Ascential Software Corporation Reports Third Quarter Results; Revenue on Continuing Products Increases 14% from Last Year.Business Editors WESTBORO Westboro can refer to: Places
Ascential 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 (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 third quarter ended September September: see month. 30, 2001. Revenue for Ascential Software's 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), Media360TM and related product and service offerings was $27.0 million in the third quarter, an increase of 14% from $23.6 million in the third quarter of 2000. Revenue for these offerings for the nine months ended September 30, 2001 was $93.9 million, an increase of 47% over the $63.8 million in the first nine months of 2000. "We are encouraged by the continuing progress we are making, particularly in light of the difficult economic environment," said Peter Gyenes, Chairman and Chief Executive Officer of Ascential Software. "This quarter we continued to deliver important product enhancements to our DataStage(R) and Media360TM offerings, we added significant new customers while expanding business with existing customers, and meeting key deliverables to our strategic partners. Despite experiencing a lower close rate this quarter, as customers delayed IT spending, our sales pipeline continued to strengthen. Customers are clearly focused on their requirement 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. When conditions do improve, we believe our business will benefit significantly." Loss per share for Ascential Software Corporation on a 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 basis was $0.08 in the third quarter, excluding non-recurring charges and 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. totaling $9.3 million. Including these items, loss per share in the third quarter was $0.11. Sale of the company's database business to 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) was completed early in the quarter. The pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain on that sale, net of the cost of assets sold, and $57.6 million in transaction and transition charges, was $850.1 million. In the third quarter the Company repurchased 20,790,000 shares as part of its ongoing $350 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program. Cumulatively, through September 30, 2001, the Company had purchased a total of 26,850,000 shares for an aggregate amount of $117.6 million. As of September 30, there were 263,179,000 shares outstanding. Commenting on the 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, Mr. Gyenes said, "We believe our stock price is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. relative to the potential of this company, and plan to continue buying back our stock under this program." As of September 30, 2001 the company had $952.4 million in cash 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 the proceeds from the sale of the database business, costs and expenses related to that sale, 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 During the quarter, Ascential Software continued its momentum in the Information Asset Management market, with significant new customer acquisitions, by establishing and strengthening key strategic partnerships, and with enhancements to its data integration and digital asset management solutions. Highlights of the quarter include: - Continuing adoption of the company's IAM solutions, with significant sales to new and existing customers: - 70 new customers, including: Household Finance, National Semiconductor, Prudential Casualty Insurance, TaylorMade, McKesson HBOC, Arla Foods, CA Apis, NSTAR, Medstat, Physicians Mutual, and the United States National Institutes of Health. These organizations join the Company's existing customers, including Fortune 1000 companies such as American Express Company, AT&T, Boeing Company, Cisco Systems, Exxon Mobil, General Motors, GlaxoSmithKline and PepsiCo. - Additional sales to 78 current customers, including: Chrysler, Consumer Gas, Kinko's, Lufthansa, Louis Vuitton Moet Hennessey, Michelin, NTT DoCoMo, Pfizer, Philip Morris, Reuters, Royal Sun Alliance, Shell and Union Gas. - Delivering on key milestones in the Company's strategic worldwide partnership with IBM, including the introduction of two versions of DataStage designed specifically for customers of IBM's DB2 Warehouse Manager. This is in addition to IBM's adoption of Media360 as part of their preferred solution for digital asset management. - Expanding strategic partnerships beyond those previously announced 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. and Business Objects, to include: - Hewlett-Packard See HP. Hewlett-Packard - (HP) Hewlett-Packard designs, manufactures and services electronic products and systems for measurement, computation and communications. The company's products and services are used in industry, business, engineering, science, medicine and , under a worldwide 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. Ascential's complete family of DataStage data integration products to its global HP-UX HP's version of Unix that runs on its 9000 family. It is based on SVID and incorporates features from BSD Unix along with several HP innovations. (operating system) HP-UX - The version of Unix running on Hewlett-Packard workstations. and Intel IA-32-based server customers as part of its business intelligence initiative. - Crystal Decisions and Ascential entered into a marketing partnership to provide customers with a complete 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. business intelligence solution utilizing Ascential's DataStage(TM) data integration solution and Crystal Decision's enterprise reporting With the dramatic expansion of information technology, and the desire for increased competitiveness in corporations, there has been an increase in the use of computing power to produce unified reports which join different views of the enterprise in one place. solution to allow customers to integrate data from virtually any source. - Extending the Company's IAM product portfolio with significant enhancements to its DataStage and Media360 solutions. As an essential component of a company's business integration strategy, these solutions allow companies to effectively leverage valuable business information, collaborate with strategic partners and suppliers, and develop lasting profitable customer relationships. - Expanded 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 Ascential's data integration products with extensive new functionality for use in decision support, enterprise applications, ebusiness See e-business. systems, and CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. 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. . This added functionality led to new business in high-scalability mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, environments, with new sales of DataStage XE/390 to Arla Foods Arla Foods is a cooperative based in Århus, Denmark and the largest producer of dairy products in Scandinavia. Arla was formed as the result of a merger between the Swedish dairy cooperative Arla and the Danish dairy company MD Foods on 17 April 2000. , CA Apis Household Finance, McKesson McKesson Corporation (NYSE: MCK) is a large United States-based corporation specializing in the distribution of health care systems, medical supplies and pharmaceutical products. , MedStat, Pantex, and Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy. Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. . - New release of Media360 with enhanced workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. , real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. video and audio access, and improved performance, integration and interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. features. Added functionality led to continued penetration The successful unauthorized breach of a security perimeter. See penetration test. of the Media360 digital asset management solution in broadcast and newsroom settings, as well as in enterprise environments with sales to Allied Networks GBR GBR Great Britain GBR United Kingdom (ISO Country code) GBR Great Barrier Reef GBR Gesellschaft Bürgerlichen Rechts GBR Global Broadband Roaming GBR Ground-Based Radar GBR Great Bear Rainforest , Computronics and 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. National Institutes of Health. Outlook "We do expect some improvement in fourth quarter revenue, in the range of 5% - 15% above third quarter revenue as our alliances with IBM, SAP, Business Objects and others 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. . We maintain a conservative outlook as we see no current evidence of economic improvement in the short term," commented Pete Fiore, President of Ascential Software. "Looking to next year, with continued product advances, further momentum with our partners and improved organizational capabilities, we are projecting sequential One after the other in some consecutive order such as by name or number. growth in revenues each quarter of 2002. Should the economic environment improve by the second half of 2002, we would expect to reach operating profitability by the end of the year at a quarterly revenue level of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $47 million. If economic conditions do not improve within that timeframe, we will take appropriate additional actions, paced by revenue levels designed to achieve profitability." Mr. Fiore continued, "The fundamentals of our company continue to strengthen. New product offerings and the further development of our worldwide sales and services organization, complemented and supported by a growing number of strategic alliances, are in fact generating momentum that will allow us to 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 upturn in demand. Therefore, we expect a significant improvement in business when IT spending again turns up." Mr. Gyenes concluded, "While our near term objective remains the attainment of sustainable profitability, we are balancing the demands of this objective with the unique opportunity we currently have to establish a deeper and broader 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 Information Asset Management market. 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 infrastructure software such as ours, that delivers 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 this company. As we continue to develop our core data integration capabilities and acquire additional technology and scale, 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 platform will be a 'must-have' component of 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 will bring 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. shareholder value to our investors." 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 800-496-9158 from two hours after the call ends until 5:00 p.m. on October October: see month. 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 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 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. : 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's sales pipeline will continue to strengthen; that if general economic conditions improve, the business of the Company will benefit significantly; that the value of the Company's stock price is undervalued relative to its potential; 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 significant new customer acquisitions, the strengthening of key strategic partnerships and enhancements to the Company's data integration and digital asset management solutions will cause the Company to continue its momentum in the Information Asset Management market; that the Company's strategic relationship with Hewlett-Packard will result in sales of Company's Data Stage products to HP customers as part of its business intelligence initiative; that the Company's partnership with Crystal Decisions utilizing certain offerings of both companies, will provide customers with a complete end-to-end business intelligence solution that will allow customers to integrate data from virtually any source; that enhancements to the DataStage and Media360 solutions will be significant, will perform as expected, are an essential component of a company's business integration strategy and will allow companies to effectively leverage valuable business information, collaborate with strategic partners and suppliers, and develop lasting profitable customer relationships; that fourth quarter 2001 revenue will be in the range of 5% to 15% above third quarter 2001 revenue as the Company's alliances with IBM, SAP Business Objects and others will gain traction; that the Company will make continued product advances, experience further momentum with partners and improved organizational capabilities in 2002 and that such advances, momentum and improvements will generate sequential revenue growth in each quarter of 2002; that, should the economic environment improve by the second half of 2002, the Company can expect to reach operating profitability by the end of 2002 at a quarterly revenue level of approximately $47 million; that the Company will reach such a quarterly revenue level by the end of 2002; that, if economic conditions do not improve, the Company will be able to take appropriate additional actions, paced by revenue levels, designed to achieve profitability; that new product offerings, further development of the Company's sales and services organization and new strategic alliances will generate momentum and that such momentum will allow the Company to capitalize on any upturn in demand; that the Company will experience a significant improvement in business when IT spending turns up; that IT spending will turn up; that the Company currently has a unique opportunity to establish a deeper and broader footprint in the IAM market; that the importance of solutions that allow companies to gain greater efficiencies and insight into their operations will continue to elevate the importance of infrastructure software such as that offered by the Company and that the Company's software will deliver a significant and demonstrable return on investment to all such companies; that the Company has the financial resources to invest in growth, organically and through strategic acquisitions, and to significantly expand the revenues, market impact and profitability of the Company; that the Company will be able to continue to develop its core data integration capabilities and to acquire additional technology and scale; that the Company will be able to build the industry's best and most complete infrastructure platform for managing enterprise information assets; that such a platform will be a must have component of customers' information backbone and will bring long-term shareholder value to investors; and that the Company will continue to aggressively repurchase its shares. 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 second 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) 2001. 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 and trade names 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 September 30, 2001
Database
Pro Forma Transaction/
Continuing Transition Total
Operations (2) Consolidated
NET REVENUES
Licenses $12,888 $135 $13,023
Services 14,132 1,350 15,482
------- ------- -------
27,020 1,485 28,505
COSTS AND EXPENSES
Cost of software 3,421 781 4,202
Cost of services 11,221 1,077 12,298
Sales and marketing 21,319 1,995 23,314
Research and development 6,033 508 6,541
General and administrative 10,697 3,432 14,129
------- ------- -------
52,691 7,793 60,484
Operating loss (25,671) (6,308) (31,979)
------- ------- -------
OTHER INCOME (EXPENSE)
Interest income 11,076 - 11,076
Interest expense (40) - (40)
Other, net (3,380) - (3,380)
------- ------- -------
LOSS BEFORE INCOME TAXES, excluding
charges, net gain on sale of
database business and
amortization of purchased
intangibles (18,015) (6,308) (24,323)
Income taxes 3,117 - 3,117
------- ------- -------
LOSS APPLICABLE TO COMMON STOCKHOLDERS, excluding
charges, net gain on sale
of database business and
amortization of purchased
intangibles $(21,132) $(6,308) $(27,440)
======= ======= =======
CHARGES, NET GAIN ON SALE OF DATABASE BUSINESS AND AMORTIZATION OF
PURCHASED INTANGIBLES
Gain on sale of database
business - 907,629 907,629
Income taxes on sale of
database business - (161,952) (161,952)
IBM transaction and
related costs - (57,559) (57,559)
Merger, realignment and
other charges (6,826) - (6,826)
Impairment of long term
investments (882) - (882)
Amortization of purchased
intangibles (1,545) - (1,545)
------- ------- -------
NET INCOME (LOSS)
APPLICABLE TO COMMON
STOCKHOLDERS $(30,385) $681,810 $651,425
======= ======= =======
LOSS PER COMMON SHARE,
Excluding charges, net gain
on sale of database business
and amortization of
purchased intangibles $(0.08) $(0.10)
======= =======
NET INCOME (LOSS) PER COMMON SHARE
Basic $(0.11) $2.34
======= =======
Diluted $(0.11) $2.28
======= =======
SHARES USED IN PER SHARE CALCULATIONS
Excluding charges 278,345 278,345
======= =======
Basic 278,345 278,345
======= =======
Diluted 278,345 286,024
======= =======
(1) See Comparative Statements of Operations on a subsequent page
of this release.
(2) Operating results in this column include revenue and expenses
associated with the operations of subsidiaries for which the
sale to IBM did not close until August 1, 2001 and costs
associated with this sale.
ASCENTIAL SOFTWARE
SELECTED UNAUDITED PRO FORMA FINANCIAL HIGHLIGHTS
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2001
---- ----
NET REVENUES
Licenses $12,888 $48,108
Services 14,132 48,699
--------- ---------
27,020 96,807
COSTS AND EXPENSES
Cost of software 3,421 11,663
Cost of services 11,221 35,509
Sales and marketing 21,319 72,441
Research and development 6,033 21,217
General and administrative 10,697 19,200
--------- ---------
52,691 160,030
Operating loss excluding
amortization of purchased
intangibles (25,671) (63,223)
Amortization of purchased
intangibles 1,545 4,667
--------- ---------
Operating loss including
amortization of purchased
intangibles $(27,216) $(67,890)
========= =========
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS September 30, 2001 December 31, 2000
------------------ -----------------
CURRENT ASSETS
Cash and cash equivalents $694,038 $128,420
Short-term investments 258,429 88,541
Accounts receivable, net 33,075 235,429
Deferred income taxes 13,881 --
Other current assets 25,064 17,330
---------- --------
Total current assets 1,024,487 469,720
PROPERTY AND EQUIPMENT, net 12,589 67,617
SOFTWARE COSTS, net 15,075 41,444
LONG-TERM INVESTMENTS 3,351 11,185
INTANGIBLE ASSETS, net 33,262 48,258
OTHER ASSETS 115,768 17,657
---------- --------
Total Assets $1,204,532 $655,881
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $11,369 $27,881
Accrued expenses 57,792 38,922
Accrued employee compensation 25,472 66,167
Income taxes payable 163,304 23,139
Deferred revenue 11,352 141,735
Advances from customers 3,584 10,492
Accrued merger, realignment
and other charges 24,795 28,210
Other current liabilities 364 427
---------- --------
Total current liabilities 298,032 336,973
OTHER NON-CURRENT LIABILITIES 103 787
STOCKHOLDERS' EQUITY
Convertible preferred stock -- --
Common stock; par value 2,632 2,804
Shares to be issued for
litigation settlement -- 61,228
Additional paid-in capital 620,502 632,866
Retained earnings
(accumulated deficit) 297,062 (359,132)
Accumulated other
comprehensive loss (13,799) (19,645)
---------- --------
Total stockholders' equity 906,397 318,121
---------- --------
Total Liabilities and
Stockholders' Equity $1,204,532 $655,881
========== ========
ASCENTIAL SOFTWARE CORPORATION
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
---- ---- ---- ----
NET REVENUES
Licenses $13,023 $82,441 $197,428 $303,256
Services 15,482 128,664 256,733 399,227
------- ------- -------- --------
28,505 211,105 454,161 702,483
COSTS AND EXPENSES
Cost of software 4,202 10,437 29,643 34,710
Cost of services 12,298 48,128 97,726 144,720
Sales and marketing 23,314 99,358 186,641 304,975
Research and development 6,541 37,206 73,956 118,134
General and administrative 14,129 29,637 68,766 75,451
------- ------- -------- --------
60,484 224,766 456,732 677,990
Operating income (loss) (31,979) (13,661) (2,571) 24,493
------- ------- -------- --------
OTHER INCOME (EXPENSE)
Interest income 11,076 3,587 15,890 10,697
Interest expense (40) (70) (128) (378)
Other, net (3,380) (213) (2,133) 4,224
------- ------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES,
excluding charges, net gain on
sale of database business and
amortization of purchased
intangibles (24,323) (10,357) 11,058 39,036
Income taxes 3,117 4,000 7,519 12,018
------- ------- -------- --------
INCOME (LOSS), excluding charges,
net gain on sale of database
business and amortization of
purchased intangibles (27,440) (14,357) 3,539 27,018
Preferred stock dividend -- (15) -- (191)
------- ------- -------- --------
INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS, excluding charges,
net gain on sale of database
business and amortization of
purchased intangibles $(27,440) $(14,372) $ 3,539 $26,827
======= ======= ======== ========
CHARGES, NET GAIN ON SALE OF DATABASE BUSINESS AND AMORTIZATION OF
PURCHASED INTANGIBLES
Gain on sale of
database business 907,629 -- 907,629 --
Income taxes on gain on
sale of database business(161,952) -- (161,952) --
IBM transaction and
related costs (57,559) -- (63,156) --
Merger, realignment and
other charges (6,826) (62,136) (12,432) (112,170)
Impairment of long term
investments (882) -- (10,190) --
Amortization of
purchased intangibles (1,545) (4,134) (7,243) (13,440)
------- ------- -------- --------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $651,425 $(80,642) $656,195 $(98,783)
======= ======= ======== ========
INCOME (LOSS) PER COMMON SHARE,
excluding charges, net gain on
sale of database business and
amortization of
purchased intangibles $(0.10) $(0.05) $.01 $0.09
======= ======= ======== ========
NET INCOME (LOSS) PER COMMON SHARE
Basic $2.34 $(0.28) $2.31 $(0.35)
======= ======= ======== ========
Diluted $2.28 $(0.28) $2.24 $(0.35)
======= ======= ======== ========
SHARES USED IN PER SHARE CALCULATIONS
Excluding Charges 278,345 288,189 293,538 286,265
======= ======= ======== ========
Basic 278,345 288,189 283,844 286,265
======= ======= ======== ========
Diluted 286,024 288,189 293,538 286,265
======= ======= ======== ========
Note: Includes results for Informix database business sold to IBM.
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