Daleen Reports Record Revenue in Second Quarter 2000; Contract Momentum Drives 115% Revenue Increase.Business Editors/Technology 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)--July 25, 2000 Daleen Technologies, Inc. (Nasdaq:DALN) today reported record revenues of $11.5 million for its quarter ended June June: see month. 30, 2000, a 115% increase over revenues of $5.3 million for the comparable quarter in the prior year. Gross margin increased to 67% in the quarter compared to 55% for the second quarter 1999. The company experienced significant increases in both recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue and revenue from existing customers. License revenue from product sales represented 62% of total revenue during the quarter, increased from 52% during the prior year quarter. Significant revenue 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 an improvement in net loss for the quarter. 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 amounted to $0.20 per share, compared to a net loss of $0.25 per share in the first quarter 2000. For the six months ended June 30, 2000, the company reported revenue of $20.4 million, a 187% increase over revenue of $7.1 million for the comparable period a year ago, and a net loss, on an adjusted basis, of $.45 per share, compared with a net loss, on a proforma Proforma A financial projection based on assumptions. basis, of $.36 per share 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. During the quarter, the company successfully increased revenue and market share, delivered on its Tier One market strategy and extended strategic marketing alliances and distribution channels to expand its global delivery capacity. The company was awarded eleven customer software contracts, representing a 22% increase in contract awards over its prior quarter. These contracts included three Application Service Providers (ASP's) and eight Integrated Communications Providers (ICP's), one of which is Tier One service provider Le Groupe Videotron Ltee (ME-VDO; TSE-VDO). Videotron, with 5,700 employees, is one of Canada's largest cable and telephone operators. "We are excited about the positive response from all market segments to our demonstrated product leadership," remarked Dave Corey Cor·ey , Elias James Born 1928. American chemist. He won a 1990 Nobel Prize for developing techniques of creating synthetic compounds. , 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. . "We believe this positive market acceptance will continue as we enhance our product offering, expand our customer base and penetrate new markets. The recently awarded patent on our BillPlex rating engine, combined with the delivery of the first phase of 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. product packaging, have helped to establish us as a formidable force in the industry. I am very enthusiastic about the momentum we have created through our market leadership." 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, commented, "I am extremely pleased with our record second quarter results. Once again, we have demonstrated strong growth and improved operational performance with another excellent quarter. As a leading provider of 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. customer and partner management, billing 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. eBusiness See e-business. solutions, we are delighted to see continued expansion in demand for our suite of products. These strong results demonstrate that we are consistently delivering on our business and financial goals, as well as our objective for widespread industry acceptance of Daleen's solutions. This quarter's success is a testament to the increasing awareness by communications providers of the importance of our solutions in their eBusiness infrastructure decisions."
Operating Results
(in thousands, except per share amounts and percentages)
Three months ended Six months ended
June 30, Percent June 30, Percent
2000 1999 change 2000 1999 change
Total revenue $11,473 $ 5,336 115% $20,444 $ 7,115 187%
Adjusted net loss (4,434) (1,550) 186% (9,770) (4,508) 117%
Adjusted net loss
per share (0.20) (0.13) 54% (0.45) (0.36) 25%
(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 (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, Business Edge, Cap Gemini Gemini (jĕm`ənī, –nē) [Lat.,=the twins], northern constellation lying on the ecliptic (the sun's apparent path through the heavens) between Taurus and Cancer, N of Canis Minor; it is one of the constellations of the zodiac. , Danet, Ernst & Young, 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. 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 Management of an organization's telephone and telecommunications systems, which includes maintaining and ordering new equipment and monitoring expenses for usage. 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, FL 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. , and Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. . 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 and include the amortization of goodwill and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. . These non-cash charges amounted to approximately $3.8 million for the three months ended June 30, 2000 and $7.4 million for the six months ended June 30, 2000. The stock compensation-related charges relate to stock options issued in connection with this acquisition, along with certain stock option grants during the second and third quarters of 1999. Such amounts total approximately $164,000 for the three months ended June 30, 2000 and $310,000 for the six months ended June 30, 2000. Statements in this release including Daleen Technologies' future performance, business objectives, intended operating results, sales prospects and momentum, product plans and market acceptance are 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. . These statements are based on assumptions about a number of factors and involve risks and uncertainties that could cause actual results to differ materially from what appears in this release. Key factors include the continued market acceptance of its products and services, the company's success in winning new customer contracts, productivity of the company's operating organizations, the company's ability to effectively integrate the operations of Inlogic with its own operations, customer and industry analyst perceptions of the company and its vision, technology and future prospects, continued ability to enhance its existing product offerings, challenges associated with recruiting, training, retaining and integrating significant increases in new personnel and the ability to establish, maintain and effectively implement relationships with strategic marketing alliances. Readers are encouraged to review the additional risks and important factors described in the company's SEC filings.
DALEEN TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months ended Six months ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited)
Revenue:
License fees $ 7,091 2,799 12,793 3,748
Professional services
and other 4,382 2,537 7,651 3,367
Total revenue 11,473 5,336 20,444 7,115
Cost of revenue:
License fees 193 1 351 3
Professional services
and other 3,548 2,389 6,333 3,655
Total cost of revenue 3,741 2,390 6,684 3,658
Gross profit 7,732 2,946 13,760 3,457
Operating expenses:
Research and development 6,746 1,911 11,749 3,488
Sales and marketing 2,518 797 5,836 1,282
General and administrative 7,445 1,829 15,109 3,294
Total operating
expenses 16,709 4,537 32,694 8,064
Operating loss (8,977) (1,591) (18,934) (4,607)
Total interest income and
nonoperating income, net 625 41 1,427 99
Net loss (8,352) (1,550) (17,507) (4,508)
Accretion of preferred stock (39) (79)
Net loss applicable to common
stockholders (1,589) (4,587)
Net loss per share - basic
and diluted $ (0.38) (0.49) (0.81) (1.41)
Weighted average shares -
basic and diluted 21,700 3,245 21,574 3,242
Pro forma data:
Pro forma net loss ($1,550) ($4,508)
Pro forma net loss per
share - basic and diluted (0.13) ($0.36)
Pro forma weighted average
shares - basic and diluted 12,373 12,373
Adjustments to net loss
for acquisition related
expenses:
Goodwill amortization,
other intangibles
amortization and
non-cash stock
compensation expense 3,918 7,737
Adjusted net loss
(see note in press
release): (4,434) (9,770)
Adjusted net loss per
share - basic and diluted $ (0.20) (0.45)
DALEEN TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
June 30, Dec. 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and securities $ 39,739 62,361
Accounts receivable, net 10,375 3,673
Costs in excess of billings 3,932 3,650
Other current assets 910 941
Total current assets 54,956 70,625
Property and equipment, net 7,868 4,845
Goodwill and other intangibles, net 51,295 57,685
Other assets 719 726
Total assets $114,838 133,881
Liabilities and Stockholders' Equity
Current liabilities:
Accrued payroll and other accrued expenses 6,201 1,099
Accounts payable 2,144 12,240
Billings in excess of costs 956 769
Deferred revenue 1,547 301
Other current liabilities 753 15
Total current liabilities 11,601 14,424
Total stockholders' equity 103,237 119,457
Total liabilities and
stockholders' equity $114,838 133,881
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion