Actuate Reports Fourth Quarter and Fiscal Year 2005 Financial Results; Q4 Revenues of $29.2 Million with Non-GAAP EPS of $0.06; FY05 EPS up 800% to $0.18; Record 13.9% FY05 Non-GAAP Operating Margin.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: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. and Performance Management Applications, today announced its financial results for the quarter and year ended December December: see month. 31, 2005. Revenues for the fourth quarter of 2005 were $29.2 million, up 9% sequentially from the third quarter of 2005 and up 7% from the fourth quarter of 2004. License revenues for the quarter were $10.3 million, an increase of 16% compared with $8.9 million in Q3 2005. Fourth quarter 2005 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income was $4.1 million, or $0.07 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 net income of $1.2 million or $0.02 per diluted 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 fourth quarter of 2005 was 15% compared with a non-GAAP operating margin of 13% for the fourth quarter of 2004. Fourth quarter 2005 non-GAAP net income was $3.5 million, or $0.06 per diluted share, compared with non-GAAP net income of $2.5 million or $0.04 per diluted share in the year-ago quarter. For the fiscal year 2005, revenues totaled $106.4 million, compared with $104.7 million in fiscal year 2004. GAAP net income for fiscal year 2005 was $11.6 million, or $0.18 per diluted share, compared with GAAP net income of $1.3 million, or $0.02 per diluted share in fiscal year 2004. Non-GAAP net income for fiscal year 2005 was $11.1 million, an increase of $6.7 million compared with the $4.4 million of non-GAAP net income reported for fiscal year 2004. Diluted non-GAAP net income per share was $0.18 for fiscal year 2005, an increase of 157% compared with $0.07 per diluted share recorded in fiscal year 2004. Non-GAAP financial measures discussed in this release exclude the amortization of purchased technology and other intangibles, loss on investment, 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, amortization of deferred compensation, nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. legal costs and an adjustment to the tax provision. All of these expenses are included in Actuate's GAAP results. The income tax rate used to compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. third and fourth quarter 2005 non-GAAP net income was 30%. The income tax rate used to compute non-GAAP net income for fiscal year 2004 and the first six months of 2005 was 37.5%. 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 at December 31, 2005 totaled $54.4 million, an increase of $7.1 million compared with $47.3 million at December 31, 2004. Deferred revenue at December 31, 2005 was $32.4 million, compared with $28.8 million at December 31, 2004. "In 2005, Actuate's renewed strategic focus and heightened financial discipline resulted in improved business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point ," 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. . "We achieved four consecutive quarters of increasing revenues, grew 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. 800% year over year, and beat our goal for cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ." "Our strong financial position will serve as a solid platform upon which to continue our company's transition. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the initiatives we launched in 2005 will serve as growth opportunities for 2006. These include the Customer Self-Service and Financial Performance Management solution categories, which uniquely fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. our customers' needs and continue to encompass an increasing share of our business. We believe the high number of BIRT and Actuate BIRT downloads in 2005 reflect an escalating level of excitement and interest within the worldwide community of enterprise application developers. Finally, our recent acquisition of performancesoft provides our customers with capabilities to dramatically improve their corporate performance. We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to be able to bring these exciting enhancements to our customers and, as always, their success is our primary goal." 2005 Financial Highlights --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 136% compared with fiscal 2004; --Non-GAAP operating margin reached 13.9%, a record annual level; --Non-GAAP EPS increased 157% to $0.18, compared with $0.07 in 2004; --Achieved a record 66% 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" ), compared with 60% in 2004; --Generated $13.3 million in cash flow from operations. --Repurchased 3.0 million shares at a total cost of $7.1 million. Q4 Customer Highlights During Q4 2005, Actuate received significant new and repeat business from, among others, American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Suzuki Suzuki ever faithful to her mistress, especially in sorrow. [Ital. Opera: Puccini, Madama Butterfly, Westerman, 358] See : Loyalty , BEA Systems BEA Systems, Inc. (NASDAQ: BEAS) is one of the major companies developing enterprise infrastructure software. BEA makes middleware, products that help software run on top of databases. , 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. , California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. , Chordiant Chordiant (formerly known as Chordiant Software and J. Frank Consulting) (NASDAQ: CHRD) is a publicly-traded American company. It offers enterprise software to help other companies improve the customer experience of their customers. Software, Citigroup Citigroup U.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. , Deka Bank, DWS DWS Dallas Wind Symphony (Dallas, TX) DWS Department of Workforce Services (Wyoming) DWS Division of Workforce Solutions (Wisconsin) DWS Driving While Suspended Investments, 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. , Federal Reserve Bank of Richmond The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve located in Richmond, Virginia . It covers the District of Columbia, Maryland, Virginia, North Carolina, South Carolina and most of West Virginia. , Harland Harland is an English name that can be used as both a surname or a first name. The name Harland is thought to have French origins. It can be traced back to the Midlands as one of the earliest recorded surnames in the UK. Financial, 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) , MetLife, National Aeronautics and Space Administration National Aeronautics and Space Administration (NASA), civilian agency of the U.S. federal government with the mission of conducting research and developing operational programs in the areas of space exploration, artificial satellites (see satellite, artificial), , Nationwide, Odyssey Software Odyssey Software was a computer game developer founded in 1987 in Eastham, Massachusetts by Art V. Cestaro III. The company produced games for the Amiga and the Nintendo Entertainment System (NES). , PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank, Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. , Sprint, TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund and UBS AG UBS AG (NYSE: UBS; SWX: UBSN; TYO: 8657 ) is a diversified global financial services company, with its main headquarters in London and New York. It is the world's largest manager of private wealth assets,, "the world's biggest manager of other people's money"[1] . Other Q4 Highlights During the fourth quarter, Actuate: --Announced the first Spreadsheet spreadsheet Computer software that allows the user to enter columns and rows of numbers in a ledgerlike format. Any cell of the ledger may contain either data or a formula that describes the value that should be inserted therein based on the values in other cells. Application Platform that gives corporations the ability to securely automate To turn a set of manual steps into an operation that goes by itself. See automation. the production, distribution, updates, workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. and collaboration Working together on a project. See collaborative software. associated with enterprise-wide spreadsheet processes. --Exceeded 100,000 downloads of BIRT and Actuate BIRT for 2005. --Placed among the FinTech 100, a ranking of top 100 international application and service providers in the 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. industry by American Banker American Banker is a daily newspaper covering the financial services industry. Founded in 1835 and based in New York, American Banker's 70 reporters and editors in six cities monitor developments and breaking news affecting banks. and Financial Insights. --Announced Actuate Financial Performance Management (FPM FPM - Fast Page Mode Dynamic Random Access Memory ) 2.0, the first solution to use a spreadsheet interface to automate the production, distribution, updates, workflow, and collaboration associated with financial performance management. --Announced integration with IBM Workplace IBM Workplace was a brand of collaborative software applications from IBM's Lotus Software division. It was intended to be the next generation of collaboration software that would work with IBM's Java EE-based WebSphere Portal server software. for Business Strategy Execution to help all employees execute on corporate strategy. Acquisition of performancesoft, Inc. On January 6, 2006, Actuate Corporation announced that it had acquired privately-held performancesoft, Inc., of Toronto, Ontario, Canada, a leading provider of Performance Management Solutions software and services. The acquisition was an all-cash transaction with an initial purchase price of US$16.5 million, payable at closing, and additional contingent cash consideration of up to US$13.5 million (based on achievement of certain revenue and operating margin targets for 2006) payable in 2007 and will be accounted for under the purchase method of accounting. On a non-GAAP basis, excluding amortization of intangibles, purchased in-process research and development costs, stock option compensation, restructuring costs and other non-recurring costs, Actuate expects the acquisition to be accretive to earnings by the fourth quarter of 2006 and approximately breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations for the full year of 2006. 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 release exclude the amortization of purchased technology and other intangibles, loss on investment, restructuring costs, amortization of deferred compensation, nonrecurring legal costs 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, January 31, 2006 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 February 13, 2006. About Actuate Corporation Actuate Corporation is the world leader in Enterprise Reporting and Performance Management Applications 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 to achieve breakthrough corporate performance. Actuate provides the most scalable, reliable, flexible and high-performing reporting capabilities for every application in the enterprise. Customers use Actuate to deliver information in context to users inside and outside the firewall as Performance Management and Customer Self-Service applications A software application that allows a user to obtain information or complete a business transaction on the computer that has traditionally required the help of a human representative. Voice response systems and Web sites are widely used for self-service applications. See kiosk. , managed spreadsheet applications and Java reporting applications. Actuate has over 3,500 customers globally in a range of industries including banking, insurance, manufacturing, communications, and government. Founded in 1993, Actuate has headquarters in South San Francisco, Calif., with 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 press release that are not purely historical are forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These include statements regarding Actuate's expectations, beliefs, hopes, intentions or strategies regarding the future. All such 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. 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 Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , our ability to successfully compete against current and future competitors, the impact of future acquisitions (including the performancesoft, Inc. acquisition) on the company's financial and/or 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 and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. filed on May 10, 2005, August 9, 2005 and November 9, 2005. Copyright(C) 2006 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)
December 31, December 31,
2005 2004
------------ ------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 54,397 $ 47,273
Accounts receivable, net 26,798 24,776
Other current assets 2,911 2,498
--------- ---------
Total current assets 84,106 74,547
Property and equipment, net 4,716 6,158
Goodwill and other intangibles, net 22,129 23,883
Other assets 630 867
--------- ---------
$111,581 $105,455
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,101 $ 2,414
Current portion of restructuring liabilities 2,948 3,669
Accrued compensation 5,306 5,244
Other accrued liabilities 3,108 4,996
Income taxes payable 279 539
Deferred revenue 31,475 27,323
--------- ---------
Total current liabilities 45,217 44,185
--------- ---------
Long term liabilities:
Deferred rent 198 320
Deferred revenue 913 1,440
Restructuring liabilities and other 9,885 12,565
--------- ---------
Total long term liabilities 10,996 14,325
--------- ---------
Stockholders' equity 55,368 46,945
--------- ---------
$111,581 $105,455
========= =========
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
----------------- ------------------
2005 2004 2005 2004
-------- -------- --------- ---------
Revenues:
License fees $10,292 $10,913 $ 36,939 $ 42,703
Services 18,869 16,453 69,462 61,954
-------- -------- --------- ---------
Total revenues 29,161 27,366 106,401 104,657
-------- -------- --------- ---------
Costs and expenses:
Cost of license fees 490 867 2,294 3,417
Cost of services 6,452 6,075 23,723 24,763
Sales and marketing 10,506 10,211 37,070 41,296
Research and development 4,163 4,300 16,533 19,847
General and administrative 3,182 2,791 13,115 10,856
Amortization of other
intangibles - 276 487 1,110
Restructuring charges (86) 1,420 665 2,006
-------- -------- --------- ---------
Total costs and expenses 24,707 25,940 93,887 103,295
-------- -------- --------- ---------
Income from operations 4,454 1,426 12,514 1,362
Interest and other income, net 527 527 1,436 822
-------- -------- --------- ---------
Income before income taxes 4,981 1,953 13,950 2,184
Provision for income taxes 852 725 2,359 886
-------- -------- --------- ---------
Net income $ 4,129 $ 1,228 $ 11,591 $ 1,298
======== ======== ========= =========
Basic net income per share $ 0.07 $ 0.02 $ 0.19 $ 0.02
======== ======== ========= =========
Shares used in basic per share
calculation. 60,185 61,790 61,057 61,577
======== ======== ========= =========
Diluted net income per share $ 0.07 $ 0.02 $ 0.18 $ 0.02
======== ======== ========= =========
Shares used in diluted per share
calculation 63,359 64,475 63,269 65,202
======== ======== ========= =========
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Ended Three Months Ended
December 31, 2005 December 31, 2004
--------------------------- ---------------------------
Adjust- Adjust-
GAAP ments Non-GAAP GAAP ments Non-GAAP
-------- -------- -------- -------- -------- --------
Revenues:
License fees $10,292 - $10,292 $10,913 - $10,913
Services 18,869 - 18,869 16,453 - 16,453
-------- -------- -------- --------
Total revenues 29,161 - 29,161 27,366 - 27,366
-------- -------- -------- --------
Costs and
expenses:
Cost of
license fees 490 (115)(a) 375 867 (383)(a) 484
Cost of
services 6,452 - 6,452 6,075 - 6,075
Sales and
marketing 10,506 10,506 10,211 - 10,211
Research and
development 4,163 - 4,163 4,300 - 4,300
General and
admin-
istrative 3,182 - 3,181 2,791 - 2,791
Amortization
of other
intangibles - - - 276 (276) -
Restructuring
charges (86) 86 - 1,420 (1,420) -
-------- -------- -------- --------
Total costs
and expenses 24,707 - 24,677 25,940 - 23,861
-------- -------- -------- --------
Income from
operations 4,454 - 4,484 1,426 - 3,505
Interest and
other income,
net 527 - 527 527 - 527
-------- -------- -------- --------
Income before
income taxes 4,981 - 5,011 1,953 - 4,032
Provision for
income taxes 852 652(b) 1,504 725 787(b) 1,512
-------- -------- -------- --------
Net income $ 4,129 - $ 3,507 $ 1,228 - $ 2,520
======== ======== ======== ========
Basic net
income per
share $ 0.07 - $ 0.06 $ 0.02 - $ 0.04
======== ======== ======== ========
Shares used in
basic per
share
calculation. 60,185 60,185 61,790 61,790
======== ======== ======== ========
Diluted net
income per
share $ 0.07 - $ 0.06 $ 0.02 - $ 0.04
======== ======== ======== ========
Shares used in
diluted per
share
calculation 63,359 63,359 64,475 64,475
======== ======== ======== ========
(a) Amortization of purchased technology.
(b) 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 30% and 37.5% for fiscal years 2005 and 2004,
respectively. The amount of provision for income taxes used in
arriving at the non- GAAP net income does not necessarily reflect
the actual or future expected provision for income taxes.
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Twelve Months Ended Twelve Months Ended
December 31, 2005 December 31, 2004
--------------------------- -----------------------------
Adjust- Adjust-
GAAP ments Non-GAAP GAAP ments Non-GAAP
--------- ------- --------- --------- ------- ----------
Revenues:
License
fees $ 36,939 $ 36,939 $ 42,703 $ 42,703
Services 69,462 69,462 61,954 61,954
--------- --------- -------- ---------
Total
revenues 106,401 106,401 104,657 104,657
--------- --------- -------- ---------
Costs and
expenses:
Cost of
license fees 2,294 (914)(a) 1,380 3,417 (1,532)(a) 1,885
Cost of
services 23,723 23,723 24,763 24,763
Sales and
marketing 37,070 37,070 41,296 41,296
Research and
development 16,533 16,533 19,847 (96)(b) 19,751
General and
admin-
istrative 13,115 (186)(c) 12,929 10,856 (145)(c) 10,711
Amortization
of other
intangibles 487 (487) - 1,110 (1,110) -
Restructuring
charges 665 (665) - 2,006 (2,006) -
--------- --------- -------- ---------
Total costs
and expenses 93,887 91,635 103,295 98,406
--------- --------- -------- ---------
Income from
operations 12,514 14,766 1,362 6,251
Interest and
other
income, net 1,436 301(d) 1,737 822 822
--------- --------- -------- ---------
Income before
income taxes 13,950 16,503 2,184 7,073
Provision for
income taxes 2,359 3,071(e) 5,430 886 1,766(e) 2,652
--------- --------- -------- ---------
Net income $ 11,591 $ 11,073 $ 1,298 $ 4,421
========= ========= ========= =========
Basic net
income per
share $ 0.19 $ 0.18 $ 0.02 $ 0.07
========= ========= ========= =========
Shares used
in basic
per share
calculation 61,057 61,057 61,577 61,577
========= ========= ========= =========
Diluted net
income per
share $ 0.18 $ 0.18 $ 0.02 $ 0.07
========= ========= ========= =========
Shares used
in diluted
per share
calculation 63,269 63,269 65,202 65,202
========= ========= ========= =========
(a) Amortization of purchased technology.
(b) Amortization of deferred compensation.
(c) Legal costs related to the litigation with MicroStrategy.
(d) Loss on investment.
(e) The provision for income taxes used in arriving at the non-GAAP
net income for the first six months of fiscal year 2005 was
computed using an income tax rate of 37.5% and 30% for the third
and fourth quarters of fiscal year 2005. The provision for income
taxes used in arriving at the Non-GAAP net income for all of the
periods presented for fiscal year 2004 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)
Twelve Months Ended
December 31,
2005 2004
--------- ---------
Operating activities
Net Income $ 11,591 $ 1,298
Adjustments to reconcile net income to net cash
from operating activities:
Amortization of deferred compensation - 96
Amortization of other intangibles 1,400 2,642
Depreciation 1,892 2,293
Tax benefit from exercise of stock options 2,117 880
Loss on investment 301 -
Changes in operating assets and liabilities:
Accounts receivable (2,022) (4,568)
Other current assets (431) 5
Accounts payable 214 (344)
Accrued compensation 62 842
Other accrued liabilities (1,888) 613
Income taxes payable (67) (702)
Deferred rent liabilities (122) (69)
Restructuring liabilities (3,402) (1,028)
Deferred revenue 3,625 2,973
--------- ---------
Net cash provided by operating activities 13,270 4,931
--------- ---------
Investing activities
Purchases of property and equipment (450) (3,354)
Proceeds from maturity of short-term
investments 71,783 75,038
Purchases of short-term investments (73,812) (75,450)
Purchases of minority shares of Actuate Japan (366) -
Net change in other assets (46) 671
--------- ---------
Net cash used in investing activities (2,891) (3,095)
--------- ---------
Financing activities
Proceeds from issuance of common stock 1,959 2,372
Stock repurchases (7,078) (2,690)
--------- ---------
Net cash used in financing activities (5,119) (318)
--------- ---------
Net increase in cash and cash equivalents 5,260 1,518
Effect of exchange rate on cash (111) (27)
Cash and cash equivalents at the beginning of the
period 7,341 5,850
--------- ---------
Cash and cash equivalents at the end of the
period $ 12,490 $ 7,341
========= =========
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