Calico Commerce Reports Second Quarter Revenues; Final Results Consistent with Preliminary Expectations
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 24, 2000--Calico Commerce, Inc. (Nasdaq:CLIC), a leading provider of software that enables corporations to sell over the Web, today announced financial results for the quarter ended September 30, 2000, which were consistent with the preliminary expectations of financial results announced by Calico on October 3, 2000.
License revenues for the quarter totaled $4.2 million and increased 21 % from the prior year, total revenues for the current quarter totaled $ 9.1 million as compared with $ 8.2 million for the corresponding quarter in 1999. Pro forma net loss for the current quarter, excluding non-cash charges, was $ 13.4 million, or $0.39 per share, as compared to $ 5.7 million, or $0.23 per share, for the corresponding quarter in 1999. Incl}ding all charges, the net loss for the current quarter was $ 21.6 million, or $0.63 per share, as compared with a net loss of $6.5 million, or $0.69 per share, or the corresponding quarter ended June 30, 1999.
"We are disappointed with our results this quarter and have intensified our focus on improving execution across all aspects of the business," said Alan Naumann, president and CEO, Calico Commerce, Inc. "Our competitive position was further strengthened at the end of the quarter with the addition of Calico(R) Price Point(tm), a business-to-business pricing solution for enterprises with multiple sales channels, and our suite continues to be adopted by new and existing Global 2000 customers."
Calico will be holding an earnings conference call/webcast today, Tuesday, October 24, 2000, at 5:00 p.m. EDT to discuss the Company's second quarter financial results. Calico's President and CEO, Alan Naumann, and Chief Financial Officer, Arthur Knapp, will host the conference call.
The call is open to the public and you may participate by dialing (415) 537-1804 on Tuesday, October 24 ten minutes prior to the call. It will also be accessible via Calico's website at calico.com or at streetevents.com. A replay of the call will be available at both websites for seven days. All remarks made during the conference call will be current at the time of the briefing and will not be updated to reflect subsequent material developments.
About Calico Commerce, Inc.
Calico Commerce, Inc. provides software that enables corporations to sell in Net markets, direct over the Web or through existing channels. Calico's 100% Java, application server-based eBusiness application suite meets the performance, reliability and scalability needs of any business while allowing customers to handle complex products, pricing and relationships via the Web through the entire customer life cycle. As a result, organizations are able to drive revenue growth, increase customer satisfaction and achieve competitive advantage. Calico customers include leaders in high-technology hardware, manufacturing, telecommunications services, financial services, home furnishings, chemicals, agriculture and retail. Calico Commerce, Inc., headquartered in San Jose, Calif., can be found on the World Wide Web at www.calico.com.
Statements made by Alan Naumann and Arthur Knapp in our conference call and the above statements contained in this earnings release, including but not limited to any projections therein, which are not purely historical in nature involve forward looking statements, as that term is defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, any statements included herein regarding Calico's future product development, product sales and other revenues, market opportunities, beliefs, expectations, goals, financial performance and future strategies, all of which are dependent on certain risks and uncertainties that may cause actual results to differ materially from those expressed in these or any other forward- ooking statements made by or on behalf of Calico.
In addition to factors discussed above, among other factors that could cause actual results to differ materially from those suggested are the following: The unpredictability of Calico's future revenues and the volatility of such revenues because of, among other factors, the concentration of revenues in the last weeks of a given quarter; Calico's dependence on major customers which results in both a lack of a widely-diversified revenue base and a lengthy product sales cycle, particularly among Global 2000 customers; Intense competition in all aspects of Calico's business, especially among Internet e-commerce infrastructure companies, which continue to introduce new and enhanced competing products that offer an alternative to established Calico product offerings, including its Configurator product; The lack of assurance that Calico's Price Point product, introduced in September 2000, will be either accepted among Calico's core customer base or will be free of significant defects that would curtail its potential sales; Changes in Calico's product or service margins due to pricing changes driven by variations in customer demand and competition; Calico's ability to control internal costs and its need to limit the sales cost for revenue, including specifically Calico's dependence on a direct sales force; and Calico's need to effectively manage the expansion of its business, including domestic and international growth and through strategic alliances and partnerships.
The forward looking statements should be considered in the context of these and other risk factors disclosed in our filings with the Securities and Exchange Commission, including our Registration Statements on Form S-1 and Form S-4, as amended, and our reports on Form 10-K and Form 10-Q, as amended, available online at sec.gov. All forward-looking statements are based on information available to us on the date herof, and we assume no obligation to update such statements. Furthermore, the factors underlying the forecasts included in our conference call are dynamic and subject to change and therefore our forecasts speak only as of the date they are given. We do not undertake to update them, however we may choose from time to time to update them and if we do so, we will disseminate the updates to the investing public.
CALICO COMMERCE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2000 1999 2000 1999
Net revenue:
License $ 4,245 $ 3,502 $ 11,216 $ 6,959
Services 4,832 4,674 10,441 8,650
-------- -------- -------- --------
Total net revenue 9,077 8,176 21,657 15,609
-------- -------- -------- --------
Cost of net revenue:
License 275 114 632 114
Amortization of
purchased technology 483 122 980 259
Services 6,197 3,473 11,376 6,133
-------- -------- -------- --------
Total cost of
net revenue 6,955 3,709 12,988 6,506
-------- -------- -------- --------
Gross profit 2,122 4,467 8,669 9,103
-------- -------- -------- --------
Operating expenses:
Sales and marketing 9,741 4,641 16,694 9,199
Research and
development 5,428 3,801 10,739 6,467
General and
administrative 1,808 1,900 3,261 3,352
Stock compensation 226 420 505 934
Amortization
of goodwill 7,481 236 14,962 476
-------- -------- -------- --------
Total operating
expenses 24,684 10,998 46,161 20,428
-------- -------- -------- --------
Loss from operations (22,562) (6,531) (37,492) (11,325)
Interest and other
income, net 947 66 2,058 137
-------- -------- -------- --------
Net loss $(21,615) $ (6,465) $(35,434) $(11,188)
======== ======== ======== ========
Net loss per share:
Basic and diluted $ (0.63) $ (0.69) $ (1.04) $ (1.22)
======== ======== ======== ========
Weighted average
shares 34,400 9,400 34,200 9,200
======== ======== ======== ========
Pro forma excluding
non-cash charges (1):
Basic and diluted $ (0.39) $ (0.23) $ (0.56) $ (0.38)
======== ======== ======== ========
Weighted average
shares 34,400 25,000 34,200 24,800
======== ======== ======== ========
Notes
(1) The pro forma results provide information reflecting the
conversion of preferred shares for the entire period or date of
issuance if later and the elimination of non-cash charges such as
stock compensation and goodwill amortization.
CALICO COMMERCE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, March 31,
2000 2000
ASSETS
Current assets:
Cash and cash equivalents $ 9,860 $ 25,917
Short-term investments 49,784 49,923
Accounts receivable, net 8,999 10,829
Other current assets 2,795 2,568
--------- ---------
Total current assets 71,438 89,237
Long-term investments 2,100 5,377
Property and equipment, net 7,104 4,462
Intangible and other assets, net 73,595 89,584
--------- ---------
$ 154,237 $ 188,660
========= =========
LIABILITIES, MANDATORILY REDEEMABLE
CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 2,269 $ 4,152
Accrued liabilities 12,283 11,641
Deferred revenue 4,461 5,802
Current portion of notes payable 1,198 1,255
Current portion of capital
lease obligations 127 275
--------- ---------
Total current liabilities 20,338 23,125
Notes payable, non-current 1,274 1,413
Capital lease obligations,
non-current 89 106
Other liabilities 21 32
--------- ---------
Total liabilities 21,722 24,676
--------- ---------
Stockholders' equity (deficit):
Preferred Stock -- --
Common Stock 35 35
Additional paid-in capital 227,404 224,587
Notes receivable from stockholders (1,261) (1,752)
Unearned compensation (723) (1,228)
Other comprehensive income (102) (179)
Accumulated deficit (92,838) (57,479)
--------- ---------
Total stockholders'
equity (deficit) 132,515 163,984
--------- ---------
$ 154,237 $ 188,660
========= =========
CONTACT:
Calico Commerce, Inc.
Arthur F. Knapp, Jr., 408/278-7336 (CFO)
aknapp@calico.com
Katie Belding, 408/808-7655 (Corporate Communications)
kbelding@calico.com
Marian Chabansky, 408/278-7345 (Investor Relations)
mchabansky@calico.com
KEYWORD: CALIFORNIA
BW0647 OCT 24,2000
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