Actuate Reports Second Quarter 2004 Financial Results; Total Revenues $27.8 Million; Non-GAAP Operating Margin Increases to 10%.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 June June: see month. 30, 2004. Revenues for the second quarter of 2004 were $27.8 million, a 7% increase compared with revenues for the second quarter of 2003 and an 8% sequential One after the other in some consecutive order such as by name or number. increase over the first quarter of 2004. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, Actuate's net income in the second quarter of 2004 was $1.3 million, or $0.02 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 $1.9 million, or $0.03 per share, reported in the same quarter a year ago. On a non-GAAP basis, net income in the second quarter of 2004 was $1.8 million, an increase of 81% compared with the second quarter of 2003. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased to $0.03 for the second quarter of 2004 from $0.02 in the same quarter last year. Non-GAAP financial measures discussed in this press release exclude the amortization of intangibles and purchased technology, amortization of deferred compensation, certain legal fees and an adjustment to the tax provision. All of these expenses are included in Actuate's GAAP results. The Company increased 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 by $4.5 million in Q2, after repurchasing $1.2 million of stock during the quarter. Deferred revenue ended the quarter at a record $26.7 million, an increase of 16% from June 30, 2003. "Actuate continues to focus on the strategy we outlined at the start of the year, and through deliberate execution and continuous innovation we stand strong against a difficult IT spending backdrop Backdrop may refer to:
Significant Q2 Financial Highlights --Attained GAAP net income of $1.3 million, the highest level of GAAP profitability since Q1 2001; --Generated $5.8 million of 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 ; --Received orders greater than $100,000 from 45 customers (average value of $378,000) --Decreased days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). by 5 days to a record low 64 days; --Added 91 new customers; --Received a significant strategic order from an existing Global 9000 customer 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 that represented about 10% of total revenues for the quarter; and --Repurchased over 346,000 shares of stock during Q2 at a total cost of $1.2 million. Customer Successes During the second quarter of 2004, Actuate closed 91 deals from new customers within its sales channels, including, among others: Armstrong World Industries Armstrong World Industries, Inc. is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 39 plants in 10 countries and has approximately 13,000 employees worldwide. , Asics Corporation, Computer Sciences Corporation UK, Ewe AG, Gas Transmission Northwest Gas Transmission Northwest is a natural gas pipeline that brings gas from western Canada through Washington and Oregon into California, connecting to the Pacific Gas and Electric system. Prior to being purchased by TransCanada Corporation, it was named Pacific Gas Transmission. , GE Health Care, Hino Motors Hino Motors, Ltd. (日野自動車, Hino Jidōsha, TYO: 7205 ), commonly known as simply Hino, is a manufacturer of diesel trucks, buses, and other vehicles based in Tokyo, Japan. , ING Bank NV, John Deere Credit, KOSE Corporation, Montefiore Medical Center Montefiore Medical Center, in the Bronx, New York, is the university hospital of the Albert Einstein College of Medicine. The hospital, named after Moses Montefiore, is one of the 50 largest employers in New York State [1]. , NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Fielding, Philips (company) Philips - A Dutch multinational electronics company. It produces washing machines, consumer electronics, integrated circuits and light bulbs. Together with Sony they set the Compact Disc standard, especially Green Book CD-ROM. Medical Systems, Seiko This article is about the watch company. For other meanings, see Seiko (disambiguation). Seiko Holdings Corporation ( , Tohoku Electric and Toyo TOYO may refer to:
In the second quarter, Actuate also received significant repeat orders from American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. , Callidus Software, Canadian Imperial Bank of Commerce The Canadian Imperial Bank of Commerce TSX: CM NYSE: CM, better known to most customers as CIBC, is one of Canada's major banks. CIBC is classified as a Domestic Chartered Bank (Schedule I). , 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) Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , Municipal Property Assessment Corporation, State Street Bank, 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. , UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System and The World Bank, among others. 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, certain legal and accounting fees, 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. 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, July July: see month. 29, 2004 to discuss second quarter 2004 financial 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 www.actuate.com and will be available as an archived replay at the same location until approximately August 12, 2004. 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 about 2,900 customers globally in a range of industries including financial services, 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 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 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 2003 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 11, 2004 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed on May 6, 2004. Copyright(C) 2004 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)
June 30, Dec. 31,
2004 2003
--------- ---------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $50,322 $45,439
Accounts receivable, net 19,445 20,208
Other current assets 2,510 2,599
--------- ---------
Total current assets 72,277 68,246
Property and equipment, net 5,530 5,097
Goodwill and other intangibles, net 25,201 26,525
Other assets 1,180 1,538
--------- ---------
$104,188 $101,406
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,510 $2,758
Current portion of restructuring liabilities 2,504 2,198
Accrued compensation 4,139 4,402
Other accrued liabilities 5,085 4,772
Income taxes payable 1,964 1,241
Deferred revenue 26,749 25,790
--------- ---------
Total current liabilities 43,951 41,161
--------- ---------
Restructuring liabilities, net of current portion 13,976 15,064
Stockholders' equity 46,261 45,181
--------- ---------
$104,188 $101,406
========= =========
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2004 2003 2004 2003
--------- -------- -------- --------
Revenues:
License fees $12,296 $11,898 $23,773 $22,754
Services 15,553 14,108 29,744 28,382
--------- -------- -------- --------
Total revenues 27,849 26,006 53,517 51,136
--------- -------- -------- --------
Costs and expenses:
Cost of license fees 831 621 1,931 1,232
Cost of services 6,580 5,853 12,669 11,756
Sales and marketing 10,706 11,534 21,000 22,722
Research and development 5,224 4,398 10,415 8,967
General and administrative 2,373 3,108 5,046 6,850
Amortization of other
intangibles 276 700 558 1,470
Restructuring charges - - 586 -
--------- -------- -------- --------
Total costs and expenses 25,990 26,214 52,205 52,997
--------- -------- -------- --------
Income (loss) from operations 1,859 (208) 1,312 (1,861)
Interest and other income, net 214 141 384 300
--------- -------- -------- --------
Income (loss) before income taxes 2,073 (67) 1,696 (1,561)
Provision for income taxes 778 1,794 778 1,136
--------- -------- -------- --------
Net (loss) income $1,295 $(1,861) $918 $(2,697)
========= ======== ======== ========
Basic net (loss) income per share $0.02 $(0.03) $0.01 $(0.04)
========= ======== ======== ========
Shares used in basic per share
calculation 61,488 60,404 61,423 60,316
========= ======== ======== ========
Diluted net (loss) income per
share $0.02 $(0.03) $0.01 $(0.04)
========= ======== ======== ========
Shares used in diluted per share
calculation. 65,623 60,404 65,366 60,316
========= ======== ======== ========
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30, 2004
----------------------------
Adjust-
GAAP ments Non-GAAP
-------- ------- ---------
Revenues:
License fees $12,296 $12,296
Services 15,553 15,553
-------- --------
Total revenues 27,849 27,849
-------- --------
Costs and expenses:
Cost of license fees 831 (383)(a) 448
Cost of services 6,580 6,580
Sales and marketing 10,706 10,706
Research and development 5,224 (41)(b) 5,183
General and administrative 2,373 (145)(c) 2,228
Amortization of other intangibles 276 (276) -
-------- --------
Total costs and expenses 25,990 25,145
-------- --------
Income from operations 1,859 2,704
Interest and other income, net 214 214
-------- --------
Income before income taxes 2,073 2,918
Provision for income taxes 778 316 (d) 1,094
-------- --------
Net income $1,295 $1,824
======== ========
Basic net income per share $0.02 $0.03
======== ========
Shares used in basic per share
calculation 61,488 61,488
======== ========
Diluted net income per share $0.02 $0.03
======== ========
Shares used in diluted per share
calculation 65,623 65,623
======== ========
Three Months Ended
June 30, 2003
----------------------------
Adjust-
GAAP ments Non-GAAP
-------- ------- --------
Revenues:
License fees $11,898 $11,898
Services 14,108 14,108
-------- --------
Total revenues 26,006 26,006
-------- --------
Costs and expenses:
Cost of license fees 621 (225)(a) 396
Cost of services 5,853 5,853
Sales and marketing 11,534 11,534
Research and development 4,398 4,398
General and administrative 3,108 (756)(c) 2,352
Amortization of other intangibles 700 (700) -
-------- --------
Total costs and expenses 26,214 24,533
-------- --------
Income (loss) from operations (208) 1,473
Interest and other income, net 141 141
-------- --------
Income (loss) before income taxes (67) 1,614
Provision for income taxes 1,794 (1,189)(d) 605
-------- --------
Net (loss) income $(1,861) $1,009
======== ========
Basic net (loss) income per share $(0.03) $0.02
======== ========
Shares used in basic per share calculation 60,404 60,404
======== ========
Diluted net (loss) income per share $(0.03) $0.02
======== ========
Shares used in diluted per share
calculation 60,404 62,243
======== ========
(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)
Six Months Ended
June 30,
2004 2003
-------- --------
Operating activities
Net income (loss) $918 $(2,697)
Adjustments to reconcile net loss to net cash
from operating activities:
Amortization of deferred compensation - 41
Amortization of other intangibles 1,324 1,921
Depreciation 1,225 1,677
Changes in operating assets and liabilities:
Accounts receivable 763 4,368
Other current assets 89 732
Deferred tax assets - 146
Accounts payable 752 424
Accrued compensation (263) 127
Other accrued liabilities 313 (535)
Income taxes payable 723 145
Restructuring liabilities (782) (2,069)
Deferred revenue 959 (223)
-------- --------
Net cash provided by operating activities 6,021 4,057
-------- --------
Investing activities
Purchases of property and equipment (1,658) (1,138)
Proceeds from maturity of short-term
investments 35,469 30,192
Purchases of short-term investments (24,999) (16,417)
Net change in other assets 358 (175)
-------- --------
Net cash used in investing activities 9,170 12,462
-------- --------
Financing activities
Proceeds from issuance of common stock 1,334 1,819
Stock repurchases (1,179) (1,015)
-------- --------
Net cash provided by financing activities 155 804
-------- --------
Net decrease in cash and cash equivalents 15,346 17,323
Changes in FASB 115 gain/loss (81) -
Effect of exchange rate on cash 88 (30)
Cash and cash equivalents at the beginning of the
period 8,950 23,595
-------- --------
Cash and cash equivalents at the end of the
period $24,303 $40,888
======== ========
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