Angoss Releases Second Quarter Results.TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing -- ANGOSS Software Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ANC ANC abbr. African National Congress ANC African National Congress: South African political movement instrumental in bringing an end to apartheid ANC n abbr (= ), a data mining software solutions provider, released today preliminary unaudited results for the second quarter and six months ended May 31, 2004. Second quarter revenues were $1,443,690, up 18% from 2003 second quarter revenues of $1,221,092. Six-month revenues were $2,749,625, up 3.6% over 2003 six-month revenues of $2,655,053. Deferred revenues, representing license renewals and commitments for Angoss solutions to be delivered to customers and partners in future periods, were $1,429,174, compared with $1,738,430, at the end of the first quarter of 2004, as a result of completion of contracted deliveries to Angoss clients and partners. During the second quarter the Company also continued to expand its analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. solutions sales pipeline, in response to client requests for information, requests for proposal, and related sales initiatives. Proposals issued during the second quarter are valued in excess of the total value of proposals issued during the complete 2003 fiscal year. These proposals relate to the provision of Angoss predictive analytics Predictive analytics encompasses a variety of techniques from statistics and data mining that process current and historical data in order to make “predictions” about future events. software systems and implementation services to address marketing and credit risk management needs of clients and prospects primarily in the banking, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , and retailing industries. "We continued to make good progress during the second quarter in expanding European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales and in transitioning our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales and services organization to focus on higher value predictive analytics solution sales" commented Angoss President Eric ERIC Educational Research Information Clearinghouse ERIC Educational Resources Information Center ERIC ERISA Industry Committee ERIC Epidemiologic Research and Information Center (Durham, NC) Apps. "The impact of these initiatives is reflected in both second quarter year over year revenue growth, and in the substantial growth in our analytical solutions opportunity funnel. We expect these trends to continue during the balance of the year." Second Quarter Operating Highlights and Recent Developments European Revenue Growth and Business Expansion. During the second quarter the Company achieved 93% year over year growth in European revenues, reflecting increasing client demand for Angoss software and expert services within the European Community European Community: see European Union. European Community (EC) Organization formed in 1967 with the merger of the European Economic Community, European Coal and Steel Community, and European Atomic Energy Community. . Year to date, European revenues have increased 56%. During the second quarter the Company continued to expand its European sales and services team to broaden its capability in the European market. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. & Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. Revenue Growth. During the second quarter North American revenues grew 5.5% year over year. Year over year, North American revenues decreased 5.6%. North American first half revenue results reflect the previously announced realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of the Company's North American sales organization during the first quarter of 2004 as well as continuing consolidation within the US retail banking and consumer credit sector that continues to affect software purchases within that sector. During the second quarter, the Company also achieved solid revenue growth in the Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. market, with successful initial deployments of Angoss KnowledgeSTUDIO to several clients in that market. Substantial Growth In North American Analytical Solutions Proposals. During the second quarter, consistent with its business strategy of migrating from commodity tools sales to higher value predictive analytics solution sales, the Company continued to grow its funnel of analytical solutions opportunities. The Company issued proposals during the second quarter to clients and prospects incorporating Angoss software and services deliverables with proposal values well in excess of the Company's analytical solutions proposal funnel for the entire 2003 fiscal year. These proposals relate to proposed analytical solutions with delivery dates ranging from the third quarter of fiscal 2004 through the first quarter of fiscal 2005. In a number of these opportunities, the Company is competing directly against two key competitors, each of which has in excess of $1 billion in revenues. Although in each case the Company differentiates itself based on service expertise and quality, software usability How easy something is to use. Both software and Web sites can be tested for usability. Considering how difficult applications are to use and Web sites are to navigate, one would wish that more designers took this seriously. See user interface and usability lab. , 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 reliability, total cost of ownership and other factors, each of these competitors is substantially larger than the Company. There can be no assurance that such proposals will be accepted within the timelines This article or section contains self-references. For other uses of "Timeline", see Timeline (disambiguation). The following is an index of timelines found on Wikipedia. anticipated, on the terms proposed by the Company, or at all. Partner Licensing & Expert Services Transactions. License and services revenues associated with Angoss oem and alliance partnerships represented approximately 12% of Company revenues during the first six months of fiscal 2004. In addition, during the second quarter Angoss licensees completed license transactions involving delivery of oem versions of Angoss solutions to several of their clients, including two Fortune 100 telecommunications providers and a global internet services and content provider. Revenues associated with these opportunities will be recorded and reported in future quarters 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 the provisions of the related partner agreements. The Company expects to continue to expand its software offerings and expert services capabilities to support partner implementations incorporating Angoss software offerings primarily 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. , telecommunications and retailing industry verticals. Introduction of FundGuard(TM) Solution. During the second quarter, the Company completed development of FundGuard(TM), an innovative sales analysis and redemption control solution for the mutual fund and investment management wholesalers based on Angoss KnowledgeSTUDIO(R) and Mining Manager(R) predictive analytics software applications. FundGuard enables fund wholesalers and wealth managers to grow assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , reduce redemption risk, and improve alignment of sales and marketing spend with best channel opportunities using intelligent segmentation and prediction. FundGuard provides management reporting and alerting tools integrated with popular customer relationship management, sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. , and contact management systems that provide fund wholesalers with proactive analysis and notification of sales opportunities and redemption risks. Resource Realignment. Consistent with its focus on shifting to higher transaction value opportunities, the Company continues to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. personnel resources. Second quarter iniatives included adding sales and services resources in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , completing the selection of a Director of
Marketing, and headcount head count or head·countn. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions in non-revenue generating areas, yielding annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. compensation savings in the range of $500,000. A portion of these cost savings will be re-allocated to continued expansion of the Company's marketing, sales, expert services, and analytical solutions resources over the balance of fiscal 2004. A special charge of $113,489 is included in second quarter results, reflecting costs associated with this realignment. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Operating expenses were $1,623,317 (2003: $1,261,615) and $3,155,160 (2003: $2,538,051) for the three and six months ended May 31, 2004, respectively. Increases in operating expenses reflect expansion of the Company's sales and expert services organizations in North America and Europe during the first half of 2004. These investments are expected to result in continued expansion of the Company's analytical solutions sales funnel. Results Summary Unaudited preliminary results for the three and six months ended May 31, 2004 and corresponding 2003 results are as follows:
ANGOSS Software Corporation
Income Statement Information
(unaudited, stated in Three Months ended Six Months ended
Canadian dollars) ----------------------------------------------
For the period
ended, May 31 2004 2003 2004 2003
Revenues $1,443,690 $1,221,092 $2,749,625 $2,655,053
----------------------------------------------
Gross Margin 1,414,689 1,203,929 2,715,239 2,636,174
Operating Expenses
General and
administration 370,449 364,333 800,794 716,659
Sales and marketing 888,359 558,247 1,622,033 1,230,137
Research and
development, net 364,509 339,035 732,333 591,255
----------------------------------------------
1,623,317 1,261,615 3,155,160 2,538,051
----------------------------------------------
Income (loss) before
the following (208,628) (57,686) (439,921) 98,123
Other income 24,066 26,345 24,066 26,345
Special charges (113,489) - (113,489) -
Amortization of
capital assets (20,403) (15,892) (39,625) (28,397)
Amortization of
deferred charges (24,464) - (66,590) -
Dividend expense (40,470) - (80,500) -
Foreign exchange
gain (loss) (11,986) (164,228) 61,157 (223,290)
----------------------------------------------
Net Income $(395,374) $(211,461) $(654,902) $(127,219)
----------------------------------------------
----------------------------------------------
Basic and diluted
earnings (loss) per
share $(0.01) $(0.01) $(0.02) $(0.00)
----------------------------------------------
----------------------------------------------
Weighted average
number of shares
outstanding
Basic 39,164,722 38,502,096 39,164,722 38,502,096
Diluted 39,164,722 38,502,096 39,164,722 38,502,096
ANGOSS Software
Corporation
Selected Cash Flow
Information
(unaudited, stated
in Canadian dollars)
Three Months ended Six Months ended
----------------------------------------------
For the period
ended, May 31 2004 2003 2004 2003
Cash (used in)
provided by
operating activities $(352,035) $6,403 $(380,401) $550,190
Cash (used in)
investing activities (17,319) (35,393) (101,951) (72,168)
Cash provided by
(used in) financing
activities 8,031 114,135 9,031 114,135
Net (decrease)
increase in cash
during the period (361,323) 85,145 (473,321) 592,157
ANGOSS Software Corporation
Selected Balance Sheet Information
(unaudited, stated in May 31, November 30,
Canadian dollars) 2004 2003
Cash and cash
equivalents $2,787,938 $3,261,259
Accounts receivable 1,248,394 1,418,134
Prepaid expenses 44,929 77,285
------------------------------------
Total current assets 4,081,261 4,756,678
Other assets 259,861 206,111
Total assets $4,341,122 $4,962,789
------------------------------------
Accounts payable and
accrued liabilities $310,040 $254,602
Current portion of
deferred revenue 1,357,022 1,450,929
Special charges 113,489 -
Other 85,796 61,066
------------------------------------
Total current
liabilities 1,866,347 1,766,597
------------------------------------
Future tax
liabilities 125,000 125,000
Repayable
contribution
agreement 192,070 199,335
Deferred revenue 72,152 287,501
Class A Preferred
shares, Series 1 2,049,239 1,991,225
------------------------------------
Total liabilities 4,304,808 4,369,658
Total shareholders'
equity 36,314 593,131
------------------------------------
Liabilities and
shareholders' equity $4,341,122 $4,962,789
------------------------------------
About ANGOSS Software Corporation: Discover. Predict. Act.(TM) ANGOSS Software Corporation, headquartered in Toronto, Canada, develops data mining software solutions that help business organizations across financial services, telecommunications, pharmaceuticals, retailing and manufacturing industries manufacturing industries npl → industrias fpl manufactureras manufacturing industries npl → industries fpl de transformation make "Better Business Decisions. Every Day."(TM) Angoss predictive analytics capabilities are developed on market proven software and reflect a decade of focused industry-specific expertise. We help our clients discover the key drivers of customer behaviors quickly, predict customer needs, and act to anticipate customer opportunities and risks, proactively, at every phase of the customer lifecycle. Using Angoss predictive analytics capabilities, Angoss clients have generated millions of dollars in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue growth, while reducing cost and risk. Trademarks and registered trademarks referred to above are the property of their respective owners. This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including: the risk that the sale of our products and services involves a long sales cycle; the risk that the economic environment and business conditions will remain difficult to predict; the risk of competition in our target markets; the risk that we may not respond adequately to evolving technologies; the risk that we or our customers may have difficulties in introducing our products or services; the risk that we will encounter difficulties in continuing to offer services; the risk that we will encounter difficulties in integrating the operations of acquired companies with our own; the risks of conducting our operations in a variety of international locations; the risk that we may need to record future write-downs of assets arising from our investments in other companies; the risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the costs that we may incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. as a result of 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. against us; and other risks described in our filings with securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities , including our annual reports, interim financial statements and similar disclosure documents. ANGOSS Software does not undertake any obligation to update this forward-looking information after the date of its initial publication, except as required under applicable law. Note: The Toronto Venture Exchange has neither approved nor disapproved the above information. |
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