Since Edify is taking up thread time today I thought I'd post the news that started this...event.
Edify Corporation Announces Preliminary First Quarter Results
SANTA CLARA, Calif. -- Edify Corporation (Nasdaq: EDFY) today announced that, based on a preliminary analysis of its results of operations, it expects to report revenues for the first quarter ended March 31, 1998 between $13.5 million and $14 million, representing an increase of approximately ten percent over the first quarter of 1997. The company also expects to report a net loss for the first quarter of 1998 in the range of $1.3 million to $1.7 million, or approximately $0.08 to $0.10 net loss per share for the first quarter.
The slower than expected revenue growth resulted from delays in anticipated orders, especially from larger financial services and call center customers. In addition, revenue from Edify's domestic and international channel partners fell below the company's expectations, due to various factors relating to transitions to the company's Windows NT-based software delivered in the fourth quarter of 1997.
"Frankly, we executed poorly during the first quarter," commented Jeffrey M. Crowe, Edify's president and CEO. "We began several sales force initiatives, including a reorganization to expand our focus on financial services companies. These initiatives are expected to benefit us in future quarters, but they affected our ability to close business within the first quarter. At the same time, we saw sales of our older OS/2-based software begin to diminish as our domestic and international channel partners began to sell our new NT-based software. However, this transition has not resulted in a seamless flow of revenues and we continue to work closely with these partners to achieve the expected growth of NT revenues over the coming quarters."
"We see several factors which should enable a resumption of growth in software license revenue," continued Crowe. "We are pleased with the performance and quality of our new Windows NT-based software as we expand our customer base. We have significant new releases of high value functionality across all three of our product lines slated for introduction throughout the rest of the year. With the recent introduction of our Windows NT-based software, we are now in the midst of new sales cycles where we are able to address a broader market with products that are not limited to OS/2."
"After meeting with the management of our worldwide sales organization late last week, we are convinced that the proper course for Edify and its shareholders is to continue making decisions and investments that reflect the opportunities we see in the marketplace. While we have been managing our expenses tightly, we will continue to make the investments in sales, marketing, development, support, and infrastructure necessary to grow our company. We believe we are well positioned, structurally and competitively, to meet the needs of our current and potential customers for self service solutions."
Forward-Looking Statements
This press release contains forward-looking statements concerning the company's expectations and beliefs which are subject to a number of risks and uncertainties. Actual results could differ materially. For example, the company's estimates of operating results are based on a preliminary review of information available to the company, and the final results reported by the company could vary from those indicated in this release.
Moreover, there can be no assurance that the company's sales initiatives will lead to increased revenues, the company's Windows NT-based software will be broadly accepted by customers, the company's channel partners will be able to sell the Windows NT- based product in increasing volumes or that the company's anticipated product releases will occur on schedule. The company operates with little if any backlog and continues to recognize a substantial portion of its quarterly revenues in the final weeks of each quarter. Accordingly, quarterly revenues are difficult to predict. See also the additional risks set forth in the company's Form 10-K for the year ended December 31, 1997, filed with SEC on March 30, 1998.
About Edify Corporation
Edify is a leading supplier of self service solutions used by Global 2000 organizations to deploy automated services via the Internet, corporate intranets and the telephone. The company's flagship product, the Electronic Workforce, is an application development and runtime platform enabling fast, cost-effective creation and deployment of semi-custom self service solutions. The Electronic Banking System and Employee Service System are packaged application products addressing the needs of the electronic banking and employee self service markets, respectively. Edify self service solutions offer organizations the means to automate, integrate and personalize interactions with customers and employees, yielding stronger, more profitable relationships.
The company's software has been licensed to over 1,000 organizations worldwide. Edify software is distributed directly and through leading solutions providers, application partners and distributors worldwide. With 360 employees, Edify Corporation is headquartered in Santa Clara, California, telephone 408-982-2000. Additional information about Edify may be obtained via the World Wide Web at edify.com.
Edify and Electronic Workforce are registered trademarks, and Electronic Banking System and Employee Service System are trademarks of Edify Corporation. All other company and product names may be trademarks of their respective owners.
/CONTACT: Investor Relations: Jim Pangburn, 408-982-4000, or Media: Tricia Willcoxon, 408-982-2014, both of Edify Corporation/
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