Actuate Reports Second Quarter Results; License Revenue Increases 10% Sequentially.Business Editors/High-Tech Writers 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.--(BUSINESS WIRE)--July 29, 2003 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 scalable Business Intelligence Applications, today announced its financial results for the second quarter of fiscal year 2003. Revenues for the second quarter ended June 30, 2003 were $26.0 million, compared to $25.1 million in the first quarter of 2003 and $27.5 million in the second quarter of 2002. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, Actuate's net loss was $1.9 million or $0.03 per share for the second quarter of 2003 compared with a net loss of $21,000 or $0.00 per share reported for the second quarter of 2002 and net loss of $836,000 or $0.01 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 reported for the first quarter of 2003. On a non-GAAP basis, excluding the amortization of intangibles, legal costs primarily related to the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with MicroStrategy Incorporated and non-recurring accounting fees related to the special review of unauthorized license agreements, Actuate's net income in the second quarter of 2003 was $1.0 million or $0.02 per diluted share compared with net income of $742,000 or $0.01 per diluted share reported for the first quarter of 2003 and net income of $1.1 million or $0.02 per diluted share reported for the second quarter of 2002. Actuate achieved positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. in the second quarter for the seventh consecutive quarter, with $746,000 cash generated from operations. Cash, cash equivalents and short-term investments stood at $48.4 million on June 30, 2003, a decrease of $447,000 compared with the first quarter of 2003 due primarily to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of $1.0 million worth of Actuate stock during the quarter. Deferred revenue increased to $23.1 million as of June 30, 2003, compared with $22.9 million on March 31, 2003. 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). (DSO See CSO. ) continued to decrease, standing at 69 days in the second quarter, down 8 days from the prior quarter. "Actuate continues to successfully meet the challenges of a weak economic environment through a focused market strategy, careful cost structure management and strategic investment in the high-caliber personnel that will drive innovation well into the future," said Pete Cittadini, Actuate's president and chief executive officer. "For the remainder of the year, we will maintain the focus on achieving operational improvements in our international business. We are tackling these challenges with continued vigor VIGOR Internal medicine A clinical study–Vioxx GI Outcomes Report comparing a proprietary COX-2 inhibitor to standard NSAIDs and excitement about our advantageous position in the business intelligence market. Actuate 7's integrated platform is the only commercially available solution capable of serving the needs of Global 9000 companies -- scalable enough to deliver information to an organization's entire user population and flexible enough to facilitate the building of applications that satisfy the diversity of information requirements The information needed to support a business or other activity. Systems analysts turn information requirements (the what and when) into functional specifications (the how) of an information system. throughout the enterprise. While many of our competitors expend ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. resources to integrate existing technologies, we will continue to extend our leadership position by improving the scalability, usability and integration capabilities of our platform." Significant Q2 highlights for Actuate included the following: -- Added over 100 new customers, 25 of which are corporations with revenues greater than $1.0 billion; -- Received 45 repeat orders greater than $100,000; -- Recorded a 10% increase in license revenues over Q1 2003; -- Recorded three transactions greater than $1.0 million; -- Prevailed on all counts in the trade secrets misappropriation misappropriation n. the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate, or by any lawsuit against MicroStrategy Inc.; -- Repurchased $1.0 million worth of Actuate stock; -- Reduced days sales outstanding to a record 69 days, down 8 days from Q1 2003. In a separate press release, Actuate announced today that it has completed the acquisition of Nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. Technology of Seattle, Washington  This page is protected from moves until disputes have been resolved on the .The reason for its protection is listed on the protection policy page. . The transaction is subject to approval by the stockholders of Nimble Technology. During the second quarter, Actuate closed over 100 new customers within its sales channels, continuing an expansion of the company's installed base across a wide variety of industry segments, particularly government, pharmaceuticals, health care, energy and consumer products. New customers added in the first quarter included, among others, Advanced Micro Devices, Atofina Chemicals, Becton Dickinson BD (NYSE: BDX), is a medical technology company that manufactures and sells medical devices, instrument systems and reagents. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs 27,000 people in nearly 50 countries. , Boise Cascade Boise Cascade Holdings, LLC, which uses the trade name Boise, is an American pulp and paper company, ranked as the thirteenth largest forest products company in the world. , Dean Foods, Eli Lilly Eli Lilly can refer to:
NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Nexsolution, SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications, Sky Subscribers Services, Southern Company Services, SunGard Investment Management, ThyssenKrupp and Wm. Wrigley, Jr. Company. In the second quarter, Actuate received significant repeat orders from Allegient, 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. , Capital Group Companies, DTE Energy DTE Energy Co. (NYSE: DTE) is a Detroit, Michigan-based utility incorporated in 1995 involved in the development and management of energy-related businesses and services nationwide. , Fannie Mae Fannie Mae: see Federal National Mortgage Association. , FedEx, Federal Reserve Bank, JP Morgan Chase, Household International, Qwest Communications
Conference Call Information Actuate will be holding a conference call at 2:00 p.m. Pacific Time, today, July 29, 2003 to discuss second quarter 2003 results. The dial-in number for the call is 973-528-0008. The conference call will be simultaneously broadcast live in the Investor Relations Investor relations The process by which the corporation communicates with its investors. 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 13, 2003. About Actuate Corporation Actuate Corporation is the world leader in scalable Business Intelligence applications. Actuate's Information Application Platform is the foundation on which Global 9000 organizations (companies with annual revenues greater than $1 billion) and packaged application software vendors create reporting and analytics applications that scale to empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems 100 percent of their user community inside and outside the firewall. These Information Applications include Business Performance Management (BPM (Business Process Management) A structured approach that models an enterprise's human and machine tasks and the interactions between them as processes. BPM software provides users with a dashboard interface that offers a high-level view of the operation that typically ) dashboards, Information Portals as well as business analytic, 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 spreadsheet reporting applications. Information Applications built with Actuate enable companies to increase their business agility, improve customer and partner relationships, adhere to adhere to verb 1. follow, keep, maintain, respect, observe, be true, fulfil, obey, heed, keep to, abide by, be loyal, mind, be constant, be faithful 2. corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. policies, and increase revenues while leveraging existing technology assets. When tested against other business intelligence products, Actuate's Information Application Platform has been proven to offer industry-leading scalability, the best performance, lowest Total Cost of Ownership. Actuate has over 2,000 direct customers and 300 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 partners 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. For more information on Actuate, visit the company's Web site at http://www.actuate.com. 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 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 Information 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 the acquisition of Nimble Technology and other future acquisitions 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 2002 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 28, 2003 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed on June 9, 2003. Certain financial measures contained in this press release have not been calculated in accordance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). These results differ from GAAP by excluding, net of associated taxes, the non-cash charge 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. associated with the amortization of purchased intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , certain legal costs related to the Company's litigation with MicroStrategy Incorporated and non-recurring accounting fees related to the special review of unauthorized license agreements. 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 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 section of Actuate's website at www.actuate.com, accompanied by this press release and the webcast replay of today's earnings conference call. Actuate is a registered trademark of Actuate Corporation. All other products and corporate names referenced are trademarks of their respective companies.
ACTUATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, Dec. 31,
2003 2002
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 40,888 $ 23,595
Short-term investments 7,482 21,272
Accounts receivable, net 19,611 23,979
Other current assets 2,927 3,659
--------- ---------
Total current assets 70,908 72,505
Property and equipment, net 5,665 6,204
Goodwill and other intangibles, net 24,225 26,146
Deferred income taxes 1,994 2,140
Other assets 1,616 1,441
--------- ---------
$104,408 $108,436
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,495 $ 3,071
Current portion of restructuring liabilities 2,631 3,481
Accrued compensation 5,074 4,947
Other accrued liabilities 6,374 6,909
Income taxes payable 1,095 950
Deferred revenue 23,050 23,273
--------- ---------
Total current liabilities 41,719 42,631
--------- ---------
Restructuring liabilities, net of current portion 16,163 17,382
Stockholders' equity 46,526 48,423
--------- ---------
$104,408 $108,436
========= =========
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------
Revenues:
License fees $11,898 $13,964 $22,754 $30,870
Services 14,108 13,549 28,382 25,444
-------- -------- -------- --------
Total revenues 26,006 27,513 51,136 56,314
-------- -------- -------- --------
Costs and expenses:
Cost of license fees 396 503 781 1,060
Cost of services 5,853 6,422 11,756 12,674
Sales and marketing 11,534 11,619 22,722 24,940
Research and development 4,398 4,968 8,967 9,815
General and administrative 3,108 3,306 6,850 6,627
Amortization of other intangibles 925 902 1,921 1,993
-------- -------- -------- --------
Total costs and expenses 26,214 27,720 52,997 57,109
-------- -------- -------- --------
Loss from operations (208) (207) (1,861) (795)
Interest and other income, net 141 173 300 362
-------- -------- -------- --------
Loss before income taxes (67) (34) (1,561) (433)
(Provision) benefit for
income taxes (1,794) 13 (1,136) 163
-------- -------- -------- --------
Net loss $(1,861) $ (21) $(2,697) $ (270)
======== ======== ======== ========
Basic and diluted net loss
per share $ (0.03) $ -- $ (0.04) $ --
======== ======== ======== ========
Shares used in basic and diluted
per share calculation 60,404 60,570 60,316 60,443
======== ======== ======== ========
ACTUATE CORPORATION
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------
Supplemental information:
Net loss $(1,861) $ (21) $(2,697) $ (270)
Add back charges:
Certain legal and accounting
fees(1) 756 81 2,441 206
Idle facility expense -- 825 -- 1,760
Amortization of other intangibles 925 902 1,921 1,993
-------- -------- -------- --------
Total add back charges 1,681 1,808 4,362 3,959
-------- -------- -------- --------
Adjustment for income taxes(2) 1,189 (678) 86 (1,485)
-------- -------- -------- --------
Non-GAAP net income $ 1,009 $ 1,109 $ 1,751 $ 2,204
======== ======== ======== ========
Non-GAAP basic net income
per share $ 0.02 $ 0.02 $ 0.03 $ 0.04
======== ======== ======== ========
Shares used in basic per share
calculation 60,404 60,570 60,316 60,443
======== ======== ======== ========
Non-GAAP diluted net income
per share $ 0.02 $ 0.02 $ 0.03 $ 0.03
======== ======== ======== ========
Shares used in diluted per share
calculation 62,243 63,493 61,621 63,554
======== ======== ======== ========
(1) Legal costs related to the litigation with MicroStrategy,
Incorporated and nonrecurring accounting fees related to the
special review of unauthorized licensing agreements during the
three months ended June 30, 2003.
(2) 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,
2003 2002
--------- ---------
Operating activities
Net loss $ (2,697) $ (270)
Adjustments to reconcile net loss to net cash
from operating activities:
Amortization of deferred compensation 41 105
Amortization of other intangibles 1,921 1,993
Depreciation 1,677 2,309
Changes in operating assets and liabilities:
Accounts receivable 4,368 2,878
Other current assets 732 (10)
Deferred tax assets 146 --
Accounts payable 424 1,933
Accrued compensation 127 (1,632)
Other accrued liabilities (535) (732)
Income taxes payable 145 (232)
Restructuring liabilities (2,069) --
Deferred revenue (223) (1,879)
--------- ---------
Net cash provided by operating activities 4,057 4,463
--------- ---------
Investing activities
Purchases of property and equipment (1,138) (578)
Proceeds from maturity of short-term investments 30,192 7,048
Purchases of short-term investments (16,417) (30,070)
Final purchase price payment in connection with
Open Software
Technology acquisition -- (2,033)
Net change in other assets (175) 42
--------- ---------
Net cash used in investing activities 12,462 (25,591)
--------- ---------
Financing activities
Proceeds from issuance of common stock 1,819 2,747
Stock repurchases (1,015) --
--------- ---------
Net cash provided by financing activities 804 2,747
--------- ---------
Net increase (decrease) in cash and cash
equivalents 17,323 (18,381)
Effect of exchange rate on cash (30) (6)
Cash and cash equivalents at the beginning
of the period 23,595 34,660
--------- ---------
Cash and cash equivalents at the
end of the period $ 40,888 $ 16,273
========= =========
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