CORRECTING and REPLACING Witness Systems Announces Record Quarterly Results.Business Editors/High-Tech Writers CORRECTION...by Witness Systems ATLANTA--(BUSINESS WIRE)--Jan. 22, 2004 In BW5837 issued Jan. 22, 2004: In the Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , figures in the column for December December: see month. 31, 2003 need to be replaced. The corrected release reads: WITNESS SYSTEMS ANNOUNCES RECORD QUARTERLY RESULTS Increases Q4 revenue 95 percent over prior year; Achieves record core earnings Witness Systems (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 : WITS), a leading global provider of performance optimization software Free and Open Source software
Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), the loss in the fourth quarter was ($2.0 million), or ($0.09) per share. "We saw strength across the business during the quarter, driving higher than expected sales and revenue for the company," said Dave Gould, chief executive officer for Witness Systems. "We're we're Contraction of we are. we're we are delivering value to our customers with innovative software that integrates the best technology from the 2003 combination of Witness Systems and Eyretel, as well as our new actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action. An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. learning capabilities. These results are driven by our proven ability to help organizations optimize optimize - optimisation the performance of their workforce and provide a rapid return on investment." Core Results from Operations The company's internal reporting and performance measurement programs are established on a basis that excludes certain non-cash and acquisition-related charges required under GAAP. The company believes these adjusted results are a better representation of operating performance. Adjusted (core) results from operations are considered supplemental information and are not intended to be a substitute for the financial results reported under GAAP. Specifically, the adjustments and their impact on reported GAAP revenue and earnings are as follows:
Three Months Ended Year Ended
December 31, 2003 December 31, 2003
----------------- -----------------
Revenue EPS Revenue EPS
-------- ------ ------- ------
(in thousands, except per share data)
GAAP results $33,586 ($0.09) $108,037 ($0.94)
Amortization of intangible assets
included in cost of goods sold - 0.07 - 0.19
Amortization of intangible assets
included in operating expenses - 0.02 - 0.08
Merger related and restructuring
costs - 0.07 - 0.36
Acquired in-process research and
development charges - - - 0.36
Difference between fair value and
contract value of Eyretel
maintenance(1) 426 0.02 2,089 0.09
Difference between income taxes
and pro forma tax expense at 36% - (0.03) - (0.04)
------------------------------------
Adjusted results (non-GAAP)(2) $34,012 $0.06 $110,126 $0.10
====================================
(1) GAAP requires maintenance contracts existing at the purchase date
to be reduced to fair value. Fair value is defined as cost plus a
reasonable profit. Contract value represents the amount customers
have paid, and will continue to pay as their maintenance contracts
renew.
(2) Adjusted earnings per share are based on diluted shares
outstanding of 24.9 million for the three months ended December 31,
2003 and 23.3 million for the year ended December 31, 2003.
Positive Business Fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point During 2003, Witness Systems added 210 new customers, many of which licensed the company's industry-leading Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (VoIP) software, eQuality(R) ContactStore for IP. "We continue to lead in this fast growing market, leveraging channels and partnerships with industry leaders," said Gould. "In addition, our new strategic relationship with Avaya Avaya Inc. (NYSE: AV) is a S&P 500, global telecommunications company which specializes in enterprise telephony and call center technology. Formerly the Business Communications unit of Lucent Technologies, it was spun off on October 1, 2000. opens a significant distribution channel that we believe will drive future new customer growth." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gould, the company continues to extend its leadership position in the global workforce optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. market for customer contact centers. "Our revenue was approximately $6 million higher than in the third quarter, we have significantly improved visibility and enter 2004 with a strong sales pipeline. Further, we are beginning to leverage this revenue growth into meaningful operating profitability and cash flow. Our balance sheet remains strong with approximately $41 million in cash and no debt." Financial Outlook for 2004 The company currently expects to achieve first quarter adjusted revenue in the range of $28 to $30 million and adjusted earnings of approximately $0.04 to $0.06 per share. At this time, remaining cautious regarding the macro IT spending environment, the company is not changing the outlook for 2004, and thus anticipates adjusted revenue in the range of $118 million to $123 million and adjusted earnings of $0.25 to $0.30 per share. The company does not provide guidance on a GAAP basis because, as previously discussed, it establishes internal reporting and performance management programs based on adjusted results. Earnings Announcement Conference Call Details Witness Systems will conduct a live broadcast of the company's quarterly conference call that will be available online at www.streetevents.com or www.witness.com beginning at 5 p.m. ET on Thursday Thursday: see week. , January January: see month. 22, 2004. The online replay will be available at approximately 7 p.m. ET. About Witness Systems Witness Systems (NASDAQ: WITS) provides the contact center industry's first integrated performance optimization software suite to help global enterprises capture customer intelligence and optimize workforce performance. Comprised of business-driven 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. full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full customer interaction recording, performance analysis and e-learning (Electronic-LEARNING) An umbrella term for providing computer instruction (courseware) online over the public Internet, private distance learning networks or inhouse via an intranet. See CBT. management applications, the browser-based eQuality(R) solution is designed to enhance the quality of customer contacts across multiple communications media, including the telephone, e-mail and Web. The closed-loop suite enables companies to record, evaluate, analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. and learn from customer contacts and the touch points they use to develop staff, generate revenue, reduce costs, and achieve greater customer retention and loyalty - all by sharing captured customer and business intelligence throughout the entire organization. An integrated business consulting, implementation and training methodology provides services to support an effective, rapid deployment of eQuality that enables organizations to maximize their return on investment. For additional information about Witness Systems and its eQuality software suite, visit www.witness.com. Cautionary Note Regarding 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. Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Investors are cautioned that statements in this release include historical and forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Witness Systems, as well as non-GAAP financial information. Numerous factors affect our operating results and may cause actual results to differ materially from those indicated in this or any other disclosure, and there can be no assurance that future results will meet expectations. Specific risks include, but are not limited to, fluctuations in customer demand, timing of orders for the company's products and services, market acceptance of products and the effect of macro-economic trends on the company's business. There are also risks associated with rapid technology changes, foreign currency fluctuations, and the management of our business. During the first quarter of 2003, we completed the acquisition of Eyretel. There are specific risks related to acquisitions. Our ability to conduct acquisitions and properly manage the integration is unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy . If we fail to properly execute acquisitions, it may seriously harm our business and operating results. In making acquisitions, we face a number of risks including identifying suitable acquisition candidates, performing adequate due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , identifying potential liabilities, forecasting the financial impact of an acquisition, assessing the impact of non-US GAAP accounting on operating results, effectively integrating the acquired company to achieve the expected synergies and negotiating acceptable terms for acquisitions. Additional risks include, but are not limited to the potential distraction Distraction Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] of management, diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of resources, business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. , the ability to retain and motivate key employees of the acquired company, maintaining good relations with the customers of the acquired company and managing operations that may be located far from the company's current headquarters. Investors are cautioned that these forward-looking statements are not guarantees of future performance, and we undertake no obligation to update these statements. Our actual results may differ materially from expectations. A more complete summary of these and other investment risks that may affect our business and results of operations are identified under the caption "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended September September: see month. 30, 2003 and any other reports filed from time to time with the Securities and Exchange Commission. eQuality and the Witness logo are trademarks of Witness Systems, Inc. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other countries. All other trademarks mentioned in this document are the property of their respective owners.
WITNESS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
December 31, December 31,
2003 2002
----------- ----------
Cash and cash equivalents $37,329 $36,391
Short-term investments 3,543 28,937
Accounts receivable, net 31,707 13,394
Other current assets 4,868 2,780
----------- ----------
Total current assets 77,447 81,502
Property and equipment, net 6,141 5,057
Intangible assets, net 20,083 185
Other assets 1,606 397
----------- ----------
Total assets $105,277 $87,141
=========== ==========
Accounts payable and accrued liabilities $27,494 $9,755
Deferred revenue 19,966 12,312
----------- ----------
Total current liabilities 47,460 22,067
Deferred tax liability 3,197 -
Other long-term liabilities 3,906 -
----------- ----------
Total liabilities 54,563 22,067
----------- ----------
Total stockholders' equity 50,714 65,074
----------- ----------
Total liabilities and stockholders' equity $105,277 $87,141
=========== ==========
WITNESS SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------- ------------------
2003 2002 2003 2002
-------- ------- --------- --------
Revenue:
Product $14,251 $7,840 $46,238 $33,383
Services 19,335 9,566 61,799 34,303
-------- ------- --------- --------
Total revenue 33,586 17,406 108,037 67,686
Cost of revenue:
Product 4,041 555 11,580 1,132
Services 7,554 3,434 24,278 12,286
-------- ------- --------- --------
Total cost of revenue 11,595 3,989 35,858 13,418
-------- ------- --------- --------
Gross profit 21,991 13,417 72,179 54,268
Operating expenses:
Selling, general and
administrative 17,618 9,865 60,003 40,439
Research and development 4,726 3,878 18,036 15,090
Merger related and restructuring
costs 1,686 - 7,865 -
Acquired in-process research and
development charges - - 7,840 -
-------- ------- --------- --------
Total operating expenses 24,030 13,743 93,744 55,529
-------- ------- --------- --------
Operating loss (2,039) (326) (21,565) (1,261)
Interest and other income, net 116 335 1,303 1,570
-------- ------- --------- --------
Income (loss) before provision
for income taxes (1,923) 9 (20,262) 309
Provision for income taxes 109 61 307 261
-------- ------- --------- --------
Net income (loss) ($2,032) ($52) ($20,569) $48
======== ======= ========= ========
Diluted net income (loss) per share ($0.09) ($0.00) ($0.94) $0.00
======== ======= ========= ========
Shares used in computing diluted net
income (loss) per share 22,123 22,463 21,991 23,524
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion