Tuesday January 2, 8:01 am Eastern Time
Press Release
SOURCE: Viador Inc.
Viador Streamlines to Accelerate Profitability and Significantly Reduce Negative Cash Flow
Q4 2000 Results Will Include Lower Revenue and Reorganization Expense
MOUNTAIN VIEW, Calif., Jan. 2 /PRNewswire/ --
Viador Inc.(TM) (Nasdaq: VIAD - news), the number one enterprise portal company,
today announced a workforce restructuring to accelerate profitability and
significantly reduce negative cash flow. The restructuring will reshape
each of the customer facing organizations and corporate staff to the
configuration required to win and support the business. As a result,
negative cash flow from operations is expected to be reduced in excess of
$10 million for the year 2001 compared to prior expectations, allowing
Viador to achieve profitability one quarter earlier than the prior
profitability projections which were for the fourth quarter 2001.
``We have achieved the leading-edge industry position and we are
restructuring to strengthen our position and achieve market dominance in the
long run, as well as achieve profitability more rapidly in the short run,"
said Viador's President and Chief Executive Officer, Jonathan Harding.
"Gartner Group's recently published research on portal product vendors,
shows Viador in one of the strongest overall positions for the combination
of vision and execution. The Viador portal platform solution is unique in
its proven high performance, broad interfaces, and scalability, and we
continue to execute to take advantage of the market opportunity. With the
lower cash burn rate, and with approximately $15 million of cash, we are
positioned to both grow and become profitable."
The combination of streamlining the sales, consulting, customer support,
and training organizations, along with working more closely with its network
of partners, will enable Viador to deliver increased customer sales and
service at a lower cost. In implementing this strategy, Viador will reduce
staffing from the current level of 242 employees to 155 employees, effective
January 5, 2001.
Employment costs and other headcount-driven costs such as travel and
office expense comprise the largest portion of expenses therefore the bulk
of the savings is occurring in this area. Viador expects a one-time charge
associated with the reduction in workforce of approximately $500,000 to be
recognized in the December 2000 quarter.
In addition, for the December quarter 2000, Viador expects revenue to be
lower than prior expectations. Revenue for the fourth quarter of fiscal 2000
is currently expected to be approximately within the range of $5.0 million
to $5.5 million.
``The anticipated revenue for the fourth quarter is below our
expectations," commented Harding. "The revenue shortfall is primarily the
result of delays in US commercial license purchases and in Federal
government purchases. The delay in the US commercial license purchases
results from the combination of first, an extending sales cycle as the
market transitions to brick-and-mortar enterprises, and second from the
hesitant attitude towards IT spending prevalent in many corporations in the
current economic climate."
``It is important to note that the need for brick-and-mortar enterprises
to develop seamless access to internal and external data remains an
imperative for their competitive advantage," said Harding. "The longer and
more in-depth evaluations are positive in the long run for Viador since the
in-depth evaluation processes play to the strengths of the Viador platform
solution. Also, Viador's new Portal Express product introduced in the
December quarter, offers enhanced out-of-the-box implementation, intended to
shorten the decision and installation time for those customers needing less
tailoring."
``In addition, Viador sales in the December quarter were impacted by the
delay in the passage and approval of the Federal budget," continued Harding.
"Our significant existing contracts with Federal Government Agencies are
being implemented in phases. With the approval of the Federal budget for
2001, we will be able to proceed further into future phases of existing
business, as well as pursue new government business for 2001."
New Guidance for Investors for Next 5 Quarters -
December Quarter 2000 through December Quarter 2001
Revenues: December Quarter 2000 $ 5.0 million to $ 5.5 million
March Quarter 2001 $ 8.0 million to $ 10 million
June, September, and December quarters 2001 -- Expecting
revenues to increase 7 percent to 10 percent sequentially over
each of the prior quarters
Revenue Product Mix: 70-75 percent License, 25-30 percent Services
Gross Margin: 65 percent to 75 percent
R&D Capitalized each Quarter: Zero percent to 15 percent of total R&D
spending
EPS for only December Qtr 2000: December Quarter EPS loss to be greater
than First Call estimate of a loss per
share of $0.33 excluding amortization
of stock-based compensation and goodwill
The company will announce its financial results for the fourth quarter
of fiscal 2000 on January 30, 2001.
Conference Call
Following this release during a conference call at 2:00 EST/11:00 A.M.
PST, Chief Executive Officer Jonathan Harding will present an overview of
the restructuring, expected fourth quarter revenue results, and the new
guidance for the December quarter 2000 and for 2001. Interested parties
have the opportunity to listen to the conference call live on the Internet
at www.streetevents.com . The Webcast replay will be available at this
address for 90 days. Additionally, investors can dial 800-982-3654 or
703-871-3021 at least 5 minutes prior to the start. A replay of the call
will be available through January 10 by dialing 703-925-2435, code 4881259.
About Viador Inc.
Viador Inc.(TM), the number one enterprise portal company, is helping
corporations leverage their information and technology assets to gain
business advantages. Viador and its Viador E-Portal Suite solution have
already received industry recognition and awards including the Deloitte &
Touche Fast 50, CIO's WebBusiness 50/50, CrossRoads 2000 A-List, DCI's
Excellence in Business Information, Federal Computer Week's Top 10 Companies
to Watch list, IBM's Solution Showcase Award, and being named to the
InfoWorld 100. Viador's innovative technology is used by customers
including 3Com, Charles Schwab, Federal Aviation Administration (FAA), IBM,
Lucent Technologies, Nortel Networks, Shiseido, Sprint PCS and Xerox.
Viador has strategic relationships with leading consulting and E-Business
companies including Hewlett-Packard, IBM, Deloitte Consulting, SAP and ACS.
Viador is headquartered in Mountain View, Calif. For more information, call
650-645-2000 or visit the Web site at www.viador.com .
Viador Safe Harbor
Statements in this release that are forward looking involve known and
unknown risks and uncertainties, which may cause the Company's actual
results in future periods to be materially different from any future
performance that may be suggested in this release. Such factors may
include, but are not limited to, demand for and market acceptance of the
Company's products and services, expansion into international markets,
introductions of products and services or enhancements by the Company and
its competitors, competitive factors that affect the Company's pricing, the
timing of customer installations, the mix of products and services the
Company sells, the timing and magnitude of capital expenditures (including
costs relating to the expansion of operations), the size of customer orders,
the hiring and retention of key personnel, conditions specific to the
internet industry and other general economic factors, and new government
legislation or regulation. Reference is made to the discussion of risk
factors detailed in the Company's filings with the Securities and Exchange
Commission, including its reports under the Securities Exchange Act of 1934,
as amended. Viador assumes no obligation to update any forward-looking
statements contained in the press release.
Editors note: Viador, the Viador E-Portal Suite, Viador B2B E-Portal,
Viador Sage, Viador Information Center, Viador Gateway, Viador Sentinel,
Viador PageBuilder, Viador PortletBuilder, Viador Portlet, Viador E-Portal
Framework, and the Viador PDK, are trademarks of Viador Inc. of Mountain
View, California. All other products or company names mentioned are used
for identification purposes only, and may be trademarks of their respective
owners.
SOURCE: Viador Inc. |
