CAMZ has imploded:
Monday June 3, 5:00 pm Eastern Time
Press Release
SOURCE: Caminus Corporation
biz.yahoo.com
Caminus Comments on Market, Company Outlook
Affirms Strength of Business Indicators, but Reduces 2002 Outlook to Reflect Current Energy Market Uncertainty
Adopts Share Repurchase Program
NEW YORK, June 3 /PRNewswire-FirstCall/ -- Caminus Corporation (Nasdaq: CAMZ - News), the leading provider of software and strategic consulting services to energy market participants worldwide, commented today on the likely effect of recent energy trading market developments on the company's outlook for the second quarter and remainder of 2002. The company reported that while leading indicators in its business such as competitive win rate, average deal size and sales pipeline remain strong, recent energy industry concerns arising from the activities of certain large energy traders have created uncertainty for all participants in the competitive energy markets, including Caminus. As a result, the company is lowering its guidance for the remainder of 2002.
CEO Dave Stoner said, "We've spent a good part of recent weeks analyzing our pipeline and talking to customers and prospects on both sides of the Atlantic and the feedback has been consistent. While certain key indicators for our business remain strong, it is increasingly clear that we face uncertainty in the coming months about the timing of buying decisions as the industry and regulators respond to the raft of adverse disclosures concerning certain large energy traders. In the short term we have to anticipate a spillover effect from the adverse publicity, even to our non-energy trader customers, who represent over 95% of our business. In the face of uncertainty, some of our customers may be slower in committing capital to projects, at least for now."
The company indicated that it is adjusting guidance to a level that is appropriately conservative given current market conditions. Adjusted guidance for 2002 is as follows:
* Total revenue will be in the $110 million range, down about 13%,
* License revenue will be in the $50 million range, and
* Pro forma EPS will be about $.55 per share for the year.
Second quarter guidance is also revised, as follows:
* Total revenue will be in the $25 million range,
* License revenue will be in the $11 million range, and
* Pro forma EPS will be about $.03.
The company also announced that its Board of Directors has authorized a repurchase program for up to $10 million of the company's common stock. Under the program, which is effective immediately, the company has authorized management to purchase shares of its common stock in the open market or in privately negotiated transactions from time to time. Chairman Lawrence Gilson said, "Our adoption of a share repurchase program reflects the Board's view that Caminus' share price currently represents a compelling opportunity. As with virtually every public company in the energy sector, the company's stock has been buffeted by adverse publicity concerning the activities of a few large energy traders in the otherwise compelling wholesale energy markets, even though Caminus business fundamentals remain strong and Caminus products and services will serve as part of the solution to the troubles affecting the industry. This repurchase program provides us the flexibility to help protect our shareholders when our equity valuation does not reflect the health of our business and our long-term potential."
Finally, the company reported that CEO David Stoner has communicated to the Board of Directors his desire to retire from his CEO role with the company when a top-flight successor is identified. Stoner said, "It's a matter of public record that my three-year employment contract expired last year, not to mention the fact that I'm 61 years old, and I've decided that having contributed to building Caminus from its position as a modest sized vendor of niche offerings in 1998 to an industry leading global provider of a full menu of offerings today, it's time to hand off the CEO responsibilities." Caminus' Board has identified a group of experienced, high caliber software executives for consideration and is actively evaluating them. Stoner will remain on the Board and have significant additional involvement with the company after stepping down as CEO.
About Caminus Corporation
Caminus is a leading provider of software and strategic consulting services that facilitate energy trading, transaction processing, risk management, and decision support within the wholesale energy markets. Its integrated software solutions, which cover all functional areas across the energy value chain and handle all major energy commodities and financial instruments, enable energy companies to more efficiently and profitably trade energy, streamline transaction management, manage complex risk scenarios, and make optimal operational decisions.
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to Caminus Corporation's financial outlook for 2002, and such statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are fluctuations in Caminus Corporation's quarterly results, the seasonality of its sales cycle, competition in the energy industry, Caminus Corporation's ability to manage its growth, risks associated with its international sales and operations, Caminus Corporation's ability to successfully integrate the acquisition of Altra Software Services and any future acquisitions, continued market acceptance of Caminus products, governmental regulations, general economic conditions, terrorist attacks or acts of war, the risk factors detailed from time to time in Caminus Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission, including without limitation its Annual Report on Form 10-K for the year ended December 31, 2001, and other factors, if any, of which Caminus is not currently aware. Caminus Corporation expressly disclaims any obligation to update or alter any of its forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Caminus Corporation |
