SQSW beats estimates (actual loss -.14, street consensus was -.19)...
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Wednesday November 1, 6:04 am Eastern Time
Sequoia Software Announces Third Quarter 2000 Financial Results; Quarterly License Revenues Increase 200% Year-over-Year and 35% Sequentially, Results Demonstrate Market Demand for Sequoia's XML Pure Portal Software
COLUMBIA, Md.--(BUSINESS WIRE)--Nov. 1, 2000-- Sequoia Software Corporation (Nasdaq: SQSW - news), the leading provider and innovator of XML Pure e-business software, today announced revenues of $5.3 million for the third quarter of 2000, representing a 81% increase over revenues of $2.9 million for the third quarter of 1999.
License revenues for the third quarter grew 200% to $4.5 million from $1.5 million for the same period last year, and 35% sequentially from $3.3 million in the prior quarter. Gross margin for the third quarter rose to 88.2% compared to 24.3% for the third quarter of 1999, reflecting a greater proportion of higher-margin XPS sales in the third quarter of 2000.
Net loss for the third quarter was $4.2 million, or $(.14) per share, compared to a net loss of $3.8 million, or $(.64) per share, for the third quarter last year. Per share figures for the third quarter 2000 reflect higher weighted average shares outstanding as a result of the Company's initial public offering and conversion of redeemable convertible preferred stock.
Revenues for the nine months ended September 30, 2000 were $13.7 million, an increase of 172% versus $5.0 million for the same period last year. License revenue increased 341% to $10.8 million compared to $2.4 million for the same period last year.
Net loss for the nine-month period was $13.7 million, or ($.72) per share, compared to $6.3 million, or ($1.40) per share, for the corresponding period last year. Net loss attributable to common stockholders, after accretion of redeemable convertible preferred stock to its estimated mandatory redemption value, was $110.7 million, or $(5.81) per share, compared to a net loss after the accretion of $6.7 million, or $(1.48) per share, for the first nine months of last year.
``Sequoia introduced XPS(TM) 3.0 at the end of the second quarter, and moved forward this quarter, aggressively seeding the market and building a pipeline of sales opportunities,'' said Rick Faint, chairman and CEO of Sequoia Software. ``Response to XPS has been extremely favorable -- translating directly into 31 new customers this quarter including our second OEM customer, TREEV, Inc.
``In addition, our strategy of forming partnerships with professional services firms, resellers and systems integrators to accelerate market penetration is already paying dividends. These partners are generating sales leads for us, leads that are turning into new customers,'' continued Faint.
Added Mark Wesker, president and COO of Sequoia Software, ``Sequoia's XML-Pure architecture makes XPS flexible, adaptable and fast to deploy. As a result, an increasing number of global companies are turning to XPS to rapidly `e-enable' existing business processes, accelerate the flow of information, and gain competitive advantage. We expect this trend will continue, and are educating the market to drive increased customer adoption of XPS.''
Highlights Of the Third Quarter of Fiscal 2000 Include:
Expanding XPS(TM) Customer Base
Sequoia added 31 new customers this quarter, of which 26 are new XPS-license customers including the BBC, EMI, Johns Hopkins School of Public Health, SC Johnson, and Waste Management, and signed three follow-on orders for additional XPS licenses. Additionally, the Company signed a three-year OEM deal with TREEV, a leader in delivering enterprise-integrated content management solutions, with a potential value of $1.75 million.
Added Partners To Drive Adoption of XPS
Software AG, one of the world's largest systems software providers and a pioneer in XML technology, will add XPS to the range of products it markets worldwide through its 1,500-member sales force and its extensive world-wide network of value-added resellers.
Cap Gemini Ernst & Young U.S. is enhancing Sequoia's distribution and delivery of XML Pure portal solutions, and will provide its clientele with strategic consulting and integration services for XPS, and also make these services available to Sequoia customers as needed.
Lockheed Martin is reselling XPS in conjunction with its own software and services, offering the Department of Defense and civilian agencies XML Pure portals as part of a total technology solution.
ScreamingMedia and iSyndicate were added to Sequoia's growing list of XPS content partners, providing XPS customers with access to premium Web-based news and multi-media content.
Corporate Announcements
Paul Martin was appointed to the position of Chief Technology Officer. Martin, formerly Sequoia vice president of product development, was the driving force behind the development of XPS 3.0. In his new role, Martin is directing strategic technical decision-making, overseeing the architecture of all products and driving the development of the Company's XML-powered e-business platform.
Bryan Caporlette has been named Executive Vice President of Strategic Technology. Caporlette, previously Sequoia vice president of product management, is a recognized expert in the development of SGML/XML-based products. In his new role, Caporlette will provide Sequoia with XML knowledge, as well as provide internal and external organizations with XPS technology expertise. In addition, Caporlette will oversee a research and development group that supports partner product integration and prototypes emerging XPS technology. He will continue his role in XML industry groups such as W3C and Oasis. |
