Vitria Technology Reports Third Quarter 1999 Results
SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 21, 1999-- Vitria Technology,
Inc. (Nasdaq:VITR), a leading provider of eBusiness infrastructure software,
today announced revenues of $7.8 million for the third quarter ended September
30, 1999, an increase of 283% over the same quarter a year ago. For the nine
months ended September 30, 1999 and 1998, the company had revenues of
$19.3 million and $3.8 million respectively, a 415% year-over-year increase.
Excluding non-cash charges relating to stock compensation, Vitria's net loss
for the quarter was $2.8 million, or $0.18 per share, compared to $2.1 million,
or $0.19 per share for the prior year third quarter. Including amortization of
charges relating to stock compensation, Vitria's net loss for the quarter was
$4.3 million, or $0.26 per share, compared with a net loss of $2.5 million, or
$0.23 per share, for the prior year third quarter.
In September of 1999, Vitria completed its initial public offering of 3.45 million
shares at $16 per share, which included the exercise of a 450,000 share
over-allotment option. Net proceeds to the company from the offering were
approximately $49 million, resulting in a cash and cash equivalents balance of
$65.9 million at quarter's end.
"We believe that this rate of revenue growth reflects a validation from the
marketplace of Vitria's unique platform approach to eBusiness," said JoMei
Chang, President and CEO of Vitria Technology. "In addition to this strong
revenue performance, we also executed on several important initiatives,
including our partnering strategies with systems integrators and application
vendors, and our solutions strategies in the supply chain and
telecommunications markets. Finally, we are delighted with the reception that
the financial market has provided us, as evidenced by the success of our initial
public offering."
Quarterly Highlights
The following highlights were announced or occurred during the third quarter:
Systems integrator partnerships. Vitria significantly expanded its relationships
with systems integrators. The company announced an agreement with
Andersen Consulting. Not only is Andersen Consulting introducing Vitria to new
business opportunities, such as the $10.2 million Sprint order announced in the
second quarter, but they are also planning to build telecommunications
solutions on top of our BusinessWare platform. Vitria also announced
partnerships with six other systems integrators: Avicon, EDS, Glue
Technology, MVX.COM, Navigant and Primix.
Software vendor partnerships. Vitria announced two significant agreements with
application software vendors. Portal Software announced that they are working
with Vitria to develop joint solutions for the telecommunications market,
integrating their customer billing applications with Vitria BusinessWare. Clarify
announced that they will bundle components of Vitria BusinessWare with their
front-office applications, creating a powerful eBusiness solution for their
customers. Clarify is the first front-office vendor to bundle Vitria's product and
hence an important milestone for the company. The Clarify partnership is
another example of Vitria's leveraged direct sales model, whereby Vitria not
only receives revenue for product sales through the Clarify bundle, but also
gains introductions to accounts who could benefit from a broader and larger
BusinessWare solution.
Supply chain management solution. The BusinessWare for RosettaNet
product, aimed at the high technology supply chain market as represented by
the RosettaNet consortium, is currently under development and has already
been selected by one new account. BusinessWare for RosettaNet is an
off-the-shelf solution built on the BusinessWare platform that enables
companies in the high technology supply chain industry to automate their
business-to-business interactions within a framework of industry standards.
Telecommunications supply chain management solution. Vitria is completing
development of a product which automates the interactions between the various
suppliers in the DSL high-speed Internet access market. This is the first
telecommunications supply chain automation product and represents another
major milestone for Vitria. It has been selected by the four major DSL suppliers
and several of their ISP partners, all of whom have made significant
commitments to this product.
About Vitria
Vitria Technology, Inc. is a leading provider of eBusiness infrastructure
software. Vitria's eBusiness platform, BusinessWare, automates
mission-critical business processes across the extended enterprise, reducing
time to market, shortening lead times, lowering operating costs, and increasing
customer satisfaction.
Vitria is a publicly traded company (Nasdaq:VITR) based in Sunnyvale,
California. For more information, call 408/212-2700, visit the company's Web
site at www.vitria.com, or send email to info@vitria.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
1995:
This press release includes forward-looking statements that are subject to
risks, uncertainties and other factors that could cause actual results to differ
materially from those referred to in the forward-looking statements. Such
factors include, but are not limited to, risk as related to market acceptance of
Vitria's product, deployment delays or errors associated with these products,
hardware platform incompatibilities, reliance on a limited number of customers
for a majority of revenue, need to maintain and enhance certain business
relationships with system integrators and other parties, ability to manage
growth, activities by Vitria and others regarding protection of proprietary
information, release of competitive products and other actions by competitors,
Year 2000 problems and economic downturns in either domestic or foreign
markets. These forward-looking statements are generally identified by words
such as "expect," "anticipate," "intend," "believe," "hope," "assume,"
"estimate" and other similar words and expressions. These and other factors
and risks associated with our business are discussed in the Company's
registration statement on Form S-1 declared effective by the Securities and
Exchange Commission ("SEC") on September 16, 1999. -0-
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Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
(unaudited) (unaudited)
Revenues:
License $ 5,209 $ 1,643 $ 12,387 $ 2,670
Services 2,293 279 5,923 541
Government grant 333 121 1,033 546
-------- -------- -------- --------
Total Revenues 7,835 2,043 19,343 3,757
Cost of revenues
License 101 -- 285 --
Services 1,528 540 4,182 860
Government grant 333 121 1,033 546
-------- -------- -------- --------
Total cost of revenues 1,962 661 5,500 1,406
-------- -------- -------- --------
Gross profit 5,873 1,382 13,843 2,351
Operating expenses
Sales and marketing 5,089 1,585 11,868 3,939
Research and
development 2,981 1,369 6,864 3,432
General and
administrative 981 617 2,582 1,250
Amortization of
stock-based
compensation 1,411 412 3,363 750
-------- -------- -------- --------
Total operating
expenses 10,462 3,983 24,677 9,371
Loss from operations (4,589) (2,601) (10,834) (7,020)
Other income, net 331 56 565 216
-------- -------- -------- --------
-------- -------- -------- --------
Net Loss $ (4,258) $ (2,545) $(10,269) $ (6,804)
Deemed preferred
stock dividend -- -- (1,908) --
-------- -------- -------- --------
Net loss available
to common stockholders $ (4,258) $ (2,545) $(12,177) $ (6,804)
======== ======== ======== ========
Basic and diluted net
loss per share $ (0.26) $ (0.23) $ (0.86) $ (0.61)
Weighted average
shares used
in calculating basic
and diluted net loss
per share 16,175 11,310 14,112 11,074
Excluding stock-based
compensation and deemed
preferred stock
dividend:
Net loss available
to common stockholders $ (2,847) $ (2,133) $ (6,906) $ (6,054)
Basic and diluted
net loss per share $ (0.18) $ (0.19) $ (0.49) $ (0.55)
Condensed Consolidated Balance Sheet
(In thousands) As of As of
9/30/99 12/31/98
------------ -----------
(unaudited) (audited)
Assets:
Current Assets
Cash and cash equivalents $ 65,929 $ 12,792
Accounts receivable, net 7,047 5,551
Unbilled revenue 444 422
Other current assets 1,791 180
-------- --------
Total current assets 75,211 18,945
Property and equipment, net 4,191 967
Other assets 515 88
======== ========
Total Assets $ 79,917 $ 20,000
======== ========
Liabilities and Stockholders' Equity:
Current liabilities
Accounts payable $ 516 $ 757
Accrued liabilities 7,357 2,978
Deferred revenue 9,784 2,874
-------- --------
Total current liabilities 17,657 6,609
Stockholders' Equity:
Convertible Preferred Stock -- 11
Common Stock 31 15
Additional paid-in capital 92,029 29,104
Cumulative translation adjustment (2) --
Unearned stock-based compensation (9,010) (5,511)
Stock subscription receivable (291) --
Accumulated deficit (20,497) (10,228)
-------- --------
Total stockholders' equity 62,260 13,391
-------- --------
Total liabilities and stockholders' equity $ 79,917 $ 20,000
======== ========
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Note to Editors: BusinessWare(R) is a trademark of Vitria Technology, Inc. All
other names may be trademarks of the companies with which they are
associated. |
