7/25...RMDY..Reports Second Quarter 2000 Results
Revenue Grows 30%
Net Income Increases 48%
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 25, 2000--Remedy® Corporation (Nasdaq:RMDY - news), the leading provider of adaptable eBusiness infrastructure and eCustomer Relationship Management solutions, today announced financial results for the second fiscal quarter ended June 30, 2000.
Revenues for the second quarter totaled $69.1 million, an increase of 30%, compared with $53.0 million in the second quarter of 1999. Net income, excluding goodwill amortization, was $9.9 million, an increase of 48% compared with the second quarter of 1999. Diluted earnings per share, excluding goodwill amortization, were $0.29, compared with $0.22 for the same period last year. Including goodwill amortization, diluted earnings per share were $0.24 for the second quarter of fiscal 2000.
``Strength in our packaged solutions highlighted the second quarter,'' commented Larry Garlick, Chairman and Chief Executive Officer. ``In particular, eCRM, asset and change management, and help desk solutions represented the fastest growing parts of our business. While end-of-quarter attrition in one sales region made the quarter a bit challenging, we were successful in expanding our enterprise-oriented sales resources focused on IT Service Management opportunities. As we catch up to our sales force hiring goals, we believe we are very well positioned to extend our market leadership and leverage the rapidly growing markets we address.''
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A number of significant events occurred at Remedy in the second
quarter:
-- Remedy shipped Remedy Sales Continuum(TM), the newest addition
to the Remedy CRM Solutions(TM) suite, and an updated version
of Remedy Leads Management(TM). Remedy Sales Continuum is an
easy to learn and use field sales force automation solution
integrated with Microsoft Outlook and the rest of the CRM
Solutions suite.
-- Remedy shipped AR System® 4.5, the latest release of the
core eBusiness solution platform. This release greatly
enhances the scalability and management of very large
enterprise solutions.
-- Remedy purchased the consulting practice of ESQ Systems
Integrator, Inc.(TM). These consultants will specialize in
implementation services for customer relationship management
and eBusiness infrastructure solutions.
-- Remedy and Requisite Technology(TM), Inc. announced a
strategic alliance adding Requisite's e-content tools to the
Remedy Purchasing@Work(TM)solution.
-- Remedy added over 200 new customers in the second quarter,
bringing the total to over 5,100 worldwide.
This announcement may contain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results described in such statements. Factors that might cause such a difference include, but are not limited to, those discussed in the ``Risk Factors'' section of the Company's Report on Form 10-K and Report on Form 10-Q filed with the Securities and Exchange Commission for the periods ended December 31, 1999 and March 31, 2000, respectively, copies of which are available on request from the Investor Relations department of the Company.
About Remedy Corporation
Remedy is the world's leading supplier of eCRM and eBusiness infrastructure solutions. With over 9,100 sites in production, more organizations use Remedy products for eCRM and eBusiness infrastructure management than any other solution. Remedy delivers service solutions that accelerate an organization's move to eBusiness and raise its agility to continually differentiate from competitors. Remedy's fast deployment programs and radical adaptability enable organizations to move more quickly to an eBusiness model, and to do so in a differentiated way. By focusing on internal and external service as competitive differentiators, our customers continually improve both their customer interactions and internal operations to raise satisfaction and lower costs.
Note to Editors: Remedy, the Remedy Corporation & Design, Remedy Sales Continuum, Remedy CRM Solutions, Remedy Leads Management, AR System and Remedy Purchasing@Work are trademarks of Remedy Corporation, Mountain View, California which may be registered or pending in certain jurisdictions. All other trademarks are the property of their respective owners.
Tables to Follow
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REMEDY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
---------------------- -------------------
2000 1999 2000 1999
---------- ---------- --------- --------
(Unaudited) (Unaudited)
Revenues:
Products $ 39,750 $ 32,065 $ 75,170 $ 55,494
Maintenance and service 29,376 20,971 55,888 39,942
-------- -------- -------- --------
Total revenues 69,126 53,036 131,058 95,436
Costs and expenses:
Cost of product revenues 2,387 1,663 4,789 2,541
Cost of maintenance
and service revenues 12,568 8,916 23,605 16,629
Research and development 12,836 10,204 24,122 19,418
Sales and marketing 25,218 20,184 50,990 38,192
General and administrative 4,335 3,260 7,574 5,418
-------- -------- -------- --------
Total costs and
expenses before
goodwill and other
intangible
amortization 57,344 44,227 111,080 82,198
Proforma income from
operations before goodwill
and other intangible
amortization 11,782 8,809 19,978 13,238
Interest income, net 2,408 1,194 4,082 2,284
-------- -------- -------- --------
Proforma income before
provision for income
taxes, goodwill and
other intangible
amortization 14,190 10,003 24,060 15,522
Provision for income taxes 4,257 3,301 7,415 5,122
-------- -------- -------- --------
Proforma net income
before goodwill and
other intangible
amortization $ 9,933 $ 6,702 $ 16,645 $ 10,400
-------- -------- -------- --------
Goodwill and other
intangible amortization,
net of tax 1,542 478 2,786 979
Net income $ 8,391 $ 6,224 $ 13,859 $ 9,421
======== ======== ======== ========
PROFORMA DILUTED-Net income
per common and common
equivalent share before
goodwill and other
intangible amortization $ 0.29 $ 0.22 $ 0.49 $ 0.34
======== ======== ======== ========
DILUTED-Net income per
common and common
equivalent share $ 0.24 $ 0.21 $ 0.41 $ 0.31
======== ======== ======== ========
DILUTED-Shares used in
computing per share
amounts 34,316 30,252 34,200 30,150
======== ======== ======== ========
BASIC-Net income per
common share $ 0.27 $ 0.22 $ 0.45 $ 0.33
======== ======== ======== ========
BASIC-Shares used in
computing per share
amounts 31,235 28,650 30,827 28,574
======== ======== ======== ========
REMEDY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
--------------------------
Assets (Unaudited) (1)
Current assets:
Cash, cash equivalents
and short-term investments $ 211,327 $ 172,418
Accounts receivable, net 56,393 64,105
Prepaid expenses and
other current assets 9,318 7,383
Deferred tax asset 10,755 6,831
--------- ---------
Total current assets 287,793 250,737
Property and equipment, net 17,007 14,945
Other non-current assets 3,034 2,996
Goodwill and other
intangible assets, net 30,288 18,809
--------- ---------
$ 338,122 $ 287,487
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,100 $ 1,861
Accrued compensation and
related liabilities 14,194 15,432
Income taxes payable -- 1,341
Other accrued liabilities 16,805 15,395
Deferred revenue 43,648 38,828
Current portion of obligations
under capital leases 18 67
--------- ---------
Total current liabilities 78,765 72,924
Noncurrent portion of obligations
under capital leases 18 23
Stockholders' equity 259,339 214,540
--------- ---------
$ 338,122 $ 287,487
========= =========
(1) Derived from audited financial statements
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Contact:
Remedy Corporation
Lori Barker, 650/903-5246
Director of Investor |
