Exchange Applications Reports Record Results for Fiscal Year and Fourth Quarter 1998.BOSTON--(BUSINESS WIRE)--Jan. 25, 1999-- VALEX revenues increased 149 percent over 1997 Q4 highlights: New customers Ameritrade, Bell Atlantic and Citibank; Sydney office signs its first two customers Exchange Applications, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :EXAP), a leading provider of customer optimization software Free and Open Source software
Fiscal year 1998 Revenues for the fiscal year were $24.8 million, an increase of 96 percent over 1997. Net loss and net loss per share in 1998 were $973,000 and $0.13 respectively, compared to $2.6 million and $0.48 in 1997. Revenues from software license fees in 1998 increased 149 percent over 1997 levels, accounting for 58 percent of total revenues. Revenues from services and maintenance increased 51 percent over 1997 levels. Fourth Quarter 1998 Revenues for the fourth quarter 1998 were $7.6 million, an increase of 68 percent over the fourth quarter of 1997. Net income for the fourth quarter of 1998 was $191,000 or $0.02 per share, compared to a net loss of $863,000 or $0.14 per share in the fourth quarter of 1997. Revenues from software license fees increased 95 percent over the comparable period in 1997, accounting for 60 percent of total revenues. Revenues from services and maintenance increased 40 percent over the comparable period of 1997. New clients in 1998 During 1998, Exchange Applications acquired more than thirty-five new customers around the world. At the close of 1998, more than 30 companies were using VALEX(tm) and Exchange Applications' Continuous Customer Management (CCM CCM Contemporary Christian Music CCM Critical Care Medicine CCM County College of Morris (New Jersey) CCM Chama Cha Mapinduzi (political party, Tanzania) CCM CORBA Component Model ) practice. An additional 20+ companies have purchased VALEX and plan to implement it and CCM in 1999. New North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. customers in 1998 include: Ameritrade, Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Bell Atlantic, Citigroup, Harris Bank, Mellon Bank, NEXTEL, Northern Indiana Northern Indiana is the region of Indiana including 26 counties bordering parts of Illinois, Michigan, and Ohio. The area is generally sub-classified into other regions. The northwest is economically and culturally intertwined with Chicago, and is considered part of the Chicago Public Service Company (NIPSCO NIPSCO Northern Indiana Public Service Company ), Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. , SaskTel, Staples staples U-shaped stainless steel or vitallium units with sharp points used for surgical fixation. epiphyseal staples used to staple epiphysis to metaphysis; have metal bracing at the corners. , Strong Capital, U S West, a major automobile manufacturer and a large financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company based in New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . New international clients in 1998 include: Capital Bank, Citigroup/Germany, CommerzBank AG, Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. , HFC 1. (networking) HFC - Hybrid Fiber Coax. 2. (hardware) HFC - hydrofluorocarbon. Bank, SE Banken, SKY TV, Woolwich PLC and a large pharmaceutical company. Exchange Applications' Sydney, Australia office signed its first two customers - Citigroup/Singapore and Credit Union Services Corporation (CUSCAL CUSCAL Credit Union Services Corporation Australia Limited ) - in the fourth quarter of 1998, after opening in the second quarter. Exchange Applications now has a total of fifteen customers outside of 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. . Additional Highlights of FY 1998 During fiscal year 1998, Exchange Applications: -0-
-- Broadened partner/channel alliances and forged reseller
agreements with two of the world's leading data warehouse
vendors: NCR and IBM. Both chose to incorporate Exchange
Applications' VALEX campaign management and marketing automation
software into their customer relationship management offerings
after conducting extensive research on the market.
-- Won the "Best Data Warehouse Application" award from The Data
Warehousing Institute, with client INVESCO Funds Group. This
marked the second consecutive year that Exchange Applications
has won the award.
-- Acquired several customers outside of the company's traditional
vertical markets of financial services and telecommunications.
Emerging vertical markets include retail, insurance and
utilities.
-- Increased international business (outside North America) to 20
percent of annual revenue, up from 5 percent in 1997.
-0- In addition, just after the close of 1998, Exchange Applications announced that its VALEX software had won the Crossroads A-List Award, sponsored by Open Systems Advisors. VALEX was the only pure marketing automation or campaign management software to make the A-List. "1998 was an exciting year for Exchange Applications, filled with important milestones culminating with our December IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ," said Andrew Frawley, 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. of the company. "Exchange Applications' customer base more than doubled, our employee head count increased by 69 percent and we forged significant new relationships with partners such as IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers . "The fourth quarter was our second consecutive quarter of profitability," Frawley continued. "Prior to the IPO, Exchange Applications made significant investments in the people, technology, and infrastructure required to support the company's growth through the millennium. With those investments behind us, and a significant market opportunity in front us, we believe Exchange Applications is well positioned for continued success." Exchange Applications, Inc. Exchange Applications, Inc. (NASDAQ:EXAP) helps businesses optimize the value of customer relationships across channels and product lines. Its award-winning VALEX software and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" help businesses identify customer segments offering high profit potential, and then maximize the value of those segments through highly targeted and coordinated direct marketing campaigns. Exchange Applications provides marketers with the technology to plan, build, execute, analyze and refine marketing campaigns that produce measurable return on investment. Through VALEX, a company automates and accelerates its marketing process to improve customer acquisition, expansion and retention. Exchange Applications is based in Boston, with offices in Denver, London and Sydney. Visit Exchange Applications on the Web at http://www.exapps.com. "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: In addition to historical information contained herein, this news 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. that involve risks and uncertainties, including the statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc estimated fourth quarter results and statements relating to current expectations for current and future periods. The company's actual results could differ materially from those discussed in such forward-looking statements, based on a variety of factors, including whether all orders included in estimated revenues meet the company's revenue recognition requirements, the adequacy of estimated expense accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. and reserves, any adjustments arising from the year-end audit by management and the company's independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. , as well as factors affecting future performance, including the fact that the Company's markets are characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by rapidly changing technology, evolving industry standards and frequent introductions of new products and enhancements; the fact that the market for customer optimization software is new and emerging; the fact that the company relies heavily on indirect distribution channels for sales of its software; unpredictability of the timing of customer orders; the highly competitive market for the company's products; the fact that the company relies heavily on growth from 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. ; and the company's ability to attract and retain skilled personnel. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's filings with the Securities and Exchange Commission, including but not limited to the company's registration statement for its initial public offering, dated December 9, 1998. The company disclaims any obligation to update these statements for subsequent developments. VALEX is a trademark of Exchange Applications, Inc. All other trademarks contained herein are the property of their respective owners. -0-
Exchange Applications, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
Three months ended, Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998 1997
Revenues:
Software license fees $4,583 $2,356 $14,357 $5,765
Services and
maintenance 3,027 2,164 10,419 6,904
Total revenues 7,610 4,520 24,776 12,669
Cost of revenues:
Software license fees -- 395 185 1,707
Services and
maintenance 1,793 1,674 6,836 5,227
Total cost of
revenues 1,793 2,069 7,021 6,934
Gross profit 5,817 2,451 17,755 5,735
Operating expenses:
Sales and marketing 3,058 1,463 9,828 3,602
Research and
development 1,659 921 5,813 2,599
General and
administrative 854 919 3,080 2,172
Total operating
expenses 5,571 3,303 18,721 8,373
Income (loss) from
operations 246 (852) (966) (2,638)
Interest income
(expense), net 56 (11) 104 25
Income (loss) before
provision for
income taxes 302 (863) (862) (2,613)
Provision for income
taxes 111 -- 111 --
Net income (loss) $191 $(863) $(973) $(2,613)
Pro forma basic net
income (loss) per
share (1) $0.02 $(0.14) $(0.13) $(0.48)
Pro forma basic
weighted average
common shares
outstanding 8,036,912 6,320,962 7,591,903 5,390,779
Pro forma diluted
net income (loss)
per share (2) $0.02 $(0.14) $(0.13) $(0.48)
Pro forma diluted
weighted average
common shares
outstanding 9,838,295 6,320,962 7,591,903 5,390,779
-0- (1) Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of vested shares of common stock 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. , on an as-converted basis, outstanding during the period. (2) Pro forma diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per share for the three months ended December 31, 1998, is calculated by dividing the net income by the sum of the weighted average number of shares of common stock equivalents and preferred stock, on an as-converted basis, outstanding during the period. Pro forma diluted net loss per share for the three months ended December 31, 1997, and the twelve months ended December 31, 1997 and 1998 includes the weighted average number of vested shares of common stock and preferred stock, on an as-converted basis, but excludes the potential shares from stock options and the unvested common stock outstanding during the period because to include such shares would have been anti-dilutive. -0-
Exchange Applications, Inc.
Consolidated Balance Sheets
(In thousands, except share amounts)
December 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 5,207 $ 5,273
Marketable securities 15,460 --
Accounts receivable, less allowance
for doubtful accounts of $206 and
$287 at December 31, 1997 and 1998,
respectively 7,553 3,848
Prepaid expenses and other
current assets 779 729
Total current assets 28,999 9,850
Property and equipment, net 2,506 913
Long term marketable securities 207 202
Other assets 79 435
Total assets 31,791 11,400
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 393 $ 422
Accrued expenses 5,382 3,247
Current portion of obligations under
capital leases 216 212
Deferred revenue 1,353 922
Total current liabilities 7,344 4,803
Obligations under capital leases, net
of current portion 145 237
Redeemable Preferred Stock -- 7,088
Stockholders' equity (deficit):
Preferred Stock; $.001 par value --
10,000,000 shares authorized, zero
shares outstanding at December 31, 1997
and 1998 -- --
Series C Preferred Stock, $.001 par value --
1,223,954 shares designated, issued and
outstanding at December 31, 1997 and zero
shares designated, issued and outstanding
at December 31, 1998 -- 1
Common Stock, $.001 par value --
30,000,000 shares authorized; 4,234,971
and 10,094,320 shares issued at December
31, 1997 and 1998, respectively 10 4
Additional paid-in capital 31,688 5,061
Accumulated deficit (6,508) (5,464)
Due from officer (125) (125)
Deferred compensation (800) (210)
Cumulative translation adjustment 30 2
Unrealized gain on marketable securities 7 3
Treasury stock, at cost; 354,825 and
365,000 shares at December 31, 1997 and
1998, respectively -- --
Total stockholders' equity (deficit) 24,302 (728)
Total liabilities and stockholders'
equity (deficit) $ 31,791 $ 11,400
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion