Announces Fourth Quarter Results; Q4 Pro-Forma Earnings Approach Breakeven; Q4 Pro-Forma EPS Reaches Breakeven.Business Editors BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash.--(BUSINESS WIRE)--Jan. 29, 2002 Onyx onyx (ŏn`ĭks), variety of cryptocrystalline quartz, differing from agate only in that the bands of which it is composed are parallel and regular. (R) Software (Nasdaq:ONXS), a global provider of customer relationship management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) enterprise applications, announced today financial results for the quarter and year ended December December: see month. 31, 2001. Fourth quarter financial performance highlights include: -- Approached breakeven pro-forma earnings -- License revenue of $6.6 million was 5% higher than in Q3 -- Gross margin improved 6 points to 67% compared to the Q3 level of 61% Financial Results: Q4 Revenue for the fourth quarter of 2001 was $19.2 million, compared to $35.7 million in the fourth quarter of 2000. Net loss for the fourth quarter of 2001 was $10.1 million, or $0.23 per share, compared to a net loss of $2.8 million or $0.08 per share in the fourth quarter of 2000. The fourth quarter 2001 net and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. include $8.1 million in 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). and excess facilities charges, and $2.0 million in amortization of acquisition costs and stock compensation expense. Pro-forma net loss for the fourth quarter of 2001, excluding the amortization of intangibles, stock compensation expense, restructuring-related costs and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of certain assets, was $0.2 million, or $0.00 per share, compared to a pro-forma net loss of $1.3 million, or $0.04 per share in the fourth quarter of 2000. Fourth quarter 2001 license revenue of $6.6 million was higher than the $6.3 million in the third quarter of 2001. License revenue in the fourth quarter of 2000 was $22.3 million. Overall gross margin increased to approximately 67% in the fourth quarter compared to 61% in the third quarter of 2001. Service revenue gross margin rose to 53% in the fourth quarter from 46% in the third quarter of 2001, reflecting a higher proportion of maintenance revenues in the mix, and improved professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. utilization, compared to the Q3 levels. The overall gross margin and service margin in the fourth quarter of 2000 was 77% and 47%, respectively. 2001: Revenue for 2001 was $97.2 million, compared to $119.3 million in 2000. Net loss for 2001 was $95.5 million, or $2.37 per share, compared to a net loss of $4.7 million, or $0.13 per share in 2000. The 2001 net and operating losses include $51.8 million in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , excess facilities charges and impairments of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , as well as $15.4 million of amortization of acquisition costs and stock compensation expense. Pro-forma net loss for 2001, excluding the amortization of intangibles, stock compensation expense, restructuring-related costs and impairment of certain assets, was $26.8 million, or $0.66 per share, compared to pro-forma net income of $0.9 million or $0.02 per share in 2000. "Onyx met the challenge of a slowing economy in 2001," said Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. Frei Frei is the name of a Norse god (Freyr). Frei is a municipality in the county of Møre og Romsdal, Norway. The municipality was established January 1, 1838 (see formannskapsdistrikt). Frei will be merged with Kristiansund January 1, 2008. , 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. of Onyx Software. "When global events increased the business challenge, Onyx responded by reiterating our resolve and redoubling our efforts. Having approached pro-forma 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 this quarter, Onyx is focused on running a profitable business in 2002," Frei added. Yesterday, Onyx Software announced a firm underwritten public offering of 5.725 million common shares at a price to the public of $3.50 per share, with estimated net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company of $18.5 million. In addition, Onyx has granted Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Securities, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the sole underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. for the offering, an option to purchase up to 600,000 shares of its common stock to cover over-allotments, if any. Business Summary Onyx had 31 new customer wins in the fourth quarter, compared to 24 in the third quarter. Thirty-five customers placed add-on A purchase of additional goods before payment is made for goods already purchased. An add-on may be covered by a clause in an installment payment contract that allows the seller to hold a security interest in the earlier goods until full payment is made on the later goods. orders in the fourth quarter, and almost half of these customers had previously purchased licenses in the first nine months of 2001. World-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. businesses and organizations selected Onyx Software in the fourth quarter. 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. customers included Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. Financial Services, 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. Retirement Services, Dreyfus Service Corporation, Bank Muamalat, and Prudential Prudential is the name of two different companies and buildings named after them: Companies:
Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. , Amsterdam Port Authority, and the State of Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . The geographic distribution of fourth quarter revenue was 59 percent domestic and 41 percent international. Onyx direct sales provided 79 percent of license revenue, with the balance provided by partners. Onyx had four deals with license and first-year maintenance exceeding $500,000 each. No customer accounted for more than 6% of total revenue in the fourth quarter. "Onyx undertook joint engagements with IBM Global Services IBM Global Services is the world's largest business and technology services provider. It is the fastest growing part of IBM, with over 190,000 professionals serving customers in more than 160 countries. , Accenture, Avanade and Deloitte Touche Tomatsu during the quarter," Frei said. "Additionally, we continued to work closely with Microsoft." Under the terms of a recently signed agreement, Onyx and Deloitte Touche Tomatsu have partnered to pursue government and healthcare opportunities, and this joint effort has already resulted in the previously announced customer win of London's Borough of Brent. Onyx also signed a reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreement with Unisys for the Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. region in the fourth quarter. Onyx Vertical Service Provider partner Metavante saw additional demand for their Onyx-based services and TriZetto purchased additional licenses. Onyx Software will discuss its fourth quarter financial results in a conference call today at 4:30 p.m. Eastern, (1:30 p.m. Pacific). We suggest you access the call 10-15 minutes prior to the start time by signing on at http://investor.onyx.com. The call will be archived and available for replay at this same URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. . Alternatively, you can participate by phone. Onyx Software Fourth Quarter Conference Call When: Tuesday, January 29, 2002 Time: 4:30 pm (Eastern) / 1:30 pm (Pacific) Dial-In: 1-800-946-0742 International Dial-In: 1-719-457-2650 Replay: 1-719-457-0820 (available through midnight Pacific, February 5, 2002) Passcode: 469816 About Onyx Software Onyx Software Corp. (Nasdaq:ONXS) is a global supplier of customer relationship management (CRM) enterprise applications that power a company's entire business world, connecting sales, marketing and service organizations with customers, prospects and partners. Through an innovative mix of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the technology, strategic services and customer commitment, Onyx helps companies create the seamless, branded customer experiences they need to forge forge Open furnace for heating metal ore and metal for working and forming, or a workshop containing forge hearths and related equipment. From earliest times, smiths (see smithing) heated iron in forges and formed it by hammering on an anvil. competitive advantage and build real business value. Its reliable, scalable, flexible, holistic Holistic A practice of medicine that focuses on the whole patient, and addresses the social, emotional, and spiritual needs of a patient as well as their physical treatment. Mentioned in: Aromatherapy, Stress Reduction, Traditional Chinese Medicine solutions enable companies to attract, acquire and retain customers and partners across all channels and touch points. Onyx customers include American Express, Broadwing, Commerce One, Credit Suisse, Dreyfus, Prudential Investments and The Regence Group. Get more information at 888-ASK-ONYX, info@onyx.com or www.onyx.com. Forward-looking statement 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. This press release contains forward-looking statements, including statements about our future financial results, the expected closing of our public offering, our future capital position, and other statements about our plans, objectives, intentions and expectations. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could affect Onyx's actual results include, but are not limited to, the risk that we may be unable to achieve and maintain profitability, the risk that our public offering is not consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price" described in our quarterly report on form 10-Q Form 10-Q See 10-Q. for the period ending September 30, 2001. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Onyx undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or 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 after the date of this release or to reflect the occurrence of unanticipated events. Onyx is a registered trademark of Onyx Software Corporation in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.
Onyx Software Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited)
Revenues
License $ 6,554 $22,342 $37,584 $73,701
Service 12,677 13,378 59,577 45,608
------ ------ ------ -------
Total revenues 19,231 35,720 97,161 119,309
Costs of revenues
Cost of
license 349 1,152 2,006 3,520
Amortization of
acquired
technology 138 205 751 820
Cost of
service 5,926 7,027 33,123 23,552
----- ----- ------ ------
Total cost
of revenues 6,413 8,384 35,880 27,892
----- ----- ------ ------
Gross margin 12,818 27,336 61,281 91,417
Operating Expenses
Sales and
marketing 6,646 18,935 53,254 59,182
Research and
development 3,993 6,368 21,968 21,046
General
and
administrative 2,503 3,564 14,623 11,120
Restructuring
and
other-related
charges 8,142 - 51,806 -
Amortization and
impairment
of goodwill
and other
acquisition-related
intangibles 1,619 1,429 13,695 4,332
Amortization of
stock-based
compensation 204 91 904 548
----- ----- ------ -----
Total operating
expenses 23,107 30,387 156,250 96,228
Operating loss (10,289) (3,051) (94,969) (4,811)
Interest income
(expense), net (28) 124 377 788
Equity investment
losses and
impairment - - (2,500) (500)
----- ----- ------ ------
Loss before
income taxes (10,317) (2,927) (97,092) (4,523)
Income tax
provision
(benefit) 87 84 (294) 404
Minority interest
in loss of
consolidated
subsidiary (266) (216) (1,283) (216)
----- ----- ------ ------
Net loss $(10,138) $(2,795) $(95,515) $ (4,711)
======= ====== ======= ======
Basic and diluted
net loss per
share $ (0.23) $ (0.08) $ (2.37) $ (0.13)
======= ====== ======= ======
Shares used in
computation of
basic and
diluted net
loss per share 43,387 35,628 40,368 34,922
======= ====== ======= ======
Onyx Software Corporation
(In Thousands, Except Per Share Data)
Supplemental Pro Forma
Information:
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net loss $(10,138) $ (2,795) $ (95,515) $ (4,711)
Adjustments to
reconcile net
loss in the
financial
statements to
pro forma
net loss:
Restructuring
charges
Facilities 5,731 - 46,299 -
Severance 1,913 - 3,729 -
Other 498 - 1,778 -
------ ------- -------- ------
Total
restructuring
charges 8,142 - 51,806 -
Amortization
and acquired
technology 138 205 751 820
Amortization and
impairment of
goodwill and
other
acquisition-related
intangibles 1,619 1,429 13,695 4,332
Amortization of
stock-based
compensation 204 91 904 548
Equity investment
losses and
impairment - - 2,500 500
Amortization and
impairment of
deferred
income tax
associated with
acquisitions (134) (217) (978) (619)
------ ------- -------- ------
Pro forma net income
(loss) $ (169) $ (1,287) $ (26,837) $ 870
------ ------- -------- ------
Pro forma net income
(loss) per share:
Basic $ 0.00 $ (0.04) $ (0.66) $ 0.02
===== ====== ====== ======
Diluted $ 0.00 $ (0.04) $ (0.66) $ 0.02
===== ====== ====== ======
Shares used in
computation of
pro forma net
income (loss)
per share:
Basic 43,387 35,628 40,368 34,922
====== ====== ====== ======
Diluted 43,387 35,628 40,368 40,962
====== ====== ====== ======
Onyx Software Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
December 31, December 31,
2001 2000
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 15,868 $ 11,492
Short-term marketable securities - 5,522
Accounts receivable, net 20,029 41,135
Prepaid expenses and other
current assets 2,596 4,533
------ ------
Total current assets 38,493 62,682
Property and equipment, net 12,884 20,848
Purchased technology, net 751 1,958
Other intangibles, net 10,863 19,674
Other assets 1,520 3,878
------ -------
Total Assets $ 64,511 $109,040
====== =======
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 2,826 $ 6,792
Salary and benefits payable 1,833 5,778
Accrued liabilities 3,260 4,691
Income taxes payable 695 808
Current portion long-term liabilities 173 242
Current portion of
restructuring-related
liabilities 15,384 -
Deferred revenues 19,191 19,119
------ -------
Total current liabilities 43,362 37,430
Long-term liabilities 248 428
Long-term restructuring-related
liabilities 9,930 -
Deferred tax liability 1,223 2,201
Minority Interest in joint venture 1,613 2,895
Shareholders' Equity
Common stock 118,557 75,416
Notes payable to shareholders
in the form of equity - 4,320
Notes receivable from officers - (157)
Deferred stock-based compensation (809) (413)
Accumulated deficit (108,291) (12,776)
Accumulated other
comprehensive loss (1,322) (304)
------ -------
Total shareholders' equity 8,135 66,086
------ -------
Total Liabilities and
Shareholders' Equity $ 64,511 $109,040
====== =======
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