Sagent Announces Q4 and FY2000 Financial Results; Microsoft, IBM, Yahoo!, Fujitsu, Volkswagen key customer wins during Q4
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 5, 2001--Sagent (Nasdaq:SGNT), a leading provider of Business Intelligence solutions, today announced fourth-quarter and fiscal 2000 financial results. Both periods ended December 31, 2000. The company also announced today that it is nearing completion of a transaction to provide significant additional funding to Sagent.
Sagent's revenues for the fourth quarter of 2000 were $12.3 million, compared with revenues of $16.0 million reported in the fourth quarter of 1999. Sagent's net loss for the fourth quarter of 2000, excluding non-recurring charges, was $11.0 million, or a loss of $0.37 per share, compared with a net loss of $6.1 million or $0.22 per share in the fourth quarter of 1999. Non-recurring charges of $4.2 million in the fourth quarter included costs associated with the recruiting of senior management, completion of an agreement to restructure the company's IT outsourcing that will dramatically reduce its long term IT costs, amicable settlement of a patent infringement suit, and charges for write-offs of accounts that were deemed to be uncollectable. Including these non-recurring charges, the net loss for the fourth quarter of 2000 was $15.2 million, or a loss of $0.51 per diluted share.
Revenues for the year ended December 31, 2000, were $58.2 million, compared with revenues of $48.0 million reported in fiscal 1999, representing a 21.3 percent increase. Sagent's net loss for the year was $23.7 million, or a loss of $0.82 per share, compared with a net loss of $12.1 million, or a loss of $0.55 per share in 1999.
"During my first five months at Sagent, I have devoted a significant amount of time and energy re-building and revitalizing the sales and marketing organizations," said Ben Barnes, president and CEO, Sagent. "We have been very successful in recruiting some of the industry's most talented business intelligence sales and marketing individuals. Our new team is now fully staffed and engaged in the marketplace."
"In addition to changes in the direct sales team, we have established a new telemarketing organization to market to our vast customer base and a new business development organization to establish partnerships with industry leaders," Barnes added.
"We're already beginning to see the benefits of our reorganization and recruiting efforts," Barnes said. "Sagent's new accounts in the United States during the fourth quarter included wins at IBM, Microsoft, Yahoo!, U.S. National Gallery, and the City of Santa Clara, among others."
"Internationally, we are gaining traction," Barnes said, "particularly in Asia Pacific, where we won 26 new accounts in the fourth quarter alone, including Japan Telecom, Fujitsu and Singapore Health. We also just brought on a new executive vice president and president for Europe, who previously led IBM's European business intelligence solutions division, to help us further penetrate market opportunities in Europe."
"In addition to growing revenues during fiscal 2001, a key objective continues to be maximizing shareholder value," said David Eliff, executive vice president and CFO, Sagent. "As a result, we've recently taken steps to streamline our operations and significantly reduce our operating costs. This should speed our return to profitability."
"We are also pleased to announce that we are in final negotiations for significant additional funding to be completed in the next few weeks, which includes a group of influential financial investors and a strategic partner," Eliff said. "This additional funding improves our cash position and strengthens our balance sheet, providing the working capital to allow our new management team to execute as planned."
"Additionally, we are beginning to see the results of our recently developed analytical solutions framework in such markets as financial services and insurance, including a Q4 win at Provident Federal Credit Union," Barnes said. "Business intelligence and analytic applications represent a large market opportunity, and we intend to take full advantage of this in 2001."
*T Significant Highlights of 2000 include:
- Added more than 255 new customers during the year. New customers in Q4 include Banco Itau, City of Santa Clara (CA), Fujitsu, IBM, Japan Telecom, Microsoft, Provident Federal Credit Union, Singapore Health, Telekom South Africa, U.S. National Gallery, Volkswagen and Yahoo!.
- Recruited a new seasoned executive team, with nearly a century-and-a-half of combined business intelligence sales and management experience. New executives include:
Ben Barnes, President and CEO
David Eliff, Executive Vice President and CFO
Arthur Parker, Executive Vice President and President, Europe
Jack Peters, Senior Vice President, Sales, The Americas
Bob Flynn, Senior Vice President, Marketing and Strategy
Larry Scroggins, Senior Vice President, Business Development
Steve van den Berg, Vice President, Business Development
Tom Whitelaw and Ken Cairns, Area Vice Presidents, Sales
- Re-built the sales organization in the United States, and established new indirect sales channels for the company.
- Released significant new product capabilities, including Sagent Solution version 4.2 for international support; the Sagent Portal for customized Web-based applications; and Sagent Solution version 4.5, the company's first UNIX port that supports Solaris. This new support for UNIX enables a much broader group of high-end customers to use Sagent's solution.
- Introduced Centrus Real-Time(TM), the first XML-based information service that dynamically delivers value-added information at the point of customer interaction to help companies make smarter business decisions.
- Integrated the Centrus householding, geocoding and spatial analytics into Sagent Solution, providing Sagent's customers a unique, "complete view of the customer" solution.
- Entered into new alliances and partnerships with Sun Microsystems, Advent, Commerce One, SAIC, NEC, Sequoia Software and Smart Online.
*T Conference Call
Sagent's executive management will hold a conference call at 1:30 p.m. PT, today, February 5, 2001, to discuss these results. In order to access the call, please dial 630.395.0018 by 1:20 p.m. PT. Callers will need to reference the passcode "Sagent." A replay of the call will be available starting one hour after the completion of the call through February 12, 2001. In order to access the replay, please dial 402.220.3843. A live Webcast is available by visiting www.sagent.com, then clicking on the conference call link shown on the company home page.
Securities and Exchange Commission's Regulation Fair Disclosure
In adhering to the Securities and Exchange Commission's newly adopted Regulation Fair Disclosure, Sagent will provide its investors and analysts quarterly information. Sagent will not provide any further guidance or updates on its performance during the quarter unless it does so in a news release or in an SEC filing.
About Sagent
Sagent's suite of Business Intelligence solutions enables companies to measurably impact their business by implementing highly successful customer relationship and financial management initiatives. Through Sagent's powerful enabling technologies, organizations can easily and rapidly turn company data into relevant information that can be used for effective decision-making, analysis and reporting. Information can be extracted from multiple sources (internal and external), optimized for decision support and delivered in a customized format for Web-based or client applications. Even the most complex analytic application can be developed in weeks, not months.
More than 1,300 companies are using Sagent software to enhance customer retention, cross-sell/up-sell, improve customer service, increase efficiencies of marketing campaigns, streamline business operations, analyze financials, and reduce costs. Customers include AT&T, BP Amoco, Boeing Employees Credit Union, Bristol Meyers, British Telecom, California State Automobile Association, Citibank, GPU Energy, Johnson & Johnson (UK), Kemper National Insurance, Safeway and Siemens. Sagent retains strategic relationships with partners such as Advent, Commerce One, Compaq, EDS, IBM, Microsoft, and NEC. Sagent is headquartered in Mountain View, California, and can be reached at www.sagent.com.
Sagent is a registered trademark of Sagent Inc. All other trademarks are the property of their respective owners.
Safe Harbor
The foregoing paragraphs include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements involve risks and uncertainties. For such statements, each company claims the protection of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ from those contained in the forward-looking statements include, among others, the ability of the parties to attract and retain a broad range of purchasers, suppliers and trading partners, the parties' ability to successfully deliver a joint solution to customers, the anticipation of the growth of certain market segments, the positioning of the parties' products in those segments, the competitive environment in the software industry, dependence on other products, changes to operating systems and product strategy by vendors of operating systems, and the importance of new products. For a discussion of these and other risk factors that could affect the parties' businesses, see "Risk Factors" in each party's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 1999, and its quarterly report on Form 10-Q for the quarter ended December 31, 2000.
SAGENT TECHNOLOGY, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
For the Three Months For the Twelve Months
Ended Ended
12/31/00 12/31/99 12/31/00 12/31/99
Revenues:
License fees $7,578 $11,668 $35,091 $34,130
Services 4,751 4,367 23,097 13,871
----- ----- ------ ------
Total revenues 12,329 16,035 58,188 48,001
Cost of revenues:
License fees 224 592 1,311 2,834
Services 3,041 2,054 10,790 7,315
Amortization of
abandoned development
projects - - - 1,600
----- ----- ----- -----
Total cost of
revenues 3,265 2,646 12,102 11,749
Gross Profit 9,064 13,389 46,087 36,252
Operating Expenses:
Sales and marketing 9,952 9,099 37,693 26,862
Research and
development 4,185 4,483 17,003 12,466
General and
administrative 10,039 6,251 15,861 9,757
------
Total operating
expenses 24,176 19,833 70,557 49,085
Loss from operations 15,112 6,444 24,470 12,833
Interest income, Net 225 431 1,277 1,004
Loss before taxes 14,887 6,013 23,193 11,829
Income taxes 295 82 511 263
Net loss $15,182 $6,095 23,704 $12,092
Basic net loss per
share $0.51 $0.22 $0.82 $0.54
Shares used in computing
basic net loss per
share 29,586 27,780 29,030 22,221
Diluted net loss
per share $0.51 $0.22 $0.82 $0.54
Shares used in computing
diluted net loss per
share 29,586 27,780 29,030 22,221
CONTACT:
Sagent, Mountain View
Dave Dohrmann, 650/815-3278
ddohrmann@sagent.com
KEYWORD: CALIFORNIA
BW2730 FEB 05,2001
13:42 PACIFIC
16:42 EASTERN |
