NEON to Deliver Record Revenue Quarter; E-Business Revenue Continues to Fuel Growth
DENVER, Jan. 5 /PRNewswire/ -- New Era of Networks, Inc.(TM) (Nasdaq: NEON - news), announced today it expects revenues for the quarter ended December 31, 1999, to be in the range of $37 million to $39 million, based on a preliminary analysis of its results. The company estimates revenues from software licenses grew well over 50 percent compared to the third quarter ended September 30, 1999. Earnings are projected to be in line with, or slightly better than, expectations. NEON plans to release its full earnings report on January 26, 2000.
''We are very pleased with our strong revenue growth, much of it driven by e-Business,'' said NEON Chief Executive Officer Rick Adam. ''We saw substantial sequential improvement in key financial metrics such as software revenues and DSO, and expenses declined as we realized the benefit of the restructuring initiatives we announced in July.''
Growing Strength in E-Business
''E-Business is our most important strategic growth market, and it continued to grow as a proportion of our business in the fourth quarter. We estimate revenue from e-Business will total more than half of fourth-quarter revenues,'' said Adam.
In the fourth quarter, NEON's e-Biz Integrator and e-Biz 2000 products gained broad acceptance with bricks-to-clicks companies, dot.coms, and on-line trading communities:
-- Siemans AG, a global electrical engineering and electronics company,
will use NEON products and services to integrate BroadVision software
with existing systems for business-to-business (B2B) and business-to-
consumer (B2C) services including order procurement and e-fulfillment,
with capability for online cross-selling and up-selling.
-- The fourth-largest airline in the U.S. licensed NEON products for
Web-based reservations and e-ticketing.
-- One of the nation's largest banks selected NEON technology for its
e-brokerage offering.
-- PCRoomLink.com will use NEON products for an Internet access service
for hotel rooms across the U.S.
-- Azurix, a global B2B water and wastewater asset trading company, chose
NEON technology for its Internet trading system for its trading
constituents worldwide.
-- Securities Industry Automation Corporation (SIAC), the technology hub
service provider for the New York Stock Exchange (NYSE) and the
American Stock Exchange (Amex) selected NEON for its next-generation
architecture.
In addition, IBM Corporation selected NEON to e-enable their worldwide order processing system and a recent article in Computer World highlighted the use of NEON technology by one of the world's largest B2B computing services companies, handling more than 1 billion transactions per day.
Key Partnering Activity in E-Business
''NEON is rapidly becoming the de facto standard for e-Business integration,'' said Adam. ''During the fourth quarter, we forged partnerships and alliances with major Web server providers BEA, BroadVision, Commerce One and Microsoft.''
''The goal of our 'NEON Inside' program is to provide customers with the features and benefits of NEON technology regardless of which vendor they select for their software purchase,'' Adam continued. ''These new alliances, and our existing relationships with other thought leaders in e-Business including IBM and Sun Microsystems, bring us closer to reaching that goal.''
NEON e-Business partners include:
-- BEA Systems licensed NEONRules(TM) and NEONFormatter(TM) software to
incorporate into their BEA eLink(TM) e-commerce integration suite.
-- BroadVision and NEON will use NEON's e-Biz Integrator to integrate
BroadVision's Web-based One-to-One(TM) Commerce solutions with
applications such as Oracle, SAP, PeopleSoft, Siebel and legacy
systems.
-- Commerce One selected NEON as their exclusive provider for e-Business
Integration. They are reselling NEON e-Biz Integrator and NEON
e-Business Adapter Development Kit (e-ADK), and integrating NEON
products into their BuySite(TM) Solution to deliver a fully
interactive, multi-enterprise e-commerce solution.
-- IBM embedded NEON technology in its Net.Commerce product, a part of the
expanded IBM WebSphere family of application servers.
-- Microsoft selected NEON as a strategic partner to jointly enhance and
market e-commerce integration solutions based on Microsoft platforms
and NEON's e-commerce integration products. NEON also was appointed
to Microsoft's BizTalk steering committee, which will participate in
the future direction and development of Microsoft's BizTalk Framework.
-- Sun Microsystems Forte subsidiary resells NEON's e-Business products as
part of their dot.com business process automation initiative.
Note to Investors
The foregoing statements regarding anticipated quarterly results are forward-looking. Among the factors that could cause actual results to differ materially are final rollups of financial data from various divisions and subsidiaries of the company, and any accounting adjustments made in the closing of the December quarter financial statements. Other risks and uncertainties associated with the business of New Era of Networks, Inc., may be reviewed in the company's public filings, including the company's Report on Form 10-Q for its fiscal quarter ended September 30, 1999, and the company's Form 10-K Report for the fiscal year ended December 31, 1998, under the caption ''Factors that may Affect Future Results.''
About New Era of Networks, Inc.
New Era of Networks Inc. (Nasdaq: NEON - news) is the leading provider of e-Business Integration software. Its products enable companies to share information and manage end-to-end business processes across Internet-facing e-Business applications, packaged software such as ERP systems and legacy applications. NEON has a rapidly growing base of 2,500 customers worldwide in a variety of industries including financial services, insurance, manufacturing, healthcare, telecommunications and hospitality. NEON has demonstrated that its products shorten implementations while providing performance and reliability, proven in some of the most demanding transaction processing environments in the world. NEON partners with most of the leading IT software and services providers including IBM, BEA Systems, BroadVision, Microsoft, Commerce One, Sun/Forte, PeopleSoft, SAP, Cambridge Technology Partners, CIBER, Compaq, Hewlett-Packard and others. For more information, call 800-815-6366 or visit NEON's World Wide Web site at www.neonsoft.com.
New Era of Networks, Convoy/DM, MicroScript Server, MicroScript Workstation, the NEON logotype, NEONet, NEONweb, Neonsoft, NEONaccess, NEONtrack, NEONenrich, NEONfix, Business EventManager, Enterprise ProcessExecutive, Rapport, OpenBroker, Enterprise Application Integration, NEON Impact, NEONsecure, NEONadapter, NEON Physician Access, NEON e-Biz Integrator, e-Biz2000 and NEON Trading System are trademarks, and CL/7, MicroScript and Transaction Distribution Manager, TDM are registered trademarks of New Era of Networks, Inc. and its subsidiaries. MQSeries is a registered trademark of International Business Machines Corporation. All other trademarks and registered trademarks are the property of the respective trademark owners.
CONTACT: Cynthia L. King, Director of Investor Relations, of New Era of Networks, Inc., 303-409-7369.
SOURCE: New Era of Networks, Inc.
|
