Judging by our 6-point drop today, I guess we didn't beat the whisper number, but nonetheless, these results look very good. Might be a nice buying opp...
Software.com Reports 74 Percent Increase in Fiscal 1999 Revenues
Record Fourth Quarter Revenue of $15.5 Million; Up 29 Percent Sequentially
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan. 26, 2000-- Software.com, Inc., (Nasdaq: SWCM), a leading developer of carrier-scale Internet infrastructure applications, today announced financial results for the fourth quarter and fiscal year ended Dec. 31, 1999.
For the fourth quarter ended Dec. 31, 1999, Software.com reported total revenue of $15.5 million, an increase of 101 percent over revenue of $7.7 million for the same quarter last year and 29 percent over revenue of $12.0 million reported in the third quarter ended Sept. 30, 1999.
Excluding acquisition-related costs, the company reported a net loss of $364,000, or $0.01 on a basic and diluted per share basis, versus a net loss of $2.3 million, or $0.08 per share, for the same quarter last year. Including acquisition-related costs in accordance with generally accepted accounting principles, the net loss for the quarter was $3.9 million, or $0.09 per share.
For the fiscal year ended Dec. 31, 1999, Software.com reported total revenue of $44.6 million, an increase of 74 percent over revenue of $25.6 million for the same period last year. Excluding acquisition-related costs, the company reported a net loss of $7.4 million, or $0.21 on a basic and diluted per share basis, versus a net loss of $8.2 million, or $0.29 per share, for the same period last year.
Including acquisition-related costs in accordance with generally accepted accounting principles, the net loss for the fiscal year was $10.9 million, or $0.31 per share.
Acquisition-related costs in 1999 consisted of a $3.2 million one-time charge for purchased in-process research and development and $329,000 of ongoing amortization of goodwill and other acquisition-related intangibles.
"Fiscal 1999 was a milestone year for Software.com. We saw our total licensed seats increase from 30 million on Jan. 1, 1999 to 75 million as of Dec. 31, 1999," said Software.com founder and Chief Executive Officer John L. MacFarlane. "We now have more than 59 major customers with more than 100,000 licensed seats each, representing many of the leading ISPs and telecommunications companies of the world."
"Our customers have activated more than 50 million mailboxes, clearly demonstrating that Software.com's InterMail(R) platform has the robust, flexible and scalable architecture capable of meeting the differentiated messaging requirements of our global customers," added MacFarlane. "Our flexible platform enables service providers to offer Webmail, consumer or business email, unified messaging, IP voicemail and wireless applications, allowing them to satisfy the growing demands of their consumer and business customers."
Fiscal 1999 Highlights
Acquisitions completed during the year:
-- In April 1999, Software.com acquired San Francisco-based
Mobility.Net, giving the company a high-performance, customizable
Web applications server technology that supports Webmail, address
book, calendar and task management applications. The acquisition
was accounted for as a pooling-of-interests.
-- In October 1999, Software.com acquired Telarc, Inc., a developer
of wireless and telephony Internet infrastructure applications
that enhances the company's position in the wireless messaging
market. The Telarc technology enables carrier-scale Short
Messaging Service (SMS) technologies, which have been integrated
with the InterMail platform at the Sprint PCS wireless
deployment. The Telarc solution strengthens Software.com's
ability to aggressively market and deploy wireless messaging
solutions to additional global service providers launching
wireless data and voice services. The acquisition was accounted
for as a purchase.
Strategic partnerships announced during the year:
-- In November 1999, Software.com announced a joint initiative with
Cisco Systems to extend unified communications services beyond
the desktop computer to the wireless market. This initiative
jumpstarts the convergence of Internet Protocol (IP) networks and
wireless networks, making it possible to realize the "access
anywhere" promise of wireless data communications. -- In December 1999, Nortel Networks selected the InterMail platform
as the messaging component of its Managed Application Services
Initiative, giving application service providers (ASPs) an
end-to-end solution. -- In October 1999, IBM announced the availability of Software.com's
InterMail and Post.Office(TM) messaging platforms pre-loaded on
IBM's RS/6000 servers. These pre-configured e-mail servers offer
customers a complete, ready-to-run messaging system. -- In March 1999, Hewlett-Packard selected the InterMail platform as
its preferred messaging application for the service provider
market. Hewlett-Packard markets these solutions to rapidly
growing service providers that are building the infrastructure to
offer hosted or "managed" messaging services and to those
offering Internet services to consumers and businesses. As part
of this alliance, Hewlett-Packard purchased a minority equity
interest in Software.com.
Major customer wins:
-- Sprint PCS licensed Software.com's carrier-scale InterMail
platform to provide the IP communications infrastructure for the
Sprint PCS 100-percent digital wireless messaging service. The
Sprint PCS service delivers electronic messages directly to
wireless telephones and other wireless devices from the Internet. -- Japan Telecom Co., Ltd. (JT) chose Software.com's InterMail
messaging platform to build a highly reliable messaging
infrastructure to respond to its rapidly increasing number of
dial-up Internet subscribers. -- Sonera, the leading telecommunications company in Finland, based
its Internet consumer service and Sonera BusinessMail service on
the InterMail platform, enabling it to offer differentiated
consumer, business and Webmail messaging services within a single
architecture. -- AT&T WorldNet(R) Service renewed its contract to use
Software.com's InterMail messaging platform for consumer dial-up
Internet email services. AT&T WorldNet(R) Service first deployed
Software.com's InterMail platform in March of 1996. -- Onebox.com licensed Software.com's InterMail platform as the
IP-based message storage technology to be incorporated into its
unified messaging service. Web-based onebox.com is a free service
that allows users to conveniently receive and forward voicemail
and fax messages through a user's onebox.com mail account, or
through any email service based on open Internet standards.
About Software.com
Founded in 1993, and with 75 million seats licensed, Software.com is a leader in carrier-scale Internet infrastructure applications for service providers. Built on native Internet standards and proven in real-world deployments to be scalable, highly reliable, available and manageable, Software.com's products and services are specifically designed to enable service providers to market Internet-based services to businesses and consumers.
Customers comprise many of the largest service providers worldwide, including: Excite@Home, Ameritech Interactive Media Services, AT&T Canada, AT&T WorldNet(R) Service, Bell Atlantic Internet Service, GTE Internetworking Services, Hongkong Telecom, Pacific Internet, PSINet, Sprint PCS, Road Runner, Telecom Italia Net, Telecom Malaysia, Telecom New Zealand and TeleDanmark.
The company has also established strategic relationships with Cisco Systems, Hewlett-Packard, IBM, Nortel Networks and Telcordia Technologies (formerly Bellcore), in order to further develop, market and sell its messaging solutions.
With headquarters in Santa Barbara, the company maintains offices throughout the United States, Europe and Asia. Software.com can be reached in the U.S. at 805/882-2470 or software.com.
Note To Investors
Except for historical information, the matters discussed in this release are forward-looking statements subject to certain risks and uncertainties which could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include the risk factors discussed in the company's filings with the U.S. Securities and Exchange Commission (SEC), including but not limited to Software.com's Form 10-Q for its most recently ended quarter and the registration statement on Form S-1 for the initial public offering of its common stock as declared effective on June 23, 1999. Copies of both are available from Software.com's Web site or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. The company assumes no obligation to update the forward-looking statements included in this document. |
