Daleen Reports First Quarter Operating Results.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 23, 2004 Daleen Technologies, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DALN), a global provider of licensed and outsourced billing and customer management, operational support systems (OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. ) and revenue assurance solutions for traditional and next generation service providers, today reported revenues of $4.3 million for the first quarter of 2004, as compared to $5.0 million for the fourth quarter of 2003. The decrease in revenues was primarily due to a lower level of new business than expected. Total expenses in the first quarter were $5.3 million, compared to $5.4 million in the fourth quarter of 2003. The company's total cash and cash equivalents used in the quarter were $350,000, compared to $1.1 million in the fourth quarter. Net loss for the first quarter of 2004 was $1.1 million, or $.02 per share, as compared to $409,000, or $.01 per share in the fourth quarter of 2003. "Although revenues from new sales declined, we had a number of successes this quarter expanding our relationships with several existing customers, and with our ongoing project implementation at ETB ETB - End Transmission Block ," said Gordon Gordon, river in W Tasmania, Australia, 125 mi (200 km) long. Flowing from mountains to the W coast, its main tributaries are the Franklin and Denison from the N, and Serpentine and Olga to the S. Quick, 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. of Daleen. First Quarter Highlights -- US Signal renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. its contract for outsourced billing services through BillingCentral(R). Under terms of the new agreement, Daleen will provide outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services to US Signal until 2009. -- Onvoy, Inc. purchased Daleen's Asuriti(TM) event management and revenue assurance software to provide comprehensive data collection and analysis, mediation mediation, in law, type of intervention in which the disputing parties accept the offer of a third party to recommend a solution for their controversy. Mediation has long been a part of international law, frequently involving the use of an international commission, , event rating, and cost management capabilities. The Asuriti contract expands Daleen's footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. at Onvoy, where the company's NetworkStrategies(R) and EventProcessor(R) billing and rating software have been in use since 2000. -- As a result of work completed in the first quarter, Daleen completed Phase 1 of its ongoing implementation at ETB in Bogota Bo·go·tá The capital and largest city of Colombia, in the central part of the country on a high plain in the eastern Andes. It was a center of Chibcha culture before the Spanish established a settlement in 1538. Population: 6,980,000. , Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. in April. RevChain(R) has reduced the time required to import, rate, validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data , and store usage records by more than 95 percent, exceeding ETB's requirements and expectations. -- Daleen continues to effectively manage its operational costs. Total expenses were $5.3 million for the first quarter, compared to $5.4 million in the fourth quarter of 2003. -- Daleen was approved for up to $2.7 million under a fifteen-month operating loan with Silicon Valley Bank. The proceeds of this loan are being used to cover operating costs operating costs npl → gastos mpl operacionales associated with our contract with ETB. Daleen intends to repay the operating loan solely from revenues received from ETB as project milestones are completed and payments are received. To date, Daleen has borrowed $2.0 million against this loan. The Company is currently not in compliance with a financial covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the under the operating loan; however, it is currently seeking a waiver The voluntary surrender of a known right; conduct supporting an inference that a particular right has been relinquished. The term waiver is used in many legal contexts. or an amendment from the bank on this covenant. -- The company's total cash and cash equivalents used in the first quarter were $350,000, compared to $1.1 million in the prior quarter. This reduction was primarily due to borrowing $2.0 million against the operating loan to support the ETB project. About Daleen Daleen Technologies, Inc. is a global provider of high performance billing and customer care, OSS and revenue assurance software, with a comprehensive outsourcing solution for traditional and next generation service providers. Daleen's solutions utilize advanced technologies to enable providers to reach peak operational efficiency while driving maximum revenue from products and services. Core products include its RevChain(R) billing and customer management software, Asuriti(TM) event management and revenue assurance software, and BillingCentral(R) 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). outsourcing services. More information is available at www.daleen.com. 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 business concentration; the Company's ability to continue as a going concern; the Company's ability to successfully implement its aggregation strategy; the Company's inability to achieve profitability; the consequences of any default on the SVB (Switched Video Broadcast) See switched video. operating loan; customers' and potential customers' market position and lack of financial resources; the costs and success of the Company's international expansion; the ability of the Company to develop and protect its intellectual property; the Company's relationship with third party software vendors and service providers; competition; the Company's ability to retain senior management and other key personnel; low price and volatility of the Company's common stock and the impact of the delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. from The Nasdaq SmallCap Market; the 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 risks associated with the proposed reverse stock split; claims related to liabilities associated with the Abiliti acquisition; and the rights and preferences of the 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". . These factors and others are described in the Company's most recent SEC filings including its 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. . The Company undertakes no obligation to update the forward-looking statements in this news release. (C)Daleen Technologies, Inc. All rights reserved. Daleen, the Daleen logo, RevChain, Asuriti, BillingCentral, NetworkStrategies, and EventProcessor are trademarks, or service marks, 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.
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
March 31 December 31
2004 2003
----------- -----------
Assets
Current assets:
Cash and cash equivalents $ 2,195 $ 2,497
Restricted Cash 506 561
Accounts receivable, net 1,957 1,002
Cost in excess of billing 2,975 2,032
Other current assets 568 487
----------- -----------
Total current assets 8,201 6,579
Property and equipment, net 786 931
Goodwill 5,086 5,086
Other assets 481 430
----------- -----------
Total assets $ 14,554 $ 13,026
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 86 148
Accrued payroll and other accrued expenses 2,575 2,267
Billings in excess of costs 320 97
Current portion of note payable 2,000 -
Deferred revenue 508 372
Other current liabilities 12 42
----------- -----------
Total current liabilities 5,501 2,926
Other long term liabilities 11 5
----------- -----------
Total liabilities 5,512 2,931
Total stockholders' equity 9,042 10,095
----------- -----------
Total liabilities and stockholders'
equity $ 14,554 $ 13,026
=========== ===========
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Unaudited
Three Months Ended
-----------------------
March 31 December 31
2004 2003
----------- -----------
Revenue:
Professional services and other $ 3,667 $ 4,378
License fees 587 573
----------- -----------
Total revenue 4,254 4,951
----------- -----------
Cost of revenue:
Professional services and other 1,584 1,700
License fees - 27
----------- -----------
Total cost of revenue 1,584 1,727
----------- -----------
Gross margin 2,670 3,224
Operating expenses:
Sales and marketing 734 769
Research and development 1,652 1,652
General and administrative 1,373 1,234
----------- -----------
Total operating expenses 3,759 3,655
----------- -----------
Operating loss (1,089) (431)
----------- -----------
Total interest income and nonoperating
expense, net 36 22
----------- -----------
Net loss applicable to common shareholders $ (1,053)$ (409)
=========== ===========
Net loss applicable to common shareholders
per share - basic and diluted $ (0.02)$ (0.01)
=========== ===========
Weighted average outstanding shares - basic
and diluted 46,858 46,429
=========== ===========
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