Intraware Announces Quarterly Financial Results
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/ TO BUSINESS AND TECHNOLOGY EDITORS:
Intraware Announces Quarterly Financial Results
Record Gross Profit of $11.0 Million Driven by 117% Growth in Online Services And Technology Revenues
EMERYVILLE, Calif., Sept. 27 /PRNewswire/ -- Intraware, Inc. (Nasdaq: ITRA), a leading provider of IT management solutions, today announced financial results for the second quarter of fiscal year (FY) 2001 ended August 31, 2000. The company announced record gross profit of $11.0 million for the quarter, an increase of 118% over $5.0 million in gross profit reported in the corresponding quarter a year ago and a 26% increase compared to the immediately preceding quarter. The dramatic quarterly increase in gross profit resulted from growth in the higher gross margin online services and technology revenues, as well as continued strength in the company's gross profit generated through Intraware's online software procurement service. Online service and technology revenues increased 117% to $6.5 million in the second quarter from $3.0 million in the year earlier period and increased 31% from $5.0 million in the first quarter of this year. Total revenues for the quarter were $32.6 million, including $26.1 million generated from the sale of third-party software through Intraware's online software procurement service. Total revenues were 21% lower than during the preceding quarter but grew 69% over the year earlier period. The decrease in total revenues compared to the preceding quarter is a result of the company's strategic emphasis on selling its own products and services which have higher gross margins in addition to generating revenue from selling third-party software products through its online procurement service. Net loss was $11.6 million or $(0.44) per share in the quarter ended August 31, 2000, compared to a net loss of $5.4 million or $(0.23) per share in the prior year's second quarter. Net loss for the immediately preceding quarter ended May 31, 2000 was $11.8 million or $(0.46) per share. Excluding the stock-based compensation charge and expenses and amortization related to acquisitions, the net loss was $8.6 million or $(0.33) per share for the quarter ended August 31, 2000, compared to a net loss of $4.5 million or $(0.19) per share for the same quarter a year earlier and a net loss of $10.1 million or $(0.40) per share for the quarter ended May 31, 2000. Deferred revenues at the end of the second quarter increased $2.5 million to $38.7 million from $36.2 million at the end of the first quarter of this year. The gross profit associated with the deferred revenue grew 39% to $11.7 million in the second quarter from $8.4 million in the first quarter, primarily due to the shift to selling Intraware's proprietary technology and solutions. "Our results from the second quarter reflect our strategic evolution from a leader in IT ecommerce to a provider of a full complement of web-based IT management solutions for corporations worldwide," said Peter Jackson, president and CEO of Intraware. "We also made significant progress in completing our technology roadmap through the acquisition of Janus Technologies, Inc., a leader in the growing field of IT Asset Management. Based on the products and technologies that we have acquired and developed over the last 18 months, we can now offer customers an integrated IT management solution to optimize the financial returns from their rapidly growing and changing IT infrastructures." "The second quarter was important for us because we were able to drive
significant gross profit from the sale of our own products and services in addition to the gross profit generated from the sale of third-party applications through our online procurement service," said Don Freed, Intraware's executive vice president and CFO. "We aggressively focused on the higher gross margin opportunities associated with the sale of our proprietary services and technology to our customer base of over 8,800 corporations. In addition, we continued building our network of partners and OEM customers, such as Hewlett-Packard, USinternetworking and Compaq (through their joint- venture with CMGI, Freeup), so that we can dramatically scale our operations over the next four quarters as we concentrate on achieving profitability."
Intraware Acquires Janus Technologies, Inc. During the second quarter, Intraware completed the acquisition of Janus Technologies, Inc., a leading provider of IT asset management solutions. As part of the acquisition, Intraware added approximately 130 Fortune 1000 companies as customers who have standardized on the Janus IT asset management solution. Intraware is in the process of incorporating Janus's Argis IT asset management technology into the broader suite of IT management solutions offered to Intraware customers. The company expects to offer a fully web- enabled version of the IT asset management solution on both a hosted-basis and as a behind-the-firewall application within the next two quarters. The transaction added to Intraware's headcount approximately 60 employees located primarily in Pittsburgh, PA. Intraware intends to continue to expand the existing Janus operations in the area of research and development to leverage the impressive pool of software development talent within the Pittsburgh area.
Strong Customer Growth During the second quarter, Intraware's customer base grew to 8,843 companies, an increase of 10% from the prior quarter and 168% from the year earlier period. Intraware's customer base consists of a significant number of leading companies across a variety of industries, ranging in size from large Fortune 1000 corporations to smaller mid-size businesses. Some of the new customers that purchased web-based software products and used Intraware's Internet-based services during the second quarter include:
-- Banking/Finance: Fireman's Fund Ins. Co., Northern Trust Company, Washington Mutual Inc. -- Electronics: Hitachi America Ltd., Harris Corporation, Nokia, Inc. -- Energy/Natural Resources: BP Amoco plc, Shell Oil Company, Newmont Mining Corporation, PECO Energy Company -- Entertainment: HBO -- Government: Army Corps of Engineers, Federal Reserve Bank, NASA -- Internet: America Online, Inc., Critical Path Inc., i2Technologies, Inc., Inktomi Corporation -- Miscellaneous: Brink's Inc., Textron Inc. -- Retail: Ann Taylor, Starbucks Corporation, Williams Sonoma -- Technology: Electronic Arts Inc., Focal Communications, McAfee.com
About Intraware Intraware, Inc. is a leading provider of IT management solutions that enable corporations to optimize their IT resources. The company provides a set of Internet-based services and technologies, including objective technical research; in-depth software analysis; an extensive selection of software, training and resources; and a comprehensive software delivery, update and asset management system. Intraware's unique spectrum of innovative IT management solutions has attracted strategic relationships with industry- leading vendors, including Compaq Computer Corporation, Hewlett-Packard Company, Oracle Corporation, and the Sun-Netscape Alliance. Intraware is located in Emeryville, Calif. and can be reached by phone at 888-446-8729 or 510-597-4600 or via the Internet at intraware.com.
Q2 Earnings Call Information
Following the release of our second quarter earnings results after the market closes on Wednesday, September 27, 2000, there will be a conference call accessible by telephone and via a simultaneous web cast over the Internet. Wednesday, September 27, 2000, beginning at 2 p.m. Pacific Time. Live Conference Call: Dial in number is 913-981-5507 and the confirmation number is 685254. The conference call will be simultaneously webcast at ir.intraware.com.
Forward Looking Statements The statements in this news release referring to Intraware's plans to dramatically scale its operations over the next four quarters, and to its expectation that it will offer a fully web-enabled version of the IT asset management solution on both a hosted-basis and as a behind-the-firewall application within the next two quarters, and to its intent to continue to expand the existing Janus operations in the area of research and development, and other statements in this release which are not historical facts, may be deemed to be forward-looking statements involving a number of risk factors and uncertainties. Factors that could cause actual results to differ materially from those anticipated in this news release include a failure by the company to maintain, generate or procure sufficient cash, or adequately manage its working capital, to finance its planned expansion of operations and product development or satisfy its liquidity needs; weakness in the market demand for Intraware's products and services; unanticipated delays in integrating Intraware's existing products and services with those of Janus Technologies; unanticipated delays in the release of products and services currently in development by Intraware and Janus; unanticipated technical or operational problems in customers' implementation of Intraware's products and services; objection by certain software vendors to Intraware's electronic deployment of their software to their licensees; the introduction of competitive services and products by other web-based companies; the early stage of development of the market in which Intraware operates and susceptibility of this market to rapid shifts; reluctance by potential customers to procure software online due to security and other concerns; interruptions in Intraware's online services due to unanticipated usage volumes or technical problems; and difficulties in attracting and retaining qualified employees. Further information on potential factors that could affect Intraware's financial results is included in Intraware's Form 10-K for the 2000 fiscal year filed with the Securities and Exchange Commission (SEC). Copies of this and other Intraware filings with the SEC are available from Intraware without charge or online at intraware.com.
Intraware is a registered trademark of Intraware, Inc. All other company, product and service names mentioned herein may be trademarks of their respective owners.
INTRAWARE, INC. STATEMENT OF OPERATIONS (in thousands, except per share amounts)
For the Three Months Ended August 31, August 31, 2000 1999 (unaudited) (unaudited) Revenues: Software product sales $26,108 $16,291 Online services and technology 6,493 2,999 Total revenues 32,601 19,290 Cost of revenues: Software product sales 20,294 13,993 Online services and technology 1,355 280 Total cost of revenues 21,649 14,273 Gross profit 10,952 5 Operating expenses: Sales and marketing 10,772 6,713 Product development 4,762 1,668 General and administrative 4,131 1,848 Stock option compensation 795 885 Merger & acquisition related costs including amortization of intangibles 2,238 13 Total operating expenses 22,698 11,127 Loss from operations (11,746) (6,110) Interest expense (79) (32) Interest and other income 238 740 Provision for income taxes (40) -- Net loss $(11,627) $(5,402) Net loss per share: Basic and diluted $(0.44) $(0.23) Weighted average shares -- basic and diluted 26,305 23,788
INTRAWARE, INC. BALANCE SHEET (in thousands)
August 31, February 29, 2000 2000 (unaudited) (audited)
ASSETS Current assets: Cash and cash equivalents $22,159 $16,013 Short term investments 6,969 11,046 Accounts receivable, net 25,331 35,381 Prepaid licenses, services and cost of deferred revenue 20,703 21,006 Other current assets 2,657 2,477 Total current assets 77,819 85,923 Long term investments -- 19,826 Long term cost of deferred revenue 7,885 7,500 Property and equipment, net 17,160 8,411 Intangible assets, net 26,564 9,050 Other assets 494 402 Total assets $129,922 $131,112
LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Bank borrowings $4,232 $500 Accounts payable 10,233 43,436 Accrued expenses 4,895 4,489 Deferred revenue 29,964 23,550 Short-term obligations 1,934 384 Total current liabilities 51,258 72,359 Long term deferred revenue 8,700 7,751 Other long term obligations 3,948 399 Total liabilities 63,906 80,509
Stockholders' equity: Common Stock 3 3 Preferred Stock 13,088 -- Additional paid-in-capital 132,075 107,037 Unearned compensation (6,396) (6,954) Accumulated, other comprehensive gain (loss) 2 (136) Accumulated deficit (72,756) (49,347) Total stockholders' equity 66,016 50,603 Total liabilities and stockholders' equity $129,922 $131,112
For the Three Months Ended August 31, 2000 (unaudited)
Cash flows from operating activities: Net loss $(11,627) Adjustments to reconcile net loss to net ca used in operating activities: Depreciation and amortization 3,155 Amortization of unearned compensation 795 Provision for doubtful accounts (194) Changes in assets and liabilities: Accounts receivable 18,225 Prepaid licenses and services 5,468 Other assets 399 Accounts payable (25,597) Accrued expenses 1,035 Deferred revenue 1,470 Net cash used in operating activities (6,871)
Cash flows from investing activities: Purchase of property and equipment (1,904) Cash obtained from acquisition 187 Proceeds from sales of investments (3,382) Net cash used in investment activities (5,099)
Cash flows from financing activities: Proceeds from bank borrowings 2,797 Proceeds from Common Stock 122 Proceeds from Preferred Stock 16,797 Principal payments on capital lease obligation (236) Net cash provided by financing activities 19,480 Net increase in cash and cash equivalents 7,510 Cash and cash equivalents at beginning of period 14,649 Cash and cash equivalents at end of period $22,159
CONTACT: Carole Sinclair, 510-597-4896 or carole@intraware.com, or Pierre Hirsch, 510-597-4842 or pierre@intraware.com, both of Intraware, Inc.
SOURCE Intraware, Inc.
/CONTACT: Carole Sinclair, 510-597-4896 or carole@intraware.com, orPierre Hirsch, 510-597-4842 or pierre@intraware.com, both of Intraware, Inc./
/Web site: intraware.com |
