Unica Announces Results for Fiscal 2006 First Quarter.WALTHAM Waltham (wôl`thăm, –thəm), city (1990 pop. 57,878), Middlesex co., E Mass., a suburb of Boston, on the Charles River; settled c.1634, set off from Watertown 1738, inc. as a city 1884. , Mass. -- Unica(R) Corporation (Nasdaq: UNCA UNCA University of North Carolina at Asheville UNCA United Nations Correspondents Association ), a global provider of Enterprise Marketing Management (EMM (Expanded Memory Manager) Starting with 386-based PCs, an EMM is software that converts extended memory (beyond one megabyte) into EMS memory, the first technique used to increase memory in the PC. ) solutions, today announced financial results for its fiscal first quarter, ended December December: see month. 31, 2005. For the fiscal first quarter of 2006, Unica reported record total revenue of $17.6 million, an increase of 20% compared with the first quarter of 2005. License revenue increased 23% to $8.5 million and maintenance and services revenue increased 18% to $9.1 million, from the prior year quarter. For the fiscal first quarter of 2006, maintenance revenue was $7.2 million, an increase of 26% from the prior year quarter, and services revenue was $1.9 million, a decline of 5% from the prior year quarter. Yuchun Lee, chief executive officer of Unica Corporation, stated, "We are pleased with our fiscal first quarter results, which were highlighted by better than expected license revenue and profitability. During the quarter, we extended our EMM leadership position by broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad and deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound our product suite with the MarketSoft acquisition, investing in and adding to our partner channel and increasing our international presence." Lee added, "Organizations are increasingly looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. an integrated, end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. suite to automate To turn a set of manual steps into an operation that goes by itself. See automation. and optimize optimize - optimisation their marketing operations. Our technology, partner network and domain expertise position us well to take advantage of this growing demand." For the fiscal first quarter of 2006, Unica's income from operations, determined 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 (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) was $1.8 million, a 41% increase from $1.3 million in the same period last year. GAAP net income for the fiscal first quarter of 2006 was $1.4 million, an increase of 43% from $1.0 million in the same period last year. GAAP diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.07 for the first quarter of 2006, an increase of 40% from $0.05 in the same period last year. Excluding stock-based compensation expense and amortization of intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. arising from business combinations, non-GAAP earnings per share on a fully 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. basis were $0.09 for the quarter ended December 31, 2005, an increase from $0.07 in the same period last year. Non-GAAP earnings per share assumes the conversion of Unica's 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. into common shares for the fiscal first quarter of 2005. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in the press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures." Unica had cash, cash equivalents, and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $57.0 million at December 31, 2005, a decrease from $60.1 million at the end of the prior quarter due to the acquisition of MarketSoft during the quarter. The Company was cash flow positive from operations for the quarter, generating $4.5 million in cash from operations. In addition to strong collections, cash flow was also driven by deferred revenue, which grew 10% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen and 31% year-over-year to $27.1 million at the end of fiscal first quarter of 2006. Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Darer, chief financial officer of Unica, stated, "The scalability How much a system can be expanded. See scalable. scalability - How well a solution to some problem will work when the size of the problem increases. For example, a central server of some kind with ten clients may perform adequately but with a thousand clients it of our business model is evidenced by strong year-over-year growth in cash flow and 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. , leading to another quarter of double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" margins. Strong license revenue combined with leverage from our partners drove better than expected first quarter profitability and is the reason we are raising our profitability outlook for fiscal 2006." Additional First Quarter Business Highlights: --Acquired MarketSoft Software Corporation, a privately held provider of lead management and event-detection solutions, for $7.26 million in cash --Continued to enjoy success with industry leaders across a broad range of vertical markets, including 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. , Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Consumer Goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and , Not-for-Profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. , and Retail. New customers from these sectors include: American Medical Association American Medical Association (AMA), professional physicians' organization (founded 1847). Its goals are to protect the interests of American physicians, advance public health, and support the growth of medical science. , CNS See Continuous net settlement. CNS See continuous net settlement (CNS). , REI, and Sunrise Sunrise, city (1990 pop. 64,407), Broward co., SE Fla., a residential suburb 8 mi (13 km) W of Fort Lauderdale; inc. 1961 as Sunrise Golf Village. It is a major office and commercial center and the site of Sawgrass Mills, one of the largest malls in the United States. in Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. --Increased international presence, closing the Company's first deals in Japan, Denmark Denmark (dĕn`märk), Dan. Danmark, officially Kingdom of Denmark, kingdom (2005 est. pop. 5,432,000), 16,629 sq mi (43,069 sq km), N Europe. and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . During the quarter, 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. represented 20% of Unica's revenue --Expanded the partner channel with the addition of new marketing service partners in the U.S., Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). and 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. , and the completion of our first customer order with our marketing services partner in France --Nationwide Building Society won the Information Management Award for best CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. project of 2005 for the first phase of its Marketing Analytics project, which was supported by Unica's industry leading EMM suite Financial Outlook Unica also announced its expectations for the current quarter ending March 31, 2006 and updated the fiscal year ending September September: see month. 30, 2006: Second Quarter of Fiscal 2006 --Revenue: Targeting $18.8 million with a certain amount of variability --Non-GAAP Operating Income: Expected to be $1.9 million with a certain amount of variability --Non-GAAP Diluted Earnings Per Share: Expected to be $0.08 based on an estimated weighted average of 20.5 million shares outstanding and an estimated effective tax rate of 34.5% Fiscal Year 2006 --Revenue: Targeting $78.0 million to $79.5 million --Non-GAAP Operating Income: Expected to be between $8.9 million and $9.4 million --Non-GAAP Diluted Earnings Per Share: Expected to be between $0.36 and $0.37, based on an estimated weighted average of 20.6 million outstanding shares and an estimated effective tax rate of 34.5% The preceding information with respect to non-GAAP operating income and earnings per share excludes amortization of intangibles arising from business combinations, stock-based compensation expense related to stock options granted at less than fair value of Unica's common stock, and stock-based compensation expense related to Statement of Financial Accounting Standards 123R, which Unica adopted commencing with the first quarter of fiscal 2006. Operating income and earnings per share estimates in accordance with GAAP are not being provided because Unica is unable to forecast accurately the number and timing of compensatory equity grants for the second quarter of fiscal 2006 or the full fiscal year 2006 and therefore cannot predict the amount of stock-based compensation expense that will be incurred during those periods. CFO See Chief Financial Officer. Transition Announced The Company and Richard Darer have initiated a process to identify a chief financial officer replacement. The Company intends to select and announce a successor to Mr. Darer as soon as possible. Mr. Darer is staying with the Company to ensure a smooth transition process. Mr. Darer said, "It has been my privilege to serve as Unica's CFO for the past four years, helping the Company grow revenue from a $4 million quarterly run rate to just under $18 million in the most recent quarter. It was truly exciting to help the Company complete two acquisitions and a successful 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. . The Company's strong balance sheet, profitable operations and solid financial controls give me confidence that it will be able to continue growing its leadership position in the EMM market." Yuchun Lee, 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 Unica, stated "Rick Darer has made a tremendous contribution to Unica. We are grateful to him for playing a key role in rapidly scaling Unica's revenue and profitability, an accomplishment few software companies have been able to achieve with similar consistency over the past four years. We appreciate Rick's help in ensuring a smooth transition process, and wish him the best of luck as he pursues other interests." Conference Call Details Unica will discuss its quarterly results and related matters via teleconference today, January January: see month. 31, 2006, at 5:00 p.m. (EST EST electroshock therapy. EST abbr. electroshock therapy ). To access this call, dial 800-289-0508 (domestic) or +1-913-981-5550 (international) at least five minutes prior to the start time. A replay of this conference call will be available for one week at 888-203-1112 (domestic) or +1-719-457-0820 (international). The replay passcode is 2432360. A live webcast of this conference call will also be available for one week on the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " page of the Company's Web site, www.unica.com. Non-GAAP Financial Measures Unica has provided in this release selected financial information that has not been prepared in accordance with GAAP. This information includes historical non-GAAP earnings per share and estimated future non-GAAP operating income, net income and earnings per share. Unica uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Unica's ongoing operational performance. Unica believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Unica's industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above exclude the effect of stock-based compensation expense and amortization of intangibles arising from business combinations and assumes the conversion of Unica's preferred stock into common stock for all periods presented. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. About Unica Unica Corporation is a leading global provider of EMM software designed to help businesses increase their revenues and improve the efficiency and measurability meas·ur·a·ble adj. 1. Possible to be measured: measurable depths. 2. Of distinguished importance; significant: a measurable figure in literature. of their marketing operations. Unica focuses exclusively on the needs of marketing organizations and its Affinium This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (R) software addresses the principal functions of EMM including marketing and customer analytics, demand generation and marketing resource management. Approximately 300 companies in a wide range of industries use Affinium to manage the complexities and processes of marketing and to facilitate the operations of a customer-centric business. Unica's customers include ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) , Capital One, Choice Hotels, Comcast Comcast Corporation, (NASDAQ: CMCSA) is the largest[1] cable television (CATV) company and the second largest Internet service provider in the United States. , Lands' End
U.S.-based monthly magazine. Founded by DeWitt and Lila Wallace, it was first published in 1922 as a digest of articles of topical interest and entertainment value condensed from other periodicals. , Scotiabank Scotiabank (Banque Scotia) (TSX: BNS NYSE: BNS), formally known as The Bank of Nova Scotia is one of Canada's Big Five banks. It is the third largest bank in Canada by assets (behind the Royal Bank of Canada and TD Bank Financial Group), and the second and Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). . Unica has offices across 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. , including its corporate headquarters in Waltham, Massachusetts One of the early centers of the Industrial Revolution in northern America, Waltham is a city in Middlesex County, Massachusetts, United States. The population was 59,226 at the 2000 census. , as well offices in the United Kingdom, France, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Singapore and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . For more information, call 781-839-8000 or visit www.unica.com. Note to Editors: Copyright 2006 Unica Corporation. Unica, the Unica logo, and Affinium are registered trademarks of Unica Corporation. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners. 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. The information provided in this press release above contains forward-looking statements that relate to future events and future financial performance of Unica. These forward-looking statements are based upon Unica's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Unica's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Unica disclaims any obligation to update or revise the forward-looking statements in the future. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including the possibility that the market for enterprise software does not develop as anticipated; the volatility of our stock price due to the difficulty in predicting operating results and the long sales cycle for Unica's software; a failure by Unica to develop new software products and enhance existing products; failure to retain key staff; a failure by Unica to maintain historical maintenance renewal rates; and a failure to properly protect Unica's proprietary rights and intellectual property. These and other factors listed in the Annual Report on Form 10K for the fiscal year ended September 30,2005 under "Risk Factors" could cause Unica's performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
UNICA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(unaudited)
(in thousands, except per share data)
Three Months Ended
December 31,
2004 2005
-------------------
Revenue:
License $ 6,947 $ 8,544
Maintenance and services 7,686 9,051
-------------------
Total revenue 14,633 17,595
-------------------
Cost of revenue:
License 201 271
Maintenance and services 2,324 2,846
-------------------
Total cost of revenue (1) 2,525 3,117
-------------------
Gross profit 12,108 14,478
-------------------
Operating expenses: (1)
Sales and marketing 6,708 6,962
Research and development 2,590 3,362
General and administrative 1,438 2,277
Amortization of intangible assets 117 108
-------------------
Total operating expenses 10,853 12,709
-------------------
Income from operations 1,255 1,769
-------------------
Other income (expense), net 288 421
-------------------
Income before provision for income taxes 1,543 2,190
Provision for income taxes 540 756
-------------------
Net income $ 1,003 $ 1,434
===================
Net income per common share (2):
Basic $ 0.05 $ 0.08
======== ========
Diluted $ 0.05 $ 0.07
======== ========
Weighted average common shares outstanding:
Basic 9,629 18,907
======== ========
Diluted 11,384 20,047
======== ========
(1) Amounts include stock-based compensation, as
follows:
Cost of maintenance and services revenue $ 25 $ 19
Sales and marketing expense 43 69
Research and development expense 24 141
General and administrative expense 27 186
-------------------
Total stock-based compensation expense $ 119 $ 415
===================
(2) Under the two-class method, in accordance with SFAS No. 128,
Earnings Per Share, basic net income per share for the three
months ended December 31, 2004 was computed by dividing the net
income applicable to common stockholders by the weighted-average
number of common shares outstanding for the three month period.
Diluted net income per share was computed using the more dilutive
of (a) the two- class method and (b) the if-converted method. The
Company allocated net income first to preferred stockholders based
on dividend rights under the Company's charter and dividends paid,
and then to preferred and common stockholders, pro rata, based on
ownership interests. For the three months ended December 31, 2004,
the application of the two- class method was more dilutive than
the if-converted method. Diluted net income per share gives effect
to all potentially dilutive securities, including stock options
using the treasury stock method. The following is a reconciliation
of net income to net income applicable to common stockholders for
the calculation of diluted earnings per share
Three Months Ended
December 31,
-------------------
2004 2005
-------------------
Net income $ 1,003 $ 1,434
Accretion of preferred stock dividend and
allocation of net income to preferred
stockholders (450) -
-------------------
Net income applicable to common stockholders,
diluted $ 553 $ 1,434
===================
UNICA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
As of As of
September 30, December 31,
-----------------------------
ASSETS 2005 2005
-----------------------------
Current Assets:
Cash and cash equivalents $ 43,754 $ 38,225
Restricted cash 144 240
Short-term investments 16,152 18,527
Accounts receivable, net 15,220 12,850
Purchased customer receivables - 1,355
Prepaid expenses and other current
assets 1,948 2,373
-----------------------------
Total current assets 77,218 73,570
Property and equipment, net 1,630 1,825
Purchased customer receivables, long-
term - 2,273
Intangible assets, net 253 1,899
Goodwill 2,337 4,345
Other assets 166 75
-----------------------------
Total assets $ 81,604 $ 83,987
=============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,356 $ 1,352
Accrued expenses 9,241 7,250
Short-term deferred revenue 21,323 22,552
-----------------------------
Total current liabilities 31,920 31,154
Long-term deferred revenue 3,311 4,588
-----------------------------
Total liabilities 35,231 35,742
-----------------------------
Stockholders' equity:
Common stock 189 189
Additional paid-in capital 45,280 45,697
Deferred stock-based compensation (354) (305)
Accumulated earnings 1,098 2,532
Accumulated other comprehensive income 160 132
-----------------------------
Total stockholders' equity 46,373 48,245
-----------------------------
Total liabilities and stockholders'
equity $ 81,604 $ 83,987
=============================
UNICA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Three Months Ended
December 31,
-------------------
2004 2005
-------------------
Cash flow from operating activities:
Net income $ 1,003 $ 1,434
Adjustments to reconcile net income to net cash
provided by operating activities, net of effect
of acquisition:
Depreciation and amortization 180 221
Amortization of intangible assets 117 108
Non-cash stock based compensation charge 119 415
Changes in operating assets and liabilities:
Accounts receivable, net 602 2,817
Prepaid expenses and other current assets (206) (451)
Other assets (30) 87
Accounts payable (343) (2)
Accrued expenses (1,212) (2,340)
Deferred revenue 355 2,186
-------------------
Net cash provided by operating activities 585 4,475
-------------------
Cash flows from investing activities:
Purchases of property and equipment (345) (306)
Cash paid for acquisition of MarketSoft - (7,258)
Proceeds from sale and maturity of short-term
investments - 5,600
Purchase of short-term investments - (7,977)
Increase in restricted cash - (96)
-------------------
Net cash used in investing activities (345) (10,037)
-------------------
Cash flows from financing activities:
Proceeds from exercise of stock options 50 48
-------------------
Net cash provided by financing activities 50 48
-------------------
Effect of foreign currency on cash and cash
equivalents (53) (15)
-------------------
Net increase (decrease) in cash and cash
equivalents 237 (5,529)
Cash and cash equivalents at the beginning of
period 23,773 43,754
-------------------
Cash and cash equivalents at the end of period $ 24,010 $ 38,225
===================
UNICA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(unaudited)
(in thousands, except per share data)
Three Months Ended
December 31,
---------------------
2004 2005
---------------------
Non-GAAP financial measures and reconciliation:
Income from operations $ 1,255 $ 1,769
Add: Stock-based compensation 119 415
Add: Amortization of intangible assets 117 108
---------------------
Non-GAAP income from operations $ 1,491 $ 2,292
=====================
Net income $ 1,003 $ 1,434
Add: Stock-based compensation, net of tax 77 272
Add: Amortization of intangible assets, net of
tax 76 71
---------------------
Non-GAAP net income $ 1,156 $ 1,777
=====================
Diluted non-GAAP net income per share (3) $ 0.07 $ 0.09
=====================
Shares used in per share calculation:
Diluted 15,467 20,181
=====================
(3) Non-GAAP weighted average shares outstanding for all periods
presented assume the conversion of Unica's preferred stock into 4,083
shares of common stock. As a result, earnings applicable to common
shareholders are not affected by the accretion of preferred stock
dividends, or allocation of earnings to preferred stockholders, as in
the computation of GAAP EPS.
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