GeoTel Communications Corporation Announces Record Fourth Quarter and Full Year 1997 Financial Results
Year-over-Year Revenues Increase 106%; Net Income Reaches New High
LOWELL, Mass.--(BUSINESS WIRE)--Jan. 21, 1998-- GeoTel Communications Corporation (NASDAQ: GEOC - news), a leader in customer-interaction software solutions, today reported results for its fourth quarter and 1997 full year ended December 31, 1997.
The Company announced revenues of $6,257,000 for the quarter ended December 31, 1997, a 127% increase over the $2,763,000 in revenue reported for the comparable period last year. Net income of $3,060,000, or $0.22 per share, was reported for the fourth quarter of 1997, compared with $430,000, or $0.03 per share, for the corresponding quarter in 1996.
For the year ended December 31, 1997, revenues increased to $18,611,000, representing 106% year-over-year growth in comparison to the $9,047,000 in revenue reported for the year ended December 31, 1996. Net income for the full year 1997 was $6,253,000, or $0.45 per share, compared to $657,000, or $0.06 per share, for the year ended December 31, 1996.
Earnings per share for the fourth quarter and full year reflect a one-time tax benefit of $0.07 per share related to the elimination of valuation allowances placed against certain deferred tax assets.
During the fourth quarter, GeoTel added a number of significant new customers to its installed base including Capital One, First USA, Hewlett-Packard, and Pacific Gas & Electric. The Company now serves a total of 231 call-answering sites through 31 customer-premises installations of its flagship product, the Intelligent CallRouter(R). Also during Q4, Optus Communications became GeoTel's second customer for the Network Intelligent CallRouter(TM). Moreover, revenues for the quarter included approximately $1,500,000 related to ongoing deployment of the Network Intelligent CallRouter at BT. Altogether, new system installations accounted for 70% of quarterly software-license revenues.
''The rapid growth in revenues and profits achieved by GeoTel during 1997 confirms that our products and services are delivering quantifiable, mission-critical benefits to customers,'' said GeoTel President and CEO, John C. Thibault. ''We also received a number of new customer orders in the fourth quarter, setting a positive tone for business as we enter 1998. We attribute these results to continued execution of the Company's operating plan, including expansions to our product offerings and distribution channels as well as a firm commitment to ensuring the success of each customer installation.
''During 1997, GeoTel's served market was extended to include both domestic and international Network Service Providers with our introduction of the Network Intelligent CallRouter and the announcement of BT as our first customer for this product. We also issued two major releases of our customer-premises solution, the Intelligent CallRouter, encompassing such enhancements as enterprise-wide CTI capabilities, an expanded portfolio of IVR interfaces, and seamless integration with external applications.''
Thibault continued, ''In terms of distribution, our direct sales organization nearly doubled during 1997, including the establishment of a GeoTel presence in Europe. Our indirect channel was also strengthened by the implementation of agreements with BT, Hewlett-Packard, Lucent Technologies, and Sprint. These product and distribution initiatives -- coupled with outstanding performance by our Customer Services organization to ensure the ongoing satisfaction of every GeoTel customer -- contributed to a more than 100% increase in the number of call centers utilizing GeoTel solutions.''
About GeoTel Communications
GeoTel Communications Corporation (NASDAQ: GEOC - news), with headquarters in Lowell, Mass., is a leading global provider of telecommunications software products that enable customer-oriented companies to deliver a high level of customer service responsiveness through enhanced call routing technology. GeoTel's flagship software product, the Intelligent CallRouter(R) (ICR), is an enterprise-wide, fault tolerant, open solution that creates a virtual call center network from groups of geographically dispersed agents. GeoTel customers include some of the world's largest users of telecommunications and technology services. The Company's software is distributed through its partners and through a direct sales force. GeoTel product and Company information is located on the World Wide Web at geotel.com
Statements in this press release that are not based on historical information may be considered forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, without limitation, changes in the market, new products and announcements from other companies, changes in technology, and the impact of competitive products and pricing. Additional information on the factors that could affect the Company's financial results is included in the Company's 1996 Form 10-K which is filed with the Securities and Exchange Commission.
Intelligent CallRouter is a registered trademark and Network Intelligent CallRouter is a trademark of GeoTel Communications Corporation. All other company and product names are trademarks or registered trademarks of their respective holders.
-0-
GEOTEL COMMUNICATIONS CORPORATION
STATEMENT OF OPERATIONS AND SELECTED BALANCE SHEET DATA
FOURTH QUARTER 1997
(in thousands except for per share data)
Fourth Quarter Year
1997 1996 1997 1996
INCOME STATEMENT
Revenues:
Software license $ 5,046 $ 2,262 $ 14,651 $ 7,880
Services and other 1,211 501 3,960 1,167
Total revenues 6,257 2,763 18,611 9,047
Cost of Revenues:
Cost of software license 184 62 514 297
Cost of services and other 1,063 426 3,070 1,414
Total cost of revenues 1,247 488 3,584 1,711
Gross Profit 5,010 2,275 15,027 7,336
Operating Expenses:
Research and development 1,204 876 4,023 3,086
Sales and marketing 1,820 791 5,632 2,760
General and administrative 534 347 1,916 1,052
Total operating expenses 3,558 2,014 11,571 6,898
Income from operations 1,452 261 3,456 438
Other income 554 185 1,969 316
Income before income taxes 2,006 446 5,425 754
Provision for income taxes (1,054) -- (828) --
Net income 3,060 446 6,253 754
Accretion of convertible
preferred stock to
redemption value -- (16) -- (97)
Net income available to common
stockholders $ 3,060 $ 430 $ 6,253 $ 657
Net income available per
common share:
Basic earnings per share $ 0.23 $ 0.06 $ 0.48 $ 0.19
Diluted earnings per share $ 0.22 $ 0.03 $ 0.45 $ 0.06
Weighed average number of common
and common equivalent shares:
Basic shares 13,134 7,047 13,113 3,466
Diluted shares 13,874 12,381 13,831 11,731
-0-
SELECTED BALANCE SHEET DATA 31-Dec-97 31-Dec-96
Cash and cash equivalents $40,428 $33,263
Accounts receivable 3,686 2,121
Other current assets 2,410 524
---------- -----------
Total current assets 46,524 35,908
Total assets 50,273 36,924
Liabilities 10,347 4,487
Stockholders' equity 39,926 32,437
========== ===========
Total liabilities and equity 50,273 36,924
========== =========== |
