Aspect Development's Fourth Quarter Revenues Hit New Record Based On Leadership in B2B eCommerce Solutions for Supply Chains and Trading Exchanges
Selected by Dana for Global eCommerce Initiative
MOUNTAIN VIEW, Calif., Jan. 25 /PRNewswire/ -- Aspect Development, Inc.
(Nasdaq: ASDV) today announced results for the fourth quarter and fiscal year
ended December 31, 1999. The company reported record fourth quarter pro forma
revenues of $33,510,000 -- a 29% increase over the prior quarter. License
revenues grew to $ 21,442,000, up 43% from the previous quarter and 43% from
the same quarter a year ago. Pro forma net income doubled over the prior
quarter to $5,353,000. For comparison purposes, except where noted, the
results discussed throughout this release reflect revenues and earnings not
including Aspect's Infinite Supply subsidiary, formed in the third quarter of
1999. Diluted earnings per share for the fourth quarter totaled $0.15, an
increase from $0.09 in the prior quarter, and contrasted with $0.18 per share
in the fourth quarter of 1998. Operating income for the fourth quarter of
this year was $5,659,000, and gross profit grew to 86.5% compared to 83.4%
from the prior quarter.
Aspect reported record 1999 pro forma revenues of $95,041,000, up from
$86,365,000 in 1998. Pro forma net income for the year totaled $8,960,000, or
$0.27 per diluted share, contrasted with $16,025,000, or $0.48 per diluted
share in 1998. Product license revenues for the year grew in line with total
revenues to $52,424,000. Content and subscription revenues increased 40% over
the prior year to $24,472,000.
Aspect announced its intention to establish Infinite Supply as a
subsidiary in Q3, 1999. Infinite Supply's mission is to be a leading Commerce
Services Provider, providing content and application software services for B2B
portals and marketplaces. At that time, Aspect also announced its plan to
invest significantly in Infinite Supply, and to separate its financials from
those of Aspect's core business for purposes of transparency. Aspect has done
this starting in Q4, 1999, with Infinite Supply recording its initial revenues
of $104,000 in the quarter. Combining these results with those of Aspect, on
a consolidated (GAAP) basis, revenues for the fourth quarter were $33,614,000,
compared to $25,459,000 for the corresponding period in fiscal year 1998. Net
income for the fourth quarter was $4,461,000, or $0.12 per diluted share,
compared to net income of $5,926,000, or $0.18 per diluted share for the
corresponding period of fiscal year 1998. On a consolidated (GAAP) basis,
including Infinite Supply, revenues for fiscal year 1999 were $95,145,000,
compared to $86,365,000 in fiscal year 1998. Net income for fiscal year 1999
was $7,799,000, or $0.24 per diluted share, compared to net income of
$16,025,000, or $0.48 per diluted share in fiscal year 1998.
Aspect Extends Its Leadership into B2B eCommerce and Trading eXchange
Solutions
During the quarter Aspect was selected as the technology provider for Dana
Corporation's global eCommerce initiative, including a possible Dana-sponsored
independent marketplace for complementary Tier 1 automotive integrators and
their trading partners. Aspect also announced signed multi-million dollar
agreements with several new customers including Marconi Communications,
Scientific Atlanta, and HydroQuebec, as well as existing customers such as
Honeywell (previously Allied-Signal) and Shell Oil JV.
"In 1999 we transformed Aspect into the leading provider of B2B eCommerce
solutions for supply chains and marketplaces," said Dr. Romesh Wadhwani,
Chairman and CEO of Aspect. "In Q4 99 we launched our eMarkets business.
Aspect eMarkets provides decision support and content infrastructure solutions
for B2B portals, marketplaces and exchanges, delivering large value and
complementing the transaction automation solutions available from Ariba,
CommerceOne and others. Aspect-powered eMarkets can be seamlessly integrated
by customers to their Aspect solutions inside their enterprise, for strategic
sourcing and collaborative design. Aspect eMarkets are also the first to
enable eCommerce and trading in both production components and non-
production/MRO equipment and supplies. As customers understand the need to
deliver high value and differentiation in their B2B marketplaces, they are
responding enthusiastically to these new Aspect solutions."
"Order activity in Q4 99 was by far the strongest in our history," said
Bob Evans, Aspect's president and COO. "Out of a total of 18 significant
deals during the quarter, Aspect closed twelve deals of over $1 million. This
is 100% more than the number of deals of similar size we closed in Q4 a year
ago. We worked with customers from all industry segments who were interested
in our B2B eCommerce solutions for supply chains and marketplaces. These
strong results are a rewarding sign that our solutions and expertise are in
high demand as companies move into the era of new generations of supply
networks and eMarkets."
Infinite Supply Subsidiary Starts Generating Revenue
Separately, the company reported results of its subsidiary Infinite
Supply, a startup company launched by Aspect in the third quarter of 1999.
Infinite Supply's mission is to be a leading global Commerce Services Provider
providing content and application software services for B2B portals,
marketplaces and exchanges. Infinite Supply reported its first revenues of
$104,000 during the fourth quarter, ahead of schedule. Operating expenses
totaled $1,217,000 in the fourth quarter, compared to $344,000 in the third
quarter. Infinite Supply had a net loss in the fourth quarter of $892,000, or
$0.02 per diluted share. During the third quarter of 1999, Infinite Supply
had reported a net loss of $268,000, or $0.01 per diluted share. During the
fourth quarter, Infinite Supply booked several key orders for new customers,
including IDS, a portal for the geophysics industry, and FirmBuy, a new MRO
portal for mid-market customers that will be formally launched next week.
"In August 1999, we announced that we would start up a new venture that
would provide the content and software infrastructure for B2B portals and
marketplaces, with a business model that's different from that of Aspect's
core business," said Wadhwani. "We said we would account for it separately to
provide investors with complete transparency. We said we would consider a
spinout to Aspect shareholders at the right time. Infinite Supply is that
venture. We are pleased with its progress."
Aspect Expands and Strengthens its Organization
Aspect greatly strengthened its management and sales infrastructure during
1999. President and COO Bob Evans joined in April and led a program to double
the size of Aspect's sales organization and increase its effectiveness. This
program was successfully completed by year-end. As part of its plan to
accelerate growth and strengthen its executive team in 1999, Aspect also
recruited new senior executives to head its Europe Operations, Japan
Operations, Consulting Operations and Content Operations throughout the year.
These and other additions give Aspect a strong foundation upon which to grow.
"We have been systematically putting in place the people and business
processes to take Aspect's performance to the next level. This quarter gave
us solid evidence that the strategy is paying off, as we build our sales
capacity, marketing presence, and add innovative new products and
partnerships. We're well-positioned for 2000," said Bob Evans, Aspect's
president and COO. |
