I have a few shares of the weed.
Someday maybe it will get going
Tumbleweed Reports First Quarter 2002 Financial Results; Tumbleweed Announces Revenue Growth of 101% in Q1 2002 Over Q1 2001; Company Reiterates Profitability Target for Q4 2002
REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 17, 2002-- Tumbleweed(R) Communications Corp. (Nasdaq:TMWD), a leading provider of secure content management solutions for enabling the business Internet, today reported results for the first quarter ended March 31, 2002. Tumbleweed posted revenue for the quarter of $8.1 million compared to revenue of $4.0 million in the same quarter a year ago.
Proforma net loss in Q1 2002 (which excludes stock-based compensation, goodwill amortization, restructuring and impairment on investments), was $4.1 million or $0.13 per basic and diluted share, a more than 70% improvement over the $13.3 million loss or $0.45 per basic and diluted share of the same quarter last year. Including these items, the Company reported a net loss for the first quarter ended March 31, 2002 of $4.4 million or $0.14 per basic and diluted share compared to $82.3 million or $2.76 per basic and diluted share in first quarter of 2001. As a consequence of adopting the Statement of Financial Accounting Standards 142 as of January 1, 2002, the non-cash charges related to amortization of goodwill and other intangibles dropped from $7.8 million in Q1 2001 to zero in Q1 2002.
Deferred revenue grew to $9.7 million in the first quarter of 2002, a 69% improvement over the first quarter of 2001 and a 23% improvement over Q4 2001. Days sales outstanding (DSO), measured by adding growth in deferred revenue to top line revenue improved significantly from 63 days in the fourth quarter of 2001 to 50 days in Q1 02. Tumbleweed ended the quarter with $40.5 million in cash and short-term investments.
"We're pleased with our results this quarter," said Doug Sabella, President and Chief Operating Officer of Tumbleweed Communications Corp. "In spite of a challenging operating environment, we saw significant year over year growth across a variety of financial metrics. Strong performance in our expanding installed base of customers as well as new business from the government sector positively impacted our results."
"We reiterate our target of pro forma net profit in the fourth quarter of 2002," said Betsy Jordan, Senior Vice President Finance and Chief Financial Officer of Tumbleweed Communications Corp. "For the full year 2002, we expect revenue to grow between 20% and 30% over 2001. Our guidance of pro forma net loss per share for the year in the range of ($0.36) - ($0.30) represents an improvement of more than 20% from guidance given on our last conference call in January. For the second quarter of 2002, we are targeting recognized revenue in the range of $7.5 million to $8.5 million with a resulting pro forma net loss between ($0.12) - ($0.14) per share."
"Q2 will be an exciting quarter as we roll out significant new products, building on top of the success of our Secure Guardian framework," said Jeff Smith, Chairman and CEO. "Our Secure Policy Gateway has become vital infrastructure for our customers, empowering them to move more critical business processes securely online. We will extend this capability into new areas enhancing employee productivity and supplier communication in Q2, with additional solutions shipping in Q3. It appears that these product initiatives, coupled with our execution over the past several quarters, continue to enhance our competitive position and grow our market share."
Q1 2002 Highlights
Highlights of the first quarter ended March 31, 2002 are:
-- The company launched its new extension solution: Secure CRM, a
software solution that allows customers to enhance their own
customer service applications, moving critical voice or paper
based communication processes online through messaging while
ensuring customer privacy. Using Secure CRM, customers can
create new secure communication channels on top of existing
customer service applications, enhancing the customer service
they provide.
-- In Q1, Tumbleweed continued to expand its position in the
secure content management market with new and existing
customers for various Secure Guardian solutions.
-- In the healthcare, pharmaceutical and insurance markets,
new contracts were signed with: Abbott Laboratories,
Corvel Corporation, Vision Service Plan, Sutter Health,
Amgen, Tufts Health Plan, Massachusetts Mutual Life
Insurance, The Regence Group and CNA Life.
-- The financial services sector continues to be a strong
contributor to Tumbleweed's revenue stream. In the first
quarter, new and existing customer contracts were signed
with American Century Services Corp., Brean & Murray,
Capital One, J.P. Morgan Chase & Co., Citicorp Diners
Club, Wachovia Bank, USA Federal Credit Union, and Stifel,
Nicolaus & Company, Inc.
-- In government, Tumbleweed signed a significant contract
with the U.S. Department of Energy for an
organization-wide Secure Guardian deployment.
-- In the legal sector, contracts in Q1 02 included: Akin,
Gump, Strauss, Hauer & Feld, L.L.P., Bullivant Houser
Bailey PC, Dickstein Shapiro Morin & Oshinsky, LLP, Gray
Cary Ware Friedenrich, LLP, McKenna & Cuneo LLP, King &
Spalding, Nelson Mullins, Riley & Scarborough, LLP, Paul,
Weiss, Rifkind, Wharton & Garrison, Gibson Dunn &
Crutcher, Pillsbury Winthrop, LLP, Patterson Belknap, Web
& Tyler, LLP, and Wilson Elser Moskowitz Edelman & Dicker
LLP.
-- Other additional contracts signed in Q4 include Acco
Brands, Clarica, Airborne Express, National Semiconductor,
Nexen, Inc., InstallShield Software Corp., Kinder Morgan
Inc., Safeway, Perdue Farms, and Peoplesoft. |
