BackWeb Q3 Revenue Rises to $1.75 Million; Cash and Cash Equivalents Total $17.0 Million at September 30th.Business Editors/High-Tech Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 22, 2003 BackWeb An Internet delivery platform from BackWeb Technologies, Inc., San Jose, CA (www.backweb.com). The BackWeb Polite Sync Server pushes content to users such as news, stock quotes and virus and software upgrades. Technologies Ltd. (Nasdaq: BWEB BWEB Broadcast Web BWEB Bacula Web Interface ) Erez Erez (Hebrew: ארז, meaning cedar) is a common Israeli given name. The following people are named Erez:
Promoted to CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Role; Eli Barkat Maintains Position of Chairman Conference Call/Webcast Reminder: Time: Today, Wednesday, Oct. 22nd at 5:00 p.m. EDT Dial-in: 630-395-0019, passcode "BackWeb" Live webcast/replay: www.backweb.com or www.fulldisclosure.com Replay: 402-220-3571 BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading provider of offline Web software, today announced financial results for its third quarter ended September 30, 2003. Separately, the Company announced that Erez Lorber, VP of Worldwide Sales and Business Development, has been promoted to CEO, effective January 1, 2004, replacing Eli Barkat, who will remain as BackWeb's Chairman. BackWeb achieved net revenue of $1.75 million in the third quarter of 2003, compared to 2003 second quarter net revenue of $1.47 million and net revenue of $0.90 million in the third quarter of 2002. License revenue was approximately $0.9 million in the quarter, approximately 2/3rds of which related to the BackWeb(R) ProactivePortal(R) Server (PPS (Packets Per Second) The measurement of activity in a local area network (LAN). In LANs such as Ethernet, Token Ring and FDDI, as well as the Internet, data is broken up and transmitted in packets (frames), each with a source and destination address. ) product. PPS customers in the period included Ondeo Nalco, Pfizer, Lam Research Lam Research Corporation (NASDAQ: LRCX) engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. and Centocor. BackWeb reported a net loss of $2.5 million, or $0.06 per share, for the third quarter of 2003, compared to a 2003 second quarter net loss of $2.6 million, or $0.07 per share, and to a 2002 third quarter net loss of $11.3 million, or $0.29 per share, which included $4.7 million in restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and a $1.8 million write off of intangibles. At the close of the third quarter of 2003, BackWeb had cash and cash equivalents totaling $17.0 million and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Eli Barkat, chairman and CEO of BackWeb Technologies, commented, "We believe our third quarter results reflect a ramp-up in market momentum for offline solutions and our products. We are encouraged to see a rise in qualified customer prospects and in our potential order pipeline, however, we would need to see further improvements in visibility before we would be ready to provide any forward-looking guidance on operating results. "Underscoring the steady growth in interest for offline access and BackWeb, industry analysts and Web infrastructure ISVs are confirming an expanded number of customer inquiries about offline solutions and are increasingly validating val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. our product's solution by pointing customers to BackWeb. We believe that this is mostly due to the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. feedback and strong levels of customer satisfaction we are achieving in our customer deployments, which are increasing each quarter." "These overall improvements are still not enough, but they serve to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our confidence in our positioning and longer-term outlook. It is in this more encouraging setting, combined with the talent and experience of Erez Lorber and the other senior managers in the company, that I feel confident that the timing is right to transition my CEO functions to Erez at year-end 2003." About BackWeb Technologies: BackWeb Technologies is a leading offline Web software company. BackWeb extends the value of technology investments by offering mobile and remote employees offline access to portals, intranets and other web-based applications See Web application. and content. The company's products reduce network costs and improve the productivity of an increasingly mobile workforce. BackWeb addresses the need mobile users have to access and update critical Web applications and documents such as customer forecasts, time sheets, design sheets, service guides, sales tools, pricing, and work orders amongst others when they are working out of the office and disconnected from a network. Offerings include three software packages: BackWeb ProactivePortal Server, Version 3 integrates with portal frameworks, intranets, and websites to extend their access to users who are frequently disconnected from the network or offline. Its new two-way synchronization (1) See synchronous and synchronous transmission. (2) Ensuring that two sets of data are always the same. See data synchronization. (3) Keeping time-of-day clocks in two devices set to the same time. See NTP. capability enables field personnel to both access and publish to the portal while disconnected, creating greater efficiency and improved portal data accuracy and value; BackWeb e-Accelerator(TM) provides a publishing and content management solution for online and offline content access; and BackWeb Foundation(TM) enables Web-based applications to deliver and update software changes, manual updates, etc., with efficient use of network resources. BackWeb Advantages: BackWeb technology includes: patented Polite(R) network-sensitive background content delivery that can deliver any size data without impacting the performance of other network applications; HTML tags A code used in HTML to define a format change or hypertext link. HTML tags are surrounded by the angle brackets < and >.  allowing customers to integrate BackWeb's infrastructure
into their websites and portals without rewriting re·write v. re·wrote , re·writ·ten , re·writ·ing, re·writes v.tr. 1. To write again, especially in a different or improved form; revise. 2. code; and Web protocol and representation that creates an offline end-user experience that is essentially equal to being online. BackWeb Customers and Partners: BackWeb Technologies' customers include ABB n. 1. Among weavers, yarn for the warp. Hence, Noun 1. ABB - an urban hit squad and guerrilla group of the Communist Party in the Philippines; formed in the 1980s , Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Eastman Kodak, Fidelity Investments Fidelity Investments is a group of privately held companies in the financial services industry. It is made up by two independent but closely cooperating companies, Fidelity Management and Research Corporation (FMR Co. , Guidant Corporation, Hewlett-Packard, 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) , M&M Mars, NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. , Owens Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Siemens, and more than one hundred other companies. BackWeb also has reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. alliances with enterprise portal See corporate portal. leaders IBM and SAP. BackWeb is headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. and Ramat-Gan, Israel. For more information, visit www.backweb.com or call (800) 863-0100. (C) 2003 BackWeb Technologies Ltd. All rights reserved. BackWeb, the BackWeb logo ProactivePortal, and Polite are registered trademarks and e-Accelerator and Foundation are trademarks of BackWeb Technologies Ltd. All other trademarks are property of their respective owners. Statements in this news release, which are not purely historical, are 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements of beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include statements regarding: market momentum, order pipeline, customer satisfaction, analyst support, and growing awareness and interest in offline access and BackWeb's products; the increase in customer deployments and that they are increasing each quarter; the value of BackWeb's technology to mobile and remote employees; and the ability of the Company's products to reduce network costs and improve the productivity. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to, a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in general economic conditions or IT industry spending; market acceptance of offline access products; the ability of the Company to develop innovative technology and deliver solutions that meet customer needs; and potential emergence of competitive technologies or competitor companies. In addition, please refer to our periodic filings with the Securities and Exchange Commission, such as Forms 10-K and 10-Q, which contain more detailed descriptions of the risk factors facing our business. BackWeb assumes no obligation to update any of the forward-looking statements in this release.
BackWeb Technologies Ltd.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2003 2002
Unaudited Audited
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 17,003 $ 18,272
Short-term investments -- 5,485
Trade accounts receivable, net 1,822 1,659
Other current assets 1,071 1,523
------------ ------------
Total current assets 19,896 26,939
Long term investments and other assets 347 1,387
Property and equipment, net 418 1,083
------------ ------------
Total assets $ 20,661 $ 29,409
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $ 5,324 $ 5,340
Deferred revenue 1,110 1,265
------------ ------------
Total current liabilities 6,434 6,605
Long-term liabilities 108 283
Total shareholders' equity 14,119 22,521
------------ ------------
Total liabilities and shareholders'
equity $ 20,661 $ 29,409
============ ============
BackWeb Technologies Ltd.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Nine months ended
------------------- -------------------
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
Unaudited Unaudited Unaudited Unaudited
--------- --------- --------- ---------
Revenue:
License $ 911 $ 148 $ 2,379 $ 1,571
Service 843 754 2,367 3,433
--------- --------- --------- ---------
Total revenue 1,754 902 4,746 5,004
Cost of revenue:
License 29 46 102 173
Service 239 813 724 2,791
--------- --------- --------- ---------
Total cost of revenue 268 859 826 2,964
--------- --------- --------- ---------
Gross profit 1,486 43 3,920 2,040
--------- --------- --------- ---------
Operating expenses:
Research and development 1,181 1,438 3,509 4,998
Sales and marketing 1,454 2,505 4,851 8,601
General and administrative 1,297 1,226 3,323 3,797
Restructuring charge -- 4,678 -- 4,678
Write-off of intellectual
property, and other
intangibles -- 1,764 -- 1,764
Amortization of other
intangibles and deferred
stock compensation -- -- -- 1,782
--------- --------- --------- ---------
Total operating
expenses 3,932 11,611 11,683 25,620
--------- --------- --------- ---------
Loss from operations (2,446) (11,568) (7,763) (23,580)
Finance and other income, net (44) 268 27 1,088
Write-down of an equity
investment -- -- (1,000) --
--------- --------- --------- ---------
Net loss $(2,490) $(11,300) $(8,736) $(22,492)
========= ========= ========= =========
Net loss per share $ (0.06) $ (0.29) $ (0.22) $ (0.57)
========= ========= ========= =========
Shares used in computing net
loss per share 40,311 39,512 40,019 39,222
========= ========= ========= =========
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