Daleen Reports Third Quarter Operating Results; Company Sustains Lower Cost of Operations; Decreases Net Loss.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)--Nov. 8, 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 that despite a decrease in revenues for the third quarter, incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. reductions in 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. and cash used contributed to the company's third consecutive quarterly decrease in net loss per share. The company reported revenues of $1.2 million for its third quarter of 2002. Net loss for the quarter was $1.7 million, or $0.07 per share, compared with a $2.3 million net loss, or $0.10 per share during the second quarter of 2002, and compared to a net loss of $36.8 million, or $1.68 per share in the third quarter of 2001. The company had revenues of $2.2 million for the third quarter of 2001. Third Quarter Highlights: -- Total expenses were $3.0 million for the third quarter of 2002, compared to $4.8 million for the previous quarter, and compared to total expenses of $37.0 million for the third quarter of 2001. Total expenses in the second quarter of 2002 included $745,000 in restructuring charges, and total expenses in the third quarter of 2001 included $23.4 million in goodwill impairment charges. These improvements and the company's continued diligence in managing expenses and maintaining a lower total cost of operations helped reduce the amount of cash used to support operations to $1.2 million for the quarter. -- Total expenses for the nine months ended September 30, 2002 were $12.7 million, compared to $86.4 million for the same period in 2001. Total expenses for the nine months ended September 30, 2002 and 2001 included $745,000 and $7.8 million of restructuring charges, respectively. In addition, total expenses for the nine months ended September 30, 2001 included $27.9 million in impairment charges related to goodwill intangibles and property and equipment. -- The company restructured its license and services contract with Cbeyond Communications to include a schedule of fixed payments through the end of 2006, which creates long term, recurring revenues for Daleen. "While revenues from new license sales are disappointing, we are continuing to make progress with our expense structure and operations," 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: 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 component to our license business model, and enhance our ability to deliver more predictable and consistent quarterly revenues." Daleen derives revenues from the sale of software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services contracts for its billing and customer management solutions, whereas Abiliti's recurring revenue model is driven primarily from contracted service bureau and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. offerings. The two companies have announced their intent to combine resources and delivery channels to develop, market and deliver a broader suite of licensed and outsourced Outsourced is a modern day comedy of cross-cultural conflict and romance, directed by John Jeffcoat, released in 2007. Synopsis Todd Anderson (Josh Hamilton) spends his days managing a customer call center for American Novelty Products in Seattle, until his job, billing, customer care and event management solutions to customers worldwide. The transaction is subject to certain customary conditions, including receipt of approval by Daleen's stockholders. 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(TM) 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 was ranked No. 1 worldwide in 2001 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 risks associated with the pending purchase of assets from Abiliti Solutions and previously announced $5.015 million private placement, including risks described in the company's proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. on Schedule 14A filed with the SEC; 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 regain 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 SmallCap Stock Market and the possibility that the asset purchase and private placement will be viewed by Nasdaq as a "reverse acquisition" requiring the company to meet the higher initial listing requirements of Nasdaq for continued listing on the Nasdaq SmallCap Market after the transaction; competition; use of strategic relationships to implement and sell our products; potential customers' market position and lack of financial resources; low price and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the 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 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". 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. , as well as the company's proxy statement on Schedule 14A filed in connection with the proposed asset purchase and private placement. 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 and IIA 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. (a) See the independent report issued by 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 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 Unaudited Consolidated Balance Sheets
(in thousands)
September 30 December 31
2002 2001
-------------- ------------
Assets
Current assets:
Cash and cash equivalents $ 5,984 $ 13,093
Restricted cash 30 30
Accounts receivable, net 1,296 2,885
Other current assets 690 436
-------------- ------------
Total current assets 8,000 16,444
Property and equipment, net 1,534 2,704
Other assets 1,567 2,045
-------------- ------------
Total assets $ 11,101 $ 21,193
============== ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 440 678
Accrued payroll and other accrued
expenses 1,650 3,733
Billings in excess of costs 542 1,323
Deferred revenue 917 1,013
Other current liabilities 16 --
-------------- ------------
Total current liabilities 3,565 6,747
Minority Interest -- 184
Total stockholders' equity 7,536 14,262
-------------- ------------
Total liabilities and stockholders'
equity $ 11,101 $ 21,193
============== ============
Daleen Technologies, Inc. and Subsidiaries
Condensed Unaudited Consolidated Statements of Operations
(in thousands except per share data)
Three Months Ended Nine Months Ended
------------------------------- --------------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2002 2002 2001 2002 2001
---------- --------- ---------- ---------- ---------
Revenue:
License fees $ 397 753 418 1,361 3,193
Professional
services and
other 849 1,290 1,786 3,831 7,601
---------- --------- ---------- ---------- ---------
Total revenue 1,246 2,043 2,204 5,192 10,794
---------- --------- ---------- ---------- ---------
Cost of revenue:
License fees 34 63 1,236 171 1,604
Professional
services and
other 404 608 1,287 1,980 6,331
---------- --------- ---------- ---------- ---------
Total cost of
revenue 438 671 2,523 2,151 7,935
---------- --------- ---------- ---------- ---------
Gross margin 808 1,372 (319) 3,041 2,859
Operating
expenses:
Sales and
marketing 789 1,083 1,826 3,028 8,781
Research and
development 713 1,054 2,430 3,098 10,931
General and
administrative 1,093 1,250 3,149 3,681 11,976
Amortization of
goodwill and
other intangibles - - 3,661 - 11,156
Impairment of
long lived
assets - - 23,408 - 27,906
Restructuring
charges - 745 - 745 7,758
---------- --------- ---------- ---------- ---------
Total operating
expenses 2,595 4,132 34,474 10,552 78,508
---------- --------- ---------- ---------- ---------
Operating loss (1,787) (2,760) (34,793) (7,511) (75,649)
---------- --------- ---------- ---------- ---------
Other income:
Interest income
and nonoperating
income, net 42 118 447 321 989
Gain on sale of
subsidiary - 391 - 391 -
---------- --------- ---------- ---------- ---------
Total other
income, net 42 509 447 712 989
---------- --------- ---------- ---------- ---------
Net loss $ (1,745) (2,251) (34,346) (6,799) (74,660)
Less: preferred
stock dividends - - (2,447) - (28,512)
---------- --------- ---------- ---------- ---------
Net loss
applicable to
common
stockholders $ (1,745) (2,251) (36,793) (6,799) (103,172)
========== ========= ========== ========== =========
Net loss applicable
to common stockholders
per share -
basic and diluted$ (0.07) (0.10) (1.68) (0.29) (4.73)
========== ========= ========== ========== =========
Weighted average
outstanding
shares - basic
and diluted 23,376 23,532 21,870 23,049 21,823
========== ========= ========== ========== =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion