Actuate Reports First Quarter 2005 Financial Results; Revenues of $24.6 Million; Non-GAAP EPS of $0.02; $2.8 Million in Cash Flow from Operations.SOUTH SAN FRANCISCO South San Francisco, city (1990 pop. 54,312), San Mateo co., W Calif.; inc. 1908. South San Francisco has several industrial parks; its manufactures include medical supplies and equipment, foods, paint, paper products, consumer goods, and clothing. , Calif. -- Actuate Corporation (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 :ACTU ACTU Australian Council of Trade Unions ACTU AIDS Clinical Trials Unit (Washington University Medical Center, St. Louis, Missouri) ACTU Association of Catholic Trade Unionists ACTU Australian Capital Territory Union ), the world leader in Enterprise Reporting With the dramatic expansion of information technology, and the desire for increased competitiveness in corporations, there has been an increase in the use of computing power to produce unified reports which join different views of the enterprise in one place. Applications, today announced its financial results for the quarter ended March 31, 2005. Total revenues for the first quarter of 2005 were $24.6 million, compared with $25.7 million in the same period a year ago. License revenues for the quarter were $8.9 million, compared with $11.5 million in the same period a year ago. Services revenues totaled $15.7 million for the first quarter of 2005, an increase of 10% compared with the $14.2 million reported in the same period a year ago. First quarter 2005 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $245,000, or $0.00 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net loss of $377,000 or $0.01 per share in the year-ago quarter. Non-GAAP operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the first quarter of 2005 was 6.0% compared with a non-GAAP operating margin of 3.0% for the same period a year ago. First quarter 2005 GAAP and non-GAAP 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. included $1.2 million (4.9% of revenues) of external auditing and consulting fees related to Sarbanes-Oxley Section 404 compliance. On a non-GAAP basis, net income in the first quarter of 2005 was $1.2 million, or $0.02 per diluted share, compared with non-GAAP net income of $581,000, or $0.01 per diluted share in the year-ago quarter. These non-GAAP financial measures exclude the amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and purchased technology, amortization of deferred compensation, restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs, certain legal fees and an adjustment to the tax provision. All of these expenses are included in Actuate's GAAP results. Cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments as of March 31, 2005 totaled $49.7 million, an increase of $2.4 million compared with December December: see month. 31, 2004. Deferred revenue at March 31, 2005 was $26.2 million, a 3% increase compared with $25.6 million at March 31, 2004. "Actuate continued to make solid progress with solutions targeted at specific business processes," said Pete Cittadini, Actuate'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. . "These are mission critical Enterprise Reporting Applications designed and developed by application development professionals, often with help from our e.Services organization, that deliver informational value to everyone using that application. In the first quarter, our focus on solutions resulted in larger orders and a growing pipeline of opportunities, particularly for Financial Performance Management and Customer Self Service applications. We will continue to focus on Enterprise Reporting Applications, adopted by 100% of large user populations, that access diverse data sources delivering breakthrough corporate performance to fuel growth in 2005." "We also made significant progress with the Open Source Business Intelligence and Reporting Tools (BIRT) project within the Eclipse community," continued Cittadini. "The availability of the preview To see ahead of time. Page layout and word processing programs often have a preview function that lets you see how all the pages will appear before they are printed. In the days of character-based interfaces, a preview was absolutely necessary to see how different fonts would look or how versions of the technology has resulted in over 5,000 downloads to date and some early adoption of the technology by Java developers." First Quarter Financial Highlights --Non-GAAP 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. doubled to $0.02, compared with $0.01 in Q1 2004; --Repurchased 566,000 shares at a total cost of $1.5 million; --Cash flow from operations totaled $2.8 million compared with $230,000 in Q1 2004; --Secured one transaction over $1 million; --Received orders greater than $100,000 from 40 customers; --Average deal size of orders greater than $100,000 totaled $339,000, a 15% increase compared with the average of $294,000 in Q1 2004; --Non-GAAP operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 93% compared with Q1 2004; --Non-GAAP operating margin was 6.0%, compared with 3.0% in Q1 2004; --Achieved 63% services margin (combined margin of maintenance support and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" ) for the second quarter in a row, compared with 57% in the year-ago quarter. First Quarter Customer Highlights During first quarter 2005, Actuate received significant new and repeat business from, among others, AARP AARP, a nonprofit, nonpartisan national organization dedicated to "enriching the experience of aging"; membership is open to people age 50 or older. Founded in 1958 by Ethel Percy Andrus as American Association of Retired Persons, AARP now has over 30 million , Academy for Educational Development, AT&T, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Caremark Rx  The introduction to this article may be too long. Please help improve the introduction by moving some material from it into the body of the article according to the suggestions at , Citigroup CitigroupU.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. , Educational Testing Service The Educational Testing Service (or ETS) is the world's largest private educational testing and measurement organization, operating on an annual budget of approximately $1.1 billion on a proforma basis in 2007. , HSBC HSBC Hongkong and Shanghai Banking Corporation HSBC Humane Society of Broward County (Florida) HSBC Humane Society of Bay County (Bay County, Michigan) Bank (USA), JP Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Chase, Societe Generale and Wachovia For Moravian settlements in North Carolina, see . Wachovia Corporation (NYSE: WB), based in Charlotte, North Carolina, is the third largest banking chain in the United States based on total deposits. . First Quarter Business Highlights --Appointed Dave Armstrong as VP of North American Operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. , John Maxwell John Maxwell may refer to:
Philip, d. A.D. 34, tetrarch of Ituraea, son of Herod the Great. He was perhaps the ablest of the Herod dynasty. He is mentioned in the Gospel of St. Luke. Strauss Strauss (strous, Ger. shtrous), family of Viennese musicians. Johann Strauss, 1804–49, learned to play the violin against his parents' wishes. as VP of Corporate Development and General Counsel; --Launched Actuate Financial Performance Management (FPM FPM - Fast Page Mode Dynamic Random Access Memory ) solution, the first technology solution to directly integrate data from disparate Financial, Human Resource, Revenue and Budgeting & Forecasting systems and present on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front reports to every employee with financial accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. . This unique ability provides companies with the capability to distribute fiscal responsibility throughout the enterprise, help drive financial performance, and assist in compliance with federal regulations, such as the Sarbanes-Oxley Act See SOX. ; --Made available, on www.eclipse.org/birt, all of the modules currently under development for the Business Intelligence and Reporting Tools (BIRT) project including Report Object Model (ROM), Eclipse Report Designer, Eclipse Report Engine and Eclipse Charting Engine; --Named KeyCorp Enterprise Technology Development "Technology Vendor of the Year" award for the second year in a row. Use of Non-GAAP Financial Measures The non-GAAP financial measures discussed in the text of this press release and accompanying non-GAAP supplemental information represent financial measures used by Actuate's management to evaluate the operating performance of the Company and to conduct its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Non-GAAP financial measures discussed in this press release exclude the amortization of intangibles and other costs arising from acquisitions, amortization of deferred compensation, 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. , certain legal and accounting fees and an adjustment to the tax provision. It is management's belief that these items are not indicative of ongoing operations and as a result, non-GAAP financial measures that exclude such items provide additional insight for investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures are not intended to be an alternative to financial measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between the Company's GAAP and non-GAAP financial results is provided in this press release and investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company's SEC filings. Additionally, the non-GAAP reconciliation will be available in the investor relations Investor relations The process by which the corporation communicates with its investors. section of Actuate's website at www.actuate.com. Conference Call Information Actuate will be holding a conference call at 2:00 p.m. Pacific Time, today, April 28, 2005 to further discuss these results. The dial-in number for the call is 973-528-0008. The conference call will be simultaneously broadcast live in the Investor Relations section of Actuate's web site at http://phx.corporate-ir.net/phoenix.zhtml?c=64401&p=irol-irhome and will be available as an archived replay at the same location until approximately May 12, 2005. About Actuate Corporation Actuate Corporation is the world leader in Enterprise Reporting Applications that ensure 100% adoption by users. Actuate's Enterprise Reporting Application Platform is the foundation on which Global 9000 organizations (companies with annual revenues greater than $1 billion) and packaged application software vendors develop intuitive, Web portal-like reporting and analytic applications Analytic Applications are a type of business application software, used to measure and improve the performance of business operations. More specifically, Analytic Applications are a type of Business Intelligence solution. that empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems 100% of users with decision-making decision-making, n the process of coming to a conclusion or making a judgment. decision-making, evidence-based, n a type of informal decision-making that combines clinical expertise, patient concerns, and evidence gathered from information. These applications are deployed inside and outside the firewall to improve corporate performance across a range of business functions including financial management, sales, human resource management, and customer self-service. When tested against other business intelligence products, Actuate's Enterprise Reporting Application Platform has been proven to offer industry-leading scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it and the lowest Total Cost of Ownership. Actuate has over 3,000 customers globally in a range of industries including 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. , pharmaceuticals, insurance, and distribution services, as well as the government sector. Founded in 1993, Actuate has headquarters in South San Francisco, Calif., and has offices worldwide. Actuate is listed on the NASDAQ exchange under the symbol ACTU. For more information on Actuate, visit the company's Web site at www.actuate.com. Cautionary Note Regarding Forward Looking Statements: The statements contained in this release that are not purely historical are forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements regarding Actuate's expectations, beliefs, hopes, intentions or strategies regarding the future. All 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. in this release are based upon information available to Actuate as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and Actuate disclaims any obligation to update or revise any such forward-looking statements based on changes in expectations or the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or conditions on which such expectations may be based. Actual results could differ materially from Actuate's current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the general spending environment for information technology products and services in general and Enterprise Reporting Application software in particular, quarterly fluctuations in our revenues and other operating results, our ability to expand our international operations, our ability to successfully compete against current and future competitors, the impact of future acquisitions on the company's financial and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. operating condition, the ability to increase revenues through our indirect channels, general economic and geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. uncertainties and other risk factors that are discussed in Actuate's Securities and Exchange Commission filings, specifically Actuate's 2004 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 on March 16, 2005. Copyright(C) 2005 Actuate Corporation. All rights reserved. Actuate and the Actuate logo are registered trademarks of Actuate Corporation and/or its affiliates in the U.S. and certain other countries. All other brands, names or trademarks mentioned may be trademarks of their respective owners.
ACTUATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Dec. 31,
2005 2004
--------- ----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $49,673 $47,273
Accounts receivable, net 18,023 24,776
Other current assets 2,078 2,498
--------- ----------
Total current assets 69,774 74,547
Property and equipment, net 5,606 6,158
Goodwill and other intangibles, net 23,224 23,883
Other assets 892 867
--------- ----------
$99,496 $105,455
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,668 $2,414
Current portion of restructuring liabilities 3,395 3,669
Accrued compensation 3,676 5,244
Other accrued liabilities 3,938 4,996
Income taxes payable 667 539
Deferred revenue 25,525 28,153
--------- ----------
Total current liabilities 39,869 45,015
--------- ----------
Long term liabilities
Deferred revenue 718 610
Restructuring liabilities and other 12,186 12,885
--------- ----------
12,904 13,495
--------- ----------
Stockholders' equity 46,723 46,945
--------- ----------
$99,496 $105,455
========= ==========
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months
Ended
March 31,
---------------
2005 2004
------- -------
Revenues:
License fees $8,948 $11,477
Services 15,677 14,191
------- -------
Total revenues 24,625 25,668
------- -------
Costs and expenses:
Cost of license fees 737 1,100
Cost of services 5,834 6,089
Sales and marketing 8,418 10,294
Research and development 4,228 5,191
General and administrative 4,509 2,673
Amortization of other intangibles 276 282
Restructuring charges 569 586
------- -------
Total costs and expenses 24,571 26,215
------- -------
Income (loss) from operations 54 (547)
Interest and other income, net 384 170
------- -------
Income (loss) before income taxes 438 (377)
Provision for income taxes 193 --
------- -------
Net income (loss) $ 245 $ (377)
======= =======
Basic net income (loss) per share $ 0.00 $(0.01)
======= =======
Shares used in basic per share calculation. 62,092 61,358
======= =======
Diluted net income (loss) per share $ 0.00 $(0.01)
======= =======
Shares used in diluted per share calculation 64,628 61,358
======= =======
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Ended Three Months Ended
March 31, 2005 March 31, 2004
------------------------ ------------------------
Adjust- Adjust-
GAAP ments Non- GAAP ments Non-
GAAP GAAP
------- ------ --------------- ------ -------
Revenues:
License fees $8,948 $8,948 $11,477 $11,477
Services 15,677 15,677 14,191 14,191
------- ------- ------- -------
Total revenues 24,625 24,625 25,668 25,668
------- ------- ------- -------
Costs and expenses:
Cost of license
fees 737 (383)(a) 354 1,100 (383)(a) 717
Cost of services 5,834 5,834 6,089 6,089
Sales and marketing 8,418 8,418 10,294 10,294
Research and
development 4,228 4,228 5,191 (55)(b) 5,136
General and
administrative 4,509 (186)(c) 4,323 2,673 2,673
Amortization of
other intangibles 276 (276) - 282 (282) -
Restructuring
charges 569 (569) - 586 (586) -
------- ------- ------- -------
Total costs and
expenses 24,571 23,157 26,215 24,909
------- ------- ------- -------
Income (loss) from
operations 54 1,468 (547) 759
Interest and other
income, net 384 384 170 170
------- ------- ------- -------
Income (loss) before
income taxes 438 1,852 (377) 929
Provision for income
taxes 193 502 (d) 695 -- 348 (d) 348
------- ------- ------- -------
Net income (loss) $ 245 $1,157 $(377) $581
======= ======= ======= =======
Basic net income
(loss) per share $0.00 $0.02 $(0.01) $0.01
======= ======= ======= =======
Shares used in basic
per share
calculation 62,092 62,092 61,358 61,358
======= ======= ======= =======
Diluted net income
(loss) per share $0.00 $0.02 $(0.01) $0.01
======= ======= ======= =======
Shares used in
diluted per share
calculation. 64,628 64,628 61,358 65,164
======= ======= ======= =======
(a) Amortization of purchased technology.
(b) Amortization of deferred compensation.
(c) Legal costs related to the litigation with MicroStrategy,
Incorporated.
(d) The provision for income taxes used in arriving at the non- GAAP
net income for all of the periods presented was computed using an
income tax rate of 37.5%. The amount of provision for income taxes
used in arriving at the non-GAAP net income does not reflect the
actual or future expected provision for income taxes.
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months
Ended
March 31,
2005 2004
----------------
Operating activities
Net Income (loss) $245 $(377)
Adjustments to reconcile net loss to net cash from
operating activities:
Amortization of other intangibles 659 665
Depreciation 468 574
Changes in operating assets and liabilities:
Accounts receivable 6,753 620
Other current assets 420 (59)
Accounts payable 254 (625)
Accrued compensation (1,567) (115)
Other accrued liabilities (1,058) 45
Income taxes payable 128 (13)
Deferred rent liabilities (26) --
Restructuring liabilities (947) (251)
Deferred revenue (2,520) (234)
----------------
Net cash provided by operating activities 2,809 230
----------------
Investing activities
Purchases of property and equipment 84 (451)
Proceeds from maturity of short-term investments 18,584 29,388
Purchases of short-term investments (16,662)(13,499)
Net change in other assets (26) 343
----------------
Net cash provided by investing activities 1,980 15,781
----------------
Financing activities
Proceeds from issuance of common stock 1,105 426
Stock repurchases (1,491) --
----------------
Net cash (used) provided in financing activities (386) 426
----------------
Net increase in cash and cash equivalents 4,403 16,437
Effect of exchange rate on cash (43) (119)
Cash and cash equivalents at the beginning of the
period 7,341 8,950
----------------
Cash and cash equivalents at the end of the period $11,701 $25,268
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