7/19...EPNY E.piphany Announces Record Second Quarter Revenues of $24.5 Million
Revenues increase 70% sequentially and 659% over prior year quarter. Customer wins include BMW, The Home Depot, Merrill Lynch, The Financial Times and buy.com.
SAN MATEO, Calif., July 19 /PRNewswire/ -- E.piphany, Inc. (Nasdaq: EPNY - news) today announced record revenues for the quarter ended June 30, 2000.
For the quarter ended June 30, 2000, the company reported revenues of $24.5 million, representing an increase of 70% over the first quarter of 2000 and an increase of 659% over revenues of $3.2 million in the second quarter of 1999. License revenues were $14.3 million and service revenues were $10.2 million, or 58% and 42% of total revenues, respectively. Excluding a one-time in-process research and development charge, the amortization of goodwill and stock-based compensation, net loss for the quarter was $4.1 million, or $(0.12) per share, compared to a net loss of $4.4 million, or $(0.28) per pro forma share during the second quarter of 1999. Including the one-time charge, the amortization of goodwill and stock-based compensation, net loss for the second quarter of 2000 was $147.6 million, or $(4.31) per share.
On May 31, 2000, the company completed its acquisitions of Octane Software and eClass Direct. On May 1st, 2000, the company completed its acquisition of iLeverage Corporation. On a combined pro forma basis including the full quarter's operations from the company's acquisitions, revenues for the second quarter were $28.2 million, and the net loss excluding non-cash charges and acquisition-related costs was $18.5 million.
``Our second quarter was highlighted by strong revenue growth and execution,'' said Roger Siboni, president and chief executive officer of E.piphany. ``We consummated the acquisition and integration of three organizations, grew headcount from 333 people to nearly 800 employees, and increased our customer base to more than 250 companies. Domestic customer wins included Best Buy, Bluelight.com, Borders Group, Discovery Communications, Inc., FCB Worldwide, GO.com, Great American Insurance Group, Healtheon/WebMD, The Home Depot, Merrill Lynch, Phone.com, Putnam Investments and Toyota Motor Sales. International customer wins included Alcatel, BMW, The Financial Times, lastminute.com and ninemsn.''
Kevin Yeaman, chief financial officer, added, ``Rapid integration of our acquisitions enabled us to stay focused on closing combined company wins, expanding our international presence, and developing and leveraging our indirect partners.''
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 32E of the Securities and Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These statements include statements regarding international expansion, acquisition integration, and growth strategy. These statements are subject to risks and uncertainties and the Company's future actual results could differ materially from such forward-looking statements. Factors that could cause actual results to differ materially include changing competitive, market and general economic conditions. These factors and others are described in more detail in the Company's public reports filed with the Securities and Exchange Commission, such as those discussed in the ``Risk Factors'' section included in the Company's Annual Report on Form 10-K and the Registration Statement on Form S-4 filed in conjunction with the acquisition of Octane Software.
E.piphany is the leading provider of enterprise software for the Customer Economy. E.piphany provides a single, enterprise-wide view of each customer to help global businesses better understand and proactively serve customers in real-time. E.piphany E.4 is an integrated suite of software solutions that blend web-based analytic and operational CRM to unify all inbound and outbound sales, service and marketing customer interactions. E.piphany's headquarters are located in San Mateo, California, with regional offices throughout the U.S., and international offices located in the United Kingdom (EMEA) and Australia (Asia Pacific).
E.piphany, E.4, Get, Keep and Grow and the E.piphany logo are trademarks of E.piphany, Inc. All other trademarks are the property of their respective owners.
E.PIPHANY, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
6/30/00 6/30/99 6/30/00 6/30/99
Revenue:
Product license $14,293 $1,793 $22,561 $2,929
Services 10,226 1,437 16,373 2,195
Total revenue 24,519 3,230 38,934 5,124
Cost of revenue:
Product license 315 20 424 25
Services 9,376 1,661 15,396 2,488
Total cost of
revenue 9,691 1,681 15,820 2,513
Gross profit 14,828 1,549 23,114 2,611
Operating expenses:
Research and development 5,408 1,571 9,166 2,865
Sales and
marketing 15,905 3,588 27,117 6,351
General and
administrative 4,039 828 6,296 1,284
In-process research
and development
charge 25,000 -- 47,000 --
Amortization of
goodwill and
intangible assets 117,315 -- 157,258 --
Amortization of
deferred
compensation 1,184 969 1,661 1,572
Total operating
expenses 168,851 6,956 248,498 12,072
Operating loss (154,023) (5,407) (225,384) (9,461)
Other income, net 6,467 20 10,860 115
Loss before income
taxes (147,556) (5,387) (214,524) (9,346)
Income taxes -- -- -- --
Net loss $(147,556) $(5,387) $(214,524) $(9,346)
Basic and diluted net
loss per share $(4.31) $(1.05) $(6.77) $(1.87)
Shares used in computing
basic and diluted net
loss per share 34,272 5,149 31,674 5,005
Excluding non-cash items (A):
Net loss $(4,057) $(4,418) $(8,605) $(7,774)
Pro forma basic and
diluted net loss
per share (B) $(0.12) $(0.28) $(0.27) $(0.50)
Shares used in
computing pro forma
basic and diluted
net loss per
share (B) 34,272 15,876 31,674 15,679
(A) Non-cash items include in-process research and development charge,
amortization of goodwill and intangible assets, and amortization of
deferred compensation.
(B) Pro forma basic and diluted net loss per share is computed giving
effect to the conversion of preferred shares to common shares as if
the conversion had occurred at the date of their issuance.
E.PIPHANY, INC.
BALANCE SHEETS
(in thousands)
ASSETS 6/30/00 12/31/99
(unaudited)
Current assets:
Cash and cash equivalents $419,244 $58,084
Short-term investments 20,306 22,926
Accounts receivable, net 16,157 5,502
Prepaid expenses and other assets 8,423 2,959
Total current assets 464,130 89,471
Property and equipment, net 12,082 3,932
Goodwill 3,077,864 --
Other assets 752 183
$3,554,828 $93,586
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $663 $237
Current portion of notes payable -- 894
Trade accounts payable 1,627 650
Accrued liabilities 46,029 2,171
Accrued compensation 9,725 3,525
Deferred revenue 12,498 3,643
Total current liabilities 70,542 11,120
Notes payable, net of current portion 1,036 7,824
Stockholders' equity:
Common stock 6 5
Accumulated and other comprehensive
income (154) (31)
Deferred compensation (1,669) (2,602)
Additional paid-in capital 3,738,218 113,779
Notes receivable (2,758) (640)
Accumulated deficit (250,393) (35,869)
Total stockholders' equity 3,483,250 74,642 |
