Centra Reports Third-Quarter Results.Business Editors/High-Tech Writers LEXINGTON, Mass.--(BUSINESS WIRE)--Oct. 24, 2002 Centra Software, Inc. (Nasdaq:CTRA CTRA Canadian Therapeutic Recreation Association CTRA College Terrace Residents' Association CTRA Canadian Telecommunications Resellers Alliance CTRA Committee To Restore America ), a leading provider of software and services for 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. communication and collaboration, today announced results for its third quarter ended September 30, 2002. Revenues for the third quarter 2002 were $8.1 million, compared to $9.2 million for the third quarter ended September 30, 2001. 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 net loss for the third quarter 2002 was $3.2 million or $0.12 per share, compared to a pro forma net loss of $3.3 million or $0.13 per share for the same period last year. Net loss for the quarter calculated in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. 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). ) was $3.5 million or $0.14 per share compared to a net loss of $4.0 million or $0.16 per share for the same quarter last year. Pro forma net loss for the quarter excludes non-cash stock based compensation expense and amortization of goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . As of September 30, 2002, Centra's cash and cash equivalents, and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments totaled $40.1 million, compared to $41.7 million at the end of the previous quarter. "Although business conditions in Europe inhibited in·hib·it tr.v. in·hib·it·ed, in·hib·it·ing, in·hib·its 1. To hold back; restrain. See Synonyms at restrain. 2. To prohibit; forbid. 3. our overall revenue growth, we are pleased with the continued proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of Centra's software through our installed base and the upgrade to our universal client," commented Leon Navickas, Chairman and 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. . "Companies are choosing Centra's application suite to consolidate their spending on real-time collaborative tools. To this point, we recently won a major contract with a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. communications equipment vendor, seizing the opportunity to power their real-time enterprise with applications software that integrates into strategic business processes. Moreover, our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and our net loss per share improved sequentially from the previous quarter, as we continue to work toward our goal of profitability." Third-quarter Highlights -- Centra appointed Paul R. Daly as Senior Vice President of Worldwide Sales and Marketing. With more than 25 years of progressive accomplishments in the enterprise software industry, Mr. Daly, former President of Baan Americas, brings a strong background of worldwide sales, marketing, channels, and business development experience to Centra's executive management team. -- Centra expanded its global presence during the third quarter, which included a new office in Sydney, Australia and adding a reseller network in Latin America. These new relationships will provide Centra with even greater reach to customers in those markets and offer support for global organizations operating in those regions. In Australia, Centra's customers include British American Tobacco, Lundbeck Pharmaceuticals, Open Access University, Queensland Rail, and Toyota Motor Corporation. -- Centra signed 45 new, blue-chip customer accounts during the third quarter including Empire Blue Cross, UPS, Osram Sylvania, Hughes, Datasul, SAFECO Corporation, Bombardier, Hapag-Lloyd and AKZO. -- Centra received several industry accolades and awards during the third quarter. Simba Information, a leading market trends and forecasting firm, ranked Centra the top Virtual Classroom Vendor out of 21 companies reviewed on their Leader List for 2002. Also, Centra Software was ranked the 33rd fastest-growing technology company in North America on the 2002 Deloitte & Touche Technology Fast 500, and ranked 4th on the New England Technology Fast 50, which is a ranking of the 50 fastest-growing technology firms in New England. Outlook Going forward, the Company's goal is to maintain its leadership position in collaborative eLearning while also continuing to invest to pursue opportunities in the broader real-time communication and collaboration arena. Since revenue and operating results during this period may vary from quarter to quarter, the Company is not providing estimates of future revenues or operating results at this time. In conjunction with this release, Centra will host a conference call today at 10:00 a.m. ET. The call will be simultaneously Webcast over the 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 . To access the Webcast, go to the Company's Website at www.centra.com/investorrelations. About Centra Leading with an undisputed track record of helping millions of users increase revenue and improve overall business performance, Centra enables global corporations, government agencies, and universities to drive greater productivity and lower costs through the industry's most extensible enterprise software application for real-time business communication and collaboration. Today nearly a thousand organizations across every industry and market sector choose Centra, including Cadbury Schweppes Cadbury Schweppes plc is a confectionery and beverage company with its headquarters in Berkeley Square, London, England, UK. Cadbury Schweppes is currently the only major international confectionery manufacturer to produce Fairtrade or organic products, which it sells through its , Citigroup, AT&T, Procter & Gamble, McKesson, Merck, Nationwide Insurance, Sysco, and Stanford University Stanford University, at Stanford, Calif.; coeducational; chartered 1885, opened 1891 as Leland Stanford Junior Univ. (still the legal name). The original campus was designed by Frederick Law Olmsted. David Starr Jordan was its first president. . Centra's products are bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by a vital ecosystem of strategic partners, including IBM Global Services IBM Global Services is the world's largest business and technology services provider. It is the fastest growing part of IBM, with over 190,000 professionals serving customers in more than 160 countries. (formerly PwC Consulting), Deloitte Consulting, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , Microsoft, Siebel, Cisco, and Oracle. Headquartered in Boston, Centra operates throughout the Americas, Europe, Asia and Australia. 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. Statement With the exception of the historical information contained in this release, the matters described herein contain 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 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, and our comments in our Webcast/teleconference call may contain forward looking statements, including but not limited to, statements concerning the Company's ability to maintain a leadership position in collaborative eLearning, its ability to successfully address the broader real-time communication and collaboration arena and management's expectations regarding future results of operations. These statements involve risk and uncertainties that affect the matters therein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, technological difficulties, the results of future research, uncertainty of product demand and market acceptance for the Company's CentraOne(TM) collaboration platform An emerging category of computer software, collaboration platforms are unified electronic platforms that support synchronous and asynchronous communication through a variety of devices and channels. and its other current and future products, the effect of economic conditions, the impact of competitive products and pricing, the Company's ability to manage and integrate the operation of the business of MindLever.com, Inc., acquired on April 30, 2001, and/or other factors outside the control of the Company. There is no assurance that the Company will be able to implement its operating plans as anticipated or achieve projected revenue and earnings goals. For a description of additional risks, and uncertainties, please refer to the Company's filings with the SEC, including its Annual Report on 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 the year ended December 31, 2001 and its Form 10-Q Form 10-Q See 10-Q. for the three months ended June 30, 2002, which are available at www.sec.gov. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or 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 after the date hereof or to reflect the occurrence of unanticipated events.
CENTRA SOFTWARE, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
December September
31, 30,
2001 2002
---------------------
Assets
Current assets
Cash and cash equivalents $25,424 $22,849
Short-term investments 22,759 17,250
Restricted cash 100 100
Accounts receivable, net 9,654 5,446
Prepaid expenses and other current assets 1,250 1,679
Total current assets 59,187 47,324
Property and equipment, net 4,182 3,258
Restricted cash 549 432
Other assets 104 99
Goodwill and other intangible assets, net 6,955 6,994
Total assets $70,977 $58,107
Liabilities and stockholders' equity
Current liabilities
Current maturities of long-term debt $1,563 $1,901
Accounts payable 1,463 1,184
Accrued expenses 5,808 5,166
Deferred revenue 8,165 8,608
Total current liabilities 16,999 16,859
Long term debt, net of current maturities 2,631 2,289
Total stockholders' equity 51,347 38,959
Total liabilities and stockholders' equity $70,977 $58,107
CENTRA SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2001 and 2002
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Nine Months
ended ended
September 30, September 30,
2001 2002 2001 2002
--------------------------------
Revenues
License $6,467 $3,382 $21,187 $11,459
Service 2,769 4,752 6,881 12,653
Total revenues 9,236 8,134 28,068 24,112
Cost of revenues
License 100 119 383 310
Service 1,719 1,556 4,946 4,771
Total cost of revenues 1,819 1,675 5,329 5,081
Gross profit 7,417 6,459 22,739 19,031
Operating expenses
Sales and marketing 5,873 4,715 18,910 15,260
Product development 3,418 3,002 9,481 9,039
General and administrative 1,831 1,958 5,664 5,908
Compensation charge for issuance of
stock options (1) 223 153 670 580
Acquired in process research and
development (1) - - 2,200 -
Amortization of goodwill and other
intangible assets (1) 494 175 823 525
Merger transaction costs (1) - - - 1,239
Restructuring charge (1) - - 439
Total operating expenses 11,839 10,003 37,748 32,990
Operating loss (4,422) (3,544) (15,009) (13,959)
Other income, net 423 48 1,713 381
Loss on investment (1) - - (772) -
Net loss $(3,999)$(3,496)$(14,068)$(13,578)
Basic and diluted net loss per share $(0.16) $(0.14) $(0.58) $(0.53)
Weighted average shares outstanding
Basic and diluted 24,673 25,564 24,321 25,497
Pro forma net loss (1) $(3,282)$(3,168) $(9,603)$(10,795)
Pro forma net loss per share $(0.13) $(0.12) $(0.39) $(0.42)
Pro forma basic and diluted
weighted average common shares
outstanding 24,673 25,564 24,321 25,497
(1) The pro forma net loss excludes non-cash stock-based compensation
expense, acquired in process research and development, amortization
of goodwill and other intangible assets, loss on investment,
terminated merger-related costs and restructuring charges for the
amounts as reported above.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion