Daleen Reports Third Quarter 2001 Operating Results.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)--Oct. 24, 2001 Daleen Technologies, Inc. (Nasdaq:DALN), a global provider of software that manages the revenue chain for next-generation service providers, enterprise business and technology solutions providers, today reported revenue of $2.2 million for the third quarter of 2001. Revenue for the nine months ended Sept. 30, 2001 was $10.8 million. Net loss for the third quarter, on an adjusted basis, was $7.3 million, or $.33 per share. Net loss for the nine months ended Sept. 30, 2001, on an adjusted basis, was $25.7 million, or $1.18 per share. 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, including the goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge in the third quarter. Including the adjustments described in this note, the actual net loss per share for the three and nine months ended Sept. 30, 2001 is $1.68 and $4.73, respectively. During the quarter, the company used less cash than expected to support operations and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . As of Sept. 30, 2001, the company had approximately $21 million in cash on hand. Third Quarter Highlights: -- Reduction in quarterly expense levels, resulting in a decrease in net loss on an actual and on an adjusted basis from the second quarter of 2001 -- 48 percent reduction in total cash used compared to the second quarter of 2001, which includes a 33 percent reduction in cash used in operations -- Executed OEM agreement with Telcordia Technologies Inc. -- Entered into strategic alliance with Oracle Corp. -- Continued to deploy RevChain(TM) software to customers through i2 Technologies Inc. -- Daleen ranked No. 1 in overall customer satisfaction in industry report issued by Chorleywood Consulting Ltd. "During the third quarter, we have seen positive results from our efforts to improve the company's operational efficiencies," 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: Contraction of we have. we've have taken additional measures to reduce operating costs operating costs npl → gastos mpl operacionales in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our commitment to achieving profitability." Daleen continues to develop and advance its partner business strategy with the goal of achieving profitable growth. This strategy leverages the established infrastructure of a diverse partner base to complement the company's own selling efforts and expand the company's global market coverage. Working with industry leaders CGEY CGEY Cap Gemini Ernst and Young (IT consulting firm) , Cisco, Danet, Intec, i2, Oracle 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 , the company is currently pursuing sales opportunities in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , Africa, North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and the Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). region.
"We have achieved two of our primary goals this quarter, including improving our operating results and the reducing our use of cash," 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, chairman and chief executive officer for Daleen. "While our third quarter revenue was less than expected, we are encouraged by our global sales momentum in the fourth quarter and the recent recognition we received from Chorleywood Coordinates: Chorleywood is a town in the Three Rivers district of Hertfordshire in the United Kingdom. It has a population of around 9,200 people. The town lies in the far south west of Hertfordshire, on the historic border with Buckinghamshire. Consulting, who ranked Daleen as No. 1 in overall customer satisfaction." The company will hold a conference call on Oct. 25, 2001 at 8:00 a.m. Eastern to discuss its quarterly results. The conference call will be available as an audio Webcast via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Daleen's Website at http://www.daleen.com/investor. Alternatively, the teleconference may also be accessed by dialing 1-800-289-0579 or, outside 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. , +1-719-457-2550, and referencing confirmation code 496256. About Daleen Daleen Technologies, Inc. is a global provider of 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 software solutions that manage the revenue chain for next-generation service providers, enterprise business and technology solutions providers. Daleen's RevChain product line automates and manages service providers' revenue chains by providing functionality including service creation and management, customer management, order and fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. , billing and settlement across the span of the enterprise. The Daleen RevChain product line is comprised of a set of industry-focused software suites and core applications built on the Daleen Internet 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)) system, which leverages open Internet technologies to integrate seamlessly with legacy and existing systems while requiring zero code on the client. Daleen was ranked No. 1 in overall customer satisfaction in the report "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" issued by Chorleywood Consulting. Additional information is available at http://www.daleen.com. Note on Adjusted Results of Operations: Net loss and net loss per share on an adjusted basis are computed by excluding amortization and the impairment of goodwill, non-cash stock compensation charges related to the issuance of certain stock options, restructuring and impairment charges and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends. The goodwill is related to the company's December December: see month. 1999 acquisition of Inlogic Software Inc. and an impairment of goodwill was recorded in the third quarter of $23.4 million. The restructuring and impairment charges are related to the January January: see month. 5 and April 10, 2001 restructuring actions. The preferred stock dividends relate to the beneficial conversion feature and warrant valuation recorded in connection with the Series F preferred stock offering. For the three and nine months ended September September: see month. 30, 2001 these adjustments are approximately $29.5 million and $77.5 million, respectively. See "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. " below. Information with Respect to Forward-Looking Statements: Certain matters discussed in this press 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. Those statements include statements regarding the intent, belief or current expectations of the Company and members of its management as well as the assumptions on which such 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 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; not yet achieving profitability; liquidity and capital resources; competition; need to expand sales and distribution capabilities; lengthy sales cycles and timing of contract awards; general economic conditions, including the economic conditions affecting the Company's existing and prospective customers; ability to attract and retain qualified employees; our continued use of strategic relationships to implement and sell our products; managing growth; planned international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; meeting customer expectations; general market conditions, and quality of software delivered. These and additional important factors to be considered are set forth in 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 2000 and in the Company's Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . 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. Daleen, IIA and RevChain are registered trademarks or trademarks of Daleen Technologies Inc. in the United States 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)
September 30 December 31
2001 2000
------------ -----------
Assets
Current assets:
Cash and cash equivalents $20,951 $22,268
Restricted Cash 30 931
Accounts receivable, net 3,324 13,929
Costs in excess of billings 281 2,213
Other current assets 440 904
------- -------
Total current assets 25,026 40,245
Property and equipment, net 5,218 10,146
Goodwill and other intangibles, net 7,553 44,726
Other assets 2,349 4,345
------- -------
Total assets $40,146 $99,462
======= =======
Liabilities and Stockholders' Equity
Current liabilities:
Accrued payroll and other accrued expenses 5,579 12,731
Accounts payable 1,145 2,968
Billings in excess of costs 1,292 1,466
Deferred revenue 1,374 2,944
Other current liabilities 20 1,061
------- -------
Total current liabilities 9,410 21,170
Long term portion of capitalized lease -- 607
------- -------
Total liabilities 9,410 21,777
Total stockholders' equity 30,736 77,685
Total liabilities and
stockholders' equity $40,146 $99,462
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
(unaudited)
Three Months ended Nine Months ended
------------------ -----------------
Sept. 30 Sept. 30 Sept. 30 Sept. 30
2001 2000 2001 2000
-------- -------- -------- --------
Revenue:
License fees $ 418 9,456 3,193 22,247
Professional services
and other 1,787 4,569 7,601 12,220
-------- -------- -------- --------
Total revenue 2,205 14,025 10,794 34,467
-------- -------- -------- --------
Cost of revenue:
License fees 1,236 201 1,604 586
Professional services
and other 1,288 3,910 6,331 10,204
-------- -------- -------- --------
Total cost of
revenue 2,524 4,111 7,935 10,790
-------- -------- -------- --------
Gross margin (319) 9,914 2,859 23,677
Operating expenses:
Sales and marketing 1,826 4,061 8,781 9,896
Research and development 2,430 7,564 10,931 19,316
General and
administrative 6,810 7,831 24,323 22,940
Restructuring and
impairment charges 23,408 -- 34,473 --
-------- -------- -------- --------
Total operating
expenses 34,474 19,456 78,508 52,152
-------- -------- -------- --------
Operating loss (34,793) (9,542) (75,649) (28,475)
-------- -------- -------- --------
Total interest income
and nonoperating
income, net 447 488 990 1,914
-------- -------- -------- --------
Net loss $(34,346) (9,054) (74,659) (26,561)
Less: preferred
stock dividends (2,447) -- (28,512) --
-------- -------- -------- --------
Net loss applicable
to common
shareholders $(36,793) (9,054) (103,171) (26,561)
======== ======== ======== ========
Net loss per share -
basic and diluted $ (1.68) (0.42) (4.73) (1.23)
======== ======== ======== ========
Weighted average
outstanding shares -
basic and diluted 21,870 21,755 21,823 21,635
======== ======== ======== ========
Adjustments to net loss
for goodwill and other
intangibles, stock
compensation expense,
restructuring and
impairment:
Goodwill, other
intangibles, non-cash
stock compensation
expense, restructuring
and impairment 27,078 4,130 48,986 11,867
-------- -------- -------- --------
Adjusted net loss (see
note in press release): (7,268) (4,924) (25,673) (14,694)
======== ======== ======== ========
Adjusted net loss per
share - basic and
diluted $ (0.33) (0.23) (1.18) (0.68)
======== ======== ======== ========
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