Concur Technologies Reports Fiscal 1999 Fourth Quarter and Year-end Financial Results.REDMOND, Wash.--(BUSINESS WIRE)--Oct. 27, 1999-- -- Signs 35 New Concur eWorkplace(TM) and Concur eWorkplace.com(TM) Customers, Bringing Customer Base to More Than 275 Companies -- Concur Technologies, Inc. (Nasdaq:CNQR), a global leader in workplace e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. solutions, today reported financial results for its fourth fiscal quarter and year ended September 30, 1999. Concur reported fiscal fourth quarter 1999 revenues of $9.0 million, up 43 percent from the $6.3 million in revenues for the fourth quarter of fiscal 1998, and down 19.5 percent from the $11.2 million in revenues for the third quarter of fiscal 1999. On June 1, 1999, Concur acquired Seeker Software in a transaction accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . Accordingly, all prior period amounts have been combined to reflect the acquisition. The net loss for the fourth quarter of fiscal 1999 was $12.2 million, or $0.54 per share, compared with a net loss of $7.8 million, or 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 loss per share of $0.52, for the fourth quarter of fiscal 1998. All per share amounts are computed based on weighted average shares outstanding, including, as applicable, the pro forma effect of the assumed conversion of all preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to common stock at the time of issuance. On a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the net loss per share for the fourth quarter of fiscal 1998 was $2.19. The company reported revenues of $37.0 million for the year ended September 30, 1999, an increase of 84 percent over revenues of $20.1 million for the same period in fiscal 1998. The pro forma net loss for the year ended September 30, 1999, excluding one-time acquisition charges, was $37.6 million, or pro forma loss per share of $1.87 assuming conversion of all preferred stock, as compared to the 1998 pro forma net loss, excluding one-time acquisition charges, of $21.0 million, or pro forma loss per share of $1.56 assuming conversion of all preferred stock. On a GAAP basis, the net loss for fiscal 1999 was $46.5 million, or $2.75 per share, including the effect of a one-time charge of $8.9 million for costs related to the Seeker acquisition, compared with a net loss of $26.2 million, or $8.18 per share, for the same period in fiscal 1998, including the effect of a $5.2 million one-time charge related to Concur's June 1998 acquisition of 7Software. "Revenue growth in our fourth quarter was disappointing, and fell short of both our expectations and the strong growth we had achieved during the first three quarters of the year," said Steve Singh, Concur's president and chief executive officer. "The revenue short-fall was primarily due to an unexpected delay in closing quarter-end business and a lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. of the sales cycle caused by the expansion of our Concur eWorkplace suite of applications. Now that we have three applications within Concur eWorkplace, our sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. includes a broader range of departments within companies, and customers need additional time to fully evaluate our product." On October 6, the company launched its new Concur eWorkplace.com product (www.concureworkplace.com), which is the industry's first suite of workplace eCommerce applications that is entirely focused on the small and middle markets and delivered in a completely outsourced fashion on a subscription basis. Concur eWorkplace.com provides a breadth of services that revolve around Verb 1. revolve around - center upon; "Her entire attention centered on her children"; "Our day revolved around our work" center, center on, concentrate on, focus on, revolve about the daily activities of employees within the workplace and can be fully 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: and delivered to new customers via 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 in four to six weeks. "The launch of Concur eWorkplace.com nearly three months ahead of schedule was a major achievement for Concur," said Mr. Singh. "Even before the official launch, we had signed contracts with more than 25 customers representing over 6,000 users, demonstrating the powerful market response to this first of its kind solution for small and middle-sized companies." 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. Mr. Singh, "During the fourth quarter, we had a number of significant accomplishments. First, and foremost, we signed 14 new customers for our Concur eWorkplace license product and 21 customers for our Concur eWorkplace.com product. We believe that the key metric for success in the emerging workplace eCommerce market is the number of employees connected to the eCommerce network. We are pleased to report that we have more than 275 customers and over 2.1 million users." Key Fourth Quarter Events -- Concur announced that Freudenberg-NOK, part of the Freudenberg and NOK NOK In currencies, this is the abbreviation for the Norwegian Krone. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Group companies, completed deployment of Concur Expense(TM), the company's market-leading expense management solution. With Concur Expense, Freudenberg-NOK cut the cost of processing an expense report by 65 percent, and achieved a first year return on investment of over 50 percent. -- Concur announced the release of Concur Expense 5.5, which builds upon Concur's leadership and experience in automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. expense management with the addition of enhanced features and functionality including: a fully localized Translated into the spoken language of the country. See localization. French version, significant user interface enhancements, and introduction of an additional module -- Concur Expense/Policy Editor. -- Concur announced the release of Concur Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. (TM) 5.5., which delivers significantly enhanced feature functionality and satisfies business' needs for a fully automated electronic commerce solution. Enhancements to the product include the addition of Concur's flexible Cost Allocator al·lo·cate tr.v. al·lo·cat·ed, al·lo·cat·ing, al·lo·cates 1. To set apart for a special purpose; designate: allocate a room to be used for storage. 2. , Payment Request functionality, and the Commerce Ramp eCommerce capability, which allows for faster and easier interaction among buyers and suppliers in the rapidly emerging on-line marketplace. -- Concur announced that Solvay Pharmaceuticals, Inc., a wholly owned subsidiary of Solvay America, Inc., is fully deployed on Concur Expense, after only four months. Implementation of Concur's T&E expense solution will streamline the expense reporting process for Solvay Pharmaceuticals' 1,100 employees for enhanced performance and productivity across the entire global enterprise. -- Concur announced that it has established relationships with a number of companies to offer customers expanded catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. content within Concur Procurement, which connects buyers to leading supplier networks for enhanced ease in the procurement of corporate goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. . During the quarter, the company announced supplier relationships with barnesandnoble.com, RoweCom Inc., Staples staples U-shaped stainless steel or vitallium units with sharp points used for surgical fixation. epiphyseal staples used to staple epiphysis to metaphysis; have metal bracing at the corners. , Inc., K/P Corporation and Software Spectrum, Inc. About Concur Technologies Concur Technologies, Inc.(TM) (www.concur.com) is a leading provider of workplace eCommerce solutions that automate To turn a set of manual steps into an operation that goes by itself. See automation. costly and inefficient business processes among employees, partners, suppliers, and service providers. Its flagship products A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Concur eWorkplace and Concur eWorkplace.com (www.concureworkplace.com), integrate Concur's suite of workplace eCommerce solutions -- business-to-business eCommerce, human resource self-service, travel and entertainment expense Travel and entertainment expense Funds spent on business travel and entertainment that qualify for a tax deduction of 50% of the amount claimed. management, and travel booking -- through a common business portal. Both products enable users to access critical information and services thus reducing operating costs operating costs npl → gastos mpl operacionales , increasing productivity, and improving supplier management. Concur has licensed its workplace eCommerce solutions to more than 275 companies worldwide, representing over 2.1 million employees. Customers include AT&T, Baxter International Baxter International Inc. (NYSE: BAX), is a global healthcare company with 48,000 employees and 2006 sales of US$10.4 billion. Its headquarters is in Deerfield, Illinois. , DaimlerChrysler, Exxon, and Pfizer. Concur's Global Alliance Network is comprised of over 50 world-class organizations including ADP (1) (Automatic Data Processing) Synonymous with data processing (DP), electronic data processing (EDP) and information processing. (2) (Automatic Data Processing, Inc., Roseland, NJ, www.adp. , American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. , Exodus Exodus (ĕk`sədəs), book of the Bible, 2d of the 5 books of the Law (the Pentateuch or Torah) ascribed by tradition to Moses. The book continues the story of the ancestors of Israel in Egypt, now grown in number to a large landless , and Microsoft. All company or product names are trademarks and/or registered trademarks of their respective owners. (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. Balance Sheets and Statements of Operations attached) -0-
CONCUR TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
( in thousands)
......................................................................
Sept 30, 1999 Sept 30, 1998
-------------- ---------------
ASSETS
Current assets
Cash, cash equivalents,
and marketable securities $ 108,722 $ 17,058
Accounts receivable, net 9,020 6,049
Prepaid expenses and
other current assets 1,443 772
--------- ---------
Total current assets 119,185 23,879
Equipment and furniture, net 7,087 3,026
Other assets 2,556 1,717
--------- ---------
Total assets $ 128,828 $ 28,622
========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable and
accrued liabilities $ 18,707 $ 7,839
Current portion of
long term liabilities 5,631 3,971
Deferred revenues 4,011 3,619
--------- ---------
Total current liabilities 28,349 15,429
Long term liabilities 6,495 8,788
Redeemable convertible
preferred stock -- 37,512
Redeemable convertible
preferred stock warrants -- 444
Stockholders' equity (deficit)
Convertible preferred
stock, $0.001 par
value:
Authorized shares - 5,000
Issued and outstanding
shares - 0 and 716
shares at 1999 and 1998,
respectively -- 3,139
Common stock, $0.001 par value:
Authorized shares - 60,000
Issued and outstanding
shares - 22,693 and
3,912 shares at 1999 and
1998, respectively 185,153 6,593
Deferred stock compensation (1,439) (529)
Accumulated deficit (89,730) (42,754)
--------- ---------
Total stockholders'
equity (deficit) 93,984 (33,551)
--------- ---------
Total liabilities and
stockholders' equity (deficit) $ 128,828 $ 28,622
========= =========
CONCUR TECHNOLOGIES, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
......................................................................
Three months ended For the year ended
------------------- ------------------
Sept 30, Sept 30,
--------- ----------
1999 1998 1999 1998
------- ------ ------ --------
Revenues, net:
Licenses $ 5,224 $ 3,927 $ 24,002 $ 13,176
Services 3,782 2,369 13,011 6,952
-------- -------- -------- --------
Total revenues 9,006 6,296 37,013 20,128
Cost of revenues:
Licenses 437 240 1,184 558
Services 5,110 2,829 16,653 8,063
-------- -------- -------- --------
Total cost of
revenues 5,547 3,069 17,837 8,621
-------- -------- -------- --------
Gross profit 3,459 3,227 19,176 11,507
Operating expenses:
Sales and marketing 7,696 5,652 28,993 16,070
Research and development 6,107 3,589 19,371 10,276
General and administrative 2,930 1,806 10,385 5,919
Merger & acquisition
cost and acquired
in-process technology -- -- 8,859 5,203
-------- -------- -------- --------
Total operating expenses 16,733 11,047 67,608 37,468
-------- -------- -------- --------
Loss from operations (13,274) (7,820) (48,432) (25,961)
Other income (expense), net 1,061 65 1,956 (263)
-------- -------- -------- --------
Net loss $(12,213) $ (7,755) $(46,476) $(26,224)
======== ======== ======== ========
Basic and diluted
net loss per share $ (0.54) $ (2.19) $ (2.75) $ (8.18)
======== ======== ======== ========
Shares used in computation
of basic and
diluted net loss
per share 22,687 3,537 16,883 3,207
======== ======== ======== ========
Pro Forma Results Excluding Merger and Acquisition Related Cost (See
note below)
Pro forma net loss, excluding
merger & acquisition
related costs $(12,213) $(7,755) $(37,617) $(21,021)
========= ======== ======== ========
Pro forma net loss per share,
excluding merger &
acquisition related costs $ (0.54) $ (0.52) $(1.87) $ (1.56)
========= ======== ======== ========
Pro forma shares used in pro
forma loss per share
computation 22,687 15,011 20,131 13,448
========= ======== ======== ========
Note. Pro forma results for the year ended September 30, 1999 and 1998 are presented for informational purposes only and are not prepared 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 . These results present the operating results of Concur Technologies, Inc. excluding non-recurring charges of $8.9 million and $5.2 million for the year ended September 30, 1999 and 1998, respectively, for merger costs and acquired in-process technology arising from Concur's June 1999 merger with Seeker Software and June 1998 acquisition of 7Software, respectively. Shares used in computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of pro forma basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share results assumes the conversion of all preferred stock to common stock at the time of issuance. |
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