CLARIFY ANNOUNCES RECORD THIRD QUARTER 1999 REVENUE AND EARNINGS REVENUE UP
84 PERCENT AND NET INCOME UP 195 PERCENT YEAR-OVER-YEAR
SAN JOSE, Calif., Oct 21, 1999 /PRNewswire via COMTEX/ -- Clarify
Inc. (Nasdaq: CLFY), the world's second largest provider of front
office solutions, today announced record revenues of $63.3 million for
the quarter ended Sept. 30, 1999, an increase of 21 percent from
revenues of $52.3 million reported in the second quarter of 1999, and
an increase of 84 percent from $34.5 million in revenues reported in
the third quarter of 1998. Net income for the third quarter of 1999 was
$5.9 million or $0.23 per diluted share versus net income of $3.4
million or $0.14 per share for the second quarter of 1999, and net
income of $2.0 million or $0.09 per diluted share for the third quarter
of 1998.
(Photo: newscom.com )
Revenues for the nine-month period ended Sept. 30, 1999 were $159
million, up 78 percent from $89 million a year ago. Net income for the
first nine months of 1999 was $12 million or $0.47 per diluted share
versus a net income of $3.8 million or $0.17 per diluted share for the
first nine months of 1998.
"During the third quarter, we continued to see an amazing response to
Clarify eFrontOffice and its expanded e-functionality. New dot.com
customers such as @Link, edocs, Inc. and Responsys.com -- as well as
new brick-and-mortar customers like International Data Corporation,
Legg Mason, and Max.Mobil Telekommunikations -- are using eFrontOffice
to improve return on relationship. Existing customers such as Autodesk,
Motorola and Hewlett-Packard continue to expand their Clarify-based
front offices significantly. All of these cutting-edge companies are
using Clarify to differentiate themselves and build customer loyalty by
dazzling their customers, which is crucial to success in the Internet
economy," said Tony Zingale, Clarify's president and chief executive
officer.
"Our outstanding growth has been facilitated by Ernst & Young,
PricewaterhouseCoopers (PwC) and other key strategic partners. In fact
our partners are bringing us into more deals than ever before. In
August we announced an expanded global alliance with PwC's CRM
practice, which is comprised of 1,600 consultants. Dennis Cunningham,
our newly appointed vice president of strategic alliances is working to
develop our partnership program even further. Our focus on being the
partner of choice is clearly paying off.
"Obviously, our playing field will expand enormously due to our
recently announced acquisition by Nortel Networks. Nortel's global
reach, market presence and commitment to Clarify's vision will allow us
to really juice up our strategic programs. We look forward to reaching
beyond the front office as we know it today, to grab the huge
opportunity that the convergence of the high-performance Internet and
communications brings to the next wave of e-business. We truly believe
this acquisition will be a win-win for our customers, partners and
employees," Zingale concluded.
About Clarify Clarify Inc. is the world's second largest front office
software provider. Clarify eFrontOffice combines customer relationship
management, Internet relationship management and e-business
capabilities in a single solution allowing companies to quickly deploy
e-business sales and service initiatives. Clarify is the choice of
leading corporations including British Telecommunications, Compaq,
Ericsson, E*TRADE, First USA, General Electric, giggo.com, Gillette,
Microsoft, Nortel Networks, Prudential, Sony Corp and Toyota. Founded
in 1990, Clarify is headquartered in San Jose, California. Its products
are marketed through resellers, including Compaq and Hewlett-Packard,
as well as a direct sales and service organization with offices in Asia
Pacific, Europe, North America and South America. Contact Clarify at
888-CLARIFY or 408-965-7000, via e-mail at info@clarify.com or the Web
at www.clarify.com.
NOTE: Clarify is a registered trademark and Clarify eFrontOffice is a
trademark of Clarify Inc. All other trademarks are the properties of
their respective companies. In addition to historical information
contained herein, this news release contains forward-looking statements
that involve risks and uncertainties, including the statements relating
to market demand for Clarify eFrontOffice, Clarify's ability to
continue to win business in the telecommunications and other markets,
Clarify's ability to develop and foster relationships with leading
system integrator partners, and Clarify's ability to conclude the
acquisition by Nortel Networks successfully. The Company's actual
results could differ materially from those discussed in such
forward-looking statements. Additional information concerning factors
that could cause actual results to differ materially from those in the
forward-looking statements is contained in the Company's filings with
the Securities and Exchange Commission.
Clarify Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data; unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
1999 1998 1999 1998
Revenues:
License fees $36,940 $22,480 $89,780 $58,236
Services 26,392 11,977 69,304 30,946
Total revenues 63,332 34,457 159,084 89,182
Cost of revenues:
License fees 848 477 2,598 1,592
Services 13,786 6,974 38,044 18,392
Total cost of revenues 14,634 7,451 40,642 19,984
Gross margin 48,698 27,006 118,442 69,198
Operating expenses:
Research and development 7,814 4,987 20,287 14,691
Sales and marketing 27,959 16,827 70,049 42,348
General and administrative 4,023 2,413 10,415 7,149
Total operating expenses 39,796 24,227 100,751 64,188
Operating income 8,902 2,779 17,691 5,010
Interest and other income
(expense), net 769 409 2,002 1,036
Income before income taxes 9,671 3,188 19,693 6,046
Provision for income taxes 3,772 1,180 7,680 2,237
Net income $5,899 $2,008 $12,013 $3,809
Diluted earnings per share $0.23 $0.09 $0.47 $0.17
Shares used in EPS
calculation 26,120 22,108 25,303 22,147
Clarify Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
(unaudited)
ASSETS
Cash and investments $78,155 $57,704
Accounts receivable, net 63,094 45,224
Prepaid and other current assets 4,362 2,604
Deferred income tax assets 6,794 6,794
Property and equipment, net 14,721 8,437
Other noncurrent assets 1,558 1,837
Total assets $168,684 $122,600
LIABILITIES
Accounts payable $12,565 $ 5,826
Accrued payroll and related accruals 13,921 9,589
Other accrued liabilities 11,851 10,780
Deferred revenue 31,921 25,086
Total current liabilities 70,258 51,281
STOCKHOLDERS' EQUITY
Total stockholders' equity 98,426 71,319
Total liabilities and
stockholders' equity $168,684 $122,600
SOURCE Clarify Inc.
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Jan Praisner, 408-965-7000, or Willa Patch, 408-965-7630, both
of Clarify Inc.
/Photo: NewsCom:
newscom.com
AP Archive: photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
WEB PAGE: clarify.com
GEOGRAPHY: California
INDUSTRY CODE: CPR
SUBJECT CODE: ERN
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