Daleen Reports First Quarter Operating Results; Meets Revenue and Expense Objectives, Significantly Decreases Cash Used.Business Editors/High-Tech Writers 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)--April 18, 2002 Daleen Technologies Inc. (Nasdaq:DALN), a global provider of high performance billing and customer care software solutions that manage the revenue chain, today reported improved results in revenue growth, expenses, and cash used in operations for the first quarter of 2002 compared to its performance in the fourth quarter of 2001. The company reported revenues of $1.9 million for its first quarter of 2002. Net loss for the quarter was $2.8 million, or $0.13 per share, compared with a $16.3 million net loss, or $0.75 per share during the fourth quarter of 2001, and compared to a net loss of $22.3 million, or $1.02 per share in the first quarter of 2001. First Quarter Highlights: -- Net loss for the quarter decreased by 83 percent compared to the fourth quarter of 2001 and by 87 percent compared to the first quarter of 2001. -- Total expenses were $4.8 million for the first quarter of 2002, compared to $18.1 million during the fourth quarter of 2001 and $27.7 million in the first quarter of 2001. These improvements are a direct result of efforts in 2001 to reduce operating expense levels and the restructuring charges of $11.7 million taken by the company in 2001. -- Net cash used for the quarter was $2.4 million, which is a significant improvement from previous quarters. -- Gross margin increased from 38 percent in the previous quarter to 45 percent in the current quarter. -- Through its OEM agreement with i2 Technologies Inc., the company delivered the RevChain(TM) solution to a new customer that is an industry leader in information technologies, including computer systems, software, and networking systems. Daleen Reports First Quarter Operating Results "Our improvements in revenue, expenses and use of cash this quarter are a strong indication that the restructurings, financial controls and policies implemented last year have been effective in establishing a baseline The horizontal line to which the bottoms of lowercase characters (without descenders) are aligned. See typeface. baseline - released version for growth," said Jeanne Jeanne is a French female name, equivalent to the English Joan, Jane, Jean and several historical figures in English named Joanna. (Feminine forms of John) Historical people who have been called simply Jeanne: The company has continued to focus on providing high levels of customer service while broadening its market coverage and gaining visibility to sales opportunities through its relationships with several strategic partners, including Telcordia Technologies Telcordia Technologies, formerly Bell Communications Research, Inc. or Bellcore, is a telecommunications research and development (R&D) company based in the United States and created on January 1 1984 as part of the 1982 Modification of Final Judgment that broke up and i2 Technologies. Daleen and Telcordia (Telcordia Technologies, Piscataway, NJ, www.telcordia.com) A telecommunications software, engineering and consulting organization. Telcordia was originally founded as Bellcore in 1984 by the regional Bell telephone companies (RBOCs) after they were split apart from AT&T due to court are currently implementing the Next-Generation Billing Manager powered by Daleen solution at Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. carrier AAPT AAPT American Association of Physics Teachers AAPT Association of Asphalt Paving Technologists AAPT American Association of Philosophy Teachers AAPT American Association of Pharmacy Technicians AAPT Australian Association for Psychological Type . The first phase of this project is targeted for completion in the second quarter. "There seems to be a change taking root in certain segments of the market. After putting their technology spending on hold throughout 2001, we are seeing some providers starting to re-evaluate their billing and customer care systems," said 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, president and chief executive officer for the company. "As they do, we expect the requirements for billing functionality and system performance to be even more stringent. By helping them to achieve unprecedented levels of efficiency in their billing operations, we're we're Contraction of we are. we're we are confident that our RevChain products can help providers propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin their businesses through this new phase of recovery." Daleen's key financial objectives include: increasing revenue in each of the coming quarters, maintaining 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. below $5 million per quarter and keeping cash used in the second quarter to below $3 million. About Daleen Daleen Technologies Inc. is a global provider of high performance billing and customer care software solutions that manage the revenue chain for traditional and next-generation communication service providers, retailers and distributors of digital media, and technology solutions providers. Offering proven integration with leading CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. and other legacy enterprise systems, Daleen's RevChain software and pure 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 Integration Architecture (IIA (1) (Information Industry Association, Washington, DC) In 1999, IIA merged with SPA (Software Publishers Association) to become the Software & Information Industry Association. See SIIA. (TM)) leverage open Internet technologies to enable providers to achieve peak operational efficiency while driving maximum revenue from their product and service offerings. The company is currently ranked No. 1 worldwide in overall customer satisfaction based on timeliness of delivery, functionality, delivery within budget, vendor support and maintenance, system flexibility and interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. .(a) Additional information is available at http://www.daleen.com. Daleen Reports First Quarter Operating Results Information with Respect to 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. . Statements in this release may be considered "forward-looking statements" 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. These include statements regarding the intent, belief or current expectations of the company and the assumptions on which these statements are based. 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 the company's ability to continue as a going concern; the ability of the company to increase its revenues; the fact that the company has not yet achieved profitability; variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality of quarterly operating results; uncertainty as to the company's ability to maintain compliance with the continued 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. of The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. ; competition; use of strategic relationships to implement and sell our products; potential customer's market position and lack of financial resources; lengthy sales cycles and timing of contract awards; low price and volatility of the company's common stock; on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" securities class action against the company; the costs and success of the company's international expansion; and the recent private placement of series F convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and the rights and preferences of the stockholders. These factors and others are described in the company's most recent SEC filings including the most recently filed 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 in the company's Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . The company undertakes no obligation to update the forward-looking statements in this news release. Daleen, IIA and RevChain are registered trademarks or trademarks of Daleen Technologies Inc. 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. and other countries. All other trademarks and registered trademarks are property of their respective owners. (a) See the independent report issued by Chorleywood Consulting titled "Global Trends and Market Forecasts in Telecoms BCC (Blind Carbon Copy) The field in an e-mail header that names additional recipients for the message. It is similar to carbon copy (cc), but the names do not appear in the recipient's message. Not all e-mail systems support the bcc feature. See fcc. 2001."
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
March 31 December 31
2002 2001
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 10,670 $ 13,093
Restricted Cash 30 30
Accounts receivable, net 1,688 2,885
Other current assets 358 436
------------- -------------
Total current assets 12,746 16,444
Property and equipment, net 2,252 2,704
Other assets 1,810 2,045
------------- -------------
Total assets $ 16,808 $ 21,193
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accrued payroll and other
accrued expenses 2,666 3,733
Accounts payable 760 678
Billings in excess of costs 860 1,323
Deferred revenue 895 1,013
------------- -------------
Total current liabilities 5,181 6,747
Minority Interest 184 184
Total stockholders' equity 11,443 14,262
------------- -------------
Total liabilities and
stockholders' equity $ 16,808 $ 21,193
============= =============
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Unaudited
Three Months Ended
------------------------------------------
March 31 December 31 March 31
2002 2001 2001
------------ ------------ ------------
Revenue:
License fees $ 211 $ 372 $ 1,712
Professional services
and other 1,689 1,266 3,462
------------ ------------ ------------
Total revenue 1,900 1,638 5,174
------------ ------------ ------------
Cost of revenue:
License fees 36 42 47
Professional services
and other 1,003 970 3,437
------------ ------------ ------------
Total cost of revenue 1,039 1,012 3,484
------------ ------------ ------------
Gross margin 861 626 1,690
Operating expenses:
Sales and marketing 1,149 2,114 4,325
Research and development 1,328 1,591 5,335
General and
administrative 1,333 1,857 3,296
Amortization of goodwill
and other intangibles - 858 4,937
Impairment of long lived
assets - 6,705 3,307
Restructuring charges - 4,005 2,993
------------ ------------ ------------
Total operating
expenses 3,810 17,130 24,193
------------ ------------ ------------
Operating loss (2,949) (16,504) (22,503)
------------ ------------ ------------
Total interest income and
nonoperating income, net 147 175 195
------------ ------------ ------------
Net loss applicable to
common shareholders $ (2,802) $ (16,329) $ (22,308)
============ ============ ============
Net loss applicable to
common shareholders per
share -
basic and diluted $ (0.13) $ (0.75) $ (1.02)
============ ============ ============
Weighted average
outstanding shares -
basic and diluted 22,225 21,875 21,787
============ ============ ============
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