Daleen Reports Second Quarter Operating Results
Company Announces Continued Improvements in Revenue and Operating Expenses
BOCA RATON, Fla. - July 19, 2002 - Daleen Technologies, Inc. (Nasdaq: DALN), a global provider of high performance billing and customer care software solutions that manage the revenue chain, today reported its second consecutive quarter of revenue growth, while continuing to hold expense levels for the second quarter of 2002. The company reported revenues of over $2.0 million for its second quarter of 2002. Net loss for the quarter was $2.3 million, or $0.10 per share, compared with a $2.8 million net loss, or $0.13 per share during the first quarter of 2002, and compared to a net loss of $18.0 million, or $2.02 per share in the second quarter of 2001.
Second Quarter Highlights:
Daleen recorded an increase in revenue from existing customers, including $700,000 in growth-related new license revenue from Integra Telecom, a provider of local, long distance and Internet services for small and midsize businesses.
Total expenses were $4.8 million for the second quarter of 2002, which included $745,000 in restructuring charges, compared to total expenses of $4.8 million for the first quarter of 2002, and compared to total expenses of $21.8 million for the second quarter of 2001. Total expenses in the second quarter of 2001 included restructuring charges of $4.8 million. The reduced level of expenses reflects the company's continued improvements in sustaining a lower cost of operations.
Total expenses for the six months ended June 30, 2002 were $9.7 million, compared to $49.5 million for the same period in 2001. Total expenses for the six months ended June 30, 2002 and 2001 included $745,000 and $7.8 million of restructuring charges, respectively.
The company realized a gain of $391,000 in non-operating income on the sale of its subsidiary, Partner Community, Inc.
Daleen was recognized as a finalist in the Operational Excellence category of the 2002 Billing World Excellence Awards, which the telecom community has come to regard as an important acknowledgement of the best the industry has to offer.
"I believe our quarter and year-to-date results clearly demonstrate that we are making real progress in our business operations," said Jeanne Prayther, chief financial officer for Daleen. "We are continuing to close the gap between our revenues and operating costs."
The company has methodically reduced expenses and cash used to support operations over the previous eighteen months to bring its business in line with a severe downturn in overall market conditions and in order to reach profitability as quickly as possible. Daleen anticipates lower expense levels in the third quarter and a further reduction in its use of cash.
Daleen's key financial objectives include: increasing revenue in each of the coming quarters, maintaining operating expenses below $3.5 million per quarter and keeping cash used in the third quarter to below $2.5 million.
"Although the communications industry itself still holds some challenges, we've successfully stabilized our cost structure, and put ourselves a step closer to reaching our goal of achieving profitability," said James Daleen, president and chief executive officer for Daleen.
About Daleen
Daleen Technologies Inc. is a global provider of high performance billing and customer care software solutions that manage the revenue chain for traditional and next-generation communication service providers, retailers and distributors of digital media, and technology solutions providers. Offering proven integration with leading CRM and other legacy enterprise systems, Daleen's RevChain software and pure Internet Integration Architecture (IIA™) leverage open Internet technologies to enable providers to achieve peak operational efficiency while driving maximum revenue from their product and service offerings. The company is currently ranked No. 1 worldwide in overall customer satisfaction based on timeliness of delivery, functionality, delivery within budget, vendor support and maintenance, system flexibility and interoperability. |
