ANGOSS Reports Continued Revenue And Profit Growth In First Quarter Results
TORONTO--(BUSINESS WIRE)--March 27, 2000--ANGOSS Software Corporation (CDNX:ANC. - news), developer of the industry leading data mining solutions KnowledgeSEEKER(r), KnowledgeSTUDIO(r), KnowledgeExcelerator(tm) and KnowledgeAccess(tm), announced today its unaudited first quarter results, reporting 82% growth in revenues, increasing cash flow from operations, and strong bottom line growth with a sixth consecutive quarterly operating profit.
Revenues in the quarter were $1,130,744 (1999 - $620,775), an increase of 82.2% over 1999 results. Gross margin improved by 5.4% over the same period to $1,099,688 as a result of changes in business mix between KnowledgeSuite and Smartware business lines. Operating expenses increased to $818,842 (1999 - $569,910) primarily as a result of the hiring of additional personnel to support in progress business opportunities and increased sales and marketing activity. Summary details are as follows:
Three months Three months Three months
ended February 28, ended February 28, ended February 28,
2000 1999 1998
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Revenues $1,130,744 $620,775 $716,680
Gross Margin $1,099,688 $570,291 $619,395
Operating
Expenses $818,842 $569,910 $662,126
Operating
(loss) $280,846 $381 ($42,731)
Net Profit
(Loss) $235,531 ($116,642) ($296,491)
Per Share Amount $0.01 $0.00 ($0.01)
Cash Provided by
(Used In)
Operations $184,264 ($206,564) ($230,295)
Net Increase
(Decrease) in
Cash $221,789 ($284,762) $58,682
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``As our first quarter results indicate, ANGOSS continues to build mindshare, marketshare and momentum as the leading pure play vendor in the data mining space for both traditional and e-business analytics requirements' commented ANGOSS President Eric Apps. ``Our core business was strong despite traditional year end seasonality factors and Y2K issues in December, 1999. We are now beginning to generate increased revenue growth, improved cash flow, and stronger bottom line profitability. During the first quarter we believe we also sowed the seeds for the future broadening and deepening of our revenue base. We have expanded our relationships with some key customers and technology partners.
We have added some strategically important new customer accounts. We have commenced marketing to selected customers some exciting higher value solution opportunities. We continue to add to our revenue mix with both consulting and development services agreements with customers and partners. Our performance may continue to be subject to quarterly fluctuations as our business continues to evolve, but overall our current outlook for the balance of this year and for 2001 is positive.``
Notable highlights during the first quarter included:
The completion by ANGOSS of deliverables due to Sybase under a joint development initiative, with further deliverables currently expected to be scheduled and announced during 2000.
The release to beta on time and on budget of KnowledgeSTUDIO 3.0, with commercial availability planned for April, 2000.
The announcement of the availability of KnowledgeSTUDIO for Siebel and KnowledgeWebMiner, higher value added data mining solutions for the Siebel e-CRM application suite and the e-business web analytics space, which are currently being marketed to ANGOSS customers and are expected to contribute to ANGOSS revenues during the 2000 fiscal year.
The expansion of ANGOSS's technology partnership with Whitecross Data Exploration to support Whitecross's alternative service provider business model.
First quarter revenues were derived from licensing, license renewal, development services and consulting services agreements with several current and new ANGOSS customers and partners, including in North America Allstate, Ameritrade, Bank of America, Bank One, Broadbase Software, CAA Insurance, CableVision, Cendant, Chase Bank, CIBC / PC Financial, Cigna, CIT Group, CNA Insurance, CyberGold, E Funds, EDS, Enbridge, Ernst & Young, First USA Bank, Ford Credit Company, Fortis, Frequency Marketing, Frost National Bank, GE Capital, General Electric, Glaxo Wellcome, GMAC, Household International, Engage - I/Pro, Infoworks, MBNA, Nordstrom, Norwest Mortgage, Ontario Power Generation, Providian, Revenue Quebec, Salience, Sybase, The Associates, USAA, Wachovia and Whitecross. ANGOSS UK also exceeded quarterly budget expectations and added a number of important new customer accounts. Distribution arrangements for ANGOSS products in Japan and South East Asia are currently under review.
``Our revenue growth is providing us with the ability to broaden our investments in our research and development, services and sales capabilities', commented Lon Vining, ANGOSS Chief Financial Officer. ``Subject to our overall profitability objectives, our priority for 2000 is revenue growth. We know we must also continue to increase our investments in infrastructure and headcount to support our revenue growth objectives. Based on our current pipeline of activity, and opportunities we expect to be brought forward over the balance of 2000, we need to expand our capacity to service and support our customers and technology partners.' About ANGOSS Software
ANGOSS Software Corporation, headquartered in Toronto, Canada, develops and sells industry-leading data mining solutions ``at the intersection of the Warehouse and the Web.' ANGOSS customers use ANGOSS data mining solutions to make better business decisions every day.
The ANGOSS KnowledgeSuite of advanced data mining solutions includes:
KnowledgeSEEKER(r) and KnowledgeSTUDIO(r), used by leading Global 2000 companies in the financial services, retail, telecom, healthcare and advanced manufacturing sectors.
KnowledgeExcelerator(tm) and KnowledgeAccess(tm), data mining add-ins for Excel and Access, the popular spreadsheet and database applications of Microsoft Corporation.
KnowledgeSTUDIO for Siebel, a data mining solution for users of the Siebel Systems e-CRM sales and marketing application suites
KnowledgeWebMiner, a data mining solution for e-business marketing professionals
The KnowledgeSTUDIO software development kit (SDK), a fully documented data mining development environment for customers and technology partners with customization and integration requirements for advanced data mining technology.
VisibleWeb(tm), an advanced data mining and data visualization solution for e-business professionals engaged in Web analysis, is currently planned for release in 2000. VisibleWarehouse(tm), an advanced data mining and data visualization solution for business users of data warehousing and data mart systems, is currently planned for release in 2001. Both solutions will be based on KnowledgeExplorer(tm), a browser based data mining solution for users of Internet Explorer, leveraging the SQL Server 7, Site Server and Commerce Server ``digital nervous system' of application suites from Microsoft (r) Corporation.
Further information on ANGOSS is available on the Internet at www.angoss.com.
This press release may contain forward-looking statements relating to the future performance of ANGOSS Software Corporation. Forward-looking statements, specifically those concerning future performance and the achievement of operating profitability are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include the risk of possible customer disappointment or dissatisfaction with ANGOSS Software products, and any resulting failure to expand the user base as anticipated by the Company; the Company's limited operating history and losses; increases in expenses; unproved market acceptance of the Company's products and services; technical uncertainties related to releases of new or modified products and adapting products to specific customer requirements; risks involving management of growth; competition and the introduction of new entrants and/or new products in the Company's markets; product development risks and risks of technological change; the risk of unanticipated expenses or asset reevaluations; and other risks and uncertainties all as described in the disclosure documents filed with securities regulatory authorities in accordance with applicable securities laws.
Note: The Canadian Venture Exchange has neither approved nor disapproved the above information.
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Contact:
Lon L.E. Vining
Chief Financial Officer, 416/593-2420
lvining@angoss.com
www.angoss.com |
