Those still involved, if any, may want to listen to the CC. The tone is significantly different and there is now management, IMO.
Starbase Announces Results for Third Quarter FY2002
SANTA ANA, Calif.--(BUSINESS WIRE)--Jan. 29, 2002--Starbase Corp. (Nasdaq:SBAS - news), the leading provider of end-to-end collaborative products for the development and management of code and content for enterprise and e-business applications, today reported financial results for the third fiscal quarter 2002 ended Dec. 31, 2001.
Revenues for the three months ended Dec. 31, 2001 were $10,888,000, a 14% increase over revenues of $9.54 million for the comparable period ended Dec. 31, 2000, and a 3% increase over revenues of $10,528,000 for the second quarter of FY2002 ended Sept. 30, 2001. Pro forma net loss for the third quarter of FY2002 was $3,352,000 or $(0.05) per share, compared with a pro forma net loss of $984,000, or $(0.02) per share, for the same period in FY2001.
As reported net loss, including amortization of intangibles, non-cash stock based compensation and non-cash interest expense, for the third quarter of FY2002 was $10.45 million or $(0.15) per share, compared with reported net loss of $2,904,000 or $(0.06) per share, for the same period in FY2001.
For the nine months ended Dec. 31, 2001, revenues increased 34% to $33.47 million from $25,026,000 for the same period in FY2001. Pro forma net loss for the nine months ended Dec. 31, 2001, was $15.6 million or $(0.23) per share compared with a net loss of $3,509,000, or $(0.08) per share, for the same period in FY2001.
As reported net loss, including amortization of intangibles, non-cash stock based compensation and non-cash interest expense, for the nine months ended Dec. 31, 2001, was $72,807,000 or $(1.06) per share, compared with reported net loss of $10,178,000 or $(0.22) per share, for the same period in FY2001.
``StarTeam Elite, introduced in the third quarter, enabled us to close three enterprise orders in excess of $1 million each in the quarter,'' stated Jim Harrer, president and COO of Starbase.
``StarTeam Elite combines increased control over the development process with the power of requirements management, via our CaliberRM solution. These orders are the best validation we can offer to investors who question if we can compete in this highly competitive market.''
``We will continue to focus on operational efficiency at every single level of the company,'' added Harrer.
``We are also focused on improving our top line growth, across all of our product lines. By cross selling to our 3,700 customers who have approximately 70,000 seats of StarTeam, CaliberRM, eXpressroom and approximately 40,000 seats of CodeWright, the Starbase brand will continue to become the standard within the development and product management community worldwide.
``Our customers consist of some of the best-known companies in the world -- we believe if we take care of our customers and focus on our operational costs, we can improve our overall financial performance.''
Continued Harrer: ``We are committed to building shareholder value, we plan to achieve this goal by focusing our attention on the company's fundamentals for the long term. We win each sale one at a time, we perform professional services one day at a time and we are rebuilding the company one step at a time. We are focused on the long-term health of the company, not a short-term temporary fix.''
``Starbase's focus on the enterprise market, the strength of our existing customer base, product development and our increasing professional services delivery will play a large part in our execution strategy in the current quarter,'' added Harrer. ``As the incoming president, I am heartened at the strengths we have to build on -- the people, the products and the vision.''
Third Quarter Highlights
-- Three million-dollar transactions in the quarter. -- Teradata adopts The Starbase Collaboration Suite to standardize
CRM development processes. -- Industry executives Jim Harrer and Stan Hirschman join the
Starbase board of directors. -- Starbase's eXpressroom earns Best of the Best recognition in Best
Online Content Solution category from industry organization, SIIA. -- Officially launched StarTeam Elite, the first change and
configuration management solution to deliver customizable
requirement driven development processes for all platforms. -- Starbase closes on $3 million Private Placement. -- Levi, Ray & Shoup Inc. launches knowledge portal built in
Starbase's StarTeam with exclusive customization capability for
interactive knowledge portal. -- Starbase named Orange County's fastest growing company by the
Orange County Business Journal -- 1,481% growth over three years
results in number one position. -- Starbase announced joint distribution agreement with QA-Systems
International BV -- expanding the distribution channel for The
Collaboration Suite to the international e-business markets in
Germany, Austria and the Benelux countries. -- Deloitte & Touche ``Fast 500'' Program names Starbase as one of the
Fastest Growing Technology Companies in the nation; 1,669%
five-year revenue growth earns Starbase ranking. -- Two hundred and forty-three new customers including Cingular
Wireless, Home Data Source, Intergraph Mapping & GIS Solutions,
Marsh Inc., MetLife, Novation, Ontario Power Generation,
PricewaterhouseCoopers, L.L.P., Sterling Commerce, Tap
Pharmaceuticals, United Airlines, Western University. -- Forty percent of revenues derived from existing customers. Repeat
customers include AT&T, Accenture, Aether Systems Inc., Bank of
America, BEA Systems, Digeo Inc., Fidelity Investments,
HDS/Hitachi Data Systems, Hewlett-Packard Co., Lenscrafters, NCR
Corp., NISC, SIAC, Taliant Software LLP, Wyeth-Ayerst
Pharmaceuticals.
A conference call will be held today after the close of the market, to discuss the financial results and to provide financial guidance for the next quarter. Details for the conference call are listed below.
The call will be webcast by CCBN. Interested parties may listen to the conference call's live broadcast over the Internet on Starbase's Web site at www.starbase.com.
Date: Tuesday, Jan. 29, 2002
Time: 2 p.m. PT (5 p.m. ET)
Duration: One hour
Live Call: 719/457-2657
Confirmation #: 527747
For those unable to participate in the live call, or for those who have no access to the Internet, the call will be available on telephone replay approximately two hours after the call ends and will remain available for seven days. The replay number is a toll call. The telephone replay number is 719/457-0820 -- confirmation number is 527747.
About Starbase
Starbase is the leading provider of end-to-end collaborative products for both the development and management of integrated content and code for enterprise and e-business applications. Collaboration is the simultaneous coordination, management and communication of geographically dispersed contributors of both code and content for e-business applications.
With more than 3,700 Starbase customers worldwide the company's technology supports the continuous cycle of creating, linking and managing digital assets, which comprise complex e-business applications.
Starbase products enable users with differing technical and functional backgrounds to collaborate on the production and management of Web sites and e-business initiatives from multiple locations.
Companies and organizations, including leading corporations such as Chase Bank, Dell Computer, Lucent Technologies, Motorola, Pepsico and Seagate Technology have selected Starbase products to manage their e-business development projects.
Deloitte & Touche named Starbase to the prestigious ``2001 Orange County/San Diego Technology Fast 50'' program, a ranking of the 50 fastest-growing technology companies in the area. Starbase has headquarters at 4 Hutton Centre Drive, Suite 900, Santa Ana, Calif. 92707. Tel: 714/445-4400. Fax: 714/445-4404. Visit Starbase's Web site at www.starbase.com.
Forward-Looking Statements
When used in the preceding discussion, the words ``believes,'' ``expects,'' or ``intend to'' and similar conditional expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, (i) conditions in the general economy or the software industry, (ii) the timely development and market acceptance of products and technologies, (iii) competitive factors, (iv) demand for team productivity software products, (v) sell-through of products in the sales channel, and (vi) other risks described in Starbase Corp.'s SEC reports and filings.
STARBASE CORP.
Consolidated Balance Sheets
(in thousands, except share data)
Dec. 31, March 31,
2001 2001
Assets
Current assets:
Cash and cash equivalents $ 2,955 $ 14,075
Restricted cash 62 257
Marketable securities 7 3
Accounts receivable, net of allowances
of $2,180 at Dec. 31, 2001 and $2,166
at March 31, 2001 9,530 16,148
Notes and other receivables, net of
allowance of $760 at March 31, 2001 162 200
Prepaid expenses and other assets 999 1,183
Total current assets 13,715 31,866
Property and equipment, net 6,748 7,953
Intangible assets, net 53,641 107,628
Note receivable from officer 108 104
Other non-current assets 906 1,487
Total assets $ 75,118 $ 149,038
Liabilities and Stockholders' Equity
Current liabilities:
Line of credit $ - $ -
Accounts payable 5,492 11,104
Accrued compensation 3,101 3,381
Other accrued liabilities 4,467 6,706
Deferred revenue 7,806 8,950
Current portion of long-term
obligations 295 344
Total current liabilities 21,161 30,485
Long-term liabilities:
Long-term obligations, less current
portion 62 238
Convertible debenture 2,400 -
Long-term deferred revenue - 121
Total long-term liabilities 2,462 359
Total liabilities 23,623 30,844
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value;
10 million shares authorized, none
issued and outstanding at Dec. 31, 2001
and March 31, 2001. - -
Common stock, $0.01 par value;
150 million shares authorized,
75,160,281 and 69,386,443 issued and
outstanding at Dec. 31, 2001 and
March 31, 2001. 752 694
Notes receivable (36) (219)
Deferred non-cash compensation (463) (662)
Additional paid-in capital 199,023 193,321
Accumulated deficit (147,665) (74,857)
Accumulated other comprehensive loss (116) (83)
Net stockholders' equity 51,495 118,194
Total liabilities and stockholders'
equity $ 75,118 $ 149,038
STARBASE CORP.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three months ended Nine months ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Revenues:
License $ 6,477 $ 7,124 $ 19,983 $ 18,650
Service 4,411 2,416 13,487 6,376
Total revenues 10,888 9,540 33,470 25,026
Cost of Revenues:
License 1,657 279 3,744 579
Service 1,324 1,067 4,841 3,037
Amortization of
intangibles 1,290 503 7,553 1,412
Total cost of revenues 4,271 1,849 16,138 5,028
Gross margin 6,617 7,691 17,332 19,998
Operating Expenses:
Research and development 3,451 2,400 11,767 6,419
Sales and marketing 5,948 5,440 22,294 13,983
General and
administrative 1,829 1,689 6,412 5,210
Net non-cash stock based
compensation 841 101 1,179 1,385
Amortization of
intangibles 3,320 1,316 46,828 3,872
Total operating
expenses 15,389 10,946 88,480 30,869
Operating loss (8,772) (3,255) (71,148) (10,871)
Interest and other
income (expense) (1,670) 372 (1,564) 715
Loss before income
taxes (10,442) (2,883) (72,712) (10,156)
Provision for income
taxes 8 21 95 22
Net loss $ (10,450) $ (2,904) $ (72,807) $ (10,178)
Per share data:
Basic and diluted
net loss per common
share $ (0.15) $ (0.06) $ (1.06) $ (0.22)
Basic and diluted
weighted average
common shares
outstanding 69,534 48,913 68,663 46,500
Reconciliation of as
reported net loss to
pro forma net loss:
As reported net loss $ (10,450) $ (2,904) $ (72,807) $ (10,178)
Add back:
Amortization of
intangibles 4,610 1,819 54,381 5,284
Net Non-cash stock based
compensation 841 101 1,179 1,385
Non-cash interest
expense 1,647 - 1,647 -
Pro forma net loss $ (3,352) $ (984) $ (15,600) $ (3,509)
Pro forma per share
data:
Pro forma basic and
diluted net loss per
common share $ (0.05) $ (0.02) $ (0.23) $ (0.08)
Pro forma basic and
diluted weighted
average common
shares outstanding 69,534 48,913 68,663 46,500
Note to Editors: Starbase and its product names are trademarks of Starbase Corp. All other product and company names herein are trademarks of their respective owners.
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Contact:
Starbase Corp., Santa Ana
Doug Norman, 714/445-4440
Doug.Norman@starbase.com |
