p.m. PT November 7, 2001. To access the replay, please dial (800) 633-8284. The confirmation code for the call is 19804099. The call can also be accessed through the investor relations Investor relations The process by which the corporation communicates with its investors. section of Accrue's Web site at www.accrue.com. To listen to the call, please go to the Web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install any necessary audio software. For those who cannot listen to the live broadcast, the event will be archived and available beginning approximately two hours following the live Web cast. About Accrue Software Accrue Software is a leading provider of enterprise-level analytic an·a·lyt·ic or an·a·lyt·i·cal adj. 1. Of or relating to analysis or analytics. 2. Expert in or using analysis, especially one who thinks in a logical manner. 3. Psychoanalytic. solutions that help companies understand, predict, and respond to Internet customer behavior. Accrue's solutions enable highly targeted campaigns to improve the profitability of customer interactions across multiple touch points. Accrue has more than 500 customers, including industry leaders such as FedEx, Gateway, Dow Jones, Eastman Kodak Company, MTV MTV in full Music Television U.S. cable television network, established in 1980 to present videos of musicians and singers performing new rock music. MTV won a wide following among rock-music fans worldwide and greatly affected the popular-music business. , Macy*s, and Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. . Accrue Software was founded in 1996 and is headquartered in Fremont, Calif., with regional sales offices throughout the U.S. and international headquarters in Cologne Cologne (kəlōn`), Ger. Köln, city (1994 pop. 962,500), North Rhine–Westphalia, W Germany, on the Rhine River. It is a commercial, financial, and industrial center, a rail and road junction, and a river port. , Germany. Accrue has strategic partnerships with leading business vendors, including Art Technology Group, BEA BEA - Basic programming Environment for interactive-graphical Applications, from Siemens-Nixdorf. , BroadVision, DoubleClick, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Oracle, 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. and Vignette Vignette A symbol or pictorial representation of the corporation on a stock certificate. Usually a complicated and artistic design, it is meant to make the counterfeiting of stock certificates as difficult as possible. . Accrue Software can be reached at 1-888-4ACCRUE or 510-580-4500, and at www.accrue.com. Accrue is a trademark of Accrue Software, Inc. All other trademarks are the sole property of their respective owners. Except for the historical information contained herein, the matters discussed in the news release, including projections of future revenues, earnings and financial results, are 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. that involve risks and uncertainties that could cause actual results, future revenues or earnings to differ materially from those in such forward-looking statements. These forward-looking statements are made only as of the date of this press release, and Accrue undertakes no obligation to update or revise the projections of revenue and earnings, or the other forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on these projections of future revenue and earnings, and other forward-looking statements. Potential risks and uncertainties include, without limitation, the company's limited operating history, history of losses, fluctuations in operating results, ability to cut expenses, competition in the e-business analysis market, reliance on sales from a limited number of products for its revenue, customer adoption of new products (particularly the company's new G2 second-generation platform), reliance on expanding sales operations and distribution channels and potential difficulties associated with the integration of the personnel, operations and products of Marketwave and Pilot with Accrue's personnel, operations and products. These and other risk factors are described in detail in the Company's Registration Statement on Form S-1, and in the Company's other filings, which are on file with the Securities and Exchange Commission. -0- *T
Accrue Software, Inc.
Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
Sept. 29, Sept. 30, Sept 29, Sept 30,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue:
Software license $ 1,434 $ 6,727 $ 2,581 $ 13,650
Maintenance and
service 2,376 3,308 4,841 6,135
-------- -------- -------- --------
Total revenue 3,810 10,035 7,422 19,785
-------- -------- -------- --------
Cost of revenue:
Software license 105 108 210 489
Maintenance and
service 1,714 1,755 3,842 3,194
-------- -------- -------- --------
Total cost of revenue 1,819 1,863 4,052 3,683
-------- -------- -------- --------
Gross profit 1,991 8,172 3,370 16,102
-------- -------- -------- --------
Operating expenses:
Research and
development 1,730 2,059 3,852 3,995
Sales and marketing 1,606 3,488 3,095 7,637
General and
administrative 1,465 1,142 2,788 2,046
Amortization of
intangibles 1,145 16,244 2,290 27,103
In process research
& development 4,503 4,503
Stock-based compensation
expense 276 598 485 1,347
-------- -------- -------- --------
Total operating
expenses 6,222 28,034 12,510 46,631
-------- -------- -------- --------
Loss from operations (4,231) (19,862) (9,140) (30,529)
Other income 136 356 315 761
Gain on sale of
technology asset - - 4,306 -
Other expense (59) (11) (104 (11)
-------- -------- -------- --------
Net loss $ (4,154) $ (19,517) $ (4,623) $ (29,779)
======== ======== ======== =========
Net loss per share,
basic and diluted $ (0.14) $ (0.71) $ (0.15) $ (1.12)
======== ======== ======== =========
Shares used in computing
net loss per share,
basic and diluted 30,131 27,660 30,029 26,706
======== ======== ======== =========
Accrue Software, Inc.
Consolidated Statements of Operations
Pro forma
(unaudited, in thousands, except per share data)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
Sept 29, Sept 30, Sept 29, Sept 30,
2001 2000 2001 2000
---- ---- ---- ----
Net revenue:
Software license $ 1,434 $ 6,727 $ 2,581 $ 13,650
Maintenance and
service 2,376 3,308 4,841 6,135
-------- -------- -------- --------
Total revenue 3,810 10,035 7,422 19,785
-------- -------- -------- --------
Cost of revenue:
Software license 105 108 210 489
Maintenance and
service 1,714 1,755 3,842 3,194
-------- -------- -------- --------
Total cost of revenue 1,819 1,863 4,052 3,683
-------- -------- -------- --------
Gross profit 1,991 8,172 3,370 16,102
------- -------- -------- --------
Operating expenses:
Research and
development 1,730 2,059 3,852 3,995
Sales and marketing 1,606 3,488 3,095 7,637
General and
administrative 1,465 1,142 2,788 2,046
-------- -------- -------- --------
Total operating
expenses 4,801 6,689 9,735 13,678
-------- -------- -------- --------
Gain (loss) from
operations (2,810) 1,483 (6,365) 2,424
Other income 136 356 315 761
Other expense (59) (11) (104) (11)
-------- -------- -------- --------
Net income (loss) $ (2,733) $ 1,828 $ (6,154) $ 3,174
======== ======== ======== ========
Net loss per share,
basic and diluted $ (0.09) $ 0.06 $ (0.20) $ 0.11
======== ======== ======== ========
Shares used in computing
net income (loss)
per share, basic
and diluted 30,131 30,176 30,029 30,176
======== ======== ======== ========
The Pro Forma statement of Operations excludes non cash charges
for stock based compensation, amortization of intangibles, in process
research and development and gain on sale of technology asset.
Accrue Software, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
Sept 29, Mar 31,
2001 2001
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 6,522 $11,951
Accounts receivable, net 2,523 1,868
Prepaid expenses and other
current assets 973 2,782
------- -------
Total current assets 10,018 16,601
Property and equipment, net 2,421 2,923
Other assets, net 8,446 10,745
------- -------
TOTAL ASSETS $20,885 $30,269
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 634 $ 1,026
Accrued liabilities 2,829 4,406
Accrued liabilities, merger -- 80
Deferred revenue 3,560 4,897
Short term borrowings -- 2,000
------- -------
Total current liabilities 7,023 12,409
------- -------
Total stockholders' equity 13,862 17,860
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $20,885 $30,269
======= =======
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