Active Software Announces Record Second Quarter Results; Revenues up 263% Year-over-Year.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)--July 26, 2000 Active Software, Inc. (Nasdaq: ASWX), a leading provider of eBusiness infrastructure software products, today announced record financial results for the second quarter ended June 30, 2000. In particular, the company reached an important milestone, achieving profitability with a net income (excluding 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. ) of $0.01 per share. Total revenues for the second quarter were $18.5 million, an increase of 263% over the $5.1 million reported for the same period last year. Growth for the quarter was driven by increasing demand for Active Software's ActiveWorks(TM) Integration System, which powers many of the world's leading eBusinesses. Excluding non-cash charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc stock compensation, goodwill and purchased in-process technology, Active Software's net income for the quarter was $349,000 or $0.01 per share, beating the First Call consensus estimate of a loss of $0.05 per share. For the corresponding period last year, the net loss, excluding the non-cash charges, was $2.3 million, or $0.46 per share. Including non-cash charges relating to stock compensation, goodwill and purchased in-process technology, net loss for the quarter was $14.1 million, or $0.58 per share, as compared to a net loss of $2.6 million, or $0.52 per share, for the second quarter last year. "Our record results demonstrate that more and more companies are realizing they need a scalable integration platform to operate as an eBusiness," 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. "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. This quarter we experienced tremendous customer growth, generated multiple million-dollar deals, and announced the proposed acquisition of Active Software by webMethods, putting us in a perfect position to emerge as a leader in the B2Bi space." Highlights for Active Software's Second Fiscal Quarter 2000 Acquisitions The highlight of the quarter was the announcement of the proposed acquisition of Active Software by webMethods. This acquisition will bring together two infrastructure leaders whose software solutions fully address the B2Bi requirements of Global 2000 companies and industry trading exchanges, both within the enterprise and across 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 trading networks. Active Software and webMethods have a history of working together to develop infrastructure solutions to meet the needs of shared Global 2000 customers such as FedEx, Juniper Networks Juniper Networks, Inc. (NASDAQ: JNPR) is an information technology company based in Sunnyvale, California and founded in 1996. The company designs and sells Internet Protocol network products and services. , Hewlett-Packard, AVNET and others. In addition, webMethods has also recently developed an out-of-the-box solution that bridges enterprise applications integrated via ActiveWorks with webMethods-powered B2B trading networks and marketplaces. Since the announcement of the proposed acquisition, Active Software and webMethods have worked together to jointly close business with customers such as Outpurchase.com, Grainger, Nonstop HP's brand name for its fault-tolerant servers, which range in size from four CPUs to 4,000 CPUs. The NonStop line was created by Tandem Computers, which was acquired by Compaq, which later became part of HP. Solutions and others. Active Software expects that the transaction will close during the third calendar quarter of 2000, pending completion of customary closing conditions and receipt of Active Software and webMethods stockholder approvals. During the quarter Active Software also closed the acquisitions of TransLink Software, Inc., and Premier Software Technologies. Record Customer Growth Active Software's customer base now totals over 225, having added over 30 new customers in the second quarter. The company also strengthened its position in key vertical markets such as 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. New customers for the quarter included: Bonneville Power Authority, Cable & Wireless, Cadence cadence, in music, the ending of a phrase or composition. In singing the voice may be raised or lowered, or the singer may execute elaborate variations within the key. , Catapulse, Chateau Online, Cobalt Networks Cobalt Networks was a maker of low-cost servers based on Linux. Founded in 1996 in Mountain View, California under the name Cobalt Microserver, the company pioneered easy to use server appliances featuring secure web user interfaces for Internet service providers (ISPs) , eSubscriber, Gelco Information Networks, Global Sight Corp, Bax Global BAX Global is an international shipping company that is headquartered in Irvine, California, and has other major offices in Australia, Singapore, London, The Netherlands, and Toledo, Ohio. , J.D. Edwards (J.D. Edwards & Company, Denver, CO, www.jdedwards.com) A developer of multinational, integrated enterprise software for distribution, finance, human resources, manufacturing and supply chain management. , Maxcess Communications, Net Commerce Corp, Nonstop Solutions, Onesoft, Open Market, QStrategies, Siris and YellowShirt. Active Software also closed repeat business from existing customers, including Bridgestone, CH Robinson, Comdisco, Intraware, Outpurchase.com, RMC RMC Royal Military College RMC Radio Monte Carlo RMC Randolph-Macon College (Ashland, Virginia) RMC Regional Medical Center RMC Robert Morris College (Illinois) RMC Rocky Mountain College , Teligent and others. International Expansion During the quarter, Active Software continued to build its business overseas. Active Software delivered localized Translated into the spoken language of the country. See localization. software to 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 providing an entree to a variety of new accounts in Japan. Active Software also announced its partnership with eGlobal Technology Services to market, sell and support the ActiveWorks(TM) Integration System in Australia, China, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Indonesia, Korea, Malaysia, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , Singapore, Taiwan and Thailand. Active Software also opened its Singapore Support Center to provide real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. technical support to customers throughout the Asia Pacific region. The Singapore Support Center represents the third phase of Active Software's worldwide technical support infrastructure that offers 7x24 support. As a result, customers anywhere in the world can receive ActiveWorks support and advice for their mission-critical eBusiness integration needs during their local business hours BUSINESS HOURS. The time of the day during which business is transacted. In respect to the time of presentment and demand of bills and notes, business hours generally range through the whole day down to the hours of rest in the evening, except when the paper is payable it a bank or by a . Strategic Partners Partners continued to play a key role in Active Software's business model in the second quarter as the company announced a multi-million dollar, multi-year licensing, development and 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 agreement with J.D. Edwards under which J.D. Edwards will license and embed em·bed also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. Active Software's ActiveWorks Integration System in OneWorld(R) software. J.D. Edwards chose ActiveWorks after an exhaustive analysis of competing solutions because it is the most scalable 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. solution in the market. As a result, the two companies can now provide rapid and complete eBusiness integration solutions, allowing customers to have real-time access to the critical information necessary to drive better business decisions and enhance customer interactions. While the new solution is under development, J.D. Edwards will resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. ActiveWorks with OneWorld, providing their customers' with immediate access to the ActiveWorks platform. Active Software also closed joint deals with major system integrator See systems integrator. and application service provider partners including, Asera, Cap Gemini, Component Software, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , eGlobal, Hewlett-Packard, Intergraph and Interworld. The company also secured new partnerships with ATG ATG antithymocyte globulin. lymphocyte immune globulin (antithymocyte globulin equine, ATG, ATG equine, LIG) Atgam Pharmacologic class: Immunoglobulin Therapeutic class: Immunosuppressant , Symphion, Component Software, Versata, Changepoint, Savvion, Answerport, Nightfire and others. New Products During the quarter, Active Software announced the ActiveWorks Application Transaction Coordinator (ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ) to ensure the transactional integrity of end-to end business processes. A significant new component of the ActiveWorks Integration System, the ATC provides guaranteed application-to-application transactional reliability and monitoring regardless of what different transaction models are used by each application. Using Active Software's ATC, organizations can ensure that all business processes complete successfully, enabling customers to trust their most critical data to eBusiness integration. Active Software's ATC is already in use at multiple customer sites within the telecommunications, financial services and high technology industries where transaction integrity is a critical issue. Industry Recognition During the quarter Active Software received eAI Journal's Application Integration Solution of the Year award. This award recognizes the significant business benefits in terms of cost efficiencies and competitive advantage that Active Software delivered to Juniper Networks as the platform for the company's comprehensive eBusiness capabilities. The ActiveWorks Integration System integrates Juniper juniper, any tree or shrub of the genus Juniperus, aromatic evergreens of the family Cupressaceae (cypress family), widely distributed over the north temperate zone. Many are valuable as a source of lumber and oil. Networks' applications and automates cross-application business processes both inside and outside the company creating a real-time, networked commerce environment. Active Software was also named to the Software 500, Software Magazine's list of the world's foremost software and services providers. Active Software was ranked 290 with 1999 software revenues of $27.4 million. About Active Software, Inc. Founded in 1995, Active Software, Inc, (Nasdaq: ASWX) is a leading provider of eBusiness infrastructure software products. Active Software's eBusiness platform, the ActiveWorks(TM) Integration System, automates end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. business processes within the enterprise. Active Software has over 225 customers in industries such as telecommunications, financial services, government, technology, utilities, distribution, manufacturing and transportation. Active Software is headquartered in Santa Clara, California Santa Clara, California (IPA: /ˌsæntəˈklærə/) , founded in 1777 and incorporated in 1852, is a city in Santa Clara County, in the U.S. state of California. . For more information, visit the company Web site at www.activesoftware.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, risks associated with the proposed acquisition of Active Software by webMethods, Inc., Active Software's limited operating history, potential fluctuations in operating results, the company's substantial dependence on its ActiveWorks software products, the company's need to expand its sales and distribution channels, and the uncertain market acceptance of eBusiness integration software products. These and other risk factors are described in detail in the Company's 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. for the year ended December 31, 1999, Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2000, and in its other filings with the Securities and Exchange Commission. Note to Editors: 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
June 30, December 31,
2000 1999 (1)
-------- --------
ASSETS
Current assets:
Cash and cash
equivalents $3,720 $ 17,299
Short-term investments 18,360 19,906
Accounts receivable
(net of allowances of $593) 18,943 9,486
Prepaid expenses and
other current assets 3,118 953
-------- --------
Total current assets 44,141 47,644
Property and equipment, net 3,410 1,951
Convertible subordinated
promissory note receivable -- 2,000
Goodwill and acquired
intangibles, net 125,464 --
Other assets 4,960 227
-------- --------
Total assets $177,975 $ 51,822
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,256 $1,424
Accrued compensation
and related benefits 3,615 3,039
Deferred revenue 8,672 4,006
Accrued royalties 720 400
Other accrued liabilities 2,572 1,617
Current portion of
long-term obligations 157 109
-------- --------
Total current
liabilities 16,992 10,595
-------- --------
Long-term obligations,
less current portion 17 --
-------- --------
Stockholders' equity:
Common stock 210,920 71,900
Deferred stock
compensation (2,925) (3,530)
Notes receivable from
stockholders -- (2)
Accumulated other
comprehensive loss (31) (32)
Accumulated deficit (46,998) (27,109)
-------- --------
Total stockholders' equity 160,966 41,227
-------- --------
Total liabilities and
stockholders' equity 177,975 $ 51,822
======== ========
(1) Derived from December 31, 1999 audited balance sheet included in
the 1999 Annual Report on Form 10-K of Active Software, Inc.
ACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
Revenues:
License $ 13,609 $ 3,558 $ 23,779 $ 5,922
Service 4,927 1,548 8,352 2,746
-------- -------- -------- --------
Total revenues 18,536 5,106 32,131 8,668
-------- -------- -------- --------
Cost of revenues:
License 725 313 1,129 465
Service 3,908 1,577 6,474 2,804
-------- -------- -------- --------
Total cost of
revenues 4,633 1,890 7,603 3,269
-------- -------- -------- --------
Gross profit 13,903 3,216 24,528 5,399
Operating expenses:
Research and
development 3,678 1,216 6,318 2,276
Sales and marketing 8,624 3,810 16,615 6,956
General and
administrative 1,541 517 2,753 993
Amortization of
deferred stock
compensation 303 302 605 565
Amortization of
goodwill and
acquired
intangibles 11,829 -- 13,847 --
Purchased in-process
technology 2,311 -- 5,048 --
-------- -------- -------- --------
Total operating
expenses 28,286 5,845 45,186 10,790
-------- -------- -------- --------
Loss from operations (14,383) (2,629) (20,658) (5,391)
Other income (expense):
Interest income 394 34 927 96
Interest expense
and other (105) (6) (158) (47)
-------- -------- -------- --------
Total other
income, net 289 28 769 49
-------- -------- -------- --------
Net loss $(14,094) $ (2,601) $(19,889) $ (5,342)
======== ======== ======== ========
Basic and diluted
net loss per share $ (0.58) $ (0.52) $ (0.83) $ (1.12)
======== ======== ======== ========
Shares used in
calculating basic
and diluted net
loss per share 24,226 4,962 23,893 4,753
======== ======== ======== ========
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