Continuus Software Reports Second Quarter 2000 Financial Results.Business Editors/High-Tech Writers IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--July 26, 2000 Continuus Software Corporation (Nasdaq:CNSW), the leading provider of eAsset Management solutions, today reported financial results for the second quarter ended June June: see month. 30, 2000. These results were consistent with preliminary results announced on July July: see month. 10, 2000. Total revenue for the second quarter was $9.0 million, compared to $8.8 million for the same period in 1999. The loss from operations on a 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 basis, excluding stock compensation and the amortization of goodwill and other costs associated with the acquisition of Pagoda Corporation, was $3.8 million, or $.36 per 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. share, compared to income from operations of $161,000, or $.10 per diluted share, for the same period last year. The total net loss for the second quarter was $4.7 million, or $.44 per diluted share. For the first half of 2000, total revenue increased year over year to $18.9 million, compared to $17.1 million for the same period a year ago. Net loss for the first six months of 2000 was $6.7 million, or $.65 per diluted share, compared to a net loss of $420,000, or $0.25 per diluted share, for the same period a year ago. "We are entering a new phase in our market, particularly with dot.com See dot-com. and e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. developers, where many buyers are focusing on more tactical solutions," said John Wark John Wark (born Glasgow, 4 August 1957) was a Scottish footballer who grew up in the Ipswich Town side of the 1970s and went on to become a player synonymous with the club. He was also part of the all conquering Liverpool side of the mid 1980s. , president 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. . "In these segments, this is leading to changes in the competitor mix in evaluations, downward pressure on deal size, and longer technical evaluations The study and investigations by a developing agency to determine the technical suitability of material, equipment, or a system for use in the Military Services. See also operational evaluation. . The result of these pressures has been smaller deals on average, as well as longer, less predictable sales cycles. These pressures are less evident in segments like embedded Inserted into. See embedded system. device developers and independent software vendors. Overall market demand, as measured by number of potential transactions, remains high. In addition, we are encouraged by the fact that our new sales people in the Americas showed good results in their first quarter, by the record number of new customers we signed during the quarter and by the major new releases of our key products planned in the second half of the year." Second Quarter Highlights Customers During the quarter the company won a record number of new name accounts. Continuus continued to penetrate Global 1000 companies in support of their e-business initiatives, won additional business at emerging dot.com companies, and continued to build on its traditional strength with embedded device developers and software vendors. Examples of some of these companies include: Bank Of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Booz-Allen & Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Bougyues Telecom, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , Compuware, Logica, MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. Worldcom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. , New Era of Networks, Inc., Nokia, Reachcast, rightworks, Siemens Automotive, Systems Xcellence, Westinghouse Signal Ltd. and Xpede. Products The company delivered new versions of several of its products during the second quarter: -- Version 5.1 of Continuus/CM Synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. , a 2nd generation task-based change management solution, -- WebSynergy Version 3.0, an enterprise software application designed to manage the creation, acquisition and deployment of all web-based assets, -- The first controlled release of the technology the company acquired from Pagoda Corporation, re-named KnowledgeSynergy, which simplifies activity and knowledge management for distributed development This article has multiple issues: * It does not cite any references or sources. Please help improve this article by citing reliable sources. * Very few or no other articles link to this one. teams. Partners During the quarter, the company announced an agreement with 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) which enables Continuus to provide an eAsset Management Platform for supporting developers using IBM's VisualAge for Java. Continuus is working as a development partner with IBM to help ensure Java developers are able to integrate reliable, task-based change tracking and management solutions for building and testing Java-based applications. In addition, the company announced a partnership agreement with SilverStream Software, Inc. and an integration with SilverStream Designer as well as a partnership with Advanced Software Technologies Inc. and an integration with their GDPro product. About Continuus Continuus Software Corporation is the leading provider of eAsset Management solutions. eAsset Management enables organizations to develop, enhance, deploy and more effectively manage their teams building 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 and enterprise software and content-based systems. Continuus products enable organizations to improve the quality of their eAssets and to reduce the time it takes to deliver Internet and software applications. Continuus offers eAsset Management Solutions, consisting of the Continuus CM Synergy Suite, Continuus WebSynergy, Continuus Change Management Suite, Continuus ChangeSynergy, and Continuus KnowledgeSynergy designed to support the collaborative development, management, approval and deployment of the most complex and demanding software, Internet applications and Web content. The company also offers professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. through the eAsset Foundation that includes consulting, training and maintenance services to facilitate successful implementation of the eAsset Management Platform. Continuus has licensed its products to more than 500 customers, 1,000 sites and 45,000 users worldwide. For more information on Continuus: 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. , call 949/830-8022; in Canada, call 613/751-4499; in the United Kingdom, call 44.1344.788.100; in Germany, call 49.89.54.8880; in France, call 33.1.69.59.1616; in Australia call 61.2.9904.6033, or visit its Web site at www.continuus.com. This press release contains certain 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 based largely on Continuus Software's current expectations and are subject to a number of risks and uncertainties. Actual results and events could differ significantly from those discussed in the forward-looking statements. These risks and uncertainties include those associated with fluctuation Fluctuation A price or interest rate change. in our revenue and financial performance, the development of new products and technologies, including Continuus eAsset Management solutions, the emerging markets for our products, and intense competition in our markets, as well as other risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our most recent 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. and our most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. .
CONTINUUS SOFTWARE CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
Three months Ended Six months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
License fees $ 4,539 $ 4,827 $ 9,990 $ 8,999
Services 4,492 3,985 8,924 8,052
------- ------- ------- -------
Total revenues 9,031 8,812 18,914 17,051
Cost of revenues:
License fees 271 162 576 318
Services 3,029 2,201 5,646 4,146
Amortization of
technology rights 261 0 347 0
------- ------- ------- -------
Total cost of
revenues 3,561 2,363 6,569 4,464
------- ------- ------- -------
Gross Profit 5,470 6,449 12,345 12,587
Operating Expenses:
Sales and marketing 5,955 4,139 11,368 8,237
Research and
development 2,419 1,335 4,361 2,568
General and
administrative 1,202 814 2,413 1,518
Other compensation
costs, goodwill
and other
amortization 498 57 710 98
------- ------- ------- -------
Total operating
expenses 10,074 6,345 18,852 12,421
------- ------- ------- -------
Income (loss)
from operations (4,604) 104 (6,507) 166
Other expense, net (79) (283) (143) (579)
------- ------- ------- -------
Net loss before
income taxes (4,683) (179) (6,650) (413)
Income taxes
provision (22) (2) (47) (7)
------- ------- ------- -------
Net loss $ (4,705) $ (181) $ (6,697) $ (420)
========= ========= ========= =========
Net loss per share
Basic & Diluted $ (0.44) $ (0.11) $ (0.65) $ (0.25)
========= ========= ========= =========
Weighted average
shares outstanding
Basic & Diluted 10,587 1,681 10,348 1,670
========= ========= ========= =========
CONTINUUS SOFTWARE CORPORATION & SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, 2000 December, 31 1999
(unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 9,837 $ 11,570
Investments in securities 802 9,125
Accounts receivable,net 8,029 8,940
Prepaid and other
current assets 1,315 1,321
------- -------
Total current assets 19,983 30,956
Property and equipment, net 5,812 2,154
Goodwill and other
intangible assets,net 10,264 107
Other assets 3,317 757
------- -------
Total Assets $39,376 $33,974
======= =======
Liabilities and
Stockholders' Equity
Current Liabilities:
Accounts payable $ 3,783 $ 1,662
Accrued liabilities 4,873 5,554
Deferred revenue 5,189 4,961
Current portion of capital
leases obligations 273 488
------- -------
Total current liabilities 14,118 12,665
Long-term liabilities:
Note payable 6,000 6,000
Capital lease obligations,
less current portion 156 261
------- -------
Total liabilities 20,274 18,926
Total Stockholders' Equity 19,102 15,048
------- -------
Total Liabilities and
Stockholders' Equity $ 39,376 $ 33,974
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