Docent Reports Record Fourth Quarter, Year End 2000 Financial Results; Deep Partnerships Continue To Gain Momentum, Driving Fourth Quarter Revenue Up 96 Percent Over Third Quarter.Business Editors MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 29, 2001 Docent, Inc. (Nasdaq: DCNT), a provider of eLearning and knowledge exchange technology, announced results today for its fiscal fourth quarter and year ended December December: see month. 31, 2000. Docent reported total revenue of $5.6 million for the fourth quarter of 2000, a 1,272 percent increase over the same period in 1999 and a 96% increase over the third quarter of 2000. Fourth quarter license revenue of $2.9 million increased 7,545 percent over the fourth quarter of 1999. Fourth quarter services revenue of $2.7 million increased 631 percent over fourth quarter 1999. The Company's net loss per share was $0.39 for the fourth quarter of 2000, compared to a net loss of $2.35 for the same quarter last year. The Company's proforma Proforma A financial projection based on assumptions. net loss per share was $0.26 for the fourth quarter of 2000, compared to a net loss of $0.23 for the fourth quarter of 1999, excluding non-cash stock charges and including average preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . Docent's total revenue of $11.0 million for the year 2000 increased 1,283 percent compared to the Company's revenue of $792,000 for the year 1999. The Company's net loss per share was $6.42 per share for the year 2000, compared to a net loss of $5.19 for the prior year. The Company's proforma net loss per share was $1.29 for the year 2000, compared to a net loss of $0.83 for the year 1999, excluding non-cash stock charges and including average preferred shares. Fourth Quarter Highlights Docent experienced significant traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. across all important areas of its current business strategy: winning new deals with large, recognizable, global companies; growing business through the existing customer base; and forging new relationships with key content and integration partners. Some of the many successes Docent demonstrated in the fourth quarter include: - 36 new customer wins - 28 in the US, 8 in Europe - 13 new content or reseller partners - 7 in the US, 5 in Europe, and 1 in Asia/Pacific - 11 deals in the quarter brought in through Docent's deep partnerships New Customer Wins: - United Airlines has chosen Docent Enterprise as the core infrastructure for an enterprise-wide employee development system. - Harley-Davidson Harley-Davidson Motor Company (NYSE: HOG) is an American manufacturer of motorcycles based in Milwaukee, Wisconsin, United States. The company emphasizes heavyweight (over 750 cc) bikes designed for cruising on the highway and known for their distinctive exhaust note. , selected Docent Enterprise as a new solution that was customizable and easy to use for tracking the education of 15,000 dealer employees and 7,000 company employees. - Storage Tek, a worldwide leader in storage solutions for digitized data, chose the Docent Enterprise solution to help quickly educate employees, partners and customers about its product. Additional new enterprise customers for the fourth quarter included Eli Lilly Eli Lilly can refer to:
Strategic Alliances - Raytheon Raytheon Company (NYSE: RTN) is a major American defense contractor and industrial corporation with core manufacturing concentrations in defense systems and defense and commercial electronics. Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. formed a global alliance with Docent as a major, learning management system partner for the consulting and training services it offers to customers worldwide. - Dutch telecom giant KPN KPN Koninklijke PTT Nederland (Royal Dutch Telecom) KPN Konfederacja Polski Niepodleglej (Polish conservative party) partnered with Docent to provide school children with a customized eLearning service. Docent's technology is the core of the KPN project, offering the platform for students' courseware Educational software. See CBT and OpenCourseWare. (application) courseware - Programs and data used in Computer-Based Training. and learning management, benefiting millions of children across the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . - Quisic, a designer and distributor of corporate e-learning (Electronic-LEARNING) An umbrella term for providing computer instruction (courseware) online over the public Internet, private distance learning networks or inhouse via an intranet. See CBT. solutions for Global 2000 clients, will integrate Docent Enterprise software as its e-learning course development and learning management system. Other new partnerships were forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. in the quarter between Docent and companies such as NETg, SkillSoft, Mentergy (the US subsidiary of Gilat Gilat (Hebrew: גילת, lit. Joy) is a moshav in the western Negev desert in Israel located between Beersheba and Ofakim. Communications), eMind, and BackWeb An Internet delivery platform from BackWeb Technologies, Inc., San Jose, CA (www.backweb.com). The BackWeb Polite Sync Server pushes content to users such as news, stock quotes and virus and software upgrades. . "With a strong fourth quarter continuing the momentum we developed throughout the year, we have demonstrated that we have both the superior strategy and the ability to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution that strategy," said Dave Ellett, President, Chairman and Chief Executive Officer for Docent. "The market continues to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the worldwide demand for a pure web-based, enterprise-wide learning infrastructure product that can be rapidly implemented. We have established traction in all our key markets, and this year we are committed to extending our successes even further." Docent wishes to thank Pardner pard·ner n. Regional A partner, companion, or friend. [Variant of partner.] Noun 1. Wynn for his service on Docent's Board of Directors. Mr. Wynn resigned from the Board effective January January: see month. 18, 2000 to pursue his new philanthropic phil·an·throp·ic also phil·an·throp·i·cal adj. 1. Of, relating to, or marked by philanthropy; humanitarian. 2. Organized to provide humanitarian or charitable assistance: venture, "Nate's Promise Foundation." Mr. Wynn was not an officer of the company at the time of his resignation, and had not been involved in day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. operations at Docent since September September: see month. 1998. The Company will undertake a search effort to fill his seat. About Docent, Inc. Docent, Inc. (Nasdaq: DCNT) is a premier provider of eLearning infrastructure and services for the enterprise and beyond. Our complete, integrated solutions increase revenue, cut costs, and build competitive advantage. Docent Enterprise, our award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" Internet-based software platform for knowledge exchange, provides a complete infrastructure for developing, delivering, managing, and measuring eLearning for employees, customers, partners, and professional communities. Docent is headquartered in Mountain View, California For the census-designated place, see Mountain View, Contra Costa County, California. For other places called "Mountain View", see . Mountain View is a city in Santa Clara County, in the U.S. state of California. The city gets its name from the views of the Santa Cruz Mountains. , with other offices throughout the U.S., 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). , and 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). . For more
information, visit us at www.docent.com, or call +1 650 934 9500 or
Investor Relations Investor relationsThe process by which the corporation communicates with its investors. at +1 212 508 9657. Docent and Docent Enterprise are trademarks and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. registered trademarks of Docent, Inc. Fourth Quarter 2000 Conference Call Docent will host a conference call to discuss fourth quarter earnings at 4:30 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Monday Monday: see week. , January 29, 2001. The media and public are invited to listen to a webcast of the conference call by clicking on the "Investors" section of Docent's corporate Web site (www.docent.com/investors). Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Under 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 This press release contains 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. including statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not historical facts or guarantees of future performance or events. They are based on current expectations, estimates, beliefs, assumptions and goals and objectives, and are subject to uncertainties that are difficult to predict. Often such statements can be identified by their use of words such as will, intends, plans, believes anticipates, expects, and estimates. All forward-looking statements included in this press release are based upon information known to Docent, Inc. as of the date of this press release, and Docent, Inc. assumes no obligation (and expressly disclaims any obligation) to update any such forward-looking statements. These statements are not guarantees of future results and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by these statements. Docent's prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. filed with, and made effective by, the Securities and Exchange Commission on September 29, 2000, lists several risk factors facing Docent. Additional factors which could contribute to such differences include, but are not limited to, the success of any or all of Docent's strategic partnerships and whether Docent's solutions can be successfully implemented for a particular company.
Docent, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------
2000 1999 2000 1999
-------- -------- -------- --------
Revenue:
License $ 2,905 $ 38 $ 5,062 $ 141
Service and maintenance 2,719 372 5,889 651
-------- -------- -------- --------
Total revenue 5,624 410 10,951 792
-------- -------- -------- --------
Cost of sales:
License 15 25 40 29
Service and maintenance 3,134 410 8,358 1,201
-------- -------- -------- --------
Total cost of sales 3,149 435 8,398 1,230
-------- -------- -------- --------
Gross profit (loss):
License 2,890 13 5,022 112
Service and maintenance (415) (38) (2,469) (550)
-------- -------- -------- --------
Total gross profit (loss) 2,475 (25) 2,553 (438)
-------- -------- -------- --------
Operating expenses:
Research and development
expense 1,531 763 4,725 2,482
Sales and marketing expense 10,752 3,335 31,386 8,890
General and administrative
expense 2,026 952 6,316 2,321
Stock-based compensation 5,105 3,691 28,079 4,534
-------- -------- -------- --------
Total operating expenses 19,414 8,741 70,506 18,227
-------- -------- -------- --------
Loss from operations (16,939) (8,766) (67,953) (18,665)
Other income and expense 1,794 83 2,263 (48)
-------- -------- -------- --------
Loss before provision for
income taxes (15,145) (8,683) (65,690) (18,713)
Provision for income taxes 63 - 63 -
-------- -------- -------- --------
Net loss (15,208) (8,683) (65,753) (18,713)
-------- -------- -------- --------
Dividend accretion and deemed
dividend on convertible
preferred stock - (1,223) (19,069) (1,354)
-------- -------- -------- --------
Net loss attributable to
common stockholders $(15,208) $ (9,906) $(84,822) $(20,067)
======== ======== ======== ========
Net loss per share attributable
to common stockholders -
basic and diluted $ (0.39) $ (2.35) $ (6.43) $ (5.19)
======== ======== ======== ========
Weighted average common shares
outstanding 38,615 4,219 13,195 3,868
======== ======== ======== ========
Supplemental disclosures:
Proforma net loss, excluding
stock-based compensation,
dividend accretion and deemed
dividend on convertible
preferred stock $(10,103) $ (4,992) $(37,674) $(14,179)
======== ======== ======== ========
Proforma net loss per share,
excluding stock-based
compensation, dividend
accretion and deemed dividend
on convertible preferred stock $ (0.26) $ (0.23) $ (1.29) $ (0.83)
======== ======== ======== ========
Weighted average common and
preferred shares outstanding 39,418 21,772 29,211 17,013
======== ======== ======== ========
DSO 116
========
Proforma DSO (1) 49
========
(1) Proforma DSO excludes accounts receivable for which the revenue
has been deferred.
Docent, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Twelve
Months
Three Months Ended Ended
-------------------------------------- --------
Mar. 31 June 30 Sept. 30 Dec. 31 Dec. 31
2000 2000 2000 2000 2000
-------- -------- -------- -------- --------
Revenue:
License $ 73 $ 590 $ 1,494 $ 2,905 $ 5,062
Service and
maintenance 658 1,143 1,369 2,719 5,889
-------- -------- -------- -------- --------
Total revenue 731 1,733 2,863 5,624 10,951
-------- -------- -------- -------- --------
Cost of sales:
License 6 5 14 15 40
Service and
maintenance 1,172 2,001 2,051 3,134 8,358
-------- -------- -------- -------- --------
Total cost of
sales 1,178 2,006 2,065 3,149 8,398
-------- -------- -------- -------- --------
Gross profit (loss):
License 67 585 1,480 2,890 5,022
Service and
maintenance (514) (858) (682) (415) (2,469)
-------- -------- -------- -------- --------
Total gross
profit (loss) (447) (273) 798 2,475 2,553
-------- -------- -------- -------- --------
Operating expenses:
Research and
development expense 912 944 1,338 1,531 4,725
Sales and marketing
expense 4,596 7,080 8,958 10,752 31,386
General and
administrative
expense 1,109 1,375 1,806 2,026 6,316
Stock-based
compensation 7,189 11,338 4,447 5,105 28,079
-------- -------- -------- -------- --------
Total operating
expenses 13,806 20,737 16,549 19,414 70,506
-------- -------- -------- -------- --------
Loss from
operations (14,253) (21,010) (15,751) (16,939) (67,953)
Other income and
expense 12 252 205 1,794 2,263
-------- -------- -------- -------- --------
Loss before provision
for income taxes (14,241) (20,758) (15,546) (15,145) (65,690)
Provision for income
taxes - - - 63 63
-------- -------- -------- -------- --------
Net loss (14,241) (20,758) (15,546) (15,208) (65,753)
-------- -------- -------- -------- --------
Dividend accretion
and deemed dividend
on convertible
preferred stock (1,909) (7,705) (9,455) - (19,069)
-------- -------- -------- -------- --------
Net loss
attributable
to common
stockholders $(16,150) $(28,463) $(25,001) $(15,208) $(84,822)
======== ======== ======== ======== ========
Net loss per share
attributable to
common stockholders -
basic and diluted $ (3.70) $ (5.93) $ (4.88) $ (0.39) $ (6.43)
======== ======== ======== ======== ========
Weighted average common
shares outstanding 4,359 4,802 5,119 38,615 13,195
======== ======== ======== ======== ========
Supplemental disclosures:
Proforma net loss,
excluding stock-based
compensation, dividend
accretion and deemed
dividend on convertible
preferred stock $ (7,052) $ (9,420) $(11,099) $(10,103) $(37,674)
======== ======== ======== ======== ========
Proforma net loss per
share, excluding stock-
based compensation,
dividend accretion
and deemed dividend
on convertible
preferred stock $ (0.31) $ (0.35) $ (0.39) $ (0.26) $ (1.29)
======== ======== ======== ======== ========
Weighted average
common and preferred
shares outstanding 22,750 26,632 28,111 39,418 29,211
======== ======== ======== ======== ========
DSO 80 117 185 116
======== ======== ======== ========
Proforma DSO (1) 74 77 114 49
======== ======== ======== ========
(1) Proforma DSO excludes accounts receivable for which the revenue
has been deferred.
Docent, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
December 31,
-----------------------
2000 1999
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 92,818 $ 12,773
Short-term investments 22,479 -
Accounts receivable, net 6,945 809
Prepaid expenses and other current assets 1,434 583
--------- ---------
Total current assets 123,676 14,165
Property and equipment, net 3,627 964
Other assets 513 173
--------- ---------
Total assets $ 127,816 $ 15,302
========= =========
Liabilities, Convertible Preferred and
Other Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $ 1,386 $ 988
Accrued liabilities 6,003 875
Deferred revenues 6,272 1,108
Notes payable and capital lease
obligations, current portion 1,043 1,256
--------- ---------
Total current liabilities 14,704 4,227
Notes payable and capital lease obligations 516 1,117
--------- ---------
Total liabilities 15,220 5,344
Convertible preferred stock - 33,288
Stockholders' equity (deficit) 112,596 (23,330)
--------- ---------
Total liabilities, convertible preferred
and stockholders' equity (deficit) $ 127,816 $ 15,302
========= =========
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