I shorted on the open and covered too early, but made a bit. So here's the quarter. Look at all this bold face type (I used html code to mimic the appearance of the PR as issued)!
>>WebEx Announces Record Third Quarter Results
- Revenues of $36.8M up 66% compared to the year ago quarter - GAAP EPS $0.12, including equity-based compensation and using the actual effective tax rate of 3% - EPS $0.09, excluding equity-based compensation and assuming a 40% tax rate - Gross margins of 83%, up from 82% in Q2 2002 - Operating margins, excluding equity-based compensation of 17% up from 12% in Q2 2002 - DSO's improve by 9 days to 44 days from 53 days in Q2 2002 - Operating cash flow of $9.5M, up from $7.6M in Q2 2002 - Cash and short term investments increase by $4.1M to $56.8M, after repayment of $5.0M short term loan
Wednesday October 16, 4:03 pm ET
SAN JOSE, Calif., Oct. 16 /PRNewswire-FirstCall/ -- WebEx Communications, Inc. (Nasdaq: WEBX - News), the Web communications services leader, today announced record results for its third quarter ended September 30, 2002.
Revenues were $36.8 million, a 66% increase from $22.1 million in the third quarter of 2001. The company reported a $6.4 million operating profit excluding equity-based compensation expense in the third quarter of 2002, compared to a corresponding operating loss of $1.9 million in the third quarter of 2001. Reported GAAP net income was $5.0 million or $0.12 per diluted share, including equity-based compensation and using the actual effective tax rate of 3%, in the third quarter of 2002 compared to a net loss of $6.1 million or ($0.16) per diluted share for third quarter of 2001. Net income was $3.9 million or $0.09 per diluted share, excluding equity-based compensation expense and assuming a 40% tax rate, in the third quarter of 2002, compared to a corresponding loss of $2.4 million or ($0.06) per diluted share in the third quarter of 2001.
"We are pleased with the operational excellence we have achieved during the year as WebEx continues to grow with increasing profitability in this tough economic environment," said Subrah Iyar, Chairman and CEO of WebEx Communications. "As we move forward, our solid financial position allows us to further increase our investments in sales and marketing to drive our growth and expand our market leadership. Our investments in technology also continue at a record pace, enabling us to expand our offerings for the comprehensive communications needs of our customers."
In Q3 2002, WebEx continued its worldwide growth of new customers across wide segments of the economy including: Allianz AG, Celanese Chemicals, Dillards Department Stores, Gallup Organization, Kimberly Clark, Land O'Lakes, Mariner Health Care, Merrill Lynch Bank Suisse S.A., NASA, Orkin, Salle Mae Services, State Street Bank, Stanley Works, U.S. Piper Jaffray.
Guidance
The following contains forward-looking guidance regarding WebEx's financial outlook. The following statements are based on current expectations. In the fourth quarter 2002, WebEx anticipates revenues of approximately $40 million, and approximately $140 million for the year, as previously guided. Earnings per share, excluding equity-based compensation expense and using an assumed tax rate of 40%, are anticipated to be in the range of $0.09 - $0.10 for the fourth quarter and $0.26-$0.27 for all of 2002. This is an increase from the previous guidance for the total year of $0.20 - $0.25 per share. For fiscal year 2003, WebEx is reiterating its previously given guidance of approximately $200 million in revenues and earnings per share of $0.50 - $0.55, excluding equity-based compensation expense and assuming a tax rate of 40%.
Conference Call
Management will host the quarterly conference call to discuss the results today Oct 16, 2002 beginning at 5:00 p.m. EDT. Interested parties may listen to the conference call via live broadcast over the Internet at www.webex.com/Q3_2002Earnings or by calling 212-896-6080.
About WebEx Communications Inc.
Founded in 1996, WebEx Communications is the leader in interactive communications infrastructure for business meetings. WebEx provides Web-based carrier-class communication services through its multimedia switching platform deployed over a global network. WebEx's services enable end-users to share presentations, documents, applications, voice and video spontaneously in a seamless environment. WebEx services are used across the enterprise in sales, support, training, marketing, engineering and various other functions. With its modular framework, standards-based APIs and MediaTone technology, WebEx's interactive communications switching platform is the standard for meetings on the Web. Please call toll free 1-877-932-3911 or visit webex.com for more information.
This press release contains 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. These forward-looking statements may be identified by use of the terms anticipates, believes, continue, could, estimates, expects, intends, may, plans, potential, predicts, should or will, or the negative of those terms or similar expressions. These forward-looking statements are subject to significant risks and uncertainties. Actual results may differ materially from those described in such statements as a result of these risks and uncertainties. In particular, these forward-looking statements include, but are not limited to, statements regarding investing in sales and marketing to drive WebEx's growth and expand its market leadership, investments in technology enabling WebEx to expand its offerings, and guidance for 2002 and 2003 on anticipated revenues and earnings per share. Factors which could contribute to risks and uncertainties include, but are not limited to the failure of WebEx to meet financial expectations, decrease in demand for WebEx services, the failure of WebEx to meet projections in domestic and international direct sales activity, channel sales, customer retention and expense control, failures and interruptions in the software and systems underlying WebEx's services, the effects of competitive offerings, and the impact of general economic conditions. A fuller discussion of the risks and uncertainties that could affect WebEx Communications, Inc. are more fully set forth in WebEx Communications, Inc.'s filings with the Securities and Exchange Commission, including WebEx's Form 10-K, filed with the SEC on March 28, 2002 and Form 10-Q filed on August 14, 2002. WebEx Communications, Inc. assumes no obligation to update forward-looking information contained in this press release.
NOTE: MediaTone is a registered trademark and/or registered service mark of WebEx Communications, Inc.
WebEx Communications, Inc.
Unaudited Condensed Consolidated Statement of Operations
(In 000's - except per share amounts)
QTD YTD
September 30, September 30,
2002 2001 2002 2001
Total net revenues $36,757 $22,134 $99,568 $55,235
Total cost of revenues 6,303 5,693 18,243 15,654
Gross profit 30,454 16,441 81,325 39,671
Operating expenses:
Research and development 5,622 4,218 16,471 11,593
Sales and marketing 14,658 11,710 42,118 35,569
General and administrative 3,819 2,406 10,622 7,161
Total operating expenses
before equity-based
compensation 24,099 18,334 69,211 54,323
Operating income (loss)
before equity-based
compensation 6,355 (1,893) 12,114 (14,652)
Equity-based compensation 1,225 3,704 2,459 11,453
Operating income (loss)
including equity-based
compensation 5,130 (5,597) 9,655 (26,105)
Other income (expense), net 83 (515) 100 16
Net income (loss) before
income tax $5,213 ($6,112) $9,755 ($26,089)
Provision for income tax (164) -- (300) --
Net income (loss) $5,049 ($6,112) $9,455 ($26,089)
Net income (loss) per share
Basic $0.13 $(0.16) $0.24 $(0.73)
Diluted 0.12 (0.16) 0.22 (0.73)
Shares used in per share
calculations
Basic 39,857 37,588 39,453 35,848
Diluted 42,100 37,588 42,278 35,848
Reconciliation of net income before income tax as reported and net income
excluding equity-based compensation
(Unaudited) (in 000's)
QTD
September 30, 2002
Net income before income tax as reported $5,213
Add back equity-based compensation 1,225
Deduct income taxes (note 1) (2,575)
Net income excluding equity-based compensation $3,863
Note 1
Income taxes is calculated by applying a 40% effective tax rate to pre-tax
income, excluding equity-based compensation.The 40% effective tax rate is
based on combined US federal and state statutory tax rates.The company's
actual tax rate can differ from the statutory rate because of changes in
deferred tax valuation allowance, the effect of income taxed in foreign
jurisdictions, tax credits and other items.
WebEx Communications, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In 000's)
September 30, December 31,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents and short-term
investments $56,770 $42,146
Accounts receivable, net 17,737 17,938
Prepaid expenses and other 2,369 1,830
Total current assets 76,876 61,914
Property & equipment, net 23,664 25,362
Other assets 1,625 3,020
Total assets $102,165 $90,296
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $7,944 $9,156
Accrued expenses 9,015 6,695
Current portion of capital lease obligation 770 1,410
Short-term debt -- 5,500
Deferred revenue 8,417 8,136
Total current liabilities 26,146 30,897
Long-term portion of capital lease obligation -- 572
Total liabilities 26,146 31,469
Stockholders' equity:
Common stock 40 40
Additional paid-in capital 193,093 189,604
Accumulated deficit (115,665) (125,120)
Deferred equity-based compensation (1,759) (5,724)
Accumulated other comprehensive income 310 27
Total stockholders' equity 76,019 58,827
Total liabilities and stockholders' equity $102,165 $90,296<<
WEBX up to $13 AH, so it was wise to cover.
Cheers, Tuck |
