Great quarter. 500% EPS growth!
Thursday May 4, 4:05 pm Eastern Time
Company Press Release
Embarcadero Technologies Announces First-Quarter Financial Results With a Revenue Increase of 223 Percent
SAN FRANCISCO--(BUSINESS WIRE)--May 4, 2000--Embarcadero Technologies, Inc. (Nasdaq: EMBT - news) provider of database lifecycle management solutions, today announced that revenues for the first quarter of 2000 increased 223 percent to $7.9 million from $2.4 million for the same period last year. Excluding non-cash charges related to deferred stock-based compensation and a one-time deemed preferred stock dividend, net income and fully diluted earnings per share in the quarter increased 427 percent to $1.4 million and 500 percent to $0.06, respectively, compared to net income of $272,000 and fully diluted earnings per share of $0.01 for the same quarter last year.
``We are pleased with the financial results for the first quarter,'' said Stephen Wong, chairman and co-founder of Embarcadero Technologies, ``as revenues more than tripled over prior year results and grew sequentially by 24 percent over fourth quarter results. Increased sales to existing customers, ongoing expansion of our customer base and rising sales force productivity contributed to these results. During the quarter, we attracted many new customers, which included a mix of both Fortune 500 and Internet-based companies. In addition we delivered new versions of ER/Studio, Rapid SQL, DBArtisan and DBArtisan Change Manager.''
In the quarter, license revenues rose 297 percent to $5.6 million from $1.4 million a year ago. Maintenance revenues grew 123 percent to $2.3 million from $1.0 million for the same quarter last year. Operating income, excluding deferred stock-based compensation, increased 773 percent to $2.6 million from $301,000 for the same period last year. Excluding the deferred stock-based compensation, the operating profit margin was 33.3 percent compared to 12.4 percent for the prior year. Including the $4.1 million deferred stock-based compensation and the one-time, non-cash preferred stock dividend, the net loss attributable to common stockholders was $3.9 million for the quarter, or $0.18 per share basic and diluted. For the first quarter of 1999, net income was $243,000, or $0.01 per share basic and diluted.
About Embarcadero Technologies
Embarcadero Technologies (Nasdaq: EMBT - news) produces database lifecycle management solutions that assist in simplifying and automating the design, development and administration of critical enterprise and Web-to-database applications. Thousands of major companies, including 75 percent of the Fortune 100, have licensed Embarcadero products to maximize database performance and availability.
Forward Looking Statements
The statements in this press release that are not historical facts are forward-looking statements that involve risk and uncertainties, including risks associated with the development of products, technological changes, competition, uncertainty relating to patent and proprietary rights and other risks identified in the Company's registration statement on Form S-1 (File No. 333-30850), filed with the Securities and Exchange Commission. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue relevance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated events.
EMBARCADERO TECHNOLOGIES, INC. BALANCE SHEETS (In thousands)
March 31, 2000 December 31, 1999 Assets (Unaudited) (Audited)
Current Assets: Cash & cash equivalents $ 4,853 $1,804 Accounts receivable, net 4,099 2,834 Related party accounts receivable 832 696 Prepaid and other current assets 418 310 Deferred tax assets 244 - Total current assets 10,446 5,644
Property and equipment, net 1,261 958
Other assets 66 46
Total assets $11,773 $6,648
Liabilities and Stockholders' Equity
Current Liabilities: Accounts payable and accrued liabilities $ 2,179 $ 806 Deferred revenue 5,057 4,094 Notes payable to stockholders - 1,000 Deferred tax liabilities 518 - Total current liabilities 7,754 5,900
Stockholders' Equity- 4,019 748
Total liabilities and stockholders' equity $11,773 $6,648
EMBARCADERO TECHNOLOGIES, INC. Statement of Operations (In thousands, except per share amounts)
Three Months Ended March 31, 2000 1999 (unaudited) (unaudited) Revenues: License $ 5,586 $1,406 Maintenance 2,297 1,032 Total revenues 7,883 2,438
Cost of Revenues: License 109 89 Maintenance 313 108 Total cost of revenues 422 197
Gross profit 7,461 2,241
Operating Expenses: Research and development 1,722 667 Sales and marketing 2,254 1,035 General and administrative 856 238 Amortization of deferred stock-based compensation 4,118 29 Total operating expenses 8,950 1,969
Income (loss) from operations (1,489) 272 Interest income 32 16 Income (loss) before income taxes (1,457) 288 Provision for income taxes (1,177) (24) Income(loss) before share in affiliated company loss (2,634) 264 Share in loss of affiliated company (50) (21) Net income (loss) (2,684) 243 Deemed preferred stock dividend (1,218) - Net income (loss) available to common stockholders $(3,902) $ 243
Net Income (Loss) Per Share: Basic $ (0.18) $ 0.01
Diluted $ (0.18) $ 0.01
Shares Used in Per Share Calculation: Basic 21,218 18,278
Diluted 21,218 21,169
Supplemental Information(a) Historical net loss $(3,902) $ 243 Add back certain non-cash charges: Amortization of deferred stock-based compensation 4,118 29 Deemed preferred stock dividend 1,218 - Net income excluding non-cash charges $ 1,434 $ 272
Net Income Per Share Excluding Certain Non-Cash Charges:
Basic $ 0.07 $ 0.02 Diluted $ 0.06 $ 0.01
Shares Used in Per Share Calculation Excluding Certain Non-Cash Charges: Basic 21,218 18,278
Diluted 22,185 21,169
(a)The accompanying supplemental financial information is presented for informational purposes only and should not be considered as a substitute for the historical financial information presented in accordance with accounting principles generally accepted in the United States. |
