Daleen Reports Second Quarter Operating Results; Company Announces Continued Improvements in Revenue and Operating Expenses.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 19, 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 its second consecutive quarter of revenue growth, while continuing to hold expense levels for the second quarter of 2002. The company reported revenues of over $2.0 million for its second quarter of 2002. Net loss for the quarter was $2.3 million, or $0.10 per share, compared with a $2.8 million net loss, or $0.13 per share during the first quarter of 2002, and compared to a net loss of $18.0 million, or $2.02 per share in the second quarter of 2001. Second Quarter Highlights: -- Daleen recorded an increase in revenue from existing customers, including $700,000 in growth-related new license revenue from Integra Telecom, a provider of local, long distance and Internet services for small and midsize businesses. -- Total expenses were $4.8 million for the second quarter of 2002, which included $745,000 in restructuring charges, compared to total expenses of $4.8 million for the first quarter of 2002, and compared to total expenses of $21.8 million for the second quarter of 2001. Total expenses in the second quarter of 2001 included restructuring charges of $4.8 million. The reduced level of expenses reflects the company's continued improvements in sustaining a lower cost of operations. -- Total expenses for the six months ended June 30, 2002 were $9.7 million, compared to $49.5 million for the same period in 2001. Total expenses for the six months ended June 30, 2002 and 2001 included $745,000 and $7.8 million of restructuring charges, respectively. -- The company realized a gain of $391,000 in non-operating income on the sale of its subsidiary, Partner Community, Inc. -- Daleen was recognized as a finalist in the Operational Excellence category of the 2002 Billing World Excellence Awards, which the telecom community has come to regard as an important acknowledgement of the best the industry has to offer. "I believe our quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results clearly demonstrate that we are making real progress in our business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets ," 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 methodically me·thod·i·cal also me·thod·ic adj. 1. Arranged or proceeding in regular, systematic order. 2. Characterized by ordered and systematic habits or behavior. See Synonyms at orderly. reduced expenses and cash used to support operations over the previous eighteen months to bring its business in line with a severe downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in overall market conditions and in order to reach profitability as quickly as possible. Daleen anticipates lower expense levels in the third quarter and a further reduction in its use of cash. 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 $3.5 million per quarter and keeping cash used in the third quarter to below $2.5 million. "Although the communications industry communications industry, broadly defined, the business of conveying information. Although communication by means of symbols and gestures dates to the beginning of human history, the term generally refers to mass communications. itself still holds some challenges, we've we've Contraction of we have. we've have successfully stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. our cost structure, and put ourselves a step closer to reaching our goal of achieving profitability," 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 Daleen. 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. 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 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
June 30 December 31
2002 2001
------- -------
Assets
Current assets:
Cash and cash equivalents $ 7,203 $13,093
Restricted Cash 30 30
Accounts receivable, net 1,939 2,885
Other current assets 294 436
------- -------
Total current assets 9,466 16,444
Property and equipment, net 1,797 2,704
Other assets 1,712 2,045
------- -------
Total assets $12,975 $21,193
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accrued payroll and other accrued
expenses 1,831 3,733
Accounts payable 212 678
Billings in excess of costs 845 1,323
Deferred revenue 697 1,013
------- -------
Total current liabilities 3,585 6,747
Minority Interest -- 184
Total stockholders' equity 9,390 14,262
------- -------
Total liabilities and
stockholders' equity $12,975 $21,193
======= =======
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Unaudited
Three Months Ended Six Months Ended
June 30 March 31 June 30 June 30 June 30
2002 2002 2001 2002 2001
------ ------ ------ ------ ------
Revenue:
License fees $ 753 211 1,063 963 2,775
Professional services
and other 1,290 1,689 2,351 2,983 5,750
------ ------ ------ ------ ------
Total revenue 2,043 1,900 3,414 3,946 8,525
------ ------ ------ ------ ------
Cost of revenue:
License fees 63 36 321 98 368
Professional services
and other 608 1,003 1,608 1,614 5,043
------ ------ ------ ------ ------
Total cost of
revenue 671 1,039 1,929 1,712 5,411
------ ------ ------ ------ ------
Gross margin 1,372 861 1,485 2,234 3,114
Operating expenses:
Sales and marketing 1,083 1,149 2,632 2,233 6,955
Research and development 1,054 1,328 3,179 2,386 8,506
General and administrative 1,250 1,333 5,639 2,583 8,936
Amortization of goodwill
and other intangibles -- -- 3,642 -- 8,579
Impairment of long lived
assets -- -- -- -- 3,307
Restructuring charges 745 -- 4,771 745 7,764
------ ------ ------ ------ ------
Total operating
expenses 4,132 3,810 19,863 7,947 44,047
------ ------ ------ ------ ------
Operating loss (2,760) (2,949) (18,378) (5,713) (40,933)
------ ------ ------ ------ ------
Other income:
Interest income and
nonoperating income, net 118 147 373 268 619
Gain on sale of subsidiary 391 -- -- 391 --
------ ------ ------ ------ ------
Total other
income, net 509 147 373 659 619
------ ------ ------ ------ ------
Net loss $ (2,251) (2,802) (18,005) (5,054) (40,314)
Less: preferred
stock dividends -- -- (26,065) -- (26,065)
------ ------ ------ ------ ------
Net loss applicable
to common shareholders $ (2,251) (2,802) (44,070) (5,054) (66,379)
====== ====== ====== ====== ======
Net loss applicable
to common shareholders
per share - basic
and diluted $ (0.10) (0.13) (2.02) (0.22) (3.05)
====== ====== ====== ====== ======
Weighted average
outstanding shares -
basic and diluted 23,532 22,225 21,812 22,882 21,799
====== ====== ====== ====== ======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion