Starbase Announces Results for First Quarter FY2003
SANTA ANA, Calif., July 30 /PRNewswire-FirstCall/ -- Starbase Corporation (Nasdaq: SBAS - News), a leading provider of enterprise application management solutions designed to speed the software development lifecycle, today reported financial results for the first fiscal quarter 2003 ended June 30, 2002.
Revenues for the three months ended June 30, 2002 were $9.1 million, a 25% decrease over revenues of $12.1 million for the comparable period ended June 30, 2001. Pro forma net loss for the first quarter of FY2003 was $1.6 million or $(0.02) per share, compared to a pro forma net loss of $6.8 million, or $(0.10) per share, for the same period in FY2002.
Pro forma net loss and pro forma per share data for the periods reported exclude amortization of intangibles, non-cash stock based compensation and non-cash interest expense.
As reported net loss, including amortization of intangibles, non-cash stock based compensation and non-cash interest expense, for the first quarter of FY2003 was $3.6 million or $(0.04) per share, compared to as reported net loss of $13.8 million or $(0.20) per share, for the same period in FY2002.
"While the revenue results for this quarter were lower than expected, the actions we have taken since January have lowered our expenses and stabilized our balance sheet," stated Jim Harrer, president and CEO of Starbase. "We are still very much in the midst of a turnaround and believe that the positive steps we are taking to streamline and improve our operations are paying off."
1st Quarter Highlights
-- Two transactions over $900,000 in the quarter.
-- Starbase granted two technology patents.
-- Siemens ICN selected Starbase technology to manage business and IT
alignment process.
-- Starbase Corporation Named Orange County's 10th Largest Software
Company.
-- 271 new customers including Archstone Technical Center, Bankers
Systems, Inc., Cendant Mortgage, City of Jacksonville, Envenergy,
Inc., e-Security, FedEx, LHSD, Geico Insurance, GlobalMedic Inc.,
Greenpoint Software, Intercontinental Exchange, Jackson National Life
Ins. Co., Lenox Incorporated, Medical Simulation Corporation, Neovest,
Inc., Nova Development Corporation, On Command Corp., Setarnet
Operations, Sikorsky Aircraft, U.S. Department of Defense, USAA
Information Technology, Verizon Advanced Data and Witness Systems,
Inc.
-- 63% of revenues derived from existing customers. Repeat customers
include, Accenture, Aquilent, Inc., Bank of America, Biogen, Inc, Booz
Allen & Hamilton Inc., BrassRing, Cingular Wireless, Conextant
Systems, Inc., Conservation International, Epixtech, Guy Carpenter &
Company Inc., HCA-The Healthcare Company, IGT, Intrusion.com, LPL
Financial Services, MetLife, NOHAU Elektronik, QA Systems GmbH, SIAC,
Spectrum Systems, Staples.com, Wyeth-Ayerst Pharmaceuticals and XM
Satellite Radio, Inc.
-- Enterprise level orders (total investment of over $100,000)
represented 49% of bookings.
A conference call will be held today after the close of the market, to discuss the financial results and to provide financial guidance for the next quarter. Details for the conference call are listed below.
The call will be webcast by CCBN. Interested parties may listen to the conference call's live broadcast over the Internet on Starbase's web site at www.starbase.com .
Date: Tuesday, July 30, 2002
Time: 2:00 PM PT (5:00 PM ET)
Duration: 1 Hour
Live Call: 719-457-2692
Confirmation #: 332495
For those unable to participate in the live call, or for those who have no access to the Internet, the call will be available on telephone replay approximately two hours after the call ends and will remain available for 7 days. The replay number is a toll call. The telephone replay number is 719-457-0820 and the confirmation code is 332495.
About Starbase
Starbase Corporation provides enterprise management solutions that address the full software development lifecycle. The company leverages its enterprise software solutions and key partnerships with established industry leaders to deliver an end-to-end management solution. The combined approach of leading technology, best-fit solutions and professional implementation services enables Starbase customers to speed the application development process, resulting in improved bottom-line performance.
More than 4,200 customers, including AIG, CAE and Hutchison 3G have embraced the Starbase solutions and services methodology to meet their business objectives. For more information about Starbase and its 11 year history, please visit the company's website at www.starbase.com .
Starbase and its product names are trademarks of Starbase Corporation. All other product and company names herein are trademarks of their respective owners.
Forward Looking Statements
When used in the preceding discussion, the words "believes, expects, or intend to" and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, and (vi) other risks described in Starbase Corporation's SEC reports and filings.
Company Contacts for investor inquiries:
Doug Norman
Chief Financial Officer
714.445.4440
Doug.Norman@starbase.com
Carolyn Bass
Market Street Partners
415.321.2444
starbase-ir@marketstreetpartners.com
STARBASE CORPORATION
Consolidated Balance Sheets
(in thousands, except share data)
June 30, March 31,
2002 2002
Assets
Current assets:
Cash and cash equivalents $1,861 $1,530
Restricted cash 62 62
Marketable securities 8 9
Accounts receivable, net of allowances of $936
at June 30, 2002 and $1,561 at March 31, 2002 6,238 7,980
Notes and other receivables, net of allowances
of $150 at June 30, 2002 and March 31, 2002 -- 14
Prepaid expenses and other current assets 487 704
Total current assets 8,656 10,299
Property and equipment, net 3,889 4,503
Intangible assets, net 11,786 13,319
Goodwill 7,637 7,637
Note receivable from officer 110 109
Other non-current assets 457 620
Total assets $32,535 $36,487
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,359 $2,953
Accrued compensation 2,187 2,344
Other accrued liabilities 1,094 1,267
Deferred revenue 6,972 6,598
Current portion of long-term obligations 119 144
Total current liabilities 12,731 13,306
Long-term liabilities:
Long-term obligations, less current portion 18 42
Convertible debentures -- 1,632
Total long-term liabilities 18 1,674
Total liabilities 12,749 14,980
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value;
10,000,000 shares authorized, none issued
and outstanding at June 30, 2002 and
March 31, 2002. -- --
Common stock, $.01 par value;
150,000,000 shares authorized, 87,371,444 and
79,655,488 issued and outstanding at
June 30, 2002 and March 31, 2002. 874 797
Additional paid-in capital 202,765 201,030
Accumulated deficit (183,365) (179,770)
Deferred non-cash compensation (331) (397)
Notes receivable (36) (36)
Accumulated other comprehensive loss (121) (117)
Net stockholders' equity 19,786 21,507
Total liabilities and stockholders' equity $32,535 $36,487
STARBASE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended
June 30,
2002 2001
Revenues: (Unaudited)
License $5,091 $7,387
Maintenance 2,430 2,616
Service 1,571 2,051
Total revenues 9,092 12,054
Cost of Revenues:
License 169 1,577
Service 1,328 1,824
Amortization and write-down of intangibles 1,292 1,753
Total cost of revenues 2,789 5,154
Gross margin 6,303 6,900
Operating Expenses:
Research and development 2,646 4,456
Sales and marketing 4,963 8,639
General and administrative 1,561 2,444
Non-cash equity based compensation 176 190
Amortization and write-down of intangibles 240 4,976
Total operating expenses 9,586 20,705
Operating loss (3,283) (13,805)
Interest and other income (expense) (304) 97
Loss before income taxes (3,587) (13,708)
Provision for income taxes 8 57
Net loss $(3,595) $(13,765)
Per share data:
Basic and diluted net loss per common share $(0.04) $(0.20)
Basic and diluted weighted average common
shares outstanding 85,642 68,036
Reconciliation of as reported net loss to
pro forma net loss:
As reported net loss $(3,595) $(13,765)
Add back:
Amortization and write-down of intangibles 1,532 6,729
Non-cash equity based compensation 176 190
Non-cash interest expense 272 --
Pro forma net gain (loss) $(1,615) $(6,846)
Pro forma per share data:
Pro forma basic and diluted net gain (loss)
per common share $(0.02) $(0.10)
Pro forma basic and diluted weighted
average common shares outstanding 85,642 68,036
SOURCE: Starbase Corporation |
