Here is the earnings, (.14):
Centra Reports Record Third Quarter Revenue, Up 133% Year Over Year
Customer Base Grows To 350, With 73 New Accounts Added This Quarter
LEXINGTON, Mass.--(BUSINESS WIRE)--Oct. 12, 2000-- Centra (NASDAQ: CTRA - news), the world's leading provider of software infrastructure and ASP services for live eLearning and Internet business collaboration, today announced results for the third quarter and nine months ended September 30, 2000.
Net revenue for the third quarter was a record $6.3 million, a 133% increase over the $2.7 million reported in the same period last year, and a 26% increase over the $5.0 million reported in the second quarter of 2000. Product license revenue increased 121% to $5.2 million, an increase over the $2.3 million reported in the year ago period, and a 28% increase over the previous quarter. On a pro forma basis, excluding non-cash stock-based compensation expense, net loss for the third quarter of 2000 was $3.3 million, or $0.14 per share, compared to net loss of $1.2 million, or $0.07 per share, in the third quarter of 1999.
``The scalability of our business model and the quality and success of our products are reflected in our third quarter results,'' commented Leon Navickas, Chairman and Chief Executive Officer. ``Through our expanded international offerings, ecosystem of alliance partners, and multiple sales and distribution channels, we have continued to gain traction among the Global 2000. We signed a record number of new accounts across a wide array of sectors, and our average sales price for licensed software increased by 15% over last quarter, to $120,000.''
Navickas added, ``Given the growing need of corporations to accelerate strategic business processes, remain competitive in the increasingly complex global networked economy, and find new ways to acquire and service customers, we anticipate greater market demand for our eLearning products and services. This is evidenced by both our new client wins as well as expanded deployments in Q3 with existing client accounts such as Domino's Pizza, Gartner Group, Pfizer/Warner Lambert, Sysco and Toshiba.''
Centra added 73 new customers in the third quarter, bringing the total customer base to 350 accounts. Those added in the third quarter included Andersen Consulting, Academia Global, Arizona Supreme Court, Autodesk, Blue Cross Blue Shield, BMC Software, Coca-Cola Company, Ericsson, Flight Safety, Novartis, Qwest, Safety Kleen, Siemens, U.S. Federal Bureau of Prisons, U.S. Internal Revenue Service, Waddell & Reed, Wayne State University, and Wyndham Hotels.
Net revenue for the nine months ended September 30, 2000, was $15.1 million, a 171% increase over revenue of $5.6 million in the same period last year. Product license revenue for the nine-month period was $12.4 million, a 173% increase over the $4.5 million reported in the year ago period. On a pro forma basis, excluding non-cash stock-based compensation expense, net loss for the nine months was $9.7 million, or $0.43 per share, compared to net loss of $5.3 million, or $0.36 per share, in the same period of 1999.
Customer Highlights
Centra continues to grow its extensive customer base, serving more than one million users across all industry sectors and geographies. Contributions to this rapid growth in the third quarter were highlighted by:
The selection of Centra by Andersen Consulting, one of the world's largest professional services firms, as the company's standard infrastructure for the delivery of live eLearning to the company's 65,000 employees.
A significant initial deployment at Coca-Cola Company, the world's largest soft drink provider with over 35,000 employees, to provide eLearning delivery infrastructure for global SAP end user training and ongoing change management initiatives.
Siemens AG selected Centra as the corporate eLearning and collaboration standard to support communications and planning among the company's top 1,500 global operations executives. In addition, Siemens, which operates in over 190 countries, will use Centra to support their extensive SAP rollout through hands-on end user training over the Internet.
Wyndham International, one of the world's largest hospitality and lodging companies, selected Centra to deliver live eLearning and training to approximately 32,000 managers and staff at 286 hotel properties worldwide.
Continued international growth and expansion into vertical markets with the selection of Centra by Novartis Pharma AG, a world leader in healthcare operating in 140 countries, which will use Centra to increase cooperation and knowledge sharing between scientists working in three main laboratories located in Basel, Vienna and New York. In addition, the Novartis human resources division will use Centra to conduct internal training and establish regular CFO briefings with global financial executives.
About Centra
With over a million users, Centra is the world's leading provider of software infrastructure and ASP services for live eLearning and business collaboration. Today hundreds of global organizations have selected Centra for the delivery of live eLearning, including American Express, Coca-Cola, Cable & Wireless, Domino's Pizza, ExxonMobil, Siemens, Nationwide Insurance, and Procter & Gamble. Centra's solutions are backed by an ecosystem of strategic partnerships with Microsoft, PricewaterhouseCoopers, Deloitte Consulting, Oracle, Saba and Global Knowledge. Headquartered in Boston's technology corridor, the Company has sales offices throughout North America, Europe and Asia. For more information, visit centra.com.
Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements, including but not limited to, statements that involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, technological difficulties, the results of future research, lack of product demand and market acceptance for current and future products, the effect of economic conditions, the impact of competitive products and pricing, and/or other factors outside the control of the company, which are detailed from time to time in the company's SEC reports. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CENTRA SOFTWARE, INC
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
September 30, December 31,
2000 1999
Assets
Current assets:
Cash and cash equivalents $ 64,940 $ 7,878
Restricted cash 100 --
Accounts receivable, net 3,760 2,667
Prepaid expenses and other current 2,238 510
assets
Total current assets 71,038 11,055
Property and equipment, net 2,865 1,477
Restricted cash 400 --
Other assets 126 764
Total assets $ 74,429 $ 13,296
Liabilities, convertible preferred stock
and stockholders' equity (deficit)
Current liabilities:
Current maturities of term loan $ 331 $ 339
Accounts payable 1,127 562
Accrued expenses 4,287 2,780
Deferred revenue 3,773 1,546
Total current liabilities 9,518 5,227
Term loan, net of current maturities 130 376
Total convertible preferred stock -- 32,480
Total stockholders' equity (deficit) 64,781 (24,787)
Total liabilities, convertible preferred
stock and stockholders' equity (deficit) $ 74,429 $ 13,296
CENTRA SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2000 and 1999
(Amounts in thousands, except per share data)
(Unaudited)
Three months Nine months
ended September 30, ended September 30,
2000 1999 2000 1999
Revenues
License $ 5,187 $ 2,345 $ 12,391 $ 4,534
Service 1,148 371 2,752 1,048
Total revenues 6,335 2,716 15,143 5,582
Cost of revenues
License 154 47 216 138
Service 829 411 2,219 1,058
Total cost of revenues 983 458 2,435 1,196
Gross profit 5,352 2,258 12,708 4,386
Operating expenses
Sales and marketing 6,243 2,001 15,487 5,218
Product development 2,229 975 6,373 3,138
General and administrative 1,216 635 3,313 1,544
Compensation charge for
issuance of stock options 228 112 702 236
Total operating expenses 9,916 3,723 25,875 10,136
Operating loss (4,564) (1,465) (13,167) (5,750)
Other income, net 1,065 126 2,744 211
Net loss (3,499) (1,339) (10,423) (5,539)
Accretion of discount on
preferred stock -- 126 649 380
Net loss attributable to
common stockholders $ (3,499) $ (1,465) $(11,072) $ (5,919)
Basic and diluted net loss
per share $ (0.15) $ (0.22) $ (0.52) $ (0.92)
Weighted average shares
outstanding:
Basic and diluted 23,271 6,550 21,265 6,427
Pro forma net loss (1) $ (3,271) $ (1,227) $ (9,721) $ (5,303)
Pro forma net loss per share $ (0.14) $ (0.07) $ (0.43) $ (0.36)
Pro forma basic and diluted
weighted average common
shares outstanding 23,271 16,473 22,368 14,778
(1) The pro forma net loss excludes the compensation charge for
issuance of stock options and the accretion of discount on
preferred stock and assumes the conversion of convertible
preferred stock into common stock at the beginning of each period
presented.
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Contact:
Investor contacts:
Centra Software
Steve Johnson, 781/994-1044
sjohnson@centra.com
or
Morgen Walke Associates
Katherine Mittelbusher/617/747-3606
kmittelbusher@mwa-boston.com
or
Press contacts:
Centra Software
Ellen Slaby, 781/994-1068
eslaby@centra.com
or
Morgen Walke Associates
Laura Novak, 212/850-5653
lnovak@morgenwalke.com |
