Dendrite reports 1996 results and announces share repurchase plan.
MORRISTOWN, N.J.--(BUSINESS WIRE)--Feb. 10, 1997--Dendrite International, Inc. (NASDAQ/NMS:DRTE DRTE Defence Research Telecommunications Establishment ), today announced revenues of $16.1 million for the fourth quarter and $66 million for the year ended December 31, 1996. The Company reported a net loss of $3.3 million, or $0.29 per share, for the fourth quarter, which included several non-recurring items. For the year ended December 31, 1996, Dendrite dendrite: see nervous system; synapse. reported a net loss of $1.9 million, or $0.17 per share, which also includes a one-time charge related to an acquisition in the second quarter of the year. Excluding these charges, the Company would have reported a $0.09 profit for the full year.
The Company also announced that its Board of Directors has approved a share purchase program which may include open market purchases of up to $10 million based on market conditions. An initial $3 million in share purchases will commence after February 10, 1997.
As previously disclosed, the fourth quarter was impacted by several unanticipated events including the delay of certain new license purchases by an existing customer, the delay of an existing client's upgrade decision, and the postponement of certain post-production implementations for an existing client in seven country sites.
The impact of this revenue shortfall Shortfall
The amount by which the capital required to fulfill a financial obligation exceeds available capital.
Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. and associated project expenses in the fourth quarter was $5.1 million pretax pre·tax
Existing before tax deductions: pretax income.
pretax adj [profit] → vor (Abzug der) Steuern tax, or $0.28 per share after tax. Of this amount, $4.4 million pretax, or $0.24 per share after tax, represents the direct impact of the revenue shortfall. The balance is attributable to expenses incurred for staffing additions in anticipation of the business that was delayed through the quarter.
The Company announced that amongst the seven delayed country implementations for the fourth quarter, five have now been contracted and rescheduled to commence in the first and second quarters of 1997, with three of them already underway. The remainder are expected to be finalized See finalization. in the near future. The upgrade decision and the sales force expansion issues affecting Quarter 4 are still pending.
Virtually all of the Company's R&D incurred in the fourth quarter was expensed in the quarter. Of the $3.6 million total R&D, approximately $1.4 million was attributable to the completion of certain new products by year end, including adapting certain new software for the German market, as well as integrating the Company's product and service support with the products of its newest strategic partners such as PenVision, ProScape and Presidio.
In addition, during the fourth quarter the Company incurred higher than expected Cost of Service Revenue of approximately $2 million, primarily due to costs associated with using external contractors to complete time-sensitive project implementations for some customers 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 Europe, and additonal tasks for SRCI SRCI Stentor Resource Centre Inc.
SRCI Status, Request Command Inhibited customers on Version 1 of the Company's ForceOnce product. Selling, general and administrative expenses in the fourth quarter included additional expense related to the expansion of the sales personnel in the Consumer Business Division. During the fourth quarter, the Company also incurred a restructuring charge restructuring charge
The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to the reorganization of the European sales, marketing and service delivery organization.
Separately, Dendrite announced the following:
-- 14 new contracts or letters of intent in both the Health Care and Consumer Business Divisions, totaling more than $20 million over three years.
-- Teaming agreements with Presidio Systems, Inc. and Epsilon 1. (language) EPSILON - A macro language with high level features including strings and lists, developed by A.P. Ershov at Novosibirsk in 1967. EPSILON was used to implement ALGOL 68 on the M-220. to broaden product service and offerings to the Health Care Industry.
Dendrite International provides comprehensive Electronic Territory Management solutions used to manage, coordinate and control the activities of large sales organizations in complex selling environments. Dendrite has two major divisions: the Healthcare Division which is the largest supplier of customer management systems to the global pharmaceutical industry and the Consumer Business Division which serves the Over-the-Counter Drug over-the-counter drug A therapeutic agent that does not require a prescription, which the FDA feels can be safely self-prescribed by non-physicians. Cf Prescription drug, Under-the-counter. , Cosmetics cosmetics, preparations externally applied to change or enhance the beauty of skin, hair, nails, lips, and eyes. The use of body paint for ornamental and religious purposes has been common among primitive peoples from prehistoric times (see body-marking). and Consumer Packaged Goods Noun 1. packaged goods - groceries that are packaged for sale
foodstuff, grocery - (usually plural) consumer goods sold by a grocer
plural, plural form - the form of a word that is used to denote more than one industries worldwide. In the healthcare are field, Dendrite has developed the popular Series 6 pharmaceutical sales automation Sales Automation - Sales Force Automation software. The Company's modular software See modular programming. products are designed to facilitate enterprise-wide communications between all levels of the sales and marketing organization, as well as other functional areas. Dendrite's products convert massive amounts of data into actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action.
An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. rather than passive information. Headquartered in Morristown, New Jersey Morristown is a town in Morris County, New Jersey, United States. As of the United States 2000 Census, the town population was 18,544. Its estimated population in 2004 was 18,842. It is the county seat of Morris CountyGR6. , Dendrite employs over 600 people in 11 offices around the world. -0-
Consolidated Statements of Operations (in thousands, except per share data) (audited) Three Months Ended Year Ended December 31, December 31, 1996 1995 1996 1995 REVENUES: % % % % License Fees $ 1,035 $ 6.4 $2,425 15.2 $8,681 13.1 $ 6,042 11.2 Services 15,037 93.6 13,540 84.8 57,472 86.9 48,080 88.8 16,072 100 15,965 100 66,153 100 54,122 100 COST OF REVENUES: Cost of License Fees 185 17.9 391 16.1 739 8.5 712 11.8 Cost of Services 9,727 64.7 5,808 42.9 29,631 51.6 21,144 44.0 9,912 61.7 6,199 38.8 30,370 45.9 21,856 40.4 Gross Margin 6,160 38.3 9,766 61.2 35,783 54.1 32,266 59.6 OPERATING EXPENSES: Selling, general and administrative 7,624 47.4 6,139 38.5 26,440 40.0 21,252 39.2 Research and development 3,632 22.6 467 2.9 8,747 13.2 3,844 7.1 Write-off of in-process R & D Costs -- -- 2,640 4.0 -- 11,256 70.0 6,606 41.4 37,827 57.2 25,096 46.4 Operating income (loss) (5,096)(31.7) 3,160 19.8 (2,044)(3.1) 7,170 13.2 INTEREST EXPENSE 3 0.0 5 0.0 12 0.0 15 0.0 OTHER EXPENSE (INCOME) 11 0.0 (175) (1.1) (788)(1.2) (526)(0.9) Income (loss) before income taxes (5,110)(31.8)3,330 20.9 (1,268)(1.9 ) 7,681 14.2 INCOME TAXES (1,847)(11.5)1,262 7.9 644 1.0 2,987 5.4 NET INCOME (LOSS) (3,263)(20.3)$2,068 13.0 $(1,912) 2.9 $4,694 8.7 NET INCOME (LOSS) PER SHARE $(0.29) $ 0.19 $ (0.17) $0.45 SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE 11,159 11,134 11,056 10,381
John Bailye, 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.