Great, great first quarter results:
- Profitable (even factoring in @mobile acquisition costs)
- Great YoY and sequential growth in revenue and earnings
- Current assets growing nicely -- up about $13 million -- no cash burn problems here
- Acquired another company -- bCandid
Now, why they bury an acquisition in a quarterly earnings release, I'll never know...
Up about $3-4 AH after a lousy day...
If the new motif in tech investing is a flight to quality, then this earnings report bodes very well for us.
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Software.com Reports First Profitable Quarter
Licensed Seats Exceed 102 Million
SANTA BARBARA, Calif.--(BUSINESS WIRE)--April 26, 2000-- Software.com Inc. (Nasdaq: SWCM), a leading developer of carrier-scale Internet infrastructure applications, today announced financial results for the first quarter ended March 31, 2000.
For the first quarter ended March 31, 2000, Software.com reported total revenue of $19.5 million, an increase of 141 percent over revenue of $8.1 million for the same quarter last year and 26 percent over revenue of $15.5 million reported in the fourth quarter ended Dec. 31, 1999. Excluding acquisition-related costs and the amortization of goodwill, the company reported net income of $2.0 million, or $0.04 per share on a diluted basis, vs. a net loss of $2.3 million, or $0.08 loss per share for the same quarter last year.
"We attained profitability on the basis of continued strong demand from wireless and wireline customers for our InterMail(R) platform, and the diligent management of our expense and headcount growth," said Software.com Founder and Chief Executive Officer John L. MacFarlane. "Our achievements in the first quarter demonstrate the strong viability of our software license business model, and we remain optimistic that for the remainder of year 2000, the strength of the Internet infrastructure markets should continue." (a)
Including acquisition-related costs and the amortization of goodwill in accordance with generally accepted accounting principles (GAAP), net income for the quarter was $1.6 million, or $0.03 per share on a diluted basis. Because financial analysts publish estimates based on net income and earnings per share prior to the impact of acquisition-related costs and the amortization of goodwill, the company intends to report these results, as well as net income in accordance with GAAP.
Continued Progress on Acquisition Strategy
"One of our most important achievements in the quarter was the acquisition of @mobile.com, which should enable Software.com to deliver advanced, wireless Internet offerings, including unified messaging and true Instant Messaging, as well as add support for wireless applications to our carrier-scale LDAP (Lightweight Directory Access Protocol) directory," continued MacFarlane.
"Extending our acquisition strategy, we are announcing today that we have signed a definitive agreement to acquire bCandid, a market leader in providing carrier-class discussion server infrastructure software to service providers worldwide. We anticipate that bCandid will bring Software.com excellent complementary technology and a world class development team," MacFarlane added. "In addition, bCandid has a very strong customer base in Software.com's target market including common customers such as AT&T, Bell Canada, and Cable & Wireless/HKT, Excite@Home, Sonera and Sprint PCS, as well as new customers like Infostrada, Verio, Qwest Communications, U S WEST, Earthlink and Critical Path."
The acquisition is expected to be immediately accretive on a per share basis and should close within six weeks. This acquisition has been approved by the board of directors of each company and is subject to certain closing conditions and regulatory approvals, including completion of due diligence. The acquisition is expected to be accounted for as a purchase.
18 Customers With More Than 1 Million Licensed Seats Each
"During the quarter we continued our unrelenting focus on customers success as exemplified by service providers having activated 61 million of the 102 million seats licensed from us," said MacFarlane. "In addition, we believe our unmatched scalability is highlighted by 18 major customers with more than 1 million licensed seats each, a customer set that represents many of the leading ISPs and telecommunications companies of the world.
"We also are seeing significant demand from wireline and wireless service provider customers for our unified messaging and Internet protocol (IP) voicemail solutions," added MacFarlane. "During the quarter we received a multiyear, multimillion dollar order from iBasis for our InterMail platform, which they will use as the messaging foundation for delivering Unified Communications (UC) services to service providers worldwide."
"Our IP-based Unified Communications services require carrier-grade, world-class technologies," said Ofer Gneezy, president and chief executive officer, iBasis Inc. "Software.com's InterMail platform coupled with our global Internet telephony footprint delivers the scalability and proven reliability that our service provider customers expect."
Software.com - The Internet Infrastructure Company(R)
With more than 102 million seats licensed, Software.com is a leading supplier of carrier-scale Internet infrastructure applications for service providers. Software.com provides the scalable platform that enables service providers to deploy next-generation business and consumer Internet services, including e-mail, IP voicemail, unified messaging, wireless unified messaging and wireless instant messaging.
Customers comprise many of the largest service providers worldwide, including AT&T Canada, AT&T WorldNet(R) Service, Excite@Home, GTE.net Services, Japan Telecom, PSINet, Road Runner, Sprint PCS, Telecom Italia Net (Tin.it) and Telecom Italia Mobile SpA (TIM).
In addition, Software.com has established strategic relationships with Cisco Systems, Hewlett-Packard, IBM, Nortel Networks and Telcordia Technologies (formerly Bellcore). Founded in 1993 and with headquarters in Santa Barbara, the company maintains offices throughout the United States, Europe and Asia. Software.com can be reached in the United States at 805/882-2470 or www.software.com. |
