Not Bad although I do not know the whipser #s.
CacheFlow Announces Fourth Quarter and Fiscal Year 2000 Results
Net Sales of $12.8 Million, 59 Percent Sequential Growth; Pro Forma Net Loss of $0.20 Per Share
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 17, 2000--CacheFlow Inc. (Nasdaq: CFLO), a leading provider of Internet caching appliances and content management services, today reported results for its fourth quarter and fiscal year ended April 30, 2000.
Fourth quarter net sales increased 59 percent sequentially to $12.8 million, from $8.0 million in the prior quarter. Net loss for the quarter, excluding stock compensation expense, was $6.2 million, or a pro forma net loss of $0.20 per share compared to a net loss of $2.5 million, or a pro forma net loss of $0.14 per share during the fourth quarter of 1999. Pro forma net loss per share uses a weighted average share count that gives effect to the conversion of all preferred shares and certain warrants as if the conversion took place on the date of original issuance. Including stock compensation expense, net loss for the fourth quarter of fiscal 2000 was $17.7 million, or a pro forma net loss of $0.56 per share.
For the year, net sales rose 316 percent to $29.3 million from $7.0 million in 1999. Net loss, excluding stock compensation expense, was $22.3 million, or a pro forma net loss of $0.82 per share. Including stock compensation expense, net loss for the year was $62.7 million, or a pro forma net loss of $2.30 per share.
Performance Highlights
"Fiscal 2000 was a phenomenal year for CacheFlow -- our team really delivered," said Brian NeSmith, CacheFlow President and CEO. "We continued to achieve impressive growth in revenue, gaining market share from our competitors, while not only maintaining, but increasing our gross margins. We added more than 200 new customers in fiscal 2000 ending the year with 295 customers, and we tripled headcount, ending the year with 306 employees."
NeSmith continued, "Over the past twelve months, we have delivered the broadest portfolio of caching appliances available in the market, developed significant strategic partnerships with other industry leaders, expanded our distribution channels, and put in place a strong corporate infrastructure. The net result is a dynamic organization fully equipped to provide powerful network content management solutions for our customers. This success has come as a direct result of our relentless focus on the Internet caching appliance market. Overall -- fiscal 2000 was a great year for us -- we're meeting our customer and financial objectives and we're successfully managing rapid growth."
Quarterly Highlights:
CacheFlow made a number of significant announcements during the quarter:
Strategic Relationships and Geographic Channel Expansion
-- In February, the company announced Alcatel had partnered with
CacheFlow to expand its broadband solutions. The combination
of Alcatel's and CacheFlow's products will offer service
providers a comprehensive solution for building
high-performance DSL and broadband wireless networks. The
Alcatel and CacheFlow family will also increase performance
for Web hosters and allow service providers to deploy
worldwide content distribution networks. Under the terms of
the deal, Alcatel will immediately begin reselling CacheFlow's
award-winning family of products through its worldwide
channels.
-- Also in February, the company announced a joint product
development and reseller partnership with Hewlett-Packard. The
alliance also includes a global reseller agreement.
-- In March, the company announced a strategic alliance with
Akamai. The alliance includes a major initiative to integrate
caching and content delivery technologies to accelerate and
optimize Web performance. The combined solution will help
E-commerce and content sites better service online customers
through enhanced performance, scalability and reliability. In
addition to the technology integration, CacheFlow will also
resell Akamai's FreeFlow(SM) service with its caching
appliances.
-- In April, CacheFlow announced a global reseller agreement with
Computer Sciences Corporation. Under the terms of the deal,
CSC will integrate CacheFlow appliances into solutions offered
by its Global Infrastructure Services Group.
-- Earlier this week, the company announced that it had signed a
distribution agreement with Westcon. Under the terms of the
deal, Westcon will serve as CacheFlow's primary distribution
arm within North America. CacheFlow appliances will be the
preferred caching solution offered by Westcon through its
network of value-added resellers.
Enhanced Product Offerings
E-commerce offering
-- In April, CacheFlow announced the CacheOS/s operating system,
the first caching solution built explicitly for E-commerce
environments. This product allows Web sites to deliver fast
response times and high levels of scalability to attract and
retain online customers. CacheOS/s offers full support for the
CacheFlow Akamaizer, a result of the alliance with Akamai
Technologies.
Streaming
-- Last week, CacheFlow announced that it has natively integrated
multimedia support into its CacheOS(TM) software to optimize
the delivery of live and on-demand streaming content. This
industry-first initiative includes support for the three major
vendor-backed streaming formats, starting with RealNetworks(R)
RealSystem(R), to be followed by Microsoft(R) Windows
Media(TM) and Apple(R) QuickTime(TM), along with support for
other leading formats including MP3 and MPEG. CacheFlow's
streaming solutions allow enterprises, service providers and
e-commerce/media sites to fully exploit the power of Web-based
multimedia for online training, corporate broadcasts, product
and service demonstrations, interactive advertising,
pay-per-view events and all forms of audio and video
entertainment.
Outlook
Looking ahead, NeSmith said, "Clearly, we emerged from our fiscal year 2000 as a leader in Internet caching appliances, with powerful solutions for enterprise, e-commerce and service provider clients. We are still in the early stages of the market opportunity, and demand remains strong for our products. We're rapidly expanding our infrastructure and broadening our operations and distribution channels geographically." NeSmith concluded, "CacheFlow is now very well positioned to leverage our core appliance foundation and increase market share."
About CacheFlow Inc.
CacheFlow is a leading provider of Internet caching appliances that accelerate and optimize the flow of information over the Internet. CacheFlow solutions -- containing the CacheOS(TM) operating system -- boost the performance of e-commerce Web sites, enhance the productivity of Internet users and reduce overall network costs for Internet service providers and enterprises. In addition, CacheFlow Internet caching appliances are designed to provide better network security and more up-to-date content than traditional caching solutions. Based in Sunnyvale, Calif., CacheFlow can be contacted via telephone at 408/220-2200, fax at 408/220-2250 or e-mail at info@cacheflow.com. Investors and financial analysts may contact CacheFlow Investor Relations at 408/220-2318. For more information, visit www.cacheflow.com.
The statements contained in this press release that are not purely historical are forward-looking statements, including statements regarding CacheFlow's expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to CacheFlow as of the date hereof, and CacheFlow assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to CacheFlow's business are set forth in CacheFlow's Form S-1, as amended and declared effective by the Securities and Exchange Commission on November 18, 1999, the Form 10-Q for the period ended January 31, 2000, and other reports filed from time to time with the Securities and Exchange Commission.
Note to Editors: CacheFlow and CacheOS are registered trademarks of CacheFlow Inc. in the U.S. and worldwide.
RealNetworks and RealSystem are trademarks or registered trademarks of RealNetworks, Inc. All other companies or products listed herein are trademarks or registered trademarks of their respective owners.
CACHEFLOW INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts)
Three Months Ended 12 Months Ended
April 30, April 30,
2000 1999 2000 1999
Net sales $ 12,794 $ 2,944 $ 29,277 $ 7,036
Cost of goods sold 4,864 1,157 11,212 3,297
Gross profit 7,930 1,787 18,065 3,739
Operating expenses:
Research and development 2,991 1,343 9,646 4,034
Sales and marketing 11,074 2,157 28,903 6,865
General and administrative 1,959 599 4,757 2,069
Stock compensation 11,536 2,099 38,405 3,776
Total operating expenses 27,560 6,198 81,711 16,744
Operating loss (19,630) (4,411) (63,646) (13,005)
Interest income
(expense), net 1,970 (186) 3,033 (197)
Net loss before
income taxes (17,660) (4,597) (60,613) (13,202)
Provision for
income taxes (73) - (73) -
Net loss (17,733) (4,597) (60,686) (13,202)
Accretion of
preferred stock - - (1,967) -
Net loss available to
common stockholders $(17,733) $ (4,597) $(62,653) $(13,202)
Basic and diluted net
loss per common share $ (0.56) $ (0.63) $ (3.31) $ (2.17)
Shares used in computing
basic and diluted net
loss per common share 31,471 7,349 18,933 6,093
Pro forma basic and
diluted net loss
per common share $ (0.56) $ (0.26) $ (2.30) $ (0.79)
Shares used in computing
pro forma basic and
diluted net loss per
common share (a) 31,471 17,902 27,216 16,626
Pro forma net loss per
share, excluding stock
compensation expense:
Net loss available to
common stockholders $(17,733) $ (4,597) $(62,653) $ (13,202)
Add:Stock compensation 11,536 2,099 38,405 3,776
Add:Preferred stock
accretion - - 1,967 -
Net loss excluding stock
compensation expense $ (6,197) $ (2,498) $(22,281) $ (9,426)
Pro forma basic and
diluted net loss
per common share
excluding stock
compensation expense $ (0.20) $ (0.14) $ (0.82) $ (0.57)
Shares used in computing
pro forma basic and
diluted net loss per
common share (a) 31,471 17,902 27,216 16,626
(a) The pro forma basic and diluted share calculations above give effect to the conversion of all shares of preferred stock outstanding at April 30, 2000 and 1999, respectively, into a like number of shares of common stock, as if the conversion took place on the date of original issuance. These calculations also reflect the cash exercise of certain warrants outstanding as of April 30, 2000 and 1999, respectively, to purchase common shares, as if the exercises took place on the date of original issuance.
CACHEFLOW INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, April 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 91,532 $ 2,291
Short-term investments 33,788 -
Accounts receivable, net 3,112 1,353
Inventories 4,741 932
Prepaid expenses and
other current assets 1,200 60
Total current assets 134,373 4,636
Property and equipment, net 4,721 1,351
Other assets 1,640 729
Total assets $140,734 $ 6,716
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 2,465 $ 1,464
Accrued payroll and related benefits 2,611 420
Deferred revenue 1,375 367
Other accrued liabilities 1,487 166
Borrowings under line of credit - 643
Current portion of long-term obligations - 789
Total current liabilities 7,938 3,849
Other long-term liabilities 166 -
Long-term obligations,
less current portion - 3,211
Total liabilities 8,104 7,060
Commitments
Stockholders' equity (deficit):
Preferred stock - 1
Common stock 4 1
Additional paid-in capital 264,304 30,877
Notes receivable from stockholders (4,713) (1,004)
Deferred stock compensation (43,489) (10,067)
Accumulated other comprehensive loss (101) -
Accumulated deficit (82,805) (20,152)
Treasury stock at cost (570) -
Total stockholders' equity (deficit) 132,630 (344)
Total liabilities and
stockholders' equity (deficit) $140,734 $ 6,716
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