Daleen Announces Record Revenue in Third Quarter.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Oct. 24, 2000 Expansion of Customer Base and Contract Momentum Drive Revenue Increase for Seventh Consecutive Quarter Daleen Technologies, Inc. (Nasdaq:DALN) today reported record revenues of $14.0 million for its quarter ended September September: see month. 30, 2000, a 131% increase over revenues of $6.1 million for the comparable quarter in the prior year. On a quarter-to-quarter basis, third quarter 2000 revenue represents a 22% increase over second quarter 2000 revenues of $11.5 million. This performance represents the Company's seventh consecutive quarter of revenue growth. In addition, the Company has exceeded First Call consensus analyst expectations for each of its five quarters operating as a public company. The Company's gross margin increased to 71% for third quarter 2000. This increase, from 67% during the second quarter of fiscal 2000, was primarily attributable to an increase in license fees as a percentage of total revenue. During the third quarter of 2000, license fees represented 67% of total revenue compared to 62% during the second quarter of 2000. Significant revenue and gross margin growth, combined with diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d management of 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. , resulted in a reduced net loss for the quarter compared to consensus analyst expectations. Excluding acquisition-related and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , net loss for the quarter was $0.23 per share, beating the consensus estimate of a net loss of $.31 per share. For the corresponding quarter in 1999, the net loss was $0.11 per share, 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. For the nine months ended September 30, 2000, the Company reported revenue of $34.5 million, a 161% increase over revenue of $13.2 million for the comparable period a year ago. Net loss, on an adjusted basis, was $0.68 per share for this nine-month period, compared with a net loss of $0.47 per share, pro forma, for the comparable period in 1999. See "Note on Adjusted Results of Operations" below for a description of the methods used to calculate net loss and net loss per share on an adjusted basis. "We are extremely pleased with the strong third quarter results", stated James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Daleen, Chairman and Chief Executive Officer. "During the quarter, we successfully met our stated objectives of increasing our revenue, significantly expanding our customer base, further extending our product leadership and strengthening strategic alliances and distribution channels to expand our delivery capacity." The Company completed its third quarter with strong market acceptance of its products with a record total of twelve license contract awards. This increase reflects the continued market acceptance in the Company's core business, as well as strong growth and expansion into new target market segments. New market segment contracts represented 67% of contracts won during the quarter. In addition, competitive wins represented 83% of the quarter's contract awards. In response to the tremendous growth of the Internet, the Internet, the, international computer network linking together thousands of individual networks at military and government agencies, educational institutions, nonprofit organizations, industrial and financial corporations of all sizes, and commercial enterprises Company's service and content providers are demanding that their billing and customer care solutions seamlessly interface to their end-user (job) end-user - The person who uses a computer application, as opposed to those who developed or support it. The end-user may or may not know anything about computers, how they work, or what to do if something goes wrong. customers through the web. During the quarter, the Company released two new versions of 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. , BillPlex and eCare ECARE, Spanish-language acronym for Estación Científica Antártica Ruperto Elichiribehety, is a Uruguayan summer station established by the Uruguayan Antarctic Institute on Dec 22th, 1997 in the Antarctic Peninsula. , to address these requirements. The release of BillPlex Plus 4.0 further extended the Company's technology leadership by offering important new enhancements for security, taxation, revenue assurance, and payment options as well as including an extendible web-enabled self-care self-care n. The care of oneself without medical, professional, or other assistance or oversight. framework that significantly expanded 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 capabilities. The release of the innovative eCare 3.0 software suite enables customers and partners to interact with their service provider via an Internet portal throughout their entire relationship life cycle from acquisition through ongoing account management. eCare 3.0 offers electronic bill presentment and payment See EBPP. (EBPP (Electronic Bill Presentment and Payment) Sending invoices to customers over the Internet. When payment is due, an e-mail is sent with a link to a Web page that contains the billing information and the payment services that are supported. ), as well as a synchronized syn·chro·nize v. syn·chro·nized, syn·chro·niz·ing, syn·chro·niz·es v.intr. 1. To occur at the same time; be simultaneous. 2. To operate in unison. v.tr. 1. product 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. , ordering, portfolio and account management, access control and security, and a unified view of operations and business support systems throughout the enterprise. This unique functionality empowers the service provider to select the right mix of personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. selling and service combined with Internet-based service enhancing customer satisfaction, increasing customer loyalty and customer lifetime value while lowering the cost of customer support. These product introductions have solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. the Company's position as offering a powerful and comprehensive software solution for addressing customer management, billing, web enabled customer self-care and service activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. requirements in a single, integrated product suite. Approximately 75% of the Company's third quarter license contracts included both BillPlex Plus and eCare products. In addition, the Company incorporated a new subsidiary, PartnerCommunity, during the quarter. PartnerCommunity is an Internet-based partner chain management network for providers of data, content and communications services that enables members to identify, form and manage partnerships to deliver innovative communications services offerings with far greater speed, ease and flexibility. The Company also significantly enhanced its sales and distribution capabilities during the quarter by adding four quota quota In international trade, a government-imposed limit on the quantity of goods and services that may be exported or imported over a specified period of time. Quotas are more effective than tariffs in restricting trade, since they limit the availability of goods rather carrying sales people and by establishing and enhancing a number of new strategic relationships. Of the latter, the most significant is the expansion of the relationship with Vitria Technology, Inc. (Nasdaq:VITR VITR Vitria Technologies (stock symbol) VITR Visible and Thermal Infrared Radiometer ), a leading eBusiness See e-business. platform provider. As part of the Vitria relationship, Daleen will embed em·bed also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. Vitria's BusinessWare eBusiness solution into Daleen's software suite. This newly-integrated solution will enable service, application and content providers to differentiate their offering and capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. new revenue opportunities by quickly collaborating with trading partners to bring new services, digital content and applications to their customers with strong scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it and flexibility. The Company believes that the new strategic relationships will enhance its ability to deliver complete solutions to a broader market. Dave Corey, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Company, commented, "Our success over the last quarter demonstrates continued momentum and market acceptance of our value proposition. The recently introduced BillPlex Plus 4.0 and eCare 3.0 have combined to accelerate our penetration of new market segments. Through our direct sales efforts in the third quarter, we won ten contracts in highly competitive selling situations, demonstrating the increasing market acceptance of Daleen's software solutions. We believe this positive market acceptance will continue as we rapidly increase our visibility in the marketplace and execute on our global sales strategies." Jim Daleen concluded, "We have established ourselves as a leader in providing the mission-critical software and services that service providers need to manage their core business. We will continue to deliver on our mission of empowering our customers to be more competitive in their markets. I firmly believe that continued product leadership, an experienced, proven management and sales team and strengthened alliances will enable us to do what we have always done best -- strive to exceed customer expectations by providing the most innovative software solutions and unparalleled customer service. At the first anniversary of our initial public offering, we are well positioned to meet the demands of an ever-changing digital marketplace. Our business prospects remain solid. We are moving into the fourth quarter and the new year with confidence in our ability to deliver our stated goals and objectives." As previously announced, the Company will hold a conference call on October 25, 2000 at 8:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . On the call, representatives of the Company will be discussing the Company's historical business, trends and business outlook. Participants may register for the call by dialing 800.289.0579 and referencing confirmation code 809969.
Operating Results
(in thousands, except per share amounts and percentages)
Three months ended Nine months ended
September 30, Percent September 30, Percent
2000 1999 change 2000 1999 change
----------------------- ------------------------
Total revenue $14,025 $ 6,083 131% $ 34,467 $13,198 161%
Adjusted net loss (4,924) (1,641) 200% (14,694) (6,150) 139%
Adjusted net loss
per share (0.23) (0.11) 109% (0.68) (0.47) 45%
(1) Adjusted net loss presentations for 2000 exclude
acquisition-related charges and stock compensation expense (as
more fully discussed below under "Note on Adjusted Results of
Operations").
(2) Adjusted net loss amounts for 1999 are on a pro forma basis which
include the effects of the conversion of preferred stock to common
stock as a result of the Company's initial public offering.
About Daleen Founded in 1989, Daleen Technologies, Inc. (Nasdaq: DALN) is a leading provider of solutions that bond businesses and customers in the digital economy. Daleen's software solutions provide mission critical customer and partner management support for businesses that offer voice, data, web and applications hosting services over packet and circuit-switched networks. Daleen's eBusiness software products include eCare, for Internet self-care and partner management, BillPlex(R), for customer management and billing, and SwitchFlow(TM), for service activation. The Company distributes its eBusiness software products throughout the world via Business Alliance Partners and other leading certified See certification. 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. including BusinessEdge, Cap Gemini Ernst & Young, DMR (Digital Media Receiver) See digital media hub. , Danet, Prolan pro·lan n. 1. Human chorionic gonadotropin. No longer in scientific use. 2. Either of two hormones of the pituitary gland, luteinizing hormone and follicle-stimulating hormone. No longer in scientific use. , Telcordia and Unisys. Daleen is an active participant and provides leadership in industry forums such as the Global Billing Association, Ordering and Billing Forum (OBF OBF Ordering and Billing Forum OBF Oregon Bach Festival OBF Oregon Brewers Festival (Portland, Oregon) OBF Open Bioinformatics Foundation OBF Out of Box Failure OBF Office of Budget and Finance OBF Ohio Bible Fellowship ), Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. Data Record (IPDR IPDR Internet Protocol Detail Record Organization IPDR Internet Protocol Detail Record IPDR International Project Development Roadmap (Canada) IPDR Internal Preliminary Design Review IPDR Individual Program Data Records ) working group, TeleManagement Forum and the Application Service Provider (ASP asp, popular name for several species of viper, one of which, the European asp (Vipera aspis), is native to S Europe. It is also a name for the Egyptian cobra (Naja haja). ) Industry Consortium. In addition to its Boca Raton, Florida Boca Raton ("bōkə rə-tōn") is a city in Palm Beach County, Florida incorporated in May 1925. As of the 2000 census, the city had a total population of 74,764; the 2006 population recorded by the U.S. Census Bureau was 86,396. headquarters, Daleen has regional offices located throughout 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. , Canada and Europe. For additional information regarding Daleen's products and services, visit the Company web site at www.daleen.com. Note on Adjusted Results of Operations: Net loss and net loss per share on an adjusted basis are computed by excluding (i) acquisition-related charges, and (ii) non-cash stock compensation-related charges related to stock options. The acquisition-related charges were incurred in connection with the Company's acquisition of Inlogic Software Inc. and include the amortization of goodwill and other intangibles. These non-cash charges amounted to approximately $3.8 million for the three months ended September 30, 2000 and $11.3 million for the nine months ended September 30, 2000. The stock compensation-related charges relate to stock options issued in connection with this acquisition, along with certain other stock option grants issued by the Company. Such amounts total approximately $293,000 for the three months ended September 30, 2000 and $603,000 for the nine months ended September 30, 2000. Certain matters discussed in this press release are or may be considered to be "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 Securities Act of 1933 and the Securities Exchange Act of 1934, 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. by 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. Those statements include statements regarding the intent, belief or current expectations of the Company and its subsidiaries and members of its management. Such forward-looking statements include without limitation statements made with respect to future revenue, revenue growth, market acceptance of the Company's products, and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include integration of recently acquired businesses, future market acceptance of the Company's products, the Company's dependence on a limited number of customers, competition from third parties some of which have greater financial resources than the Company, the Company's ability to successfully manage its growth, length of sales cycles, ability to attract and retain qualified personnel, including senior management, dependence upon strategic alliances with third parties, reliance on one core product, possible failure of the Company's customers to secure adequate financing, need to continue to enhance our existing products and successfully introduce new products, dependence on third party software used in the Company's products, the Company's ability to protect its proprietary software, the possibility of product defects or software errors in our products, risks associated with the Company's expansion into international markets, and adverse developments with respect to the Company's operations. These and additional important factors to be considered are set forth under "Item 1. Business - Certain Risk Factors and Investment Considerations," "Item 7. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" and in the other sections of the Company'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 year ended December 31, 1999 and in the Company's other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations. (FINANCIAL STATEMENTS TO FOLLOW)
-0-
DALEEN TECHNOLOGIES, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Nine months ended
------------------ ----------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
-------- ------ ------ ------
Revenue:
License fees $ 9,456 4,087 22,247 7,836
Professional services
and other 4,569 1,996 12,220 5,362
-------- ------ ------ ------
Total revenue 14,025 6,083 34,467 13,198
-------- ------ ------ ------
Cost of revenue:
License fees 201 5 586 8
Professional services
and other 3,910 1,759 10,204 5,415
-------- ------ ------ ------
Total cost of revenue 4,111 1,764 10,790 5,423
-------- ------ ------ ------
Gross profit 9,914 4,319 23,677 7,775
Operating expenses:
Research and development 7,564 2,698 19,316 6,187
Sales and marketing 4,061 1,086 9,896 2,368
General and administrative 7,831 2,355 22,940 5,649
-------- ------ ------ ------
Total operating
expenses 19,456 6,139 52,152 14,204
-------- ------ ------ ------
Operating loss (9,542) (1,820) (28,475) (6,429)
-------- ------ ------ ------
Total interest income
and nonoperating income,
net 488 179 1,914 279
-------- ------ ------ ------
Net loss (9,054) (1,641) (26,561) (6,150)
-------- ------
Accretion of preferred
stock (43) (122)
------ ------
Net loss applicable to
common stockholders (1,684) (6,272)
------ ------
Net loss per share -
basic and diluted $ (0.42) (0.46) (1.23) (1.85)
======== ====== ====== ======
Weighted average shares -
basic and diluted 21,755 3,659 21,635 3,381
======== ====== ====== ======
Pro forma data:
Pro forma net loss ($1,641) ($6,150)
====== ======
Pro forma net loss per
share - basic and diluted (0.11) ($ 0.47)
====== ======
Pro forma weighted average
shares - basic and diluted 14,278 13,013
====== ======
Adjustments to net loss for
acquisition related
expenses:
Goodwill amortization, other
intangibles amortization and
non-cash stock compensation
expense 4,130 11,867
-------- ------
Adjusted net loss (see note
in press release): (4,924) (14,694)
======== ======
Adjusted net loss per share -
basic and diluted $ (0.23) (0.68)
======== ======
DALEEN TECHNOLOGIES, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
Sept. 30, Dec. 31,
2000 1999
-------- -------
Assets
Current assets:
Cash and securities $ 32,666 62,361
Accounts receivable, net 13,948 3,673
Costs in excess of billings 4,782 3,650
Other current assets 1,985 941
-------- -------
Total current assets 53,381 70,625
Property and equipment, net 8,978 4,845
Goodwill and other intangibles, net 48,112 57,685
Other assets 848 726
-------- -------
Total assets $111,319 133,881
======== =======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 2,266 1,099
Accrued payroll and
other accrued expenses 10,119 12,240
Billings in excess of costs 1,197 769
Deferred revenue 2,553 301
Other current liabilities 579 15
-------- -------
Total current liabilities 16,714 14,424
Total stockholders' equity 94,605 119,457
-------- -------
Total liabilities and
stockholders' equity $111,319 133,881
======== =======
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