Ascential Software Corporation Reports Fourth Quarter Results; DataStage License Revenue Increases 20% Sequentially, 27% For 2001.Business/High Tech Editors WESTBORO Westboro can refer to: Places
Company Increases Focus on Enterprise Data Integration; Plans to Divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. Content Management Products Ascential Software Corporation (Nasdaq:ASCL ASCL Alternate Smart Card Logon ASCL Advanced Sonobuoy Communications/Command Link ASCL Application Standard Component Library ), the leading provider of Information Asset Management (IAM IAM - Interactive Algebraic Manipulation. Interactive symbolic mathematics for PDP-10. ["IAM, A System for Interactive Algebraic Manipulation", C. Christensen et al, Proc Second Symp Symb Alg Manip, ACM Mar 1971]. ) solutions, today announced results for the fourth quarter and full year ended December December: see month. 31, 2001. Total revenue for Ascential Software's products and service offerings was $27.2 million in the fourth quarter and $124.0 million for all of 2001. Excluding revenue from previously discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: i.Sell in both years, 2001 revenue was $121.1 million, an increase of 31% over the $92.5 million for the prior year. License revenue for Ascential's enterprise data integration solution, DataStage A data extraction and transformation program for Windows NT/2000 servers that is used to pull data from legacy databases, flat files and relational databases and convert them into data marts and data warehouses. (R), grew 20% to $13.4 million from third quarter levels, reflecting its deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . Total revenue for DataStage increased to $25.0 million from $23.7 million in the quarter ended September September: see month. 30, 2001. On a full year basis, total DataStage revenue grew 33% to $104.4 million, from $78.3 million in fiscal 2000. 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 operating results discussed in this press release amount to a loss per share of $0.03 in the fourth quarter, excluding non-recurring charges, costs and expenses related to the sale of the database business, amortization of purchased intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. and income tax benefit. Including the income tax benefit, loss per share would have been $0.02. The loss per share in the third quarter, on a comparable basis, was $0.08. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, including all charges and expenses related to Ascential Software operations and all charges and expenses related to the sale of the database business, the net loss for the fourth quarter of 2001 was $31.2 million or $0.12 per share. Earnings per share in the third quarter, on a GAAP basis, including all charges and the gain on sale of the database business, was $651.4 million or $2.28 per share on a fully 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. basis. "We are pleased with the growth achieved by DataStage, our core data integration product offering, in light of the current environment for corporate spending," said Peter Gyenes, Chairman and Chief Executive Officer. "In the fourth quarter DataStage realized a continued increase in adoption by new and existing customers. We extended our competitive advantage with the release of the fifth generation of our industry-leading data integration software and with our acquisition of Torrent Systems Torrent Systems, originally named Applied Parallel Technologies, was a parallel computing software company founded in 1993 by Rob Utzschneider and Ed Zyszkowski. The company's major product was a parallel flow-based programming system called Orchestrate. during the quarter, which further enhances DataStage performance and 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 raises our profile in the high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. of our target market. We also aggressively managed our cost structure, reducing total expenses by 14% from third quarter levels." Revenue for the Company's Media360(TM) and related content management products continued to decline, despite its strong technology position. After further evaluation of the Company's ongoing strategy, business opportunities and acquisition roadmap A roadmap may refer to:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. $14.2 million in revenue in 2000 and $16.7 million in 2001. As reported previously, the Board of Directors of Ascential(TM) has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a $350 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Through December 31, 2001 the Company has repurchased approximately 34.0 million shares for approximately $143.0 million, including 7.1 million shares repurchased in the fourth quarter for $25.5 million. In addition to the stock repurchase program, the Company continues to explore strategic acquisition possibilities to strengthen its enterprise integration infrastructure offerings. As of December 31, 2001, the Company had $758.6 million in 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. Major items affecting cash in the quarter were taxes, costs and expenses related to the sale of the database business, the acquisition of Torrent Systems, final payment in connection with the previous settlement of a 1997 shareholder 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. , the company's stock repurchase activity, and the operating loss 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. of Ascential. Selected Quarterly Highlights: -- Signed 82 new clients including American Insurance Group, Boise Cascade, Chevys Restaurants, Credit Suisse First Boston, Dole Foods, Erie Insurance, First International Bank, Ford Motor Company, Gordon Foods, Poste Italiane, Banco Santander Chile, Samsung Electronics, Sara Lee, The Scotts Company, TransAsia Telecom and the United Kingdom Department of Health. -- Expanded business with existing customers, including ABN Amro, Agip Petroli, Arla Foods, Aspecta, Daimler Chrysler, France Telecom, GlaxoSmithKline, General Motors, Lloyds TSB, LVMH, McKesson Corporation, Novartis Pharmaceuticals, Philip Morris, Pitney Bowes, SC Johnson, Shell Oil Company, Telecom Malaysia, Tokyo Stock Exchange, and The Walt Disney Company. -- Expanded the Company's solution set by delivering the fifth generation of Ascential's DataStage product family. With advances in end-to-end meta data management, data integration portal infrastructure, and enterprise application connectivity, DataStage is now positioned as the leading enterprise data integration platform, enabling data warehousing, customer relationships management, supply chain management and other business-critical integration initiatives. -- Acquired Torrent Systems and integrated Torrent's patented parallel processing technology into the DataStage product family. This acquisition enables DataStage XE to seamlessly scale across SMP, cluster SMP and MPP environments, further enhancing DataStage's position as the broadest, most comprehensive data integration platform on the market. This acquisition also opens up new channel opportunities for the Company by allowing Ascential partners to enhance the scalability and performance of their data intensive applications, including data analysis and data cleansing. Customers who have selected Torrent technology, such as Duty Free Stores Ltd. and Medstat are indicative of the high-end data warehouse requirements that are uniquely now addressable by DataStage. -- Announced major new suite of web-based technical support and professional services solutions called e.Services. By using e.Services to access Ascential's knowledge warehouse, customers can download software upgrades and patches, and participate in training classes to quickly solve technical problems and speed deployment of new data warehouse, eBusiness, CRM and SCM applications. -- Announced support for BusinessObjects' Application Foundation 2.5, a development framework, which improves development and delivery of analytic and data visualization solutions. DataStage allows BusinessObjects customers to access and extract data from virtually every potential data source, including enterprise applications, XML or e-business data, web and e-mail logs, flat files, mainframes and data warehouse environments, and to manage and bi-directionally exchange meta data within their business intelligence environments. -- Announced its selection by CMP Media's Intelligent Enterprise magazine as a "Company to Watch" in 2002. Ascential was selected for the strength of the company's contributions to the data integration market and as a company that excels at meeting the most critical information system demands of businesses today. Outlook Commenting on the Company's business outlook, Ascential President Pete Fiore said, "We are planning for sequential One after the other in some consecutive order such as by name or number. revenue growth from our ongoing data integration business in the first quarter of 2002 over the $25.0 million in fourth quarter 2001 revenue, and are projecting sequential growth each quarter of 2002. Following the planned adjustment to our expense structure after the divesture Di`ves´ture n. 1. Divestiture. of Media360, we now expect to achieve operating profitability at approximately $40 million in quarterly revenue, a level we are currently planning for the fourth quarter of this year. "We believe that our actions and accomplishments of 2001 have now resulted in the major strengthening of our capacity and presence worldwide, as well as the strengthening and continued adoption of DataStage and related offerings. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the economy and other issues of 2001, we nevertheless grew our data integration business by 33% in 2001, as well as adding approximately 350 new customers. We believe that our positioning with product and services and strategic partners can continue to drive growth even in a weak economy, and can drive improved growth as the worldwide economy eventually improves." Mr. Gyenes concluded, "Our near term objective is to be the clear leader in data integration infrastructure software. We also see the unique opportunity to establish a deeper and wider footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. in the broader enterprise integration segment. The importance of solutions that allow companies to gain greater efficiencies and insight into their operations will continue to elevate el·e·vate tr.v. ele·vat·ed, ele·vat·ing, ele·vates 1. To move (something) to a higher place or position from a lower one; lift. 2. To increase the amplitude, intensity, or volume of. 3. the importance of integration software such as ours, which delivers a significant and demonstrable de·mon·stra·ble adj. 1. Capable of being demonstrated or proved: demonstrable truths. 2. Obvious or apparent: demonstrable lies. return on investment. We have the financial resources to invest in growth, organically and through strategic acquisitions, to significantly expand the revenues, market impact and profitability of our company. As we continue to extend our data integration capabilities, we are building what we believe to be the industry's best and most complete infrastructure platform for managing enterprise information assets. We believe this type of platform is a 'must-have' component for our customers' information backbone backbone: see spinal column. The part of a network that handles the major traffic. It employs the highest-speed transmission paths in the network and may also run the longest distances. and that our share of this market will deliver long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value to our shareholders." Conference Call Management will host a conference call at 5:00 PM (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) today to discuss the Company's operating performance. The conference call will be broadcast live through a link on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page on the Ascential web site at www.ascentialsoftware.com/investors. Please go to the web site at least fifteen minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who cannot attend the live broadcast, a replay will be available on the web site at www.ascentialsoftware.com/investors or by calling 800/469-5426 from two hours after the call ends until 5:00 p.m. on February February: see month. 4, 2002. About Ascential Software Ascential Software Corporation is the leading provider of Information Asset Management solutions to the Global 2000. Customers use Ascential products to turn vast amounts of disparate, unrefined data into reusable re·use tr.v. re·used, re·us·ing, re·us·es To use again, especially after salvaging or special treatment or processing. re·us information assets that drive business success. Ascential's unique framework for Information Asset Management enables customers to easily collect, validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data , organize organize /or·ga·nize/ (or´gan-iz) 1. to provide with an organic structure. 2. to form into organs. or·gan·ize v. 1. , administer To give an oath, as to administer the oath of office to the president at the inauguration. To direct the transactions of business or government. Immigration laws are administered largely by the Immigration and Naturalization Service. and deliver information assets to realize more value from their enterprise data, reduce costs and increase profitability. Headquartered in Westboro, MA, Ascential has offices worldwide and supports more than 1,800 customers in such industries as telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , insurance, 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. , healthcare, media/entertainment and retail. More information on Ascential Software can be found on the Web at www.ascentialsoftware.com. 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. : This public announcement contains 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. that are subject to numerous risks and uncertainties. These forward-looking statements include, without limitation, the statements that: sales of the Company's DataStage product will continue to improve; that the release of the fifth generation version of DataStage and the acquisition of Torrent Systems, Inc. extends the competitive advantage of the Company and that DatStage is and will continue to be industry-leading data integration software; that the acquisition of Torrent Systems, Inc. will further enhance the performance and scalability of DataStage and will raise the Company's profile in the high end of the Company's target market; that the Company will be able to continue to aggressively manage its cost structure; that the Company will be able to successfully divest its Media 360 and other content management business; that the Company will be able to address customer needs to integrate unstructured information through current and planned capabilities within the DataStage platform; that Media 360 will continue to be an outstanding solution for the management of digital media assets and is no longer strategically required for the Company's roadmap of enterprise data integration functionality; that by divesting the Company's content management products in the near term, the Company enters fiscal 2002 with enhanced focus and leverage to continue its momentum within its core market and will move toward its goal of achieving profitability; that the Company will continue to buy back its stock under the current share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program; that the Company will continue to explore strategic acquisitions and that such activities will strengthen the Company's enterprise integration infrastructure offerings; that final results may vary from those included in the information distributed today; that advances in end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. meta management, data integration portal infrastructure, and enterprise application connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. positions DataStage as the leading enterprise data integration platform and that it will enable data warehousing See data warehouse. data warehousing - data warehouse , customer relationships management, supply chain management and other business-critical integration initiatives; that the Torrent See BitTorrent. torrent - BitTorrent acquisition will enable DataStage XE to seamlessly scale across SMP (Symmetric MultiProcessing) A multiprocessing architecture in which multiple CPUs, residing in one cabinet, share the same memory. SMP systems provide scalability. As business increases, additional CPUs can be added to absorb the increased transaction volume. , cluster cluster, in astronomy: see star cluster; galaxy. (1) Two or more systems working together. See clustering. (2) Also called an "allocation unit" or "file allocation unit," it is some number of disk sectors that are treated as a unit. SMP and MPP (Massively Parallel Processing or Massively Parallel Processor) A multiprocessing architecture that uses up to thousands of processors. Some might contend that a computer system with 64 or more CPUs is a massively parallel processor. environments and will further enhance the position of DataStage as the broadest, most comprehensive data integration platform on the market; that the Torrent acquisition will open up new channel opportunities for the Company by allowing the Company's partners to enhance the scalability and performance of their data intensive applications, including data analysis and data cleansing See address cleansing and data hygiene. ; that listed customers who have selected Torrent technology are indicative indicative: see mood. of the high-end data warehouse requirements that are uniquely addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be by DataStage and that those requirements will be uniquely addressable by DataStage; that by using e.Services to access the Company's knowledge warehouse, customers will be able to download software upgrades and patches and participate in training classes to quickly solve technical problems and speed deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. of new data warehouse, eBusiness See e-business. , CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. and SCM (1) (Software Configuration Management, Source Code Management) See configuration management. (2) See supply chain management. applications; that DataStage will continue to allow BusinessObjects A query, reporting and analysis suite of tools from Business Objects that runs under all versions of Windows and various Unix clients. It is the leading decision support tool in the business intelligence market, providing access to a wide variety of databases, including Oracle, INFORMIX customers to access and extract To decompress. WinZip and other decompression utilities use the term to mean "pulling out" the original files from the compressed archive. See WinZip and data compression. data from virtually every potential data source, including enterprise applications, XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. , or e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. data, web and e-mail logs, flat files, mainframes and data warehouse environments, and to manage and bi-directionally exchange meta data within their business intelligence environments; that the Company will excel at Verb 1. excel at - be good at; "She shines at math" shine at excel, surpass, stand out - distinguish oneself; "She excelled in math" meeting the most critical information system demands of businesses today; that sequential revenue growth from our ongoing data integration business in the first quarter of 2002 will exceed $25.0 million and that the Company will experience sequential growth each quarter of 2002; that if Media 360 is successfully divested and the Company is able to further decrease its expenses it will be able to achieve operating profitability at approximately $40 million in quarterly revenue; that the Company will achieve $40 million in revenue in the fourth quarter of fiscal 2002; that the actions and accomplishments of the Company in 2001 have resulted and will result in the major strengthening of the Company's capacity and presence worldwide and have resulted and will result in the strengthening and continued adoption of the Company's DataStage and related offerings; that the Company's positioning in product and services and strategic relationships can and will continue to drive growth even in a weak economy and can and will drive growth if, as and when the worldwide economy eventually improves; that the Company will be able to become the clear leader in data integration infrastructure software; that the Company has a unique opportunity to establish a deeper and wider footprint in the broader enterprise integration segment; that the importance to companies of solutions that allow them to gain greater efficiencies and insight into their operations will continue to elevate the importance of integration software sold by the Company; that the Company's data integration software will deliver a significant and demonstrable return on investment to customers; that the Company will continue to have the financial resources to invest in growth, that it will be able to do so organically and through strategic acquisitions; that the company will be able to significantly expand its revenues; market impact and profitability; that the Company will continue to extend its data integration capabilities and will be able to build the industry's best and most complete infrastructure platform for managing enterprise information assets; that the Company's infrastructure platform will be a must-have component for its customers' information backbone and that the Company's share of this market will deliver long term value to its shareholders. Any statements contained in this public announcement, including without limitation statements to the effect that the Company or its management "believes," "expects," "anticipates," "plans," "may," "will," "projects," "continues," "intends" or "estimates," or statements concerning "potential" or "opportunity" or other variations thereof or comparable terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or or the negative thereof that are not statements of historical fact, should be considered forward-looking statements as a result of certain risks and uncertainties. The numbers discussed in this press release also involve risks and uncertainties and are subject to final audited results for the period or periods covered. These risks and uncertainties could cause actual results and events materially to differ for historical or anticipated results and events. Investors and potential investors should review carefully the description of risks and uncertainties that, together with other detailed information about the Company, is contained in the periodic reports that the Company files from time to time with the Securities and Exchange Commission, including the Company's 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. for fiscal year 2000 and the Company's Form 10-Q Form 10-Q See 10-Q. for the third quarter of fiscal year 2001. The forward-looking statements and numbers contained herein represent the judgment of Ascential Software Corporation, as of the date of this release, and Ascential Software Corporation disclaims any intent or obligation to update such forward-looking statements to reflect any change in Ascential Software Corporation's expectations with regard thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions, 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 on which such statements are based. (c) 2002 Ascential Software Corporation. All rights reserved. Ascential, DataStage and Media360 are trademarks of Ascential Software Corporation 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. its affiliates and may be registered in other jurisdictions. Other trademarks are the property of the owners of those marks.
ASCENTIAL SOFTWARE CORPORATION
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS (1)
(In thousands, except per share data)
Three Months Ended December 31, 2001
Pro Forma Database Total
Continuing Transaction Consoli-
Operations /Transition(2) dated
NET REVENUES
Licenses $ 14,309 -- $ 14,309
Services 12,864 -- 12,864
----------------------------- -------- -------- --------
27,173 -- 27,173
COSTS AND EXPENSES
Cost of software 4,005 -- 4,005
Cost of services 9,513 -- 9,513
Sales and marketing 19,820 -- 19,820
Research and development 5,970 -- 5,970
General and administrative 6,183 6,612 12,795
-------- -------- --------
45,491 6,612 52,103
Operating loss (18,318) (6,612) (24,930)
-------- -------- --------
OTHER INCOME (EXPENSE)
Interest income 8,229 8,229
Interest expense (44) (44)
Other, net 1,161 1,161
-------- --------
LOSS BEFORE INCOME TAXES,
excluding charges, related
tax benefit and amortization
of purchased intangibles (8,972) (6,612) (15,584)
Income tax benefit (2,993) (2,208) (5,201)
----------------------------- -------- -------- --------
LOSS APPLICABLE TO COMMON
STOCKHOLDERS, excluding
charges and related tax
benefit and amortization
of purchased intangibles $ (5,979) $ (4,404) $(10,383)
======== ======== ========
CHARGES and RELATED TAX
BENEFIT and AMORTIZATION
OF PURCHASED INTANGIBLES
Merger, realignment
and other charges (4,200) (16,524) (20,724)
Write off of in-process
research and development (5,500) -- (5,500)
Amortization of
purchased intangibles (1,557) -- (1,557)
Income tax benefit
from charges 1,398 5,519 6,917
-------- -------- --------
NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS $(15,838) $(15,409) $(31,247)
======== ======== ========
LOSS PER COMMON SHARE,
Loss before income taxes,
excluding charges,
related tax benefit
and amortization of
purchased intangibles $(0.03) $(0.06)
======= =======
Excluding charges and
related tax benefit
and amortization of
purchased intangibles $(0.02) $(0.04)
======= =======
NET LOSS PER COMMON SHARE
Basic $(0.06) $(0.12)
======= =======
Diluted $(0.06) $(0.12)
======= =======
SHARES USED IN PER
SHARE CALCULATIONS
Excluding charges 258,482 258,482
======= =======
Basic 258,482 258,482
======= =======
Diluted 258,482 258,482
======= =======
(1) See Comparative Statements of Operations on a subsequent page
of this release.
(2) Operating results in this column include expenses associated
with the database business sold to IBM, and is comprised
primarily of litigation settlements and adjustments to real
estate reserves.
ASCENTIAL SOFTWARE
SELECTED UNAUDITED PRO FORMA FINANCIAL HIGHLIGHTS (1)
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 (2) 2001 (2)
-------- --------
NET REVENUES
Licenses $14,309 $62,417
Services 12,864 61,563
------ ------
27,173 123,980
COSTS AND EXPENSES
Cost of software 4,005 15,668
Cost of services 9,513 45,022
Sales and marketing 19,820 92,261
Research and development 5,970 27,187
General and administrative 6,183 25,383
----- ------
45,491 205,521
Operating loss excluding
amortization of
purchased intangibles (18,318) (81,541)
Amortization of purchased
intangibles 1,557 6,224
----- -----
Operating loss including
amortization of
purchased intangibles $(19,875) $(87,765)
========= =========
(1) Pro forma financial highlights exclude the revenue and
expenses associated with the Informix database business which
was sold to IBM during the third quarter of 2001, the costs
associated with this sale and the net gain on the sale. The
pro forma financial highlights also exclude costs associated
with mergers, restructuring, impairment and in-process
research and development charges for all periods presented.
(2) The pro forma financial highlights for the three and twelve
months ended December 31 include revenue of $2,118 and
$16,625, respectively, associated with the Media360 product
line that the Company intends to sell in 2002. The pro forma
financial highlights for the twelve months ended also include
$2,901 of revenue from the i.Sell product line which was
discontinued in the first quarter of 2001.
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS December 31, 2001 December 31, 2000
----------------- -----------------
CURRENT ASSETS
Cash and cash equivalents $489,307 $128,420
Short-term investments 269,336 88,541
Accounts receivable, net 29,871 235,429
Deferred income taxes 21,825 --
--
Other current assets 43,846 17,330
------ ------
Total current assets 854,185 469,720
PROPERTY AND EQUIPMENT, net 11,687 67,617
SOFTWARE COSTS, net 14,919 41,444
LONG-TERM INVESTMENTS 1,782 11,185
INTANGIBLE ASSETS, net 75,443 48,258
OTHER ASSETS 116,933 17,657
------- ------
Total Assets $1,074,949 $655,881
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $11,681 $27,881
Accrued expenses 52,344 38,922
Accrued employee compensation 17,842 66,167
Income taxes payable 90,555 23,139
Deferred revenue 12,338 141,735
Advances from customers 55 10,492
Accrued merger, realignment
and other charges 35,066 28,210
Other current liabilities 7,024 427
----- ---
Total current liabilities 226,905 336,973
DEFERRED INCOME TAXES - NONCURRENT 28,350 --
OTHER NON-CURRENT LIABILITIES -- 787
STOCKHOLDERS' EQUITY
Common stock; par value 2,564 2,804
Shares to be issued for
litigation settlement -- 61,228
Additional paid-in capital 595,751 632,866
Treasury stock (25,464)
Retained earnings
(accumulated deficit) 265,816 (359,132)
Accumulated other
comprehensive loss (18,973) (19,645)
-------- --------
Total stockholders' equity 819,694 318,121
------- -------
Total Liabilities and
Stockholders' Equity $1,074,949 $655,881
========== ========
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data) (1)
Three Months Ended Twelve Months Ended
December 31 December 31
2001 2000 2001 2000
---- ---- ---- ----
NET REVENUES
Licenses $14,309 $101,165 $211,737 $404,421
Services 12,864 125,671 269,597 524,898
------ ------- ------- -------
27,173 226,836 481,334 929,319
COSTS AND EXPENSES
Cost of software 4,160 13,084 34,270 50,422
Cost of services 9,608 39,583 107,537 184,581
Sales and marketing 19,848 95,866 207,261 402,569
Research and
development 7,249 39,136 87,006 166,076
General and
administrative 12,795 24,576 81,561 100,027
Merger,
realignment and
other charges 20,724 14,658 117,712 126,828
Impairment of long
term investments -- -- 10,190 --
Write off of
in-process research
and development 5,500 - 5,500 -
----- ------ ----- ------
Operating loss (52,711) (67) (169,703) (101,184)
-------- ---- --------- ---------
OTHER INCOME (EXPENSE)
Interest income 8,229 3,642 24,119 14,339
Interest expense (44) (76) (172) (454)
Gain on sale of
database
business (2) - - 929,029 -
Other, net 1,161 778 (972) 5,002
----- --- ----- -----
INCOME (LOSS) BEFORE
INCOME TAXES (43,365) 4,277 782,301 (82,297)
Income tax expense
(benefit) (12,118) 4,000 157,353 16,018
-------- ----- ------- ------
INCOME (LOSS) (31,247) 277 624,948 (98,315)
Preferred stock
dividend - -- -- (191)
-------- ----- ------- -------
INCOME (LOSS)
APPLICABLE TO
COMMON STOCKHOLDERS $(31,247) $277 $624,948 $(98,506)
========= ===== ======== =========
NET INCOME (LOSS)
PER COMMON SHARE
Basic $(0.12) $0.00 $2.25 $(0.34)
======= ===== ===== =======
Diluted $(0.12) $0.00 $2.20 $(0.34)
======= ===== ===== =======
SHARES USED IN PER
SHARE CALCULATIONS
Basic 258,482 285,760 277,490 286,138
======= ======= ======= =======
Diluted 258,482 300,353 284,335 286,138
======= ======= ======= =======
(1) Results of operations include the results of the Informix
Database business that was sold to IBM on July 1, 2001.
(2) The reported gain on sale of the database business is
preliminary and subject to finalization of the working capital
transferred to IBM in connection with the sale. The Company
expects to finalize the gain during the first quarter of 2001
at which time an adjustment could be required.
ASCENTIAL SOFTWARE
UNAUDITED REVENUE HISTORY (1)
(In millions)
2001 Q1 2001 Q2 2001 Q3 2001 Q4 2001 Total 2001
LICENSE REVENUE:
Data Integration $11.8 $15.9 $11.2 $13.4 $52.3
Content Management 3.5 2.5 1.7 .9 8.6
I. Sell 1.5 - - - 1.5
--- - - - ---
Total License Revenue 16.8 18.4 12.9 14.3 62.4
SERVICES REVENUE:
Data Integration 12.0 16.0 12.5 11.6 52.1
Content Management 3.1 2.1 1.6 1.3 8.1
I. Sell 1.4 0.0 0.0 0.0 1.4
--- --- --- --- ---
Total Services Revenue 16.5 18.1 14.1 12.9 61.6
TOTAL REVENUE:
Data Integration 23.8 31.9 23.7 25.0 104.4
Content Management 6.6 4.6 3.3 2.2 16.7
I. Sell 2.9 0.0 0.0 0.0 2.9
--- --- --- --- ---
Total Revenue $33.3 $36.5 $27.0 $27.2 $124.0
===== ===== ===== ===== ======
2000 Q1 2000 Q2 2000 Q3 2000 Q4 2000 Total 2000
LICENSE REVENUE:
Data Integration $13.4 $6.4 $9.5 $12.0 $41.3
Content Management 0.9 2.7 2.3 4.7 10.6
I. Sell 3.4 5.9 3.5 2.0 14.8
--- --- --- --- ----
Total License Revenue 17.7 15.0 15.3 18.7 66.7
SERVICES REVENUE:
Data Integration 8.5 7.6 10.6 10.3 37.0
Content Management 0.3 0.5 1.2 1.6 3.6
I. Sell 3.8 5.4 2.1 3.1 14.4
--- --- --- --- ----
Total Services Revenue 12.6 13.5 13.9 15.0 55.0
TOTAL REVENUE:
Data Integration 21.9 14.0 20.1 22.3 78.3
Content Management 1.2 3.2 3.5 6.3 14.2
I. Sell 7.2 11.3 5.6 5.1 29.2
--- ---- --- --- ----
Total Revenue $30.3 $28.5 $29.2 $33.7 $121.7
===== ===== ===== ===== ======
(1) Revenue history excludes revenue associated with the Informix
database business that was sold to IBM during the third
quarter of 2001.
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