Saba Announces Third Quarter Fiscal 2004 Financial Results; License Bookings Increase 45% over Second Quarter and Deferred Revenues increase by $3.5 Million to $11.1 Million.Business Editors REDWOOD redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. SHORES, Calif.--(BUSINESS WIRE)--March 18, 2004 Saba Software Saba Software is a software company, with headquarters in Redwood City, California. Saba sells Human Capital Management and Talent Management software. History Saba was founded by Bobby Yazdani in April 1997 and has been a public company (NASDAQ: SABA) since April 2000. , 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 :SABA Saba, island, Netherlands Antilles Saba (sä`bə), island (1990 est. pop. 1,100), 5 sq mi (13 sq km), Netherlands Antilles, one of the NW Leeward Islands. The rugged island is actually the cone of an extinct volcano rising to c. ), a leading provider of human capital development and management (HCDM HCDM Human Capital Development and Management ) solutions, today reported financial results for its third quarter of fiscal year 2004 that ended February February: see month. 29, 2004. -- Total revenues were $7.8 million compared to $8.2 million in the prior quarter. -- License revenues were $2.3 million compared to $2.4 million in the prior quarter, while license bookings increased 45% to $4.1. -- Deferred revenues increased by 47% to $11.1 million. -- Saba completed 20 enterprise software deals in the quarter including contracts for Air France Air France in full Compagnie Internationale Air France French passenger and cargo airline with more than 200 destinations in some 80 countries. It introduced supersonic Concorde service in 1976, but financial loss led the company to cease its Concorde , eArmyU, Hyundai, and Network Appliance (1) A specialized device for use on a network. For example, Web servers, cache servers and file servers can be implemented as general-purpose computers with the appropriate software or as network appliances, which are computers dedicated to a single function and cannot do anything . -- Maintenance and support revenues were $2.9 million, reflecting a 98% renewal rate for the quarter. -- Professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues were $2.6 million compared to $3.0 million in the prior quarter. -- The net loss on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis was $0.17 per share, or a loss of $2.3 million, flat with the prior quarter's loss. "During our third fiscal quarter, we continued to see significant sequential increases in our license bookings," said Bobby Yazdani, Saba's Chairman 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. . "Saba continued to win new contracts and expand our relationship with some of the world's best known organizations, while earning the recognition of key press and analysts that cover our market." 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. Sales Leadership Saba recently appointed industry veteran Don Bosworth to the position of Vice President of Sales, North America. Bosworth brings more than 25 years of enterprise technology sales leadership experience to Saba. 2004 e-Learning Suites Magic Quadrant The Gartner Magic Quadrant is a proprietary research tool developed by Gartner Inc., a US based research and advisory firm. It is designed to provide an unbiased qualitative analysis of a “markets’ direction, maturity, and participants. Saba was again listed in the Leader Quadrant quadrant, in analytic geometry quadrant. 1 In analytic geometry, one of the four regions of the plane determined by two lines, the x-axis and the y-axis. in the 2004 e-Learning Suites Magic Quadrant report. Published on March 15, 2004 by Gartner, Inc., a premier research and advisory firm, the report evaluates the performance of more than 25 vendors based on ability to execute and completeness of vision. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gartner, Inc., leaders are vendors who are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market. "Outstanding" Rating by Training Media Review Saba was recently awarded an "outstanding" rating by Training Media Review. Saba Enterprise Learning was the only product to receive an overall outstanding rating. The report commended Saba's learning management offering, noting that "...across all of the functional areas required in a learning management environment, Saba provides both breadth and depth." The research concluded that Saba's offering is comprehensive, user-friendly, functional and highly configurable, from both the learner and learning manager's perspective. Business Outlook: The following statements are based on current expectations as of the date of this release. These statements are forward-looking, and actual results may differ materially. Saba does not undertake to update these targets in any way or for any reason. -- Saba anticipates revenue for its fourth quarter of fiscal 2004 (quarter ending May 31, 2004) to be in the range of $10.0 to $11.0 million. -- Saba anticipates GAAP net loss per share for its fourth quarter of fiscal 2004 (quarter ending May 31, 2004) to be in the range of $0.09 to $0.16. Conference Call: The company will host a conference call on third-quarter results at 2:00 p.m. PT on Thursday, March 18, 2004. The call will be available via Web cast at http://investor.saba.com, or by dialing +1.612.332.0923. A replay of the call will be available at http://investor.saba.com or by calling +1.320.365.3844 and entering code 722272, after 5:30 p.m. PT on March 18 through April 1, 2004. About Saba: Saba (NASDAQ: SABA) is a leading provider of human capital development and management (HCDM) solutions, which increase organizational performance Organizational performance comprises the actual output or results of an organization as measured against its intended outputs (or goals and objectives). Specialists in many fields are concerned with organizational performance including strategic planners, operations, through the implementation of a management system for aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. , developing, and managing people. Among the Global 2000, Saba customers include Alcatel, Anheuser-Busch, Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , DaimlerChrysler, EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Corp., Kaiser Permanente Kaiser Permanente is an integrated managed care organization, based in Oakland, California, founded in 1945 by industrialist Henry J. Kaiser and physician Sidney R. Garfield. , Medtronic Medtronic Cardiology A major manufacturer of pacemakers, defibrillators, and other cardiac devices , Procter & Gamble, and VERITAS Software Veritas Software Corp. was an international software company that was founded in 1983 as Tolerant Systems, renamed Veritas Software Corp. in 1989, and merged with Symantec in 2005. It was headquartered in Mountain View, California. . Saba has received industry recognition for its solutions, and recently achieved the leader quadrant position in the Gartner 2004 e-Learning Suite "Magic Quadrant." Saba is headquartered in Redwood Shores, California Redwood Shores is an upscale and desirable [1] waterfront neighborhood on the San Francisco Peninsula in California. It is located on the eastern edge of Belmont, but is actually part of incorporated Redwood City. , with offices worldwide. For more information, please visit www.saba.com or call (877) SABA-101 or (650) 779-2791. Saba, the Saba logo, and the marks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc other Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. All other trademarks are the property of their respective owners. Legal Notice Regarding 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. This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements such as Saba's guidance for the fourth quarter of fiscal year 2004 or Saba's ability to achieve or sustain profitability. Saba's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties Saba faces that could cause results to differ materially include risks associated with: Saba's limited operating history and history of losses, dependence on growth of the markets for Saba's products, dependence on acceptance of Saba's products by customers and channel partners, dependence on success of Saba's channel partners, market acceptance of Saba's products, fluctuation Fluctuation A price or interest rate change. in customer spending, length of Saba's sales cycle, competition, dependence on hiring key personnel, rapid technological change, dependence on new product introductions and enhancements, and potential software defects. Readers should also refer to the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Factors That May Affect Future Operating Results" on pages 23 through 31 of Saba'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. dated August 29, 2003 and similar disclosures in subsequent Saba periodic SEC reports. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.
Saba Software, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
(share amounts adjusted for 1-for-4 reverse split)
Three Three Nine Nine
months months months months
ended ended ended ended
February February February February
29, 28, 29, 28,
----------- ----------- ---------- ----------
2004 2003 2004 2003
----------- ----------- ---------- ----------
Revenues:
License $2,320 $3,150 $6,316 $13,039
Services 5,515 6,478 17,940 20,752
----------- ----------- ---------- ----------
Total revenues 7,835 9,628 24,256 33,791
----------- ----------- ---------- ----------
Cost of revenues:
Cost of license 27 24 178 100
Cost of services 2,845 3,001 9,188 9,787
Amortization of acquired
developed technology 96 388 290 1,164
----------- ----------- ---------- ----------
Total cost of revenues 2,968 3,413 9,656 11,051
----------- ----------- ---------- ----------
Gross profit 4,867 6,215 14,600 22,740
Operating expenses:
Research and development 2,310 3,002 7,516 9,027
Sales and marketing 3,933 6,032 12,405 20,722
General and
administrative 872 1,723 3,188 4,845
Amortization (reversal)
of deferred stock
compensation and other
stock charges 4 (74) 45 1,890
Amortization of
purchased intangible
assets 41 234 125 751
Settlement of litigation - - 1,701 -
----------- ----------- ---------- ----------
Total operating expenses 7,160 10,917 24,980 37,235
----------- ----------- ---------- ----------
Loss from operations (2,293) (4,702) (10,380) (14,495)
Interest income and
other, net 47 45 16 167
----------- ----------- ---------- ----------
Loss before provision
for income taxes (2,246) (4,657) (10,364) (14,328)
Provision for income
taxes (45) (90) (127) (243)
----------- ----------- ---------- ----------
Net loss $(2,291) $(4,747) $(10,491) $(14,571)
=========== =========== ========== ==========
Basic and diluted net
loss per share $(0.17) $(0.36) $(0.78) $(1.16)
=========== =========== ========== ==========
Shares used in computing
basic and diluted
net loss per share 13,473 13,183 13,384 12,611
=========== =========== ========== ==========
Saba Software, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
February 29, May 31,
2004 2003
------------ -----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $16,389 $21,197
Accounts receivable, net 9,806 9,315
Prepaid expenses and other current assets 1,050 1,218
------------ -----------
Total current assets 27,245 31,730
Property and equipment, net 1,223 2,385
Other assets 6,373 6,721
------------ -----------
Total assets $34,841 $40,836
============ ===========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,308 $1,713
Accrued expenses 5,908 6,527
Deferred revenue 11,139 9,497
Current portion of debt and lease
obligations 4,426 675
------------ -----------
Total current liabilities 22,781 18,412
Deferred revenue - 31
Accrued rent 2,564 2,691
Debt and lease obligations, less current
portion 804 1,242
------------ -----------
Total liabilities 26,149 22,376
Stockholders' equity:
Total stockholders' equity 8,692 18,460
------------ -----------
Total liabilities and stockholders'
equity $34,841 $40,836
============ ===========
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