Thursday October 21, 4:13 pm Eastern Time
Company Press Release
Packeteer, Inc. Reports Third Quarter Results
CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 21, 1999--Packeteer, Inc.
(NASDAQ:PKTR - news), a leading provider of application-adaptive
bandwidth management solutions on enterprise wide area networks and the Internet, today
reported its third quarter results for the period ended September 30, 1999.
Total net revenues for the third quarter were $5.0 million, compared with $1.9 million for the
same period in the prior year, an increase of 165%. The pro forma net loss for the quarter was
$2.3 million (excluding amortization of deferred stock compensation of $700,000) or pro forma
net loss per share of $0.11, based upon 20.2 million weighted average shares. This compares to
the third quarter of 1998's pro forma net loss of $2.0 million or $0.34 per share based upon 6.0
million weighted average shares. Excluding pro forma adjustments, the net loss for the third
quarter of 1999 was $2.9 million or $0.14 per share based upon 20.2 million weighted average
shares compared to $2.2 million or $0.37 per share based upon 6.0 million weighted average
shares for the same period in the prior year.
''Packeteer continued to extend its leadership in the application performance management market
during the third quarter,'' said Craig Elliott, President and CEO of Packeteer. ''We are pleased to
see the growth and market acceptance of comprehensive bandwidth management solutions, and
the industry's acknowledgement of the key role that these solutions play in ensuring the
performance of critical applications. Our customers, such as Autodesk, Domino's, Hoechst
Marion Roussel and TNT Post Group rely on the PacketShaper product line to ensure the
performance of their critical applications and WANs.''
About Packeteer, Inc.
Packeteer is a leading provider of application-adaptive bandwidth management solutions that
enhance the performance of mission-critical application performance over enterprise wide area
networks and the Internet. PacketShaper bandwidth management solutions allow network
managers and Internet service providers to set and enforce policies to prioritize and control
application traffic, ensuring users end-to-end quality of service. Customers worldwide use
PacketShaper on their networks to protect their mission-critical applications as well as their
investment in costly wide-area and international connections. For more information, contact
Packeteer at 1(408) 873-4400, fax 1(408) 873-4410; or visit the Packeteer Web site at
packeteer.com.
Packeteer, PacketShaper and PacketWise are trademarks of Packeteer, Inc. Other trademarks,
service marks, and trade names belong to their respective owners.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
The statements contained in this press release that are not purely historical are forward-looking
statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as
amended, including statements regarding Packeteer's expectations, beliefs, intentions, or
strategies regarding the future. Forward-looking statements include statements regarding future
sales. All forward-looking statements included in this press release are based upon information
available to Packeteer as of the date hereof, and Packeteer assumes no obligation to update any
such forward-looking statements. Forward-looking statements involve risks and uncertainties,
which could cause actual results to differ materially from those projected. Actual results may
differ materially due to a number of factors including numerous technological, competitive and
widespread market acceptance challenges. These and other risks relating to Packeteer's business
are set forth in Packeteer's Form S-1, as amended and filed with the Securities and Exchange
Commission on July 28, 1999, and the other reports filed from time to time with the Securities
and Exchange Commission.
PACKETEER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Net revenues:
Product revenues $ 4,594 $ 1,895 $ 10,924 $ 4,812
Licensing revenues 425 0 1,175 0
-------- -------- -------- --------
Total net revenues 5,019 1,895 12,099 4,812
Cost of revenues 1,436 605 3,363 1,675
-------- -------- -------- --------
Gross profit 3,583 1,290 8,736 3,137
Operating expenses:
Research and
development 1,509 676 3,729 1,844
Sales and
marketing 3,718 2,306 9,374 5,775
General and
administrative 805 453 1,947 1,199
Amortization of
stock-based
compensation 670 172 2,454 400
-------- -------- -------- --------
Total operating
expenses 6,702 3,607 17,504 9,218
-------- -------- -------- --------
Net loss
from operations (3,119) (2,317) (8,768) (6,081)
Other income, net 193 101 119 236
-------- -------- -------- --------
Net loss $ (2,926) $ (2,216) $ (8,649) $ (5,845)
======== ======== ======== ========
Basic and
diluted net
loss per share $ (0.14) $ (0.37) $ (0.72) $ (1.09)
======== ======== ======== ========
Shares used in
computing net
loss per share 20,202 6,028 12,005 5,386
======== ======== ======== ========
Pro forma
information:
Pro forma
net loss (A) $ (2,256) $ (2,044) $ (6,195) $ (5,445)
======== ======== ======== ========
Pro forma net
loss per share (A) $ (0.11) $ (0.34) $ (0.52) $ (1.01)
======== ======== ======== ========
Shares used in
computing pro forma
net loss per share 20,202 6,028 12,005 5,386
======== ======== ======== ========
(A) Pro-forma net loss and net loss per share excludes the effect
of amortization of deferred stock-based compensation.
PACKETEER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Sept 30, 1999 Dec 31, 1998
(unaudited) (1)
Assets:
Current assets:
Cash and cash equivalents $ 35,821 $ 2,550
Short term investments 22,339 1,927
Accounts receivable ,net 2,706 2,745
Inventories 719 188
Prepaids and other
current assets 661 163
-------- --------
Total current assets 62,246 7,573
Property and
equipment, net 791 794
Long term investments
and other assets 7,351 203
-------- --------
Total Assets $ 70,388 $ 8,570
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Line of credit $ 1,393 $ --
Current portion of capital
leases and notes payable 2,830 286
Accounts payable 1,155 1,015
Other liabilities 2,595 1,264
Deferred revenue 775 1,507
-------- --------
Total current liabilities 8,748 4,072
Long-term liabilities 937 739
Common stock and
additional paid in capital 88,786 20,947
Deferred stock-based
compensation (2,700) (514)
Notes receivable
from stockholders (789) (729)
Accumulated deficit (24,594) (15,945)
-------- --------
Total stockholders' equity 60,703 3,759
======== ========
Total liabilities and
stockholders' equity $ 70,388 $ 8,570
======== ========
(1) Derived from audited financial statements
Contact:
Packeteer, Inc.
Investor Contact:
David Yntema, 408/873-4518 |
