First Quarter Results, where to from here???:
"FOR IMMEDIATE RELEASE
Media Contact: Investor Contact:
Tara Dunion Richard Simpson
Public Relations Dir. Mgr. Corporate Relations
(703) 437-9002 (604) 988-0440 ext. 260
tdunion@sideware.com ir@sideware.com
SIDEWARE REPORTS FIRST QUARTER RESULTS
RESTON, Va., May 11, 2001 - Sideware (TSE: SYD.U and OTC (BB): SDWS), a
leading developer of online customer service solutions, today announced its
results for the quarter ended March 31, 2001.
For the quarter ended March 31, 2001, the company reported revenues of
$95,891, compared with $8,806 for the quarter ended March 31, 2000. Net
loss for the quarter ended March 31, 2001 was $4.8 million, or $0.08 per
share, compared with a net loss of $7.3 million, or $0.13 per share for
the quarter ended March 31, 2000.
Sideware's major milestones during the past several months included:
reorganizing the company to reduce costs and consolidate research and
development activities; adding three high-profile professionals, Jack Kemp,
a founder and co-director of Empower America, John Shoemaker, an executive
vice president at Sun Microsystems, Inc. and Ken Thornton, the former
general manager of IBM's public sector, to its board of directors; securing
a $4 million private placement; being selected by IBM as an e-government
services partner; winning the Product of the Year award from Customer
Interaction Solutions magazine and the Best of Show award at the Call
Center and CRM Solutions Canada event; and launching its Enterprise
Interaction Suite version 3.0.
"As with many technology companies, the first quarter of 2001 was
challenging for us due to the general economic environment," said James
Speros, president and CEO. "Several potential customers postponed their
decisions on our technology. We expect that the next one to two quarters
will continue to be challenging. I am pleased, however, that we were able
to accomplish several major milestones to help continue to build Sideware's
foundation."
Recent Highlights
. Sideware Announces Corporate Reorganization
In April, Sideware announced that it was moving its primary research and
development operations from Vancouver, B.C. to Reston, Va. The company has
taken other cost savings measures, including reducing the salaries of its
president and CEO, chief technology officer and executive vice president by
20%.
. Jack Kemp, John Shoemaker and Ken Thornton Join Sideware's Board of
Directors
Sideware announced the appointment of three new board members. Joining the
board are Jack Kemp, a founder and co-director of Empower America, John
Shoemaker, an executive vice president at Sun Microsystems, Inc. and Ken
Thornton, the former general manager of IBM's public sector.
. Sideware Completes $4 Million Private Placement
The company announced that it completed an equity private placement of $4
million. The offering was completed with the assistance of an established
U.S. investment bank. Investors in the offering included selected U.S.
institutional investors, company management and accredited investors.
. IBM Selects Sideware as an E-Government Services Partner
IBM selected Sideware for inclusion in the e-government business
partnership program. As part of the program, Sideware has been designated
an IBM "Government Specialty for e-business" business partner. This
distinction allows Sideware to work with IBM and its government portal to
provide e-governments with access to open system, scalable and secure
customer service solutions.
. Sideware Wins Two Industry Awards for its Enterprise Interaction Suite
Sideware's application service provider (ASP) product, called the EIS
Service, won the product of the year award for 2000 from Customer
Inter@ction Solutions magazine. This accolade highlights the versatility
and scalability of Sideware's ASP service, which offers e-businesses a
better way to manage their customer interactions by combining front and
back-office functionality to create a unified customer view. In addition,
Sideware's EIS solution won the best of show award at the Call Center and
CRM Solutions Canada event in March. EIS was named the best online
customer service tool.
. Sideware Launches its Enterprise Interaction Suite, Version 3.0
Sideware's Enterprise Interaction Suite (EIS) is available as either a
licensed product or an application service provider (ASP) service. The EIS
version 3.0 is composed of modules, including Web collaboration, computer
telephony integration and e-mail management. These modules are built upon
Sideware's Enterprise Interaction Platform, the suite's integration
framework, which is based on an open platform architecture that allows for
easy integration with back-office systems. The EIS 3.0 solution increases
customer satisfaction by combining front-end Internet collaboration with
back-end integration features for a more personalized service experience.
Sideware also demonstrated the components of its EIS 4.0 at the eCRM Expo
in Los Angeles in March. The six channels that the company demonstrated
were: web collaboration, email resolution, self service, telephony, and
wireless.
. Sideware Annual General Meeting to be Held June 28 at the Reston Hyatt
Hotel in Reston
Sideware's annual general meeting is planned for June 28. It will be held
at the Reston Hyatt Hotel, located at 1800 Presidents Street, Reston, Va.
Financial Results
SIDEWARE SYSTEMS INC.
Condensed Consolidated Balance Sheets
(Expressed in United States dollars)
(Prepared in accordance with accounting principles generally accepted in
the United States)
March 31, December 31,
2001 2000
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 6,303,046 $ 949,999
Short-term investments - 5,982,588
Accounts receivable:
Trade, less allowance for doubtful accounts of $6,153
(December 31, 2000 - $142,047) 318,578 467,783
Other 76,336 126,842
Due from related parties 67,581 29,859
Current portion of long-term receivables 6,670 6,849
Inventory 33,261 46,829
Prepaid expenses 434,619 549,639
7,240,091 8,160,388
Deposit on lease 128,200 129,926
Long-term receivables 98,727 105,587
Deferred finance charges 90,615 95,583
Fixed assets 2,074,699 1,967,818
$ 9,632,332 $ 10,459,302
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 821,538 $ 1,246,683
Deferred revenue 108,062 168,661
929,600 1,415,344
Stockholders' equity:
Common stock:
Authorized: 199,949,375 common shares, no par value
Issued and outstanding: 66,116,167 (December 31,
2000 - 60,886,415) 44,392,800 40,660,382
Additional paid-in capital 12,146,732 12,146,732
Deferred stock-based compensation (195,746) (460,895)
Accumulated other comprehensive income - (503,685)
Deficit (47,641,054) (42,798,576)
8,702,732 9,043,958
$ 9,632,332 $ 10,459,302
SIDEWARE SYSTEMS INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in United States dollars)
(Prepared in accordance with accounting principles generally accepted in
the United States)
Three month periods ended
March 31,
2001 2000
Revenue:
Licenses $ 27,000 $ -
Services 35,507 -
Hardware and software resales 2,000 -
Hardware resales to related parties 31,384 8,806
95,891 8,806
Cost of revenues:
Licenses 200 -
Services 2,830 -
Hardware and software resales 2,000 -
Hardware resales to related parties 31,384 8,806
36,414 8,806
Gross margin 59,477 -
Operating expenses:
Sales and marketing (including stock-based compensation of $136,767 and
$1,234,618) 2,479,085 2,676,052
Research and development (including stock-based compensation of $ 87,146
and $30,722) 1,092,665 529,325
General and administrative (including stock-based compensation of $41,236
and $3,322,602) 1,528,701 4,171,324
5,100,451 7,376,701
Operating loss (5,040,974) (7,376,701)
Non-operating:
Interest income 198,496 91,792
198,496 91,792
Loss for the period (4,842,478) (7,284,909)
Other comprehensive income (loss):
Foreign currency translation adjustments 640,235 (32,875)
Net realized holding gain on short term-investments (136,550) -
503,685 (32,875)
Comprehensive loss $ (4,338,793) $ (7,317,784)
Basic and diluted loss per share:
Net loss $ (0.08) $ (0.13)
Weighted average shares used in
computing net loss per share, basic
and diluted 62,066,046 56,190,341
About Sideware
Sideware is a leading provider of online collaboration solutions that
enable companies to better manage their customer interactions by providing
enhanced Internet-based customer service. Based on 100% Java technology,
Sideware's eCRM suite is designed to help e-businesses relate: to their
customers and to the data acquired in their back-office systems that allow
them to deliver more accurate and efficient service. Sideware's EIS sol
ution delivers a comprehensive third-generation system that provides
scalable and personalized Internet customer service with an open platform
architecture that integrates seamlessly with databases, legacy systems and
CRM and call center products for a unified customer view. Sideware is an
independent software vendor (ISV) of IBM. Other key strategic business
partnerships include ties with Oracle Corp., Sun Microsystems and SAIC.
Based in Reston, Va., Sideware publicly trades on the Toronto Stock
Exchange (SYD.U) and OTC bulletin board (SDWS). For additional
information, please visit www.sideware.com.
# # # #
ON BEHALF OF THE BOARD
Jim Speros
President and CEO
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this communication (as well as information included in oral statements or
other written statements made or to be made by Sideware Systems Inc.)
contains statements that are forward-looking, such as statements relating
to the future anticipated direction of the high technology industry, plans
for future expansion, various business development activities, planned c"
FYI |
