Ascential Software Corporation Reports Second Quarter Results; Ascential Revenue on Continuing Products Increases 113% from Last Year and 20% Sequentially.Business Editors WESTBORO Westboro can refer to: Places
Ascential(TM) Software Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ASCL ASCL Alternate Smart Card Logon ASCL Advanced Sonobuoy Communications/Command Link ASCL Application Standard Component Library ), the leading provider of Information Asset Management solutions, today announced results for the second quarter ended June June: see month. 30, 2001. As previously announced, Informix A relational database management system (DBMS) from IBM that runs on a variety of Unix platforms. Originally developed by Informix Software, Menlo Park, CA, the product was acquired by IBM in 2001. Corporation sold the assets of its database business, Informix Software, to the IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Corporation (NYSE NYSE See: New York Stock Exchange : IBM) in an all cash transaction for $1.0 billion on July July: see month. 1, 2001. Subsequent to closing of the transaction, Informix Corporation was renamed Ascential Software Corporation and the company's stock is now traded under the Nasdaq ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "ASCL." Revenue for the company, excluding revenue from the database operations purchased by IBM, increased 10% to $36.5 million from $33.3 million in the first quarter ended March 31, 2001, and 28% from $28.5 million in the second quarter of 2000. Excluding the contribution from its i.Sell product offering which was 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: in the first quarter of 2001, revenue increased 20% on a sequential One after the other in some consecutive order such as by name or number. basis from $30.4 million and 113% from $17.1 million in the second quarter of 2000. "We are pleased with our performance in the second quarter, particularly in light of the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that is affecting virtually all software companies," said Peter Gyenes, Chairman and Chief Executive Officer. "We believe our 20% growth from the first quarter on continuing products, in contrast to the declines experienced by other companies in our sector, signifies that we are gaining share of the Information Asset Management market. The growth of our 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) and Media360TM offerings is driven by the growing requirement for corporations today to turn vast amounts of data and content of any kind, both structured and unstructured, 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 , valuable information assets. New strategic alliance agreements that we signed during the second quarter with IBM, SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. , KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Consulting, Inc., and Business Objects are further testimony to the increasing market recognition our products are receiving. "Ascential starts its life as a public company in a position of strength on all fronts," continued Mr. Gyenes, "Our products enjoy a first-class reputation for delivering on their promises, our management team and employees are experienced and talented, and our substantial cash position gives us the financial resources to pursue all our goals including improving our market leadership position in the Information Asset Management arena." Revenue of the former Informix Corporation, including revenue for Ascential Software and Informix Software, was $208.6 million in the second quarter as compared to $240.5 million in the prior year period. Earnings per share for the former Informix Corporation were $0.03 in the second quarter, excluding charges and items related to merger, 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. , amortization of goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . Earnings per share in the prior year period on a comparable basis were also $0.03. Including those items, loss per share was $0.03 in the current period versus earnings per share of $0.02 per share in the prior year period. Ascential Software expects to 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. charges and transition expenses in the third quarter and to a lesser extent in the fourth quarter, mostly related to the sale of the Informix database business to IBM. The aggregate amount of these items is expected to be approximately $10 to $15 million in non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and approximately $45 to $50 million in cash charges (as previously announced). During the second quarter Ascential's management team was further strengthened. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. C. McBride was appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. chief financial officer of Ascential Software Corporation. Previously he held senior financial management positions with Data General, now a division of EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Corp. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Vedda Ved·da also Ved·dah n. pl. Vedda or Ved·das also Veddah or Ved·dahs A member of the earliest people of Sri Lanka, originally forest-dwelling hunters but now almost completely assimilated into the modern joined the company as vice president of worldwide sales, with the responsibility to lead the Company's direct and indirect global sales forces throughout the Americas A·mer·i·cas , the See America. , 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). and Asia.
Mr. Vedda was previously in worldwide sales management Sales Management Role and GoalImportance of sales management is critical for any commercial organization. Expanding business in not possible without increasing sales volumes, and effective sales management goal is to organize sales team work in such a manner that ensures a positions at Mirror-Image 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 and Parametric See parametric modeling, parametric symbol and PTC. Technologies. During the second quarter the Company repurchased 6,060,000 shares at an average price of $4.94 as part of its $350 million repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program. As of June 30, there were 283,105,075 shares outstanding. Selected Quarterly Highlights During the second quarter of 2001, Ascential Software extended its reach into the Information Asset Management market, establishing and expanding key strategic partnerships, signing new customers, and strengthening its product portfolio. Highlights of the quarter include: - Ninety-four new customers worldwide, including: Shell Oil, Navigation Canada, State of New Jersey, BASF, Amcor, Nestle, Experian, State of Florida, Eye2Buy Technology, Dominion Resources, Lotto Quebec and Royal & Sun Alliance PLC, among others. Experian, State of New Jersey and Sherwin Williams add to the list of organizations that have standardized on DataStage as their enterprise Information Asset Management platform. These organizations join the Company's existing customer list, which includes American Express Company, Anheuser-Busch, AT&T, BBC Worldwide, Boeing Company, Canadian Broadcasting Corporation, Cisco Systems, CNN, Deutsche Bank, General Motors, GlaxoSmithKline, Hartford Life, Kraft Foods, Mobil Oil, Northwest Airlines, Novo Nordisk, PepsiCo, and Pfizer Inc. - Worldwide reseller agreements with IBM, SAP, and Business Objects - IBM, under a strategic alliance, will sell and market Ascential's DataStage and Media360 products as preferred complementary solution offerings in the data warehouse and media markets, respectively. - SAP AG, under a three-year strategic global reseller agreement, will resell DataStage as the data integration platform for all SAP Business Intelligence customers. In support of this partnership Ascential also introduced a specialized version of DataStage targeted for SAP environments. - Business Objects will integrate and resell DataStage with the BUSINESSOBJECTS(TM) Application Foundation, its new analytic applications framework. - Expanding the penetration of Media360 in non-broadcast markets with sales to ACI Glass Packaging, a Division of Owens Illinois, Universitet 1 Bergen (Norway) and the U.S. Marshals Service. The company also saw continued adoption of Media360 in its traditional market segments with sales to Promovisa, Williams Communications, and Eye2Buy Technology, among others. - Delivering several new modules for Media360 - including the Desktop Publishing Module v2.0, Web Publishing Module v2.0 and Image Module v2.0 - that target news, publishing and image-intensive organizations. - Signing a strategic partnership agreement with KPMG Consulting, Inc. and launching a joint marketing initiative to deliver Media360 to clients in KPMG's Digital Content Management practice. - Delivering new versions of Ascential's industry leading data integration (DataStage XE v4.2), metadata management (MetaStage v2.1) and data quality (Quality Manager v4.8) tools, with expanded features to integrate business intelligence environments with corporate portals, support very large warehouse environments, and extend support for international languages. - Continuing strong adoption of Ascential's data integration products for high scalability IBM mainframe data warehouse environments. New customers purchasing DataStage/390 include EDS, KLV (Karlsruher Lebensversicherung), Dominion Resources, and the State of New Jersey. - Expanding the list of customers using Ascential solutions to integrate data from SAP with their overall corporate information environment by signing Shell Oil, Samsung, and SC Johnson. Outlook "Although our business continues to be characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by a strong pipeline and high level of customer activity, a discernable Adj. 1. discernable - perceptible by the senses or intellect; "things happen in the earth and sky with no discernible cause"; "the newspaper reports no discernible progress in the negotiations"; "the skyline is easily discernible even at a distance of several slowdown in IT spending makes us cautious looking out over the near term," commented Pete Fiore, President of Ascential Software. "As a result we are projecting that third quarter revenue will be approximately flat with that of the second quarter. During the fourth quarter, we expect our alliances with IBM, SAP, and Business Objects to begin to gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. , contributing to solid sequential growth over the third quarter revenue level. This would represent revenue growth for this year of about 25%, or approximately 60% excluding discontinued i.Sell revenues. Mr. Fiore continued, "Our worldwide sales and services organization, complemented and supported by our strategic alliances, positions us very well to successfully exploit opportunities in this difficult environment and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. any cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. upturn in demand. We continue to strengthen our readiness, and expect to see significant improvement in business when IT spending again turns up. Our business model is structured to achieve sustainable operating profitability, before charges, at a quarterly revenue level of approximately $48 million, a level we expect to achieve in the first quarter of 2002. "Based on indications from our customers, partners and prospects we are planning our business around revenue growth of approximately 40% in 2002. Next year's growth, however, could vary over a wide range due to the timing of an anticipated IT spending turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. , and we are positioned to support higher levels of growth if it materializes. This keeps us on track to achieve our long term target model of 17% to 25% operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , based on revenue levels anticipated by the latter part of 2003," concluded Mr. Fiore. 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 or by calling 402-530-7976 from two hours after the call ends until 5:00 p.m. on July 31, 2001. 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 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, 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 http://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. for Q-2 Earnings Announcement 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: The Company is gaining share of the Information Asset Management market. The growth of DataStage and Media360 is driven by the growing requirement for corporations today to turn vast amounts of data and content of any kind, both structured and unstructured, into reusable, valuable information assets. New strategic alliance agreements that the Company signed during the second quarter with IBM, SAP, KPMG, and Business Objects are further testimony to the increasing market recognition that the Company's products is receiving. The Company's substantial cash position gives it the financial resources to pursue all its goals including improving its market leadership position in the Information Asset Management arena. The aggregate amount of charges and transition expenses related to the sale of the database business is expected to be approximately $10 million to $15 million in non-cash charges and approximately $45 million to $50 million in cash charges. The Company's business continues to be characterized by a strong pipeline and high level of customer activity. Third quarter revenue will be approximately flat with that of the second quarter. During the fourth quarter, the Company's alliances with IBM, SAP, and Business Objects will begin to gain traction and will contribute to solid sequential growth over the third quarter revenue level. Revenue growth for this year is expected to be about 25%, or approximately 60% excluding discontinued i.Sell revenues. With the benefit of interest income that the Company will earn on its substantial cash balance, it could achieve positive earnings per share in the fourth quarter of 2001. With profitability in the fourth quarter, the Company also would be cash flow positive from operations in the fourth quarter of 2001. Worldwide sales and services organization, complemented and supported by the Company's strategic alliances, positions the Company very well successfully to exploit opportunities in this difficult environment and capitalize on any cyclical upturn in demand. The Company continues to strengthen its readiness, and expects to see significant improvement in business when IT spending again turns up. The Company's business model is structured to achieve sustainable operating profitability before charges and extraordinary items at a quarterly revenue level of approximately $50 million, a level the Company expects to achieve in the first quarter of 2002. Based on indications from the Company's customers, partners and prospects, the Company is planning its business around 35% revenue growth in 2002. The Company's growth next year's growth, however, could vary over a wide range due to the timing of an anticipated IT spending turnaround, and the Company is positioned to support higher levels of growth if it materializes. The Company is on track to achieve its 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. target model of 17% to 25% operating margins. IBM, under a strategic alliance, will sell and market Ascential's DataStage and Media360 as preferred complementary solution offerings in the data warehouse and media markets, respectively. SAP AG (company) SAP AG - (Systeme, Anwendungen, Produkte in der Datenverarbeitung - German for "Systems, Applications and Products in Data Processing") A company from Germany that sells the leading suite of client-server business software. The US branch is called SAP America. , under a three-year strategic global reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. agreement, will 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. DataStage as the data integration platform for all SAP BI customers. Business Objects will integrate and resell DataStage with the 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 Application Foundation, its new analytic applications Analytic Applications are a type of business application software, used to measure and improve the performance of business operations. More specifically, Analytic Applications are a type of Business Intelligence solution. framework. 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 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. 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 first quarter of fiscal year 2001. (c)2001 Ascential Software. All rights reserved. Ascential, DataStage and Media360 are trademarks of Ascential Software Corporation or its affiliates and may be registered in other jurisdictions.
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
---- ---- ---- ----
NET REVENUES
Licenses $87,204 $101,536 $184,404 $220,815
Services 121,394 138,958 241,251 270,563
------- ------- ------- -------
208,598 240,494 425,655 491,378
COSTS AND EXPENSES
Cost of software
distribution 12,379 12,428 25,441 24,273
Cost of services 43,953 47,957 85,428 96,593
Sales and
marketing 81,255 107,414 163,325 205,617
Research and
development 33,949 40,701 67,414 81,028
General and
administrative 28,112 25,570 54,637 45,814
------ ------ ------ ------
199,648 234,070 396,245 453,325
Operating income 8,950 6,424 29,410 38,053
----- ----- ------ ------
OTHER INCOME (EXPENSE)
----
Interest income 2,173 3,808 4,814 7,110
Interest expense (54) (137) (88) (308)
Other, net 320 924 1,247 4,437
--- --- ----- -----
INCOME BEFORE INCOME
TAXES,
excluding charges
and amortization
of purchased
intangibles 11,389 11,019 35,383 49,292
Income taxes 1,525 1,255 4,402 8,018
----- ----- ----- -----
INCOME, excluding
charges and
amortization of
purchased
intangibles $9,864 $9,764 $30,981 $41,274
Preferred stock
dividend -- (89) -- (176)
-- ---- -- -----
INCOME APPLICABLE TO
COMMON STOCKHOLDERS,
excluding charges
and amortization
of purchased
intangibles $9,864 $9,675 $30,981 $41,098
====== ====== ======= =======
CHARGES AND AMORTIZATION
OF PURCHASED INTANGIBLES
----
Merger, realignment
and other charges 1,389 -- 5,607 50,034
IBM transaction
costs 5,597 -- 5,597 --
Impairment of
long-term
investments 9,308 -- 9,308 --
Amortization of
purchased
intangibles 2,849 4,746 5,699 9,205
----- ----- ----- -----
NET INCOME (LOSS)
APPLICABLE TO
COMMON
STOCKHOLDERS $(9,279) $4,929 $4,770 $(18,141)
======== ====== ====== =========
INCOME PER COMMON
SHARE,
excluding
charges and
amortization
of purchased
intangibles $0.03 $0.03 $0.10 $0.13
===== ===== ===== =====
SHARES USED IN PER
SHARE CALCULATION,
excluding
charges 295,851 301,947 297,775 305,026
======= ======= ======= =======
NET INCOME (LOSS)
PER COMMON SHARE
Basic $(0.03) $0.02 $0.02 $(0.06)
======= ===== ===== =======
Diluted $(0.03) $0.02 $0.02 $(0.06)
======= ===== ===== =======
SHARES USED IN PER
SHARE CALCULATIONS
Basic 286,018 286,967 286,613 285,293
======= ======= ======= =======
Diluted 286,018 301,947 297,775 285,293
======= ======= ======= =======
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS June 30, 2001 December 31, 2000
CURRENT ASSETS
Cash and cash equivalents $141,907 $128,420
Short-term investments 79,648 88,541
Accounts receivable,
net 198,280 235,429
Other current assets 20,120 17,330
------ ------
Total current assets 439,955 469,720
PROPERTY AND EQUIPMENT, net 68,808 67,617
SOFTWARE COSTS, net 37,664 41,444
LONG-TERM INVESTMENTS 5,765 11,185
INTANGIBLE ASSETS, net 42,550 48,258
OTHER ASSETS 17,295 17,657
------ ------
Total Assets $612,037 $655,881
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $23,508 $27,881
Accrued expenses 40,722 38,922
Accrued employee compensation 52,380 66,167
Income taxes payable 22,231 23,139
Deferred revenue 148,516 141,735
Advances from customers 8,547 10,492
Accrued merger and
restructuring costs 9,056 28,210
Other current liabilities 340 327
Total current liabilities 305,300 336,973
OTHER NON-CURRENT LIABILITIES 304 787
STOCKHOLDERS' EQUITY
Convertible preferred stock -- --
Common stock; par value 2,831 2,804
Shares to be issued for litigation
settlement -- 61,228
Additional paid-in capital 674,444 632,866
Accumulated deficit (354,363) (359,132)
Accumulated other comprehensive
loss (16,479) (19,645)
-------- --------
Total stockholders' equity 306,433 318,121
------- -------
Total Liabilities and
Stockholders' Equity $612,037 $655,881
======== ========
ASCENTIAL SOFTWARE
UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS(a)
(In thousands)
Three Three Long Term Target
Months Months Model
Ended Ended % of Revenue
March 31, June, 30,
2001 2001
-------- ------ --------------
NET REVENUES
Licenses $16,848 $18,372 57-60%
Services 16,404 18,163 40-43%
------ ------ ------
33,252 36,535 100%
COSTS AND EXPENSES
Cost of software
distribution 4,890 3,352
Cost of services 11,441 12,847
------ ------
16,331 16,199
Gross Profit 16,921 20,336
Gross Margin 51% 56% 75-78%
Sales and marketing 26,357 24,765
Research and development 7,357 7,827
General and administrative 3,160 5,343
----- -----
36,874 37,935
Operating expenses as a %
of revenue 111% 104% 53-58%
Operating income before
amortization of purchased
intangibles (19,953) (17,599)
Operating margin (60%) (48%) 17-25%
Amortization of purchased
intangibles 1,561 1,561
----- -----
Operating income including
amortization of purchased
intangibles $(21,514) $(19,160)
========= =========
(a) Adjusted to exclude the revenue and expenses of Informix
Software, the database business.
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