a news alert! this one Quarterly number surpasses the entire revenues for all of 1997 (see bolded)
exceellent growth!
biz.yahoo.com
Friday March 31, 8:04 am Eastern Time
Alert: New Era of Networks Says Sees Q1 $40-41 Mln
Revs (NasdaqNM:NEON)
the following from: Annual Report (SEC form 10-K
RESULTS OF OPERATIONS FOR FISCAL YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
Revenues
Our revenues increased from $22.6 million in 1997 to $65.8 million in 1998, primarily reflecting growth in software licenses sold to new customers and an increase in sales as a result of our international expansion. Revenues increased from $65.8 million in 1998 to $126.2 million in 1999, resulting primarily from increased professional services and maintenance revenues associated with the expansion of our professional services organization through both internal growth and acquisitions, as well as continued
growth in software licenses sold.
Software license revenue grew from $16.0 million in 1997 to $41.0 million, or 62% of total revenues, in 1998 and to $59.6 million, or 47% of total revenues, in 1999. The increase in software license revenue reflected an increase in market awareness and acceptance of our products, expansion of international sales resources, the continued growth of an installed base of accounts to serve as references for new customers, repeat business by existing customers, and expanded functionality of the NEONet suite of products. Our royalties from sales of MQIntegrator and MQSeries Integrator by IBM were between 10% and 20% of software license revenue in 1999 and 1998. This royalty income increased in absolute dollars in 1999 compared
with 1998, even though NEON's 1999 revenue excluded royalties earned on fourth-quarter 1999 IBM sales of the
MQIntegrator and MQSeries Integrator products. This one-quarter lag in the recording of IBM royalty revenue was necessary to accommodate IBM's royalty reporting schedule, which could no longer support current-quarter royalty reporting. In the second quarter of 1999, we began selling the MQSeries Integrator product through an IBM reseller arrangement known as Passport Advantage.
In accordance with Staff Accounting Bulletin No. 101, only the net reseller margin is recorded as license revenue. Although NEON earns royalty revenue for these sales, it is recognized on a one-quarter lag as noted above. We expect that future software license revenue will include the NEON e-Biz platforms and applications, and new products both internally developed and acquired.
Software maintenance revenue grew from $755,000 or less than 1% of total revenues in 1997, to $4.9 million or 8% of total
revenues in 1998, to $16.2 million or 13% of total revenues in 1999. The increase in maintenance revenue is due primarily to maintenance sales to new customers and maintenance renewals on license contracts historically sold by companies acquired by NEON during 1997 through 1999, most notably CAI.
Professional services revenue grew from $5.9 million or 29% of total revenues in 1997, to $19.9 million or 30% of total
revenues in 1998, to $50.5 million or 40% of total revenues in 1999. The growth from 1998 to 1999 was due primarily to the acquisition of two professional service organizations (SLI and D&M) in the first half of 1999. The growth from 1997 to 1998 reflected service engagements associated with the growing sales of the NEONet product.
In 1997, 1998 and 1999, our top ten customers accounted for 56%, 38% and 38% of total revenues, respectively. For the
years ended December 31, 1997, 1998 and 1999, our largest customer accounted for 14%, 10% and 7% of total revenues,
respectively. To date, a significant portion of our revenues has been derived from sales to large banks and financial institutions.
For the years ended December 31, 1997, 1998 and 1999, sales to banks and financial institutions accounted for 72%, 57%
and 32% of total revenues, respectively. |
