Intellicorp Announces Preliminary Fourth Quarter Results and Reports Strong CRM/eCRM Momentum
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 17, 2000-- IntelliCorp, Inc. (Nasdaq:INAI), a leading provider of eBusiness, CRM and eCRM solutions for the SAP community, today announced preliminary unaudited financial results for the Company's fourth fiscal quarter ended June 30, 2000. Total Company revenues for the quarter were approximately $5.0 million, a 11% sequential increase over the third quarter of fiscal year 2000, resulting in a net loss for the fourth quarter of approximately $2.8 million, or ($.14) per share. Most of this loss was attributable to the Company's legacy businesses, particularly its business process management product line. As a result, the Company has reorganized its legacy businesses to provide for greater operational efficiency and focus. This reorganization, which includes a reduction-in-force as well as staff transfers from the legacy businesses to the CRM/eCRM solutions business, affects approximately 20% of IntelliCorp's workforce. Additional equity funding received by the Company during the fourth quarter pursuant to an agreement with an existing investor substantially covered the quarter's operating loss. As a result, the Company's cash balances as of June 30, 2000 were approximately $2.0 million.
During the fourth quarter of fiscal year 2000, IntelliCorp's CRM/eCRM solutions revenues were approximately $2.0 million, a 66% sequential increase over the third quarter of fiscal year 2000. CRM/eCRM new contract bookings continued at a robust pace, totaling approximately $4.0 million for the quarter and providing a solid foundation for continued, strong CRM/eCRM growth.
"We are very pleased with the continued dramatic growth in our CRM/eCRM solutions business, which further strengthens our position in this explosive market," said Ken Haas, IntelliCorp's CEO. "We also still believe strongly in the potential of our business process management and enterprise application integration product lines, including new eBusiness offerings such as LiveModelT, WebExpressT, eBizExpressT and myProcesses.comT which we have released since the beginning of the calendar year."
"It became clear, however, that our expense base in these legacy businesses had outgrown our near-term revenue outlook, due in large part to external dynamics such as a general slowdown in the back-office ERP market, and that a reorganization was prudent. The resulting reorganization not only positions our legacy businesses for more efficient growth, but also allows us to devote more energy and investment to the enormous potential inherent in our CRM/eCRM business. Given the synergies between IntelliCorp's business lines, we expect that our legacy products will provide additional differentiation to help us fuel growth in the CRM/eCRM business."
Effective July 1, 2000, Gregory Sulier has responsibility for the CRM/eCRM solutions business, and Colin Bodell has responsibility for the legacy businesses as well as for IntelliCorp's development activities with its strategic CRM/eCRM partner, SAP AG. Both Mr. Sulier and Mr. Bodell are executive vice presidents of the Company.
IntelliCorp has scheduled a conference call tomorrow, July 18, at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss the announcements contained in this press release.
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