Critical Path Announces Second Quarter Results; Improving Core Revenue and Cost Cutting Demonstrates Execution on Strategic Refocusing Plan.Business Editors/High-Tech Writers SAN FRANCISCO--(BUSINESS WIRE)--Aug. 2, 2001 Critical Path (Nasdaq:CPTH), a global leader in messaging and directory infrastructure, today announced its financial results for the second quarter ended June June: see month. 30, 2001. Total net revenue for the quarter was $27.1 million, flat compared to the $27.1 million reported in the first quarter. Core revenues, however, increased by 21 percent, to $20.7 million from $17.1 million in the prior quarter. The net loss for the quarter, excluding special charges, was $35.2 million, a 17 percent decrease compared with $42.3 million in the first quarter of this year. The net loss per share, excluding special charges, was $0.48, a decrease of 19 percent compared with $0.59 in the first quarter of 2001. "The 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). and reorganization of the Company that we began in April have begun to show measurable results. We have grown our core revenues while reducing overall 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 are well underway in streamlining the Company to its core business," said David Hayden Hay·den , Robert 1913-1980. American poet whose works, such as Heart-Shape in the Dust (1940), often explore the history and experiences of African Americans. , Executive Chairman of Critical Path. "Equally as important to our future success, we continue to strengthen our management team with world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. talent in sales, legal and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. . We remain positive about the future growth of the Company and optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. will be successful because we see real demand for Critical Path communication solutions, which we believe are technologically superior to our competitors' offerings." Revenue Metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. As previously announced, the company is focusing on core messaging and directory infrastructure solutions, while non-core products and services are being rapidly discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: . The follow are details of revenue by category for the second quarter of 2001 and the prior five quarters (in millions): Core Net Revenues Q2 2001 Q1 2001 Q4 2000 Q3 2000 Q2 2000 Q1 2000 Software licensing $ 8.4 $ 4.3 $12.1 $12.0 $12.4 $10.6 Hosted messaging 6.7 7.7 10.5 10.0 7.1 4.0 Professional services 2.5 1.4 1.3 1.2 2.0 2.3 Maintenance & support 3.1 3.7 6.1 4.3 2.8 1.5 Total core revenues $20.7 $17.1 $30.0 $27.5 $24.3 $18.4 Non-Core Net Revenues $ 6.4 $10.0 $12.3 $ 7.8 $ 9.2 $ 6.2 Total Net Revenues $27.1 $27.1 $42.3 $35.3 $33.5 $24.6 Restructuring Progress During April 2001, the Company announced a three-part strategic restructuring plan to put the Company back on the path to profitability. The three elements of the plan involve (a) focusing on core communications solutions; (b) headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reduction; and (c) facilities and operations consolidation. Additionally, the Company has implemented an aggressive expense management plan to further reduce operating costs operating costs npl → gastos mpl operacionales while maintaining strong customer service for its core solutions. Core Solutions and Services Core communications solutions are the Company's Messaging and Directory Infrastructure platform, including mail, calendar, address book, file storage, secure delivery, directory and meta-directory, and access services supporting wireline and wireless users. During the quarter the Company announced that new sales of products and related services for resource management, project collaboration Working together on a project. See collaborative software. , fax messaging, message boards and data integration products were being discontinued. The Company is in discussions with outside parties related to the sale of several product lines, which are expected to close before the end of the year. During the second quarter, charges related to the exit of these products aggregated approximately $1.4 million, and the Company does not anticipate incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. any additional charges during the remainder of the year. Headcount Reduction The Company announced that it would lay off approximately 450 employees as part of the restructuring. This reduction is expected to come from both the discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of non-core products and organizational changes designed to improve general operational efficiencies. During the second quarter, the Company laid off 212 employees and anticipates that another 130 employees will be laid off or will leave the Company as part of the sale of several product lines before the end of the year. Additionally, during the quarter there were 40 voluntary resignations, net of new hires. At June 30, 2001 total headcount was 784. During the second quarter, severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and related charges were approximately $5.0 million, and the Company anticipates additional charges during the remainder of the year will be approximately $3.0 to $5.0 million. Facilities and Operations Consolidation The Company announced that it would reduce its 77 worldwide office facilities by approximately two thirds. During the second quarter, the Company consolidated 33 facilities into existing or new cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. offices and it anticipates that an additional 17 will be consolidated before the end of the year. During the second quarter, lease terminations and related charges aggregated approximately $2.1 million, and the Company anticipates additional charges during the remainder of the year will amount to approximately $4.0 to $5.0 million. As a result of these actions, as well as increased general expense controls, the Company's total costs and expenses, excluding special charges, decreased by $7.4 million, from $65.7 million during the first quarter to $58.3 million during the second quarter of 2001. The Company anticipates that its total costs and expenses, excluding special charges, will decrease significantly during the remainder of the year from the reported level during the second quarter. During the quarter, the Company's total restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. was $8.5 million, and it anticipates the remainder of the restructuring charge, expected to be in the range of $7.0 million to $10.0 million, will be taken in future quarters. Management remains confident it will meet or exceed its objectives of reducing its cost structure by $30 to $50 million annually. Cash Reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. During the second quarter, the Company used $39.0 million in cash. As of June 30, 2001, its 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 totaled $132.6 million. Guidance The Company expects to exit nearly all non-core product and service revenue by the end of the third quarter, and that non-core revenue will not be material thereafter. While encouraged by the second quarter's core revenue growth, the Company continues to have low visibility into future revenues due to the uncertain economic environment, and is not currently issuing future revenue guidance as a result. Pursuant to the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. strategic restructuring plan progress, the Company expects its cost structure, excluding special charges, to meet or exceed its objectives of reducing its cost structure by $30 to $50 million annually and its operating expenses will continue their downward trend during the third quarter. New Customer Wins and Geographic Revenue Mix During the quarter, the Company signed significant new contracts in all areas of its business. In June 2001, IDC ranked Critical Path as the fastest-growing messaging vendor in the service provider market as measured by mailbox A simulated mailbox in the computer that holds e-mail messages. Mailboxes are stored on disk as a file of messages, a database of messages or as an individual file for each message. The standard mailboxes are usually In, Out, Trash and Junk (Spam). volume. "We are pleased that, despite a slowing macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. environment that has affected companies in the technology industry quite broadly, customers who are being very selective in their IT purchases are making Critical Path's products a priority," said Hayden. The Company's market position was reinforced by significant wins and competitive displacements in the second quarter. Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy. Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. Network (Tin.it) launched a premium service offering on the Critical Path messaging platform. Telefonica Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , GVT GVT Global Virtual Time GVT German Volume Training (high-volume light-weight strength training system) GVT Ground Vibration Test GVT Government Income Trust (stock symbol) GVT Global Virtual Team and Americel in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Orange France, TNT UK TNT UK was launched in 1993 along with Cartoon Network UK as a timeshift in 1995 they introduced WCW Monday Nitro on Fridays. TNT UK was replaced with TCM in 2000. and Satyam in India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. all launched or expanded messaging services with Critical Path in the quarter. Significant new corporate customers selected the Company's messaging software and services in the quarter, including DuPont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
(Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Banca Populaire Le Populaire was the press organ of the SFIO party. The Populaire was a French automobile manufactured only in 1899. A light rear-engined voiturette, it featured three-seater bodywork. di Bergamo Bergamo (bĕr`gämō), city (1991 pop. 114,936), capital of Bergamo prov., in Lombardy, N Italy, in the foothills of the Alps. It is an industrial center and an agricultural market. Manufactures include machinery, textiles, and cement. and Edisontel in Italy Italy (ĭt`əlē), Ital. Italia, officially Italian Republic, republic (2005 est. pop. 58,103,000), 116,303 sq mi (301,225 sq km), S Europe. . Both Giga and Radicati currently rank Critical Path as the meta-directory market share leader. Growing awareness of the need for a unified approach to user profile management and security boosted meta-directory sales in both the corporate and service provider markets. Among the significant meta-directory wins or expansions in the quarter were Deutsche Post Deutsche Post AG (ISIN: DE0005552004, LSE: DPO) is a German post, logistics and courier headquartered in Bonn, previously the German state-owned mail monopoly. It has 520,000 employees in more than 220 countries and territories worldwide and generated revenue of € 60. , Bank of Ireland This article is about the commercial banking company Bank of Ireland. For the central bank of the Republic of Ireland, see Central Bank of Ireland. The Bank of Ireland (Irish: Banc na hÉireann , 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. , Noos and 9telecom in France and Bristol Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. Myers Myers can refer to: People
International revenues comprised 44 percent of total revenues in the second quarter. Compliance Status As of the filing of our results for the second quarter, the Company is in violation of the minimum equity requirement for continued listing on the NASDAQ National Market. The Company expects to receive formal notification from NASDAQ, upon which time the company expects it will have a period of time to respond to NASDAQ regarding its plan to re-establish re-establish Verb to create or set up (an organization, link, etc.) again re-establishment n compliance. The Company's plan may include restructuring its outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , raising additional capital and other strategies. The company has already implemented parts of its plan and has repurchased $45 million of face value outstanding debt at a substantial gain, of which $5 million was repurchased in the second quarter and the remainder during the third quarter. Conference call Critical Path will be hosting a conference call to discuss the quarterly results today at 5:00 p.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 . Those who would like to participate in the conference call should dial 800/297-9150 or 703/871-3025 (international) prior to 4:50 p.m. EDT on the day of the call. The conference call will also be Webcast and is accessible from the Company's Web site, www.cp.net, or at www.streetfusion.com. A replay of the conference call will be available for seven days following the call. To access the replay, please dial 888/266-2086 or 703/925-2435 (international), passcode 5432577. About Critical Path Critical Path Inc. (Nasdaq:CPTH) is a leading provider of communications solutions for Wireless carriers, Service Providers and Corporations through its integrated platform of messaging applications and directory infrastructure. Critical Path is headquartered in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , with offices throughout Europe, Asia and Latin America. More information on Critical Path can be found at http://www.cp.net./ 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 press release contains 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. , including the Company's statements regarding the markets for Critical Path products, plans related to the sale of certain product lines, our plans to strategically exit certain products and services, plans to reduce costs through a reduction of personnel and a consolidation of office space, our anticipated charges and cost savings as a result of these plans and our belief as to our ability to successfully emerge from the restructuring and refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus of our operations. The words "anticipate," "expect," "intend," "plan," "believe," "seek," and "estimate" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. Factors that might cause future results to differ materially from those projected in the forward-looking statements include, but are not limited to, difficulties of forecasting future results due to our limited operating history, evolving business strategy and the emerging nature of the market for our products and services, pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and SEC investigation, turnover of senior management, board of directors members and other key personnel, difficulties in implementing our strategic plan to exit certain products and services offerings, difficulties of integrating acquired businesses, failure to expand our sales and marketing activities, potential difficulties associated with strategic relationships, investments and uncollected bills, risks associated with continued compliance with NASDAQ National Market listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. , risks associated with our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , foreign currency fluctuations, unplanned system interruptions and capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. , software defects, and those discussed elsewhere in this announcement. These and other risks and uncertainties are described in more detail in the Critical Path's 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 fiscal year ended December 31, 2000, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and the quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 30, 2001, as may be amended from time to time, and all subsequent filings with the Securities and Exchange Commission (www.sec.gov). Note to Editors: Critical Path and the Critical Path logo are the trademarks of Critical Path, Inc. All other trademarks are the property of their holders.
CRITICAL PATH, INC.
Condensed Consolidated Balance Sheet
(In thousands)
December 31, June 30,
2000 2001
--------- ---------
(Unaudited)
ASSETS
Current assets
Cash, cash equivalents and
short-term investments $ 216,542 $ 132,586
Restricted cash 215 1,032
Accounts receivable, net 38,938 29,437
Other current assets 10,252 6,997
--------- ---------
Total current assets 265,947 170,052
Long-term investments 10,610 8,349
Notes receivable from officers 2,702 2,370
Property and equipment, net 85,304 73,000
Intangible assets, net 77,339 44,298
Other assets 8,953 9,298
--------- ---------
Total assets $ 450,855 $ 307,367
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities
Accounts payable $ 43,710 $ 34,059
Accrued expenses 10,377 7,645
Deferred revenue 15,720 15,593
Capital lease and other
obligations, current 9,363 6,899
--------- ---------
Total current liabilities 79,170 64,196
Convertible subordinated notes payable 300,000 295,000
Capital lease and other
obligations, long-term 4,687 2,303
--------- ---------
Total liabilities 383,857 361,499
--------- ---------
Commitments and contingencies
Minority interest in
consolidated subsidiary 649 -
--------- ---------
Shareholders' Equity (Deficit)
Preferred Stock and paid-in-capital - -
Common Stock and paid-in-capital 2,130,329 2,140,482
Notes receivable from shareholders (1,205) (1,197)
Unearned compensation (80,760) (57,476)
Accumulated deficit, including
other comprehensive income (1,982,015) (2,135,941)
--------- ---------
Total shareholders'
equity (deficit) 66,349 (54,132)
--------- ---------
Total liabilities and
shareholders' equity (deficit) $ 450,855 $ 307,367
========= =========
CRITICAL PATH, INC.
Condensed Consolidated Statement of Operations
(Unaudited)
(In thousands, except per-share amounts)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2000 2001 2000 2001
--------- --------- --------- ---------
(Unaudited)
Net revenues
Software license $ 13,897 $ 8,913 $ 24,967 $ 14,463
Hosted messaging 14,220 11,141 23,315 25,580
Professional service 3,030 2,900 5,523 6,317
Maintenance and support 2,348 4,131 4,243 7,868
--------- --------- --------- ---------
Total net revenues 33,495 27,085 58,048 54,228
--------- --------- --------- ---------
Cost of net revenues
Software license 737 126 1,744 417
Hosted messaging 13,538 17,440 25,418 35,378
Professional service 1,388 2,594 2,444 5,560
Maintenance and support 1,812 2,414 3,216 5,000
Amortization of
purchased technology 4,421 5,672 6,535 11,344
Acquisition-related
retention bonuses 390 - 780 -
Stock-based expense -
Software license - - - -
Stock-based expense -
Hosted messaging 383 441 876 826
Stock-based expense -
Professional service - 588 - 1,021
Stock-based expense -
Maintenance and support - 440 - 925
Impairment of
long-lived assets - 4,207 - 4,207
--------- --------- --------- ---------
Total cost of
net revenues 22,669 33,922 41,013 64,678
--------- --------- --------- ---------
Gross profit (loss) 10,826 (6,837) 17,035 (10,450)
--------- --------- --------- ---------
Operating expenses
Sales and marketing 17,342 15,694 30,947 34,406
Research and
development 9,213 8,333 15,536 18,267
General and
administrative 7,332 11,745 14,098 25,038
Amortization of
intangible assets 88,986 4,112 136,685 8,245
Acquisition-related
retention bonuses 3,693 793 6,372 963
Stock-based expense -
Sales and marketing 8,448 6,681 13,697 13,281
Stock-based expense -
Research and development 2,325 1,229 2,802 2,326
Stock-based expense -
General and
administrative 1,169 6,334 2,146 15,067
Restructuring expense - 8,481 - 8,481
Impairment of
long-lived assets - 9,991 - 9,991
--------- --------- --------- ---------
Total operating
expenses 138,508 73,393 222,283 136,065
--------- --------- --------- ---------
Loss from operations (127,682) (80,230) (205,248) (146,515)
Interest and other
income (expense), net 4,697 2,193 5,954 4,618
Interest expense (5,260) (5,315) (5,533) (10,382)
Minority interest in net
income of consolidated
subsidiary (325) - (325) -
Equity in net loss of
joint venture - (397) - (1,173)
--------- --------- --------- ---------
Loss before extraordinary
item and income taxes (128,570) (83,749) (205,152) (153,452)
Provision for
income taxes (1,439) (1,150) (1,799) (1,493)
--------- --------- --------- ---------
Loss before
extraordinary item (130,009) (84,899) (206,951) (154,945)
Gain on retirement of
convertible subordinated
notes - 3,818 - 3,818
--------- --------- --------- ---------
Net loss $(130,009) $ (81,081) $(206,951) $(151,127)
========= ========= ========= =========
Net loss per common
share - basic and diluted
Loss before
extraordinary item $ (2.22) $ (1.15) $ (3.79) $ (2.12)
Gain on retirement
of convertible
subordinated notes - 0.05 - 0.05
--------- --------- --------- ---------
Net loss $ (2.22) $ (1.10) $ (3.79) $ (2.07)
========= ========= ========= =========
Weighted average common
shares outstanding 58,592 73,794 54,581 72,966
The following supplemental pro forma financial information presents
Critical Path's condensed consolidated results of operations during
the three- and six-month periods of 2001 and 2000, excluding the
impact of certain special charges consisting of (i) amortization of
intangible assets associated with purchase business combinations, (ii)
accruals for employee retention bonuses associated with purchase
business combinations, (iii) stock-based compensation associated with
outstanding options and warrants, (iv) one-time charges related to our
restructuring initiative, (v) impairment of long-lived assets, (vi)
write-down of investments and (vii) gain on the retirement of
convertible subordinated debt. This supplemental presentation is for
informational purposes only, and is not intended to replace the
consolidated operating results prepared and presented in accordance
with generally accepted accounting principles.
CRITICAL PATH, INC.
Pro Forma Condensed Consolidated Statement of Operations
Excluding Special Charges
(Unaudited)
(In thousands, except per-share amounts)
Three Months Ended Six Months Ended
-------------------- --------------------
June 30, June 30, June 30, June 30,
2000 2001 2000 2001
--------- --------- --------- ---------
(Unaudited)
Net revenues
Software license $ 13,897 $ 8,913 $ 24,967 $ 14,463
Hosted messaging 14,220 11,141 23,315 25,580
Professional service 3,030 2,900 5,523 6,317
Maintenance and support 2,348 4,131 4,243 7,868
--------- --------- --------- ---------
Total net revenues 33,495 27,085 58,048 54,228
--------- --------- --------- ---------
Cost of net revenues
Software license 737 126 1,744 417
Hosted messaging 13,538 17,440 25,418 35,378
Professional service 1,388 2,594 2,444 5,560
Maintenance and support 1,812 2,414 3,216 5,000
--------- --------- --------- ---------
Total cost of
net revenues 17,475 22,574 32,822 46,355
--------- --------- --------- ---------
Gross profit (loss) 16,020 4,511 25,226 7,873
--------- --------- --------- ---------
Operating expenses
Sales and marketing 17,342 15,694 30,947 34,406
Research and development 9,213 8,333 15,536 18,267
General and
administrative 7,332 11,745 14,098 25,038
--------- --------- --------- ---------
Total operating
expenses 33,887 35,772 60,581 77,711
--------- --------- --------- ---------
Loss from operations (17,867) (31,261) (35,355) (69,838)
Interest and other income
(expense), net 4,697 2,895 5,954 5,320
Interest expense (5,244) (5,311) (5,501) (10,362)
Minority interest in net
income of consolidated
subsidiary (325) - (325) -
Equity in net loss of
joint venture - (397) - (1,173)
--------- --------- --------- ---------
Loss before income taxes (18,739) (34,074) (35,227) (76,053)
Provision for
income taxes (1,439) (1,150) (1,799) (1,493)
--------- --------- --------- ---------
Net loss $ (20,178) $ (35,224) $ (37,026) $ (77,546)
========= ========= ========= =========
Net loss per share -
basic and diluted $ (0.34) $ (0.48) $ (0.68) $ (1.06)
Weighted average shares -
basic and diluted 58,592 73,794 54,581 72,966
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion