INTRAWARE ANNOUNCES RECORD SECOND QUARTER REVENUE REVENUE
B: INTRAWARE ANNOUNCES RECORD SECOND QUARTER REVENUE REVENUE GROWTH OF 134% AND
INCREASE IN MEMBERSHIP, CUSTOMER BASE AND VENDOR PARTICIPATION Reflects Market
Demand for IT e-Marketplace
ORINDA, Calif., Sep 29, 1999 /PRNewswire via COMTEX/ -- Intraware,
Inc. (Nasdaq: ITRA), the leading IT e-Marketplace for Web-based
software and services, today announced revenues of $19.2 million for
the second quarter ended August 31, 1999, which represents an increase
of 134% over revenues of $8.2 million reported in the quarter ended
August 31, 1998. Second quarter revenues increased 16% over $16.5
million reported in the previous quarter ended May 31, 1999.
Net loss was $4.6 million or a loss of $0.20 per share in the quarter
ended August 31, 1999, compared to a net loss of $2.3 million or a loss
of $0.66 per share in the quarter ended August 31, 1998. Net loss for
the prior quarter ended May 31, 1999 was $3.8 million or a loss of
$0.17 per share. Excluding the stock-based compensation charge, net
loss was $3.8 million or a loss of $0.17 per share for the quarter
ended August 31, 1999, compared to a net loss of $2.1 million or a loss
of $0.60 per share for the year earlier quarter ended August 31, 1998
and $3.0 million or a loss of $0.14 per share for the quarter ended May
31, 1999.
"We had an outstanding second quarter and continue to leverage our
first mover advantage as the leading business-to-business IT
e-Marketplace with new services, a completely redesigned commerce site,
increase in our customer base, and key strategic alliances with a host
of blue chip e-business software vendors," said Peter Jackson,
president and CEO of Intraware. "With the addition of Hewlett-Packard,
Novell, and Macromedia to our product offering, and a significant
outsourcing agreement with the Sun-Netscape Alliance to provide update
management services to the entire Alliance product line, we are well
positioned as a leading resource to the IT community."
"The significant growth in our services revenue coupled with the
broadening of our product sales mix indicates strong demand from
corporate IT customers for e-business software and services. Our
services help our customers reduce their time to market and establish
and build their presence on the web," said Don Freed, Chief Financial
Officer of Intraware.
Membership Increase Intraware announced that its membership and
customer base continued to grow and reached record levels during the
quarter. Intraware members and customers have access to the Intraware
IT Knowledge Center, intraware.shop, and Intraware SubscribNet services
that provide IT managers with the ability to efficiently research,
evaluate, purchase and update e-business software. As of August 31,
1999, Intraware's membership base increased to over 149,000
individuals, an increase of over 530% from August 31, 1998 and
approximately 24% from May 31, 1999.
Customer Base Growth Intraware posted approximately 3,299 total
customer accounts as of August 31, 1999, an increase of 137% from
August 31, 1998 and 24% from May 31, 1999. A sampling of customers that
purchased Intraware's products and services during the quarter include:
-- Entertainment: Nickelodeon
-- Education: Georgetown University
-- Financial Services: T. Rowe Price Association, Inc., Discover Financial
Services, Inc., Credit Suisse First Boston, Hartford Life, Connecticut
General Life Insurance, State Farm Insurance
-- Technology: Hitachi America, HAL Computer Systems, Inc., Motorola,
Caterpillar, Inc.
-- Publishing: Houghton Mifflin Company
-- Telecommunications: Bell Atlantic, Sprint
-- Transportation: Boeing, Delta Airlines, Inc.
Strategic Relationship Announcements
Intraware has announced significant strategic relationships which include:
-- Novell: Intraware will provide corporate customers with online software
delivery and maintenance services for all Novell software products.
-- Hewlett-Packard: Intraware will provide Electronic Software Delivery
(ESD) and proactive software updates for Hewlett-Packard's Firehunter
Service Assurance Solutions. This strategic relationship establishes
Intraware as the first, and currently only, web-based channel and
marketing partner for Hewlett-Packard's Firehunter(R) products.
-- Macromedia: Intraware will deliver Macromedia web publishing and
Generator software to enterprise customers and provide online sales and
Electronic Software Distribution (ESD) for Macromedia's Web Publishing
solutions.
-- Sun-Netscape Alliance: Intraware expanded its agreement with Netscape
to include update management for all software products represented in
the Sun-Netscape Alliance. This outsourcing agreement with the
Sun-Netscape Alliance provides update management services to the
Alliance's customers worldwide through the company's SubscribNet
service. This agreement broadens the reach of Intraware's update
management service to include many Sun software products that until now
have been updated via traditional distribution methods to deliver
updates.
-- Intraware also signed agreements with a number of other software
vendors, including NetObjects, Vervet Logic, Extensibility,
Internetivity, and Hyperwave to provide comprehensive electronic
software purchase and delivery services.
-- Intraware signed an agreement with the Butler Group to provide IT
professionals with European IT research resources broadening the
content available to IT professionals in its IT Knowledge Center.
Value Added Services Intraware announced the launch of the Intraware
Solution Provider Network (ISPN), a service that helps Intraware
customers in the implementation phase of software management by
providing access to Intraware's partner network of e-consulting firms.
The launch of ISPN extends Intraware's services offering, and
reinforces the support to customers in varying stages of e-business
initiatives -- from software evaluation and procurement to
implementation and maintenance. The company launched Intraware
UpdateWatch, a free service that provides IT professionals with
proactive software update notifications from over 36 vendors, including
Microsoft, Oracle, Lotus, and IBM, and significantly expanded the
breadth and depth of its software analysis service, Intraware
Compariscope, by adding new categories and products.
Forward Looking Statements The statements contained in this release
which are not historical facts may be deemed to contain forward-looking
statements, including but not limited to statements regarding the
Company's competitive position and business model, leveraging its first
mover advantage, and demand for the company's products and services.
Actual results may differ materially from those anticipated in any
forward-looking statements as a result of certain risks and
uncertainties, including, without limitation, the competitive nature of
the market in which the Company competes and the early stage of
development of this market and the other risks and uncertainties
detailed in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on May 28, 1999.
About Intraware Intraware, Inc. is the leading IT e-Marketplace for
Web-based software and services. The company enables IT professionals
worldwide to efficiently and cost-effectively research, evaluate,
purchase, download, and update business-class software online. As a
business-to-business e-commerce company, Intraware provides software
through its premier online purchasing service, intraware.shop,
comprehensive IT information and interactive research services through
the Intraware IT Knowledge Center, and software update management
services through Intraware SubscribNet.
Intraware's unique spectrum of innovative Internet-based services has
attracted strategic relationships with industry-leading vendors
including Allaire, Bluestone Software, Hewlett-Packard, Informix,
Infoseek, Macromedia, Novell, PeopleSoft, Sun-Netscape Alliance,
Sybase, and Vignette. Intraware is a publicly-held company with
headquarters located at 25 Orinda Way, Orinda, California 94563;
925-253-4500; FAX 925-253-4599; intraware.com.
INTRAWARE, INC.
STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Three Months Ended
August 31, 1999 August 31, 1998
(Unaudited) (Unaudited)
Net Revenues:
Software product sales $16,291 $8,183
Online services 2,867 63
Total net revenues 19,158 8,246
Cost of net revenues:
Software product sales 13,993 6,832
Online services 270 109
Total cost of
net revenues 14,263 6,941
Gross Profit 4,895 1,305
Operating expenses:
Sales and marketing 6,380 2,364
Product development 1,313 433
General and administrative 1,740 658
Stock option compensation 755 181
Total operating expenses 10,188 3,636
Loss from operations (5,293) (2,331)
Interest and other income
(expense),net 697 47
Net Loss $(4,596) $(2,284)
Basic and diluted
net loss per share $(0.20) $(0.66)
Shares used in computing
basic and diluted
net loss per share 22,643 3,477
INTRAWARE, INC.
BALANCE SHEET
(in thousands)
August 31, 1999 February 28, 1999
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $8,436 $1,792
Short term investments $12,148 --
Accounts receivable, net 18,205 11,422
Other current assets 11,013 19,478
Total current assets 49,802 32,692
Property and equipment, net 4,215 1,962
Long term investments 34,812 --
Other Assets 900 352
$89,729 $35,006
Liabilities and Shareholders' Equity
Current liabilities:
Deferred revenue 14,660 13,218
Other current liabilities 15,349 20,651
Total current liabilities 30,009 33,869
Long term deferred revenue 919 --
Other long term obligations 118 168
31,046 34,037
Total shareholders' equity 58,683 969
Total liabilities and
shareholders' equity $89,729 $35,006
CONTACT: Mark Long, 925-253-6533, or mlong@intraware.com, or Carole
Sinclair, 925-253-6707, or carole@intraware.com, both of Intraware,
Inc.; or Fiona Hughes of Dave & Bairey Communications, 925-672-9547, or
fiona@dbcomm.com, for Intraware, Inc.
SOURCE Intraware, Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: Mark Long, 925-253-6533, or mlong@intraware.com, or Carole
Sinclair, 925-253-6707, or carole@intraware.com, both of
Intraware, Inc.; or
Fiona Hughes of Dave & Bairey Communications, 925-672-9547, or
fiona@dbcomm.com, for Intraware, Inc.
WEB PAGE: intraware.com
GEOGRAPHY: California
INDUSTRY CODE: CPR
MLM
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