Actuate Reports Solid Q4 and FY01 Results; 2001 Revenues Total $125 Million, 17% Growth From 2000.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)--Jan. 24, 2002 Actuate(R) 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 Information Delivery market leader, announced today revenue and earnings for the fourth quarter and fiscal year ended December December: see month. 31, 2001. Revenues for the fourth quarter of 2001 totaled $28.8 million, an increase of $0.6 million from the third quarter of 2001. Excluding the amortization of goodwill and other intangibles and idle facility costs, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma income from operations in the fourth quarter of 2001 was $1 million. Pro forma 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 were $0.01 for the fourth quarter of 2001 (See Table A). Actual 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. loss per share were $0.06 for the fourth quarter of 2001 (See Table B). In addition, 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 increased $6.0 million in the fourth quarter of 2001, deferred revenue increased $1.7 million during the quarter and 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). ended the year at 90 days, down 17 days from Q3 2001. For fiscal year 2001, total revenues increased 17% to $125.0 million compared with $107.3 million of revenue during fiscal 2000. Pro forma diluted earnings per share for 2001, excluding goodwill and other intangibles amortization, idle facility and 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, were $0.12 (See Table A). Actual diluted loss per share was $0.11 for fiscal year 2001 (See Table B). "Despite a soft macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. environment, I am extremely pleased with Actuate's financial results in Q4 and 2001," said Pete Cittadini, Actuate's president and chief executive officer. "We saw solid performance across all business units, significantly strengthened our balance sheet and continued to run a profitable company. Based on the record number of customers that purchased our Information Delivery products, we continue to extend our position as the leader in our market and to lay the foundation for substantial revenue growth. Actuate is a very exciting place to be these days -- we have best-of-breed The best product of its type. Organizations often purchase software from different vendors in order to obtain the best-of-breed for each application area; for example, a human resources package from one vendor and an accounting package from another. technology, customers who understand the value of our products and services and a very talented and dedicated group of employees," said Cittadini. "Looking ahead in 2002, we remain very enthusiastic about Actuate's business," said Cittadini. "We are encouraged by early adoption of our new e.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. products that appear to be attracting new types of users and applications. We are also looking forward to the release of Actuate 6, which should significantly expand the scale and range of projects for our e.Reporting products." Significant Q4 accomplishments for Actuate included the following: -- Added over 165 new direct and 40 new OEM customers, both Actuate records; -- Increased cash, cash equivalents and short-term investments by $6.0 million, net of $1.8 million of open market stock repurchases; -- Increased deferred revenue by $1.7 million (8%) compared with Q3; -- Increased OEM revenue from 22% of total revenues in Q3 to about 30% in Q4; -- Increased services gross margin to 45% from 42% in Q3; -- Decreased days sales outstanding to 90 from 107 in Q3. In fiscal year 2001, Actuate's achievements included the following: -- Increased total revenue to $125.0 million, a 17% increase over 2000; -- Increased cash, cash equivalents and short-term investments by $12.9 million; -- Increased international revenues to 25% of total revenues, compared with 15% in 2000; -- Added approximately 600 new direct channel customers during 2001; -- Added over 100 new 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 during the year; -- Recorded pro forma diluted 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. of $0.12 as a result of tight cost management. During Q4, Actuate closed over 165 new customers within its direct sales channel, indicating both continuing customer acceptance of the company's core products and increasing recognition of the new line of e.Spreadsheet products. The company continued to expand its Global 2000 customer base across a wide variety of industry segments, particularly 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. , manufacturing, utilities, pharmaceuticals, high-tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. , retail and health care. Customers making substantial initial commitments to Actuate in Q4 included Westinghouse Electric, Centre Insurance, Autozone AutoZone NYSE: AZO is a Fortune 300 corporation based in Memphis, Tennessee which is engaged primarily in the business of the retail sale of automotive parts and accessories. and Lear Corporation, among other companies. Sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. repeat orders were received 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. , Pfizer Pfizer Incorporated (NYSE: PFE) is a major research-based pharmaceutical company, which ranks number two in sales The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal ,
Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , Magellan Health, Merck-Medco, Marriott, Corning
and Pacific Healthcare, among other companies.
Internationally, Actuate won significant business from, among others, Toshiba, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , Renault, Ricoh, BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. , Zurich Financial, Siemens Automotive, Barclays, Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. , NTT NTT Nippon Telegraph and Telephone Corporation NTT New Technology Telescope NTT National Technology Transfer, Inc NTT Name That Tune (TV game show) NTT National Tree Trust NTT Number Theoretic Transform and Fujitsu. In the fourth quarter, new revenue-generating partnerships were established with several e.Business Application vendors who resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. Actuate's e.Reporting and e.Spreadsheet Server products, among them Broadvision, Mantas, Chordiant Software, Automating Peripherals and Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. . Among the companies from which Actuate received significant repeat revenue were Siebel, PeopleSoft, Callidus, Cayenta and eFunds. Business Outlook "As we enter the first quarter, our visibility continues to be strong but we are currently unsure about the timing and strength of an economic recovery. Therefore, we expect first quarter 2002 revenues to remain flat with Q4 of 2001, with an increase in pro forma EPS to $0.02 as a result of cost structure adjustments made during the fourth quarter," said Dan Gaudreau, Actuate's senior vice president and CFO See Chief Financial Officer. . About Actuate Corporation Actuate Corporation is the leading provider of Information Delivery solutions for Global 2000 companies and packaged application software vendors. Actuate provides the leading platform for retrieving business information from corporate databases and delivering interactive Web pages and Excel A full-featured spreadsheet for Windows and the Macintosh from Microsoft. It can link many spreadsheets for consolidation and provides a wide variety of business graphics and charts for creating presentation materials. spreadsheets The following is a list of spreadsheets. Freeware/open source software Online spreadsheets
tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. content to 100,000s of end users -- without downloads -- companies using Actuate can increase revenue, reduce costs and improve customer service. Actuate has over 1,600 direct customers and over 200 OEM partners, including almost thirty percent of the Fortune 1000. 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 www.actuate.com. Conference Call Information Actuate will be holding a conference call at 2 p.m. Pacific Time, today, January 24, 2002 to discuss fourth quarter and fiscal year 2001 results. The dial-in number for the call is 973-872-3462. The conference call will be simultaneously broadcast live on the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of Actuate's web site at www.corporate-ir.net/ireye/ir_site.zhtml?ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. =ACTU&script=2400 and will be available as an archived replay approximately two hours after the conclusion of the live event at www.corporate-ir.net/ireye/ir_site.zhtml?ticker=ACTU&script=1100. Actuate is a registered trademark of Actuate Corporation. e.Reporting and e.Spreadsheet are registered trademarks of Actuate Corporation. All other products and corporate names referenced are trademarks of their respective companies. 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 assumes no obligation to update any such forward-looking statements. 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 Risk Factors discussed in Actuate's Securities and Exchange Commission filings, specifically Actuate's 2000 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 12, 2001 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed on November 7, 2001.
TABLE A
ACTUATE CORPORATION
PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues:
License fees $ 17,646 $ 23,215 $ 79,106 $ 72,286
Services 11,133 11,312 45,922 34,978
-------- -------- -------- --------
Total revenues 28,779 34,527 125,028 107,264
-------- -------- -------- --------
Costs and expenses:
Cost of license fees 582 555 2,305 1,959
Cost of services 6,150 6,722 27,524 20,975
Sales and marketing 13,710 15,722 58,859 48,133
Research and development 5,076 4,309 19,011 14,938
General and
administrative 2,258 1,973 8,563 7,015
-------- -------- -------- --------
Total costs and expenses 27,776 29,281 116,262 93,020
-------- -------- -------- --------
Income from operations 1,003 5,246 8,766 14,244
Interest and other
income, net 186 251 1,148 891
-------- -------- -------- --------
Income before income taxes 1,189 5,497 9,914 15,135
Provision for income taxes 445 1,117 2,478 2,589
-------- -------- -------- --------
Net income $ 744 $ 4,380 $ 7,436 $ 12,546
======== ======== ======== ========
Basic net income per share $ 0.01 $ 0.08 $ 0.13 $ 0.22
======== ======== ======== ========
Shares used in basic per
share calculation 60,002 56,829 59,299 56,114
======== ======== ======== ========
Diluted net income per
share $ 0.01 $ 0.07 $ 0.12 $ 0.19
======== ======== ======== ========
Shares used in diluted per
share calculation 62,381 65,710 62,884 64,483
======== ======== ======== ========
The above pro forma condensed consolidated statements of operations
information is for illustrative purposes only and is not prepared in
accordance with generally accepted accounting principles as it
excludes the effects of the following (in thousands):
-- For the three months ended December 31, 2001,
amortization of goodwill and other intangibles of
$3,117, and idle facility expense of $932 included in
general and administrative.
-- For the twelve months ended December 31, 2001,
amortization of goodwill and other intangibles of
$10,704, restructuring costs of $859 and idle facility
expense of $2,290 included in general and
administrative.
-- For the three and twelve months ended December 31,
2000, amortization of goodwill and other intangibles
of $2,060 and $7,147, respectively.
The pro forma provision for income taxes for the three and twelve
months ended December 31, 2001 was the actual tax expense used in the
actual statements of operations as reflected in Table B and may not
reflect the actual or future expected tax rate.
TABLE B
ACTUATE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Revenues:
License fees $ 17,646 $ 23,215 $ 79,106 $ 72,286
Services 11,133 11,312 45,922 34,978
--------- --------- --------- ---------
Total revenues 28,779 34,527 125,028 107,264
--------- --------- --------- ---------
Costs and expenses:
Cost of license fees 582 555 2,305 1,959
Cost of services 6,150 6,722 27,524 20,975
Sales and marketing 13,710 15,722 58,859 48,133
Research and
development 5,076 4,309 19,011 14,938
General and
administrative 3,190 1,973 10,853 7,015
Amortization of
goodwill and other
intangibles 3,117 2,060 10,704 7,147
Restructuring -- -- 859 --
--------- --------- --------- ---------
Total costs and
expenses 31,825 31,341 130,115 100,167
--------- --------- --------- ---------
Income (loss) from
operations (3,046) 3,186 (5,087) 7,097
Interest and other
income, net 186 251 1,148 891
--------- --------- --------- ---------
Income (loss) before
income taxes (2,860) 3,437 (3,939) 7,988
Provision for income
taxes 445 1,117 2,478 2,589
--------- --------- --------- ---------
Net income (loss) $ (3,305) $ 2,320 $ (6,417) $ 5,399
========= ========= ========= =========
Basic net income
(loss) per share $ (0.06) $ 0.04 $ (0.11) $ 0.10
========= ========= ========= =========
Shares used in
basic per share
calculation 60,002 56,829 59,299 56,114
========= ========= ========= =========
Diluted net income
(loss) per share $ (0.06) $ 0.04 $ (0.11) $ 0.08
========= ========= ========= =========
Shares used in
diluted per share
calculation 60,002 65,710 59,299 64,483
========= ========= ========= =========
TABLE C
ACTUATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2001 December 31,
(unaudited) 2000 (1)
---------- ----------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 39,807 $ 26,928
Accounts receivable, net 28,870 32,991
Other current assets 4,251 2,630
-------- --------
Total current assets 72,928 62,549
Property and equipment, net 12,387 10,190
Goodwill and other intangibles 30,488 24,193
Other assets 1,588 1,390
-------- --------
$117,391 $ 98,322
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,621 $ 4,254
Accrued compensation and
other accrued liabilities 17,186 12,950
Deferred revenue 23,978 22,108
-------- --------
Total current liabilities 44,785 39,312
-------- --------
Long-term liabilities 1,529 2,033
-------- --------
Stockholders' equity 71,077 56,977
-------- --------
$117,391 $ 98,322
======== ========
(1) Derived from audited financial statements.
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