Thursday July 20, 2:00 pm Eastern Time
Company Press Release
SOURCE: New Era of Networks, Inc.
NEON Delivers Record Revenue and Strong Earnings Growth; Reports Second Quarter Revenues of $51 Million and EPS of $0.06
DENVER, July 20 /PRNewswire/ -- New Era of Networks(TM), Inc. (Nasdaq: NEON - news) a leading e-Business infrastructure provider, today announced record revenues of $51 million and earnings per share of $0.06, before charges, for the quarter ended June 30, 2000. Revenues grew 95 percent compared to the quarter ended June 30, 1999. Over two-thirds of NEON's second quarter revenue was derived from e-Business.
``Our focus this quarter has been next generation e-enabling. The Internet infrastructure we provide is high quality, customer-driven, and deploys quickly. This has all led to our solid financial performance,'' said NEON Chief Executive Officer Rick Adam. ``NEON will continue to provide leadership and tremendous value to our customers, partners, and investors.''
1999 Q2 1999 Q3 1999 Q4 2000 Q1 2000 Q2
Revenues ($m) $26.1 $31.9 $38.6 $42.1 $50.9
Operational Highlights
``We're one of the few Internet infrastructure companies to deliver both high growth and solid profitability,'' said NEON Chief Financial Officer Steve Webb. ``We grew quarterly revenues by over 20 percent sequentially and more than tripled operating profit. We've now been profitable, excluding charges, for nine out of the last eleven quarters.''
Customer Highlights
NEON's comprehensive capabilities power trading exchanges like WaterDesk.com, extend the reach of e-Business to the supply chain for companies including TheCampusHub.com, Web-enable operational systems at companies worldwide such as Shell, and deploy new business models at organizations like UPS. NEON enables companies to participate in the New Economy.
-- Shell is using IBM MQSeries® Integrator, NEON Adapters, and jointly
developed Commerce One integration products to implement an
eProcurement solution and to integrate their various business units.
-- New York Life, a major insurance company, selected NEON to build a B2B
platform for working with clients, partners, and suppliers and to
integrate enterprise applications including SAP R/3.
-- Nebraska Books, one of the nation's largest used textbook wholesalers,
chose NEON and Perot Systems to develop, integrate and implement its
latest venture -- TheCampusHub.com -- an e-commerce solution for the
college bookstore market.
-- Several hospitality firms chose NEON e-Biz 2000(TM) including White
Lodging, a hospitality management company, which turned to NEON to
integrate information from the company's 60-plus properties with its
corporate information systems. Spyre Infostructure, specializing in
Internet e-Business for the lodging and travel industry, will launch
BOOKdirect Pro(TM), an Internet-based central reservations and
marketing system that enables hotels to quote and receive online
reservations in real-time. WYNTRAC, L.L.C. an Internet event service
provider for the meetings and conventions industry, will automate
reservations and enable real-time room availability checking.
HotelTools, a property management software provider, will integrate
Web-based applications with operational systems.
NEON also licensed new software to UPS, the Australian Stock Exchange, Bear Stearns, Clearnet, First Union Bank, JusticeLink, MSMail, Simpata, Tokyo Mitsubishi International, Trinity Medical Center, Vital Processing Services, Wachovia Operational Services Corp. and Zurich Insurance.
Additionally, NEON recorded significant follow-on business with AdminiQuest, Lucent, and MetLife.
New Product Offerings
During the second quarter, NEON announced several new platforms and products, expanding the breadth and depth of the firm's offerings and further aiding customers in getting their e-Business projects implemented quickly:
-- Accelerators speed implementation of e-Business integration projects by
providing end-to-end implementations of a broad range of Internet-based
e-Business processes, such as eProcurement, eFulfillment, Customer
Relationship Management (CRM), Net Markets and e-Business Intelligence
(eBI).
-- NEONadapter for BroadVision speeds connectivity between BroadVision's
One-To-One(TM) Solutions and existing SAP(TM) R/3(TM) systems, enabling
quicker time-to-market for BroadVision customers.
-- e-Biz Portal Server will enable NEON customers to rapidly deploy
integrated, Internet-based e-Business solutions, and to modify those
solutions as opportunities arise and as business models change.
-- NEONadapter for Point Of Sale and NEON Accelerator for Retail
Integration meet the integration needs of companies operating both
online and traditional retail outlets by enabling them to share
customer, inventory, and sales information, improving customer service
and capitalizing on the unique advantages of each retail sales model.
-- NEONadapter for J.D. Edwards opens the door for NEON customers to take
full advantage of integrating their One World(TM) and WorldSoftware(TM)
products with new e-Business software, saving a great deal of time,
money, and effort.
-- NEONadapter for Oracle Applications significantly reduces
time-to-market of Oracle implementations and also leverages Oracle's
Open Interface(TM) technology, enabling users to focus on their overall
business objectives, not the intricate details of each application.
-- With e-Biz 2000 for Insurance, NEON extends its industry-leading
e-Business integration capabilities to insurance companies of all
sizes. It includes support for XML, EDI and ACORD AL3, the industry's
e-Business communication standard.
-- HealthSphere(TM) 2000, a suite of three e-Business products, includes
MedPortal(TM), MedMerge(TM) and MedSecure(TM). To meet increasing
customer demand, NEON offers HealthSphere 2000 on a subscription and
transaction-based ASP pricing model.
Partner Highlights
During the quarter, NEON worked closely with its 50 plus partners including Andersen Consulting, BEA Systems, BroadVision, Commerce One, Deloitte Consulting, Dimension Data Traxus, Ernst & Young, IBM, KPMG, Microsoft, Perot Systems, PricewaterhouseCoopers, and others. More than half of NEON's second quarter license revenue was generated or influenced by partners.
For example, in addition to Shell, the Commerce One partnership fostered significant customer activity including engagements with Polaroid and SASOL, a South African-based producer of high-quality synthetic fuels.
Industry Accolades
NEON and partners IBM and BEA swept the eAI Journal Vendor of the Year category of eAI Awards 2000. IBM, BEA and NEON took the top three places in the annual contest.
``As partners such as IBM and BEA Systems sell products based on NEON technology, we continue to add to our already significant market share,'' said Patrick Fortune, NEON Chief Operating Officer. ``One benefit of being the leader in the e-Business-enabling market is the opportunity to sell value-added products, such as NEON Adapters, Process Accelerators, and our Process Server to these customers.''
Note to Investors
This press release contains forward-looking statements, including statements about expected growth, market share, pipelines, and future operational performance, that involve risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, the volume and timing of customer contracts received during a given quarter, our partner relationships, increased demand for our products, growth of e-Business and EAI markets, and competition. Other risks and uncertainties associated with the business of New Era of Networks, Inc., may be reviewed in the company's public filings, including the company's Report on Form 10-Q for its fiscal quarter ended March 31, 2000, and Form 10-K Report for the fiscal year ended December 31, 1999, under the caption ``Factors that may Affect Future Results.''
About New Era of Networks, Inc.
New Era of Networks, Inc. (Nasdaq: NEON - news) is the premier provider of e-Business enabling platforms, products and services for the New Economy. NEON's platforms are the most comprehensive in the industry, serving the full range of corporate e-Business needs. Drawing on proven technology and years of experience, NEON enables next generation e-Business, helping companies bring end-to-end business functionality to the Internet in the shortest possible time frame. NEON products help companies establish direct, electronic links with customers, suppliers and partners; build and participate in net markets; and distribute and access information using wireless technology. NEON is the e-Business integration market share leader, with more than 3000 customers worldwide. NEON also maintains strong partnerships with leading e-Business companies, including BEA Systems, BroadVision, Commerce One, IBM and Microsoft. Founded in 1994, NEON is headquartered in Englewood, Colo., and employs more than 1000 professionals in locations across the globe. For more information, call 800-815-6366 or visit www.neonsoft.com.
New Era of Networks, the NEON logotype, Accelerator, e-Biz 2000, e-Biz Integrator, eFulfillment, HealthSphere, NEON MedMerge, NEON MedPortal, and NEON MedSecure are trademarks and service marks of New Era of Networks, Inc. and its subsidiaries. MQSeries is a registered trademark of International Business Machines Corporation. All other trademarks and registered trademarks are the property of the respective trademark owners.
NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
June 30, December 31,
ASSETS 2000 1999
(unaudited)
Cash, cash equivalents
and marketable securities (1) $81,845 $94,815
Accounts receivable, net (2) 54,104 41,744
Prepaid expenses and other
current assets 6,971 6,131
Notes receivable, related party -- 19,666
Property and equipment, net 22,884 17,515
Intangibles, net 207,509 170,566
Deferred income taxes, net 10,647 7,701
Other assets, net 1,053 1,382
Total assets $385,013 $359,520
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $6,569 $6,118
Accrued liabilities 17,529 19,112
Deferred revenue 19,109 13,649
Total liabilities 43,207 38,879
Stockholders' equity, including
common stock, 35,858,556 and
34,051,573 shares issued and
outstanding, respectively 420,368 386,970
Accumulated deficit (78,562) (66,329)
Total stockholders' equity 341,806 320,641
Total liabilities and
stockholders' equity $385,013 $359,520
(1) As of June 30, 2000, the cash amount includes approximately $8,265 of
restricted cash.
(2) As of June 30, 2000 and December 31, 1999, the amount includes
unbilled revenue of $2,273 and $3,251, respectively.
NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Software licenses $28,359 $8,866 $52,433 $26,232
Software maintenance 5,585 3,702 10,849 6,799
Professional services 16,974 13,573 29,728 22,721
Total revenues 50,918 26,141 93,010 55,752
Cost of revenues:
Cost of software
licenses 531 261 1,086 407
Cost of software
maintenance and
professional
services 13,435 10,320 23,504 16,518
Total cost
of revenues 13,966 10,581 24,590 16,925
Gross profit 36,952 15,560 68,420 38,827
Operating Expenses:
Sales and marketing 19,420 13,421 36,896 23,246
Research and
development 11,011 9,322 20,378 16,210
General and
administrative 4,111 3,890 8,082 6,956
Stock-based
compensation and
related payroll
taxes 51 -- 612 --
Acquisition-related
charges and
amortization of
intangibles 9,499 3,352 16,939 5,052
Total operating
expenses 44,092 29,985 82,907 51,464
Loss from operations (7,140) (14,425) (14,487) (12,637)
Other income, net 1,019 1,760 2,659 3,944
Loss before
income taxes (6,121) (12,665) (11,828) (8,693)
Benefit (provision)
for income taxes (204) 3,844 (405) 2,454
Net loss $(6,325) $(8,821) $(12,233) $(6,239)
Loss per common share,
basic and diluted $(0.18) $(0.28) $(0.35) $(0.20)
Weighted average
shares of common
stock outstanding,
basic and diluted 35,614,364 31,488,578 35,163,335 31,060,294
Earnings (loss)
excluding
stock-based
compensation and
acquisition-related
charges:
Earnings (loss)
before income taxes $3,429 $(9,313) $5,723 $(3,641)
Net earnings (loss),
assuming a 35%
tax rate $2,229 $(6,053) $3,720 $(2,367)
Earnings (loss)
per common share,
diluted $0.06 $(0.19) $0.10 $(0.08)
Weighted average
shares of common
stock outstanding,
diluted 37,700,875 31,488,578 37,976,956 31,060,294
For more information, please contact: Tom Kaser, Public Relations Manager, 303-409-7588, tkaser@neonsoft.com, or Kathy Larson, Investor Relations Manager, 303-409-7369, klarson@neonsoft.com, both of New Era of Networks, Inc.
SOURCE: New Era of Networks, Inc. |
