Chordiant Announces 70% First Quarter Revenue Growth Reaffirms 2002 Revenue Guidance.Business Editors/High-Tech Writers LONDON & CUPERTINO, Calif.--(BUSINESS WIRE)--April 23, 2002 Chordiant Software, Inc. (Nasdaq:CHRD CHRD Color High Resolution Display ), a leader in Dynamically Driven Customer Relationship Management(TM) (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) today announced revenues of $22.8 million for the first quarter of 2002, an increase of 70 percent over the first quarter of 2001, and at the top end of the company's previously issued guidance of $22 million to $23 million for the quarter. First-quarter license revenues were $11.1 million, up from $6.8 million year over year. Service revenues were $11.7 million, up from $6.6 million a year earlier. First-quarter gross margin was 56 percent. License revenue margins were 95 percent, and service revenue margins were 19 percent. First-quarter 2002 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 which excludes in-process research and development, stock-based compensation, one-time restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs and amortization of acquired 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. , was 6 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , improved from a pro forma net loss of 15 cents per share for the year-ago quarter. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). (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 ) basis, first quarter 2002 net loss was $8.2 million, or 15 cents per share, improved from a reported net loss of $9.7 million, or 25 cents per share, for the year-ago quarter. At March 31, 2002, Chordiant's cash, 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 were $46.6 million. Cash usage for the first quarter was $4.6 million, in line with expectations of $4 million to $6 million and improved from $5.2 million in the fourth quarter of 2001. "For nine quarters, we have consistently met or exceeded our guidance for revenue growth, and met our corporate objectives for expense control, cash management, and progress toward profitability," said Stephen Kelly Stephen Michael Kelly (born September 6, 1983 in Dublin, Ireland) is a professional footballer who plays at full back (usually right full back) for Birmingham City. He is a full international for the Republic of Ireland. , chief executive officer of Chordiant. "These results are especially pleasing given the widely recognized difficult business environment." During the quarter, Chordiant added 20 engagements with new and existing customers, including USAA USAA United Services Automobile Association USAA Urban Superintendents Association of America USAA United States Achievement Academy USAA United States Arbitration Act of 1925 USAA United States Axemen's Association USAA United States Air-Table-Hockey Association , Littlewoods, Direct Line Insurance, CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. and BSkyB. Chordiant also announced its Chordiant 5 solution suite providing the industry's first 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. J2EE-standard CRM solution delivering 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. , adaptive, process centric applications. A new partnership was announced with Merit International, a firm with 2,500 trained consultants, who will provide customers with greater access to training on Chordiant's solution suite of products on a worldwide basis. "We continue to scale the company for growth by putting in place the technology, the strategic partnerships and the corporate infrastructure to take us to the next phase," said Kelly. "Our assumptions going forward continue to be that the IT spending outlook remains uncertain. However, we believe companies in 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. , telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and consumer direct will continue to invest in strategic programs with proven return on investment," said Steve Vogel, senior vice president and chief financial officer. "Our expectation for 2002 revenue remains in the range of $100 million to $107 million. Cash usage for the second quarter is expected to be in a range of $0 to $2 million. We are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for the second quarter of 2002 and expect revenues to be in the range of $22 million to $23 million and anticipate our first half of 2002 growth to be over 40 percent year-over-year, which puts us on track to achieve our annual revenue guidance," Vogel said. Teleconference Webcast Chordiant management has scheduled a teleconference for 7.30 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT , 10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT and 3:30 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 today to discuss financial results and business events for the first quarter of 2002, as well as the current outlook for the second quarter and full-year 2002. This teleconference will be Web-cast live for all investors. Industry analysts and media are invited to attend the conference on a listen-only basis. For more information, please visit the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Chordiant's Web site at http://www.chordiant.com. From this site, you can listen to the teleconference, assuming that your computer system is configured con·fig·ure tr.v. con·fig·ured, con·fig·ur·ing, con·fig·ures To design, arrange, set up, or shape with a view to specific applications or uses: properly. A phone replay will also be available for seven days after the live call at 303/590-3000, access code # 458274. About Chordiant Software, Inc. Chordiant Software, Inc. (www.chordiant.com) is a worldwide leader in developing and delivering Dynamically Driven CRM(TM) solutions for global B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. enterprises. The Chordiant solution enables enterprises to gain a sustained competitive advantage through more efficient and effective marketing, selling and customer service. Only Chordiant delivers real-time, adaptive, process-centric solutions that provide multidimensional mul·ti·di·men·sion·al adj. Of, relating to, or having several dimensions. mul  ti·di·men customer interactions. The unique Chordiant JX Architecture(TM)
leverages existing investments inside the enterprise and beyond, to
enable brand consistency throughout the extended enterprise, resulting
in a more relevant and consistent customer experience.Headquartered in Cupertino, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Chordiant maintains offices in Boston; Chicago; Manchester, N.H.; New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ; London; Paris; Amsterdam, Netherlands; Frankfurt and Munich, Germany; Madrid, Spain; Johannesburg, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. ; Sydney and Melbourne, 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. This news release includes "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 risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," "guidance," "projects" and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of economic conditions on customers' and prospective
customers' spending on Chordiant software and services; quarterly
fluctuations in Chordiant's revenues or other operating results;
failure by Chordiant to meet financial expectations of analysts and
investors, including failure resulting from significant reductions in
demand from earlier anticipated levels; risks related to market
acceptance of Chordiant's products; customization and deployment
delays or errors associated with Chordiant products; impact of long
sales and implementation cycles for certain Chordiant products; reliance
by Chordiant on a limited number of customers for a majority of its
revenues; Chordiant's need to retain and enhance business
relationships with systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. and other parties;
Chordiant's use in its products of third-party software; activities
by Chordiant and others regarding protection of intellectual property;
and competitors' release of competitive products and other actions.
Further information on potential factors that could affect the financial
results of Chordiant are included in risks detailed from time to time in
Chordiant's Securities and Exchange Commission filings, including
without limitation Chordiant's Annual Report on Form 10-K Form 10-KA report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 29, 2002. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release. Note to Editors: Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc., JX Architecture and Dynamically Driven CRM are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.
Chordiant Software, Inc.
Unaudited Condensed Consolidated Income Statements
(in thousands, except per-share amounts)
Three months ended March 31,
2002 2001
------------- -------------
Net Revenues:
License $ 11,085 $ 6,786
Service(1) 11,723 6,599
------------- -------------
Total net revenues 22,808 13,385
------------- -------------
Cost of net revenues:
License 566 437
Service 9,554 5,287
------------- -------------
Total cost of net revenues 10,120 5,724
------------- -------------
Gross profit 12,688 7,661
------------- -------------
Operating expenses:
Sales and marketing 9,114 8,352
Research and development 4,935 4,454
Purchased In-process research
and development 0 1,486
General and administrative 2,190 1,904
Amortization of deferred
stock-based compensation 517 960
Amortization of acquired
intangible assets 825 540
Integration related costs 0 932
Restructuring costs 3,558 0
------------- -------------
Total operating expenses 21,138 18,628
------------- -------------
Loss from operations (8,450) (10,967)
Interest expense (4) (15)
Other income, net 245 1,289
------------- -------------
Net loss $ (8,209) $ (9,693)
============= =============
Net loss per share:
Basic and diluted $ (0.15) $ (0.25)
============= =============
Weighted average shares 53,700 38,860
============= =============
Supplemental information(2):
Net loss $ (8,209) $ (9,693)
Pro forma items
Purchased in-process research
and development 8 1,486
Amortization of deferred
stock-based compensation 517 960
Amortization of acquired
intangible assets 825 540
Integration related costs 0 932
Restructuring costs 3,558 0
------------- -------------
Pro forma net loss $ (3,301) $ (5,775)
============= =============
Basic and diluted $ (0.06) $ (0.15)
============= =============
Weighted average shares 53,700 38,860
============= =============
(1) Effective January 1, 2002, Chordiant adopted the provisions of
Topic No. D-103 requiring that certain out-of-pocket expenses rebilled
to customers be recorded as revenue versus an offset to the related
expense. Prior period financial statements have been reclassified to
conform to this presentation, as required by Topic No. D-103. The
impact of the reclassification was to increase revenues by 2% and 3%
in the first quarter of fiscal 2002 and 2001, respectively.
(2) The accompanying supplemental financial information is
presented for informational purposes only and should not be considered
as substitute for the historical financial information presented in
accordance with generally accepted accounting principles in the United
States.
Chordiant Software, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2002 2001
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 34,295 $ 27,068
Short-term investments 12,272 24,072
Accounts receivable, net
(Includes $10,502 and
$6,734 of deferred
revenue, respectively) 24,895 21,573
Other current assets 5,471 5,267
------------- -------------
Total current assets 76,933 77,980
Property and equipment, net 6,386 7,083
Goodwill, net 20,688 17,922
Intangible assets, net 6,357 9,870
Other assets 1,871 2,010
------------- -------------
$ 112,235 $ 114,865
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Borrowings $ 519 $ 75
Accounts payable 5,385 5,575
Accrued expenses 12,629 10,142
Deferred revenue 19,772 22,457
------------- -------------
Total current liabilities 38,305 38,249
Deferred Revenue - Long Term 7,849 4,406
Other liabilities 212 910
------------- -------------
46,366 43,565
------------- -------------
------------- -------------
Stockholders' Equity: 65,869 71,300
------------- -------------
$ 112,235 $ 114,865
============= =============
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