NEWS RELEASE (EARNINGS): Thursday January 20, 6:37 pm Eastern Time
Company Press Release
Pivotal Reports Record Quarter with 102 Percent Year over Year
Revenue Growth
VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 20, 2000-- Pivotal Corp.(NASDAQ:PVTL - news)
Pivotal Corporation (Nasdaq:PVTL - news; 'Pivotal'), The eBusiness Relationship Company(TM), a leading provider of eBusiness relationship
management (eBRM) solutions, today announced financial results for its second fiscal quarter ended December 31, 1999.
Net revenue for the second quarter of fiscal 2000 increased 102 percent to $11.5 million compared to $5.7 million in the second quarter of fiscal
1999. Revenues from licenses increased 86 percent to $8.0 million in the second quarter of fiscal 2000 compared to sales of $4.3 million in the
second quarter of fiscal 1999. Revenues from services and maintenance increased 153 percent to $3.5 million in the second quarter of fiscal
2000, compared to $1.4 million in the second quarter of fiscal 1999.
Net loss for the second quarter of fiscal 2000 was $164,000, or $0.01 per share, compared to a net loss of $643,000, or $0.04 per share, in the
second quarter of fiscal 1999. All per share amounts are computed on a pro forma basic basis which assumes conversion of the convertible
preferred stock from the original date of issuance.
Revenues for the six-month period ended December 31, 1999 were $20.2 million compared with $10.3 million for the same period last year, an
increase of 97 percent. Net loss was $850,000 or $0.04 per share, compared with net loss of $1.5 million or $0.10 per share for the first six months
of fiscal 1999, decreases of 43 and 60 percent, respectively. Software license revenues for the first half of fiscal 2000 grew 86 percent over the
same period last year, while service revenues grew 127 percent.
The company's user base surpassed 100,000 users this quarter and its customer base expanded to more than 710 customers with the signing of
91 new customers spanning diverse industries and geographic markets. New customers include Ericsson, CornerDrugstore.com, Deloitte &
Touche, Splitrock Services, Trader.com, Pfizer, Medpool.com, NEC, Viewlocity.com, Timber Products, Mikohn Gaming, Idiom, Cyclone
Commerce, Meridian Energy, Concur Technologies, and Pacific Life Insurance Company.
``Our second quarter as a public company has resulted in solid financial results and excellent market momentum,' said Norm Francis, president
and chief executive officer of Pivotal. ``Pivotal's quick-to-deploy, scalable Pivotal eRelationship 2 solutions continue to produce a dramatic
impact in both traditional business sectors and emerging dot.com companies. The drive to incorporate the Internet into every aspect of the
demand-chain, with our all-Web solutions for eCommerce, eMarketing, eSales, and eService, is strategically positioned to maximize this
opportunity. Our eBusiness focus continues to experience strong customer demand.'
According to Vince Mifsud, CFO and vice-president, operations of Pivotal, ``We're pleased to report that Pivotal had strong performance this
quarter. Our revenue growth on a percentage basis continued to accelerate, as indicated by our 102 percent year over year revenue growth.'
Second Quarter Highlights
TWO PRESTIGIOUS MICROSOFT AWARDS
For the third year in a row Pivotal has won top honors in Microsoft's annual Industry Solutions Awards competition. This year, Pivotal won
awards in both categories in which it was selected as a finalist: ``Best Internet Solution - Customer Self Service' and ``Best Integrated Customer
Relationship Management'.
PIVOTAL INTRODUCES ERELATIONSHIP 2 AND B2B SYNDICATE
Pivotal introduced, Pivotal eRelationship 2, a highly scalable, comprehensive Web solution for 360(degree) eBusiness relationship
management, the dynamic process of engaging customers, business partners, and employees in personalized eMarketing, eSales, eCommerce,
and eService relationships over the Internet. Pivotal eRelationship 2 is comprised of three integrated Web Applications - CustomerHub,
PartnerHub, and IntraHub, designed specifically for the customers, business partners and employees of B2B organizations.
The Pivotal B2B Syndicate(TM), is a select group of companies that provide real-time content, applications and services to users of Pivotal's
eRelationship 2.
FIRST WIRELESS SOLUTION FOR EBUSINESS RELATIONSHIP MANAGEMENT
Pivotal announced Pivotal Anywhere which provides wireless access to Pivotal eBRM solutions. The solution operates on the
BlackBerry(TM) wireless device from Research In Motion Limited. Pivotal Anywhere meets the increasing demand among business users for
live access to corporate and Internet information while disconnected from the corporate network.
PIVOTAL SELECTED FOR MICROSOFT/CISCO APPLICATION HOSTING PROGRAM
Pivotal announced that Pivotal eRelationship 2 solutions have been selected by Microsoft and Cisco for their Internet application hosting
program. The program provides end-to-end solutions for Application Service Providers (ASPs). This collaborative initiative will provide ASPs
with a first-rate hosted solution based on Pivotal's award-winning eBRM technology.
EUROPEAN EXPANSION AND ACQUISITION OF FRENCH-BASED TRANSITIF
On December 6, 1999, Pivotal announced the acquisition of Transitif S.A., a leading French distributor of eBRM solutions. The acquisition
provides Pivotal with a strengthened presence in France and an ability to directly service the company's rapidly growing French customer
base.
To strengthen its presence in the European market, Pivotal appointed additional executives to its European management team. The company
appointed Mark Inskipp as vice president, Europe, Mike Antoniades as director of business development, Europe, Middle East and Africa
(EMEA) and Mike Carlile as director of sales for the U.K. Pivotal also announced the recent wins of two major European customers-Siemens
and Ericsson.
EXPANSION IN NORTH AMERICA CONTINUES
The company continued to extend its presence in North America this quarter by enlarging its first-rate sales force and opening additional
offices. Pivotal established new offices in Denver and Minneapolis and expanded its Chicago location.
BONDED GUARANTEE FOR EBRM PROJECTS
Pivotal and Gladwyne Software Surety (GSS), a leader in information technology (IT) risk management services, announced on December 8,
1999, an initiative that provides a third-party guarantee for KPMG implementations of Pivotal solutions. This insurance-backed IT initiative
marks a turning point in the software industry by establishing true accountability for IT implementation. The surety bond protects the
investment of KPMG/Pivotal customers by guaranteeing that KPMG implementations of Pivotal solutions are on time and on budget.
About Pivotal Corporation
Pivotal Corporation, The eBusiness Relationship Company, enables organizations, globally, to capitalize on the power of the Internet and
increase revenue by providing highly scalable, 360(degree) eBusiness relationship management (eBRM) Web, wireless, and hosted solutions
for eMarketing, eSales, eCommerce, and eService that engage customers, business partners, and employees in personalized, one to-one
relationships. The Pivotal eRelationship eBRM solution provides personalized, intelligent, self service relationship hubs for customers and
business partners integrated with a unified digital workplace for front office employees. Pivotal solutions combine eCommerce, business portal,
and customer relationship management capabilities within a flexible, scalable, standards-based architecture ideally suited to the needs of B2B
organizations seeking to merge the power of the Internet with traditional business models.
Pivotal solutions are sold in 32 countries and available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese.
Pivotal's worldwide customer base comprises more than 710 organizations in traditional commercial and public market sectors and the new
digital economy, including KPMG, Cornerdrugstore.com, Ericsson, Medpool.com, HarperCollins Publishing, Deutsche Bank, FOSS,
Trader.com, Southern Company, Lucent Technologies, NEC, Deloitte & Touche, Principal Financial Group and Red Cross Australia.
Pivotal is a public company traded on the Nasdaq under the symbol ``PVTL' and can be found on the Web at pivotal.com.
Forward Looking Statements
This press release contains forward-looking statements including the anticipated growth of certain markets, Pivotal's plans and expectations
for future growth, its ability to maintain leadership in the eBusiness marketplace and the anticipated benefits of relationships with a number of
third parties. These statements are based on management's current projections, beliefs and opinions at the date of this press release. Actual
results could differ materially from those anticipated in these statements based upon a number of factors including the possible failure of the
eBRM and eBusiness markets to grow as anticipated; the possibility of technical difficulties or delay in future product introductions and
improvements; product pricing or other initiatives of Pivotal's competitors; and the continued interest, cooperation and performance of
important third parties with whom Pivotal has business relationships. Pivotal undertakes no responsibility to update forward-looking
statements if circumstances or management's projections, beliefs or opinions change.
(c) 1999 Pivotal Corporation. All rights reserved. Pivotal, Pivotal eRelationship and 360(degree) e-Customer Relationship Management are
trademarks and/or registered trademarks of Pivotal Corporation. Microsoft, Windows, Windows NT, and BackOffice are trademarks and/or
registered trademarks of Microsoft Corporation in the United States and/or other countries.
All other trade names mentioned are trademarks and/or registered trademarks of their respective owners.
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