SCIENT Reports Robust Fourth Fiscal Quarter and Fiscal Year 2000 Results; Record Fiscal Year Poises Scient for Continued Growth and Expansion biz.yahoo.com
SAN FRANCISCO, CALIFORNIA--Scient (Nasdaq:SCNT - news), The eBusiness Systems Innovator(TM), today reported its financial results for its fourth fiscal quarter and fiscal year ended March 31, 2000.
Revenues for the fourth fiscal quarter were $65.8 million, a sequential increase of 54% over revenues of $42.7 million for the third quarter ended December 31, 1999, and an increase of over 600% over revenues of $9.4 million for the same period a year ago. Total headcount grew to 1,180 colleagues, up from 874 at the end of the third fiscal quarter. Professional services headcount grew to 828 colleagues, up from 609 at the end of the third fiscal quarter.
Professional services margins expanded to 57% for the quarter, up from 53% in the third fiscal quarter and 54% in the same period a year ago. Scient turned profitable for the first time in the fourth fiscal quarter, generating pro forma net income (fully taxed, excluding stock compensation charges) of $3.4 million, representing earnings per diluted share of $0.04. This compares to a pro forma net loss (excluding stock compensation charges) of $0.3 million, or net loss per diluted share of $0.00, in the third fiscal quarter, and a pro forma net loss of $2.3 million, or net loss per diluted share of $0.05 in the same period a year ago.
Revenues for the fiscal year ended March 31, 2000 were $155.7 million, an increase of over 650% over revenues of $20.7 million for Scient's fiscal year 1999. Professional services margins were 55% for the fiscal year, up from 51% in the prior fiscal year. Pro forma net loss (fully taxed, excluding stock compensation charges) was $2.6 million for the fiscal year, representing a net loss per diluted share of $0.04, compared to fiscal year 1999's pro forma net loss (excluding stock compensation charges) of $4.0 million and net loss per diluted share of $0.09.
Commenting on these results, Bob Howe, Chairman and CEO of Scient, said, ``By every measure, we believe this was a landmark quarter for Scient. We helped 5 of our clients launch their eBusinesses in the quarter, raising the total number of end-to-end eBusinesses we have helped launch to over 20 since our inception. In addition to reporting accelerated revenue growth and continued rapid expansion of our global business, we are also pleased to report profitability for the first time this quarter.''
``As expected, Scient turned profitable this quarter,'' added Bill Kurtz, executive vice president and CFO of Scient, ``while continuing to make the investments that we believe will enable Scient to continue to expand rapidly on a worldwide basis. Scient's goal is to continue to improve profitability while continuing to outpace the industry growth rates.''
``As Scient embarks on its new fiscal year, we believe we are uniquely positioned to capitalize on the increasing global demand for systems innovation,'' stated Bob Howe. ``We have developed a strong brand and now have just under 1,200 colleagues in 11 offices worldwide, including London, Munich and Singapore. We are excited about our broadening client opportunities across all of our global business units, and expect to continue to drive the innovation, scale and leverage of our business globally.''
Fiscal Q4 Operational Highlights
Served 58 clients, including 24 new clients
-- 6 new eMarkets clients
-- 18 new enterprise clients across all Business Units
-- 7 new international clients
Helped 5 clients successfully launch their eBusinesses, including:
-- Verde Media (environmental new media company)
-- WineShopper.com (Internet-based wine seller)
-- Major telecom client
In process of helping 2 additional clients launch their eBusinesses:
-- FasTurn (e-marketplace for the global apparel industry)
-- Wall Street Rarities (online rarities collectibles)
Extended operations relationships with sephora.com and
WineShopper.com and entered into 3 additional relationships:
-- American Tuition
-- FasTurn
-- PowerSpring (Metretek)
Continued domestic expansion through the opening of the Los
Angeles office
-- Promoted Joe Galuszka to Chief Morale Officer and appointed Mark
Steinke to the Leadership Team as Vice President of Recruiting
-- Hosted eBusiness Innovation Days in London and Dallas
-- Priced 2.7 million share follow-on offering on January 20th,
generating net proceeds of approximately $155 million for Scient
-- Closed 10 Scient Capital investments
About Scient©: The eBusiness Systems Innovator(TM)
Scient is the premier firm in systems innovation. Scient delivers
electronic businesses to create unassailable market positions for
clients. Scient provides:
-- eBusiness strategy.
-- eBusinesses that are rapidly architected, engineered, and
delivered.
-- Just-in-time innovations that enhance and extend eBusinesses.
Headquartered in San Francisco with offices in New York, Dallas, Austin, Boston, Chicago, Los Angeles, Silicon Valley, London, Munich and Singapore, Scient can be reached at www.scient.com or 415/733-8200.
``Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to the Company as of the date hereof and the Company assumes no obligation to update any such forward-looking statement. Actual results could differ materially from the Company's current expectations. Other factors that could cause or contribute to differences between actual results and expectations include but are not limited to, our ability to establish and expand international operations; our dependence on key personnel; our ability to attract, train and retain qualified personnel; the highly competitive market in which we operate; our ability to manage growth; our reliance on a limited number of clients and our lack of long-term contracts; the potential loss of major clients; our ability to meet client expectations; the development and sustainability of a market for systems innovation services; our ability to establish and maintain successful relationships with our alliance partners; our ability to integrate potential future acquisitions. This list should not be considered inclusive of all risk factors. In evaluating this information, you should specifically review and consider the risks outlined in our Form 10Q Quarterly Report for the period ended December 31, 1999 on file with the Securities and Exchange Commission.
SCIENT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31
2000 1999
ASSETS
Current assets
Cash and cash equivalents $ 108,102 $ 11,261
Short-term investments 121,046 16,868
Accounts receivable, net 56,021 5,876
Prepaid expenses and other 9,157 1,129
Total current assets 294,326 35,134
Long-term investments 3,146 --
Notes receivable -- 160
Property and equipment, net 16,063 3,410
Other 219 108
--------- ---------
$ 313,754 $ 38,812
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Bank borrowings, current $ 1,334 $ 413
Accounts payable 5,023 832
Accrued expenses 43,241 4,632
Deferred revenue 6,579 524
Capital lease obligations,
current 2,624 625
Total current liabilities 58,801 7,026
Bank borrowings, long-term 865 1,129
Capital lease obligations, long-term 2,052 680
--------- ---------
61,718 8,835
Commitments
Stockholders' equity
Convertible preferred stock -- 1
Common stock 7 3
Additional paid-in cap 297,688 70,055
Unearned compensation (16,784) (27,222)
Accumulated deficit (28,875) (12,860)
Total stockholders' equity 252,036 29,977
--------- ---------
$ 313,754 $ 38,812
SCIENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
March 31 March 31
2000 1999 2000 1999
(unaudited)
Revenues $ 65,843 $ 9,387 $ 155,729 $ 20,675
Operating
expenses
Professional
services 28,175 4,290 70,207 10,028
Selling,
general and
administrative 34,545 7,608 90,854 15,315
Stock compensation 3,418 3,823 15,636 7,679
Total Operating
expenses 66,138 15,721 176,697 33,022
Loss from
operations (295) (6,334) (20,968) (12,347)
Interest income,
net 2,528 185 4,953 646
Net income/(loss) $ 2,233 $ (6,149) $(16,015) $(11,701)
Net income/(loss)
per share:
Basic $ 0.04 $ (0.40) $ (0.29) $ (0.89)
Diluted $ 0.03 $ (0.40) $ (0.29) $ (0.89)
Weighted average
common shares:
Basic 61,781 15,246 54,590 13,198
Diluted 83,413 15,246 54,590 13,198
Pro forma information:
(unaudited)
Pro forma
net income/
(loss)(a) $ 3,391 $ (2,326) $ (2,639) $ (4,022)
Pro forma
net income/
(loss) per
diluted
share (a)(b) $ 0.04 $ (0.05) $ (0.04) $ (0.09)
Shares used
in computing
pro forma
net income/
(loss) per
diluted
share (b) 83,413 48,618 78,892 46,374
(a) Excludes stock compensation expense and includes pro forma tax
expense of 40% for the quarter ended March 31, 2000
(b) Includes all common stock equivalents including the conversion
of Scient's preferred stock, which converted to common stock upon the
closing of Scient's initial public offering, as if the conversion
occurred as of the beginning of the period.
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Contact:
Scient
Jeb Miller, 415-591-3907 (Investor Relations)
jmiller@scient.com
Meredith McGann, 415-733-8849 (Media Relations)
mmcgann@scient.com |
