Active Software Announces Record Fourth Quarter and Fiscal Year-End Results; Fourth Quarter Revenues Up 272%.Business Editors SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Jan. 24, 2000 Active Software, Inc. (Nasdaq: ASWX), a leading provider of eBusiness See e-business. integration software products, today announced record financial results for the fourth quarter ended December December: see month. 31, 1999. Revenue for the quarter was a record $11.6 million, an increase of 62% over the $7.2 million reported for the previous quarter and an increase of 272% over the $3.1 million reported for the same period last year. Total revenues for fiscal 1999 were $27.4 million, an increase of 261% over fiscal 1998. Today's announcement represents the company's seventh consecutive quarter of revenue growth. Net loss for the quarter was $1.2 million, or $.05 per share on a 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 basis, as compared to a net loss of $2.8 million, or $.13 per share pro forma, for the previous quarter and $2.6 million, or $.16 per share pro forma, for the same period last year. Excluding the amortization of stock-based compensation, net loss for the quarter was $.9 million, or $.04 per share pro forma, as compared to a net loss of $2.5 million and $2.4 million, or $.12 and $.15 per share pro forma, for the previous quarter and corresponding quarter last year, respectively. Net loss for the fiscal year ended December 31, 1999 was $9.4 million, or $.47 per share pro forma, as compared to a net loss of $9.9 million, or $.64 per share pro forma, for the same period last year. Excluding the amortization of stock-based compensation, net loss for the fiscal year was $8.2 million, or $.41 per share pro forma, as compared to a net loss of $9.6 million, or $.62 per share pro forma, for the corresponding period last year. For comparative purposes, net loss per share on a pro forma basis takes into consideration the weighted average number of common share equivalents resulting from the inclusion of convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". for the quarter in connection with the Company's initial public offering completed on August 18, 1999. &uot;We are very pleased with our strong revenue growth, much of it driven by our high win ratio against key competitors,&uot; said Jim Green
Born in Alabama, Green moved to Canada to avoid being drafted for the Vietnam War. , chairman 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. , Active Software. &uot;Active Software's technology appeals to a broad range of customers from nearly all key markets because of our ability to provide fast time-to-market and a large number of ready to implement VAR and SI partner solutions. Looking forward to 2000, we will continue our aggressive investments in sales and marketing and research and development, and leverage our partners to identify and cultivate cul·ti·vate tr.v. cul·ti·vat·ed, cul·ti·vat·ing, cul·ti·vates 1. a. To improve and prepare (land), as by plowing or fertilizing, for raising crops; till. b. new business opportunities.&uot; Business Highlights for the Fourth Quarter and Fiscal 1999 Strong Customer Growth Active Software added approximately 20 new customers in the fourth quarter, bringing the total number of customers to more than 150. The company also strengthened its position in its key vertical markets: telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and high technology and closed multiple million dollar deals during the year. New customers for the quarter included: Agilent (Agilent Technologies, Santa Clara, CA, www.agilent.com) The test and measurement subsidiary of HP. In 1999, HP split off the division that started the company into an independent subsidiary named Agilent Technologies. At the time, the $2. , Bridgestone/Firestone, Cinergy Cinergy Corp. was an energy company based in Cincinnati, Ohio. Cinergy was created on October 24, 1994, from the merger of the Cincinnati Gas & Electric Company (CG&E) with PSI Energy and later included Union Light, Heat & Power (ULH&P) as well. , GE Medical Systems, Grassroots Adj. 1. grassroots - fundamental; "the grassroots factor in making the decision" basic - pertaining to or constituting a base or basis; "a basic fact"; "the basic ingredients"; "basic changes in public opinion occur because of changes in priorities" 2. .com, Homepoint.com, InFocus, State of California-County of San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , 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. , TimeWarner, and VitaminShoppe.com. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Operations In the fourth quarter Active Software opened new offices in France and Germany, building upon the success of Active Software's existing European operations in the Netherlands and the United Kingdom. The two new offices provide enhanced product sales and technical support to both existing and potential customers throughout the continent, securing Active Software's position as one of the foremost global eBusiness integration software providers. Active Software's growing list of European customers includes industry leaders such as Citibank, Ipulsys, ONI ONI abbr. Office of Naval Intelligence Noun 1. ONI - the military intelligence agency that provides for the intelligence and counterintelligence and investigative and security requirements of the United States Navy , TeleNordia, Telecel, and Warburg Dillon Read Investment bank created by the 1997 merger of S.G. Warburg & Co. and Dillon, Read & Co. Subsequently renamed UBS Warburg and now part of UBS AG, where the Warburg name was eventually dropped. . Strategic Partners Active Software is rapidly becoming the de facto standard Hardware or software that is widely used, but not endorsed by a standards organization. Contrast with de jure standard. de facto standard - A widespread consensus on a particular product or protocol which has not been ratified by any official standards body, such as ISO, for eBusiness integration having established strategic partnerships with over 100 industry-leading system integrators See systems integrator. and technology partners. Partners play a key role in Active Software's business model, participating in over 66% of all opportunities. Among Active Software's new partners for the quarter were Acxiom Corporation, Exchange Applications, Mediaplex, MetaSolv, Netfish Technologies, and Portal Software Portal Software was founded in 1985 as Portal Information Network, one of the first ISPs in the San Francisco Bay Area. It was founded by John Little. The company offered its own interface through modem access that featured Internet email. . Active Software Partners with Leading ASPs During the year Active Software announced a key marketing initiative focused on the Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) market. The initiative has already resulted in five new partnerships with ASPs, which have found the ActiveWorks(TM) Integration System to be the ideal integration platform for the ASP business model. ActiveWorks is especially attractive to ASPs because it enables them to offer their customers integrated applications, faster time-to-market, and a more rapid return on investment. Leading ASPs that have chosen to partner with Active Software include: AristaSoft, Asera, Corio, HP OSD (1) (On-Screen Display) An on-screen control panel for adjusting monitors and TVs. The OSD is used for contrast, brightness, horizontal and vertical positioning and other monitor adjustments. , and QOS Labs. Active Software has also joined the ASP Industry Consortium (Application Service Provider Industry Consortium, Wakefield, MA) A now disbanded trade organization founded in 1999 dedicated to research and standards in the application service provider (ASP) industry. in order to help promote the ASP industry by sponsoring research and articulating the strategic and measurable benefits of this evolving delivery model. Products Active Software released two major releases of its award-winning ActiveWorks Integration System during the year. Active Software's comprehensive product suite includes over 50 Adapters, a scalable integration platform, reusable re·use tr.v. re·used, re·us·ing, re·us·es To use again, especially after salvaging or special treatment or processing. re·us integration processes and an innovative methodology, providing customers a rapid path to becoming an eBusiness. During the fourth quarter, Active Software released ActiveWorks 4.0, which substantially broadened the appeal of the company's eBusiness integration solutions by providing faster time-to-market and greater ease-of-use. In addition, Active Software announced its business-to-business (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business ) initiative, named &uot;Project Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). ,&uot; to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the emerging opportunities for eBusiness integration within the B2B market. Upon completion of Project Broadband's final phase, Active Software will provide the industry's only comprehensive solution for dynamically integrating applications within and across the extended enterprise, addressing all aspects of creating and managing Internet-based trading partner communities. &uot;Our 1999 results reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re our confidence in our strategy, our business model, and most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially our competitive position. We enter the new millennium with a tremendous amount of momentum having recently announced an exclusive partnership with NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform Software to expand our operations in Japan, and the acquisition of Alier, Inc., a worldwide provider of eBusiness integration software for the banking and financial services industry. We'd like to thank our shareholders, customers, employees and partners for their support and look forward to an exciting 2000,&uot; concluded Green. About Active Software, Inc. Founded in 1995, Active Software, Inc, (Nasdaq: ASWX) is a leading provider of eBusiness integration software products that enable the integration of enterprise software applications within and across the extended enterprise. Active Software has more than 160 customers in industries such as telecommunications, financial services, government, technology, utilities, distribution, manufacturing and transportation. Active Software's headquarters are in Santa Clara, Calif. For more information, visit the company Web site at www.activesw.com. Except for the historical information contained herein, the matters discussed in this news release 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 to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, without limitation, Active Software's limited operating history; potential fluctuations in operating results; delays in development or shipment of the Company's products; the Company's substantial dependence on its ActiveWorks software products; the uncertain market acceptance of eBusiness integration software products; the Company's need to expand its sales and distribution channels; the Company's reliance on system integrators and other strategic relationships, as well as applications made by third parties; and the introduction of new products or services by major competitors. These and other risk factors are described in detail in the Company's prospectus dated August 12, 1999, in its Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 1999 and in its other filings with the Securities and Exchange Commission. The Active Software logo, Active Software and ActiveWorks, are trademarks or registered trademarks of Active Software Inc. All other trademarks mentioned herein are the property of their respective owners.
ACTIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
Dec. 31, Dec. 31,
1999 1998
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 17,299 $ 7,461
Short-term investments 19,906 --
Accounts receivable
(net of allowances of
$493 and $200, respectively) 9,486 3,362
Prepaid expenses and
other current assets 953 495
-------- --------
Total current assets 47,644 11,318
Property and equipment, net 1,951 796
Other assets 2,227 180
-------- ------
Total assets $ 51,822 $ 12,294
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 1,424 $ 739
Accrued compensation
and related benefits 3,039 1,115
Deferred revenue 4,006 1,154
Accrued royalties 400 375
Other accrued liabilities 1,617 335
Current portion of notes payable 109 107
-------- --------
Total current liabilities 10,595 3,825
-------- --------
Notes payable, less current
portion -- 108
-------- --------
Convertible redeemable
preferred stock -- 25,117
Stockholders' equity
(deficiency):
Common stock 71,900 3,934
Deferred stock compensation (3,530) (2,939)
Notes receivable from
stockholders (2) (9)
Accumulated other
comprehensive loss (32) 0
Accumulated deficit (27,109) (17,742)
-------- --------
Total stockholders'
equity (deficiency) 41,227 (16,756)
-------- --------
Total liabilities and
stockholders' equity
(deficiency) $ 51,822 $ 12,294
======== ========
ACTIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended 12 Months Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1999 1998 1999 1998
-------- --------- ------- --------
Revenue:
License $ 9,494 $ 2,303 20,491 $ 5,900
Service 2,115 818 6,952 1,699
-------- -------- -------- --------
Total revenue 11,609 3,121 27,443 7,599
-------- -------- -------- --------
Cost of revenue:
License 508 273 1,376 477
Service 1,820 1,155 6,409 2,290
-------- -------- -------- --------
Total cost
of revenue 2,328 1,428 7,785 2,767
-------- -------- -------- --------
Gross profit 9,281 1,693 19,658 4,832
Operating expenses:
Research
and development 2,391 1,150 6,780 3,971
Sales and
marketing 7,124 2,482 18,821 8,669
General and
administrative 1,237 577 3,079 2,069
Amortization
of deferred
stock compensation 299 157 1,167 336
-------- -------- -------- --------
Total operating
expenses 11,051 4,366 29,847 15,045
-------- -------- -------- --------
Loss from operations (1,770) (2,673) (10,189) (10,213)
Other income (expense):
Interest income 581 85 960 313
Interest expense
and other (36) -- (138) (42)
-------- -------- -------- --------
Total other
income (expense) 545 85 822 271
-------- -------- -------- --------
Net loss $ (1,225) $ (2,588) $ (9,367) $ (9,942)
======== ======== ======== ========
Basic and
diluted net
loss per share $ (0.05) $ (0.62) $ (0.79) $ (3.21)
======== ======== ======== ========
Shares used
in calculating
basic and
diluted net
loss per
share 23,194 4,160 11,851 3,096
======== ======== ======== ========
Pro forma basic
and diluted
net loss
per share $ (0.05) $ (0.16) $ (0.47) $ (0.64)
======== ======== ======== ========
Shares used in
calculating pro
forma basic
and diluted net
loss per share 23,194 16,520 20,138 15,457
======== ======== ======== ========
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