Synavant Reports Fourth-quarter 2001 Results.Business Editors ATLANTA--(BUSINESS WIRE)--Feb. 19, 2002 Company Exceeds Revenue and 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 EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become Guidance; Positive Pro Forma EBITDA Achieved in Fourth Quarter and Full Year SYNAVANT Inc. (Nasdaq:SNVT SNVT Standard Network Variable Types SNVT Short No Voltage Tester ), the global pioneer of pharmaceutical Customer Relationship Management (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) solutions for the biopharmaceutical and healthcare industries, today reported revenue of $49.0 million and pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. before interest, taxes, depreciation and amortization (EBITDA) of $3.9 million for the quarter ended December December: see month. 31, 2001. Both financial measures exceed previously issued guidance ranges and represent a milestone for the company: its first quarter of positive EBITDA since the spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. from its former parent company. On a reported basis, the company announced a $2.9 million net loss for the fourth-quarter 2001, or $0.19 per share. "We are excited about our results for the quarter," commented Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. P. Yetter, SYNAVANT's chairman and chief executive officer. "Revenue growth has accelerated in the quarter and pro forma EBITDA was positive, consistent with the timeline
Timeline may refer to:
tr. & intr.v. sharp·ened, sharp·en·ing, sharp·ens To make or become sharp or sharper. sharp the alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
Positive Fourth-Quarter Pro Forma Results Pro forma EBITDA increased $5.5 million to $3.9 million for the fourth quarter, reflecting improvement compared with minus $1.6 million a year earlier and minus $0.9 million for the third quarter of 2001. All three business sectors of the Company (Software Fees, Software Services, Interactive Marketing) contributed to the growth, $3.4 million of which came from improved gross margins led by Software Services. The remaining improvement came primarily from a $2.1 million reduction in Research and Development and Selling and Administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Pro forma revenue totaled $49.0 million in the fourth quarter, an 8 percent increase from fourth-quarter 2000, primarily due to an 11 percent increase in Software Services. A pro forma net loss of $0.1 million, or $0.01 per share was reported for the fourth quarter of 2001 compared with an $8.6 million net loss or $0.58 per share for the fourth quarter of 2000. On a reported basis, the company posted a net loss of $2.9 million for the fourth quarter of 2001, or $0.19 per share. Components of depreciation and amortization for the fourth-quarter 2001 were acquired software and goodwill amortization of $4.0 million and other depreciation of $1.5 million. In addition, FAS 86 software amortization of $0.5 million for the quarter is reflected in operating costs operating costs npl → gastos mpl operacionales and therefore has not been added back when deriving pro forma EBITDA. Components of depreciation and amortization for the fourth-quarter 2000 were acquired software and goodwill amortization of $5.1 million and other depreciation of $1.5 million. In addition, FAS 86 software amortization of $0.4 million for the quarter is reflected in operating costs and therefore has not been added back when deriving pro forma EBITDA. Pro forma results for the fourth quarter of 2001 are presented on Table 1. Twelve-Months Pro Forma Results Pro forma EBITDA increased $5.9 million to $0.1 million for the twelve months of 2001, compared with minus $5.8 million in the year-earlier period. A reduction in Research and Development costs of $4.0 million and Selling and Administrative costs of $3.1 million were the most significant contributors to the improved results for the year. Pro forma revenue totaled $180.5 million for the twelve months of 2001, 1 percent lower than the twelve months of 2000 due to negative foreign exchange impacts of $4.3 million, or 2.4 percent. A pro forma net loss of $22.0 million, or $1.47 per share, was posted in the twelve months of 2001, compared with a pro forma net loss of $29.1 million, or $1.96 per share, a year ago. On a reported basis, the company reported a net loss of $31.2 million for the twelve months of 2001, or $2.09 per share. Components of depreciation and amortization for the twelve months of 2001 were acquired software and goodwill amortization of $16.0 million and other depreciation of $5.5 million. In addition, FAS 86 software amortization of $2.1 million for the full year is reflected in operating costs and therefore has not been added back when deriving pro forma EBITDA. Components of depreciation and amortization for the twelve months of 2000 were acquired software and goodwill amortization of $18.9 million and other depreciation of $6.1 million. In addition, FAS 86 software amortization of $2.0 million for the full year is reflected in operating costs and therefore has not been added back when deriving pro forma EBITDA. Pro forma results for the twelve months of 2001 are presented on Table 2. "Customer sales force expansions as well as revenue from initial Siebel For the tech company, see . Siebel, originally Flugzeugbau Halle, was a German aircraft manufacturer in Halle an der Saale. Siebel aircraft included:
American lawyer and politician who, as chief counsel (1946-1950) to President Harry S. Truman, influenced U.S. foreign policy. During the Vietnam War he served as U.S. secretary of defense (1968-1969). A. Farren, SYNAVANT's Vice President Finance and Acting Chief Financial Officer. "In addition, our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and business transformation actions announced on August 16, 2001 have provided better leverage and resulted in stronger EBITDA." Restructuring and Other One-Time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. Charges Restructuring charges 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. of $2.8 million were reported in the fourth quarter and $7.5 million for the twelve months of 2001. These charges are associated with the company's actions announced on August 16, 2001 to simplify the senior leadership structure, enhance customer responsiveness and satisfaction and improve organizational effectiveness Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit . Additional restructuring and other one-time charges in 2002 are expected to result in the total restructuring effort costing approximately $10 million to $12 million depending on the resolution of certain real estate transactions. Constant-Dollar Results Currency rates did not have a significant impact on SYNAVANT's reported revenue in the fourth quarter of 2001 compared with the fourth quarter of 2000. On a constant-dollar, constant-portfolio basis, which reflects the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of EMRON EMRON Electro Magnetic Radiation Optimum Neutralizer (RADIAX) in fourth-quarter 2000 and the impact of foreign currency exchange, pro forma revenue in fourth-quarter 2001 was 7 percent above the year-earlier quarter. In the twelve months of 2001, constant-dollar, constant-portfolio pro forma revenue was 3 percent above the twelve months of 2000. Balance Sheet Highlights At December 31, 2001, SYNAVANT's cash and cash equivalents totaled $9.6 million, a decrease of $1.1 million compared to the third quarter balance, largely due to the impact of restructuring payments. Net cash flow from operating activities during the 2001 fourth quarter totaled $1.6 million, the first quarter that cash from operations has been positive since the company's inception in August 2000. Financial Outlook "We are encouraged by the improved revenue growth in the quarter, and anticipate continued growth in 2002," commented Farren. "We expect first-quarter 2002 revenue and EBITDA to be lower sequentially due to the buying patterns of the pharmaceutical industry. Revenue for the first quarter of 2002 is expected to be between $43 million and $45 million and EBITDA, excluding restructuring charges, is expected to be between minus $1.5 million and break-even," Farren continued. "Consistent with historical trends, we expect revenue to increase throughout the year resulting in full-year 2002 revenue growth of between 3 percent and 5 percent on a constant-dollar constant-portfolio basis. This revenue guidance reflects a decline in software fees as our focus shifts to CRM implementation and support-related services. We anticipate this will be offset by expanded business opportunities from our new, re-defined Siebel Alliance agreement, restored growth in our Interactive Marketing business and new strategic 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" . We also anticipate an improvement in profitability and operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. in 2002 and expect EBITDA, excluding restructuring charges, to be between $5.0 million and $10.0 million for the twelve months of 2002," Farren concluded. Operating Highlights During the fourth quarter, SYNAVANT partnered with one of the `big five' consulting organizations to win a contract for the design, implementation and support of a Siebel ePharma CRM solution for a global top-ranking top-ranking adj → de alto rango top-ranking adj → très haut placé(e) top-ranking top adj [official] → pharmaceutical company in 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. . This strategically important win enables SYNAVANT and its partner to demonstrate the strong value proposition represented by combining their complementary competencies to the customer's pan-European organization and sets a strong precedent for the customer's next phase of CRM decisions across several European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries. Other fourth-quarter wins for SYNAVANT include a 1600-user agreement to provide help desk, hardware and account management services to support the forthcoming Siebel ePharma implementation of one of its existing customers in the US and a further four contracts for Siebel ePharma implementations and services for new customers in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , 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 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. . In addition to these ePharma wins, SYNAVANT
has continued to grow its proprietary software solutions, Interactive
Marketing and database businesses through more than 40 new customer wins
and organic expansions across its three key geographies: the Americas A·mer·i·cas , theSee America. , Europe and Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . Almost half of these wins are with top- top- pref. Variant of topo-. 12 pharmaceutical companies. SYNAVANT's customer focus and commitment to quality was endorsed during fourth-quarter 2001 when its Atlanta-based hardware services and helpdesk teams achieved a three-year ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 (the International Organization for Standardization International Organization for Standardization (ISO) Organization for determining standards in most technical and nontechnical fields. Founded in Geneva in 1947, its membership includes more than 100 countries. ) quality re-certification of their services with zero non-conformities in all 19 of the standards measured. Drug sampling of over-the-counter and prescription medications is an important SYNAVANT Interactive Marketing service and may be performed only by organizations registered by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. . During the fourth-quarter 2001 SYNAVANT installed a new, state-of-the-art sampling logistics system to support the Interactive Marketing business in the US. The system complies fully with US government PDMA PDMA Product Development & Management Association PDMA Prescription Drug Marketing Act PDMA Philadelphia Direct Marketing Association PDMA Plastic Deformation Magnetic Assembly PDMA Polarisation Division Multiple Access legislation and will deliver warehousing and logistics efficiencies for SYNAVANT. The system also enables the development of new services and analytics for customers allowing them to access real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. information on their drug inventory and delivery status, via the internet. Organizational actions taken during the fourth quarter include the restructuring of SYNAVANT's International region, announced on December 14, 2001, from a geographic, country hierarchy in Europe to a pan-European functional organization and also include the consolidation of Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Japan and Asia Pacific under one regional leader. These actions remove the geographic boundaries of SYNAVANT's activities providing customers with access to larger, stronger teams of excellence, more focused attention on individual requirements and explicit accountability for service and support. The customer helpdesk function in the US, comprising more than 120 staff, represents a core SYNAVANT capability. Previously out-sourced to a third party, SYNAVANT transitioned this service in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. during the fourth quarter as a further business transformation initiative to deliver the most effective, responsive and efficient services possible to customers. In addition to the recruitment of top talent to the helpdesk, SYNAVANT has extended its eSupport (Electronic SUPPORT) A Web site that provides technical support for a product. It is the source of drivers and updates as well as a knowledge base of problem solving tips and frequently asked questions (FAQs). capabilities to provide enhanced customer services. A further action deployed as a result of SYNAVANT's intense internal review is the creation of the SYNAVANT Global Strategic Solutions team, staffed with experienced, senior-level pharmaceutical consulting experts. The team is focused on helping pharmaceutical companies solve business problems around bringing new products to market faster and increasing the adoption of new and existing products. Part of the consulting process involves a review of CRM requirements with special emphasis on identifying where companies should begin the CRM implementation process in order to achieve immediate 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. and success for their organization. Operating Outlook On January January: see month. 4, 2002 SYNAVANT announced its new Strategic Consulting Partnership with Siebel Systems Siebel is a brand name of Oracle Corporation. Siebel Systems, Inc., founded by Thomas Siebel in 1993, was principally engaged in the design, development, marketing and support of CRM applications. Inc. Through this new agreement, SYNAVANT will no longer be a value-added reseller A value-added reseller (VAR) is a company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. (VAR) for Siebel licenses. Instead, SYNAVANT and Siebel will work together to offer a value proposition that delivers significant efficiency increases in the implementation of Siebel CRM solutions and translates into high value, integrated end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. and a lower overall cost of ownership for life sciences customers. In addition to Siebel ePharma, under the new agreement SYNAVANT has implementation and service rights to the Siebel eClinical, eMedical and Employee Relationship Management (ERM (Enterprise Relationship Management) An umbrella term with many shades of meaning over the years. It may refer to the management of information from any or all of an organization's customers, suppliers, business partners and employees. ) solutions. These solutions expand SYNAVANT's offering to clinical research teams within pharmaceutical companies and extend its reach into CRM for medical device companies, providing broader revenue opportunities in 2002. "By integrating our CRM implementation and support initiatives with the activities of our Global Strategic Solutions team and our extensive Interactive Marketing offerings, I am confident that SYNAVANT will create exciting, new, insightful solutions and services that drive real value for our customers. Coupled with our new global organization structure these initiatives truly enhance SYNAVANT's ability to win significant new opportunities in 2002," concluded Yetter. A discussion of fourth-quarter performance will be Webcast live on February February: see month. 20, 2002 at 9:00 am ET and can be accessed via http://www.synavant.com. About SYNAVANT SYNAVANT Inc. guides biopharmaceutical and healthcare companies globally to greater business success by accelerating the adoption of advances in healthcare around the world. SYNAVANT accomplishes this by designing, building and supporting a wide range of knowledge-based solution sets, that bring together leading-edge technology, proven data management competence, a full range of specialist services and over 30 years of healthcare expertise. Its comprehensive, global solutions include customer relationship management (CRM) and eBusiness See e-business. applications, interactive marketing, server and database management, dedicated local helpline helpline Noun a telephone line set aside for callers to contact an organization for help with a problem helpline n → teléfono de asistencia al público support, training, telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. , sample management, and product-recall services. SYNAVANT is headquartered in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , GA, USA and has offices in 23 countries. All trademarks and trade names referenced in this document are the properties of their respective owners. This news release includes 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. within the meaning of 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. All statements other than statements of historical fact are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , which can be identified by the use of words such as "may," "will," "expect," "anticipate," "estimate," "believe," "continue" or other similar words. Such forward-looking statements are based on management's current plans and expectations, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: risks associated with competition from other providers of customer relationship management solutions; customer decisions favoring favoring an animal is said to be favoring a leg when it avoids putting all of its weight on the limb. A part of being lame in a limb. competitor products, solutions 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. services; the ability to obtain additional financing on satisfactory terms to meet future capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. ; the loss of key personnel; failure to introduce new or enhanced products in a timely manner; defects in our products and delays related to market adoption of our software; consolidation of the pharmaceutical industry; fluctuations in quarterly and or annual operating results that may adversely affect the market price of our common stock; operating on a global basis; the ability to protect our intellectual property; product infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. claims; the ability to identify, consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. and integrate acquisitions; alliances and ventures on satisfactory terms; the ability to develop new or advanced technologies, systems or products; the ability to successfully maintain historic effective tax rates; and regulatory, legislative and enforcement initiatives. These risks and uncertainties are not intended to be exhaustive and should be read in conjunction with other cautionary statements discussed in more detail in the Company's filings with the Securities and Exchange Commission under 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. . Pro forma EBITDA is defined by the Company as operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. or loss before depreciation, amortization, and restructuring and other one-time charges. Pro forma EBITDA is not in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and may not be comparable to similarly titled measures presented by other companies.
Table 1
SYNAVANT Inc.
Pro Forma Statement of Operations(a)
Three Months Ended December 31, 2001
(unaudited, in millions except per share)
Constant $
Constant
% Portfolio
2001 2000 Change Growth
--------- --------- -------- -----------
Revenue
Software Fees $ 3.1 $ 2.8 11% 10%
Software Services 25.1 22.6 11 11
Interactive Marketing 20.8 20.1 3 4
--------- ---------
Total Revenue 49.0 45.5 8 7
Operating Costs (35.3) (35.2) 0
Research & Development (1.9) (2.7) (30)
Selling & Administrative
Costs (7.9) (9.2) (14)
--------- ---------
EBITDA 3.9 (1.6)
Depreciation &
Amortization (5.5) (6.6) (17)
--------- ---------
Operating Loss $ (1.6) $ (8.2)
Other Expense, Net 0.7 (0.9)
--------- ---------
Loss Before Provision
for Income Taxes (0.9) (9.1)
(Provision) Benefit
for Income Taxes 0.8 0.5
--------- ---------
Pro Forma Net Loss $ (0.1) $ (8.6)
========= =========
Pro Forma Loss Per
Share (Basic and
Diluted) $ (0.01) $ (0.58)
Average Shares
Outstanding
(Basic and Diluted) 15.0 14.8
(a) Pro forma results include adjustments for: exclusion of
one-time spin-related cost of $1.1 for 2000; exclusion of one-time
restructuring costs of $2.8 for 2001; and inclusion of a tax provision
of $0.4 in 2000.
Pro forma EBITDA is defined by the Company as operating income or
loss before depreciation, amortization, and restructuring and other
one-time charges. Pro forma EBITDA is not in accordance with Generally
Accepted Accounting Principles and may not be comparable to similarly
titled measures presented by other companies.
The company presents its results in accordance with GAAP on tables
3, 4 and 5.
Table 2
SYNAVANT Inc.
Pro Forma Statement of Operations(a)
Twelve Months Ended December 31
(unaudited, in millions except per share)
Constant $
Constant
% Portfolio
2001 2000 Change Growth
--------- -------- -------- -----------
Revenue
Software Fees $ 11.8 $ 7.7 53% 56%
Software Services 90.0 87.5 3 4
Interactive Marketing 78.7 87.2 (10) (3)
--------- --------
Total Revenue 180.5 182.4 (1) 3
Operating Costs (137.7) (138.4) 0
Research & Development (8.5) (12.5) (32)
Selling &
Administrative Costs (34.2) (37.3) (8)
--------- --------
EBITDA 0.1 (5.8)
Depreciation &
Amortization (21.5) (25.0) (14)
--------- --------
Operating Loss $(21.4) $(30.8)
Other Expense, Net 0.4 (1.3)
-------- --------
Loss Before Provision
For Income Taxes (21.0) (32.1)
(Provision) Benefit
for Income Taxes (1.0) 3.0
-------- --------
Pro Forma Net Loss $(22.0) $ (29.1)
======== ========
Pro Forma Loss Per
Share (Basic and
Diluted) $ (1.47) $ (1.96)
Average Shares
Outstanding (Basic
and Diluted) 14.9 14.9
(a) Pro forma results include adjustments for: inclusion of $1.0
Interactive Marketing revenues for 2000 relating to the Pharbase
license agreement between SYNAVANT and IMS HEALTH; inclusion of $1.0
in Interactive Marketing cost of revenue for 2000 relating to the
Xponent(TM) license agreement between SYNAVANT and IMS HEALTH;
inclusion of $4.7 in selling & administrative expense for 2000
relating to the estimated incremental run-rate costs of operating
SYNAVANT as a stand-alone, public company; exclusion of one-time
spin-related costs of $1.3 and $2.2 for 2001 and 2000, respectively;
exclusion of goodwill impairment charge of $100.9 and software and
acquired technology impairment charge of $14.6 in 2000, which reduce
the costs of software fees by $5.4 and depreciation & amortization by
$110.0; exclusion of one-time restructuring costs of $7.5 for 2001;
exclusion of one-time loss on sale of Gartner shares of $1.0 million
for 2001; and inclusion of a tax provision of $0.5 and $3.4 in 2001
and 2000, respectively.
Note: Certain prior quarter amounts have been reclassified to
conform with current period presentation. The reclassifications have
resulted in $0.2 increase in operating costs and a corresponding
decrease in selling and administrative costs.
Pro forma EBITDA is defined by the Company as operating income or
loss before depreciation, amortization, and restructuring and other
one-time charges. Pro forma EBITDA is not in accordance with Generally
Accepted Accounting Principles and may not be comparable to similarly
titled measures presented by other companies.
The company presents its results in accordance with GAAP on tables
3, 4 and 5.
Table 3
SYNAVANT, Inc.
Summary Balance Sheet
(unaudited, dollars in millions)
December 31, December 31,
2001 2000
------------- -------------
Assets
Current Assets
Cash and Cash Equivalents $ 9.6 $ 19.7
Accounts Receivable, Net 39.8 44.4
Other Current Assets 6.1 8.5
------------- -------------
Total Current Assets 55.5 72.6
Long-Term Notes Receivable 1.0 2.5
Property, Plant and Equipment, Net 11.2 13.6
Computer Software, Net 7.4 13.0
Goodwill, Net 41.2 52.9
Other Long-Term Assets 2.0 1.9
------------- -------------
TOTAL ASSETS $ 118.3 $ 156.5
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 11.5 $ 11.6
Accrued Income Taxes 1.9 4.0
Deferred Revenue 8.4 13.2
Accrued & Other Current Liabilities 16.1 15.8
------------- -------------
Total Current Liabilities 37.9 44.6
Other Liabilities 10.2 9.7
------------- -------------
TOTAL LIABILITIES $ 48.1 $ 54.3
============= =============
Minority Interest -- 0.6
Stockholders' Equity 70.2 101.6
------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 118.3 $ 156.5
============= =============
Table 4
SYNAVANT Inc.
Statement of Operations
Three Months Ended December 31
(unaudited, in millions except per share)
2001 2000
--------- ---------
Revenue
Software Fees $ 3.1 $ 2.8
Software Services 25.1 22.6
Interactive Marketing 20.8 20.1
--------- ---------
Total Revenue 49.0 45.5
Operating Costs (35.3) (35.2)
Research & Development (1.9) (2.8)
Selling & Administrative Costs (7.9) (9.1)
Depreciation & Amortization (5.5) (6.6)
Restructuring Costs (2.8) --
Spin-Related Costs (0.0) (1.1)
--------- ---------
Operating Loss $ (4.4) $ (9.3)
Other (Income) / Expense, Net 0.7 (0.9)
--------- ---------
Loss Before Provision
For Income Taxes (3.7) (10.2)
(Provision) Benefit for
Income Taxes 0.8 0.9
--------- ---------
Net Loss $ (2.9) $ (9.3)
========= =========
Loss Per Share $ (0.19) $ (0.63)
Average Shares Outstanding
(Basic and Diluted) 15.0 14.8
Table 5
SYNAVANT Inc.
Statement of Operations
Twelve Months Ended December 31
(unaudited, in millions except per share)
2001 2000
----------- ----------
Revenue
Software Fees $ 11.8 $ 7.7
Software Services 90.0 87.5
Interactive Marketing 78.7 86.2
----------- ----------
Total Revenue 180.5 181.4
Operating Costs (137.7) (142.8)
Research & Development (8.5) (12.6)
Selling & Administrative Costs (34.1) (32.6)
Depreciation & Amortization (21.5) (135.0)
Restructuring Costs (7.5) --
Spin-Related Costs (1.3) (2.2)
----------- ----------
Operating Loss $ (30.1) $ (143.8)
Other Expense, Net (0.6) (1.2)
----------- ----------
Loss Before Provision
For Income Taxes (30.7) (145.0)
(Provision) Benefit for
Income Taxes (0.5) 6.4
----------- ----------
Net Loss $ (31.2) $ (138.6)
=========== ==========
Loss Per Share $ (2.09) $ (9.32)
Average Shares Outstanding
(Basic and Diluted) 14.9 14.9
Note: Certain prior quarter amounts have been reclassified to
conform with current period presentation. The reclassifications have
resulted in $0.2 increase in operating costs and a corresponding
decrease in selling and administrative costs.
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