You have traded this perfectly twice. I haven't. Take a look at what NEON really did. Like WOW.
<<<New Era of Networks, Inc. Reports Record Results; Fourth-Quarter Revenues Exceed $27 Million PR Newswire - January 27, 1999 16:20
ENGLEWOOD, Colo., Jan. 27 /PRNewswire/ -- New Era of Networks(TM), Inc. (Nasdaq: NEON) today reported fourth-quarter and year-end results for the period ending December 31, 1998.
In its ninth consecutive quarter of revenue and earnings growth, NEON achieved fourth-quarter revenues of $27.3 million, an increase of 230 percent compared to revenues of $8.3 million for the same period last year. Linked-quarter revenue grew by $9.8 million, up 56 percent. Excluding the impact of acquisition-related charges and amortization, and adjusted for the 2:1 stock split effective December 2, 1998, revenue and profit for the most recent five quarters were:
Q497 Q198 Q298 Q398 Q498
Revenue (000s) 8,272 9,582 11,460 17,463 27,309
Net Income(a) (000s) 591 842 1,463 2,683 4,610
Per Share(a) $0.03 $0.04 $0.07 $0.10 $0.15
(a) Excluding one-time charges for acquired in-process R&D and
acquisition-related amortization.
Q498 Net Income excludes $1.3 million tax benefit. See attached tables for complete financial details.
"In 1998 NEON became the clear leader in Enterprise Application Integration. We are reporting our most successful quarterly and yearly results," said Rick Adam, CEO. "We have managed tremendous growth through the year, and we will relentlessly pursue additional opportunities to expand our global leadership position."
Comments by Rick Adam, NEON Chief Executive Officer
"Our market capitalization has grown to over $1.4 billion, and our stock price increased nearly 700 percent in 1998. We are very pleased to deliver that level of growth to our investors, and are committed to delivering superior shareholder value. In the fourth quarter, we completed our third public equity offering, raising over $150 million, and effected a 2-for-1 stock split. Funds raised in the public offering will enable us to capitalize on the momentum we have built going into 1999 and continue our strong growth.
"We are firmly committed to being highly valued by our clients. NEON is, therefore, pleased to be the recipient of the Crossroads 99 A-List Award from Open Systems Advisors, Inc., an IT research company based in Boston. We were evaluated for the A-List Award based on in-depth interviews with customers who have implemented our software solutions, and we are particularly proud to have won this award in a year when we were managing such tremendous growth.
"Our staff includes some of the finest management, technical, marketing and administrative talent available, and we continue to develop and implement programs to attract and retain the top performers in our business. Our total staff grew from 240 to more than 600 in 1998.
"NEON's international presence continues to grow. During the fourth quarter we signed contracts with clients in Australia, France, Holland, Ireland, Italy, Sweden, Switzerland and the United Kingdom. Earlier this month we opened our newest regional office in Paris, France.
"Our partner relationship with IBM continues to grow as we work together on product enhancements and our joint selling effort. During the fourth quarter we worked with IBM on extensions to MQ Integrator, which has become an IBM-branded product named MQ Series Integrator (MQSI). This is a very positive move for the product, which will now have the full weight of the IBM name behind it. MQ Series Integrator will be sold through all IBM distributors, it will appear on the IBM price list, and we will continue to sell the product jointly through the NEON direct sales force and IBM's worldwide team of sales professionals. The IBM sales force delivered over 20 contracts for MQIntegrator business during the fourth quarter. Customers in the U.S. include AIM Management, Bank of New York, SAFECO Insurance Co. of America, Wyeth Ayerst (American Home Products), and VF Services Inc., another SAP win for NEON. Clients signed by IBM outside the U.S. include AIB Capital Markets, Bank Julius Baer & Co. AG, FishTech & Partners Pty Ltd., ForeningsSparbanken AB, Franklins, Informatie Beheer Groep (IBG), and Safeway Stores PLC. IBM also delivered a contract with a major Japanese bank through NIWS, our distributor in Japan.
"Our direct sales organization signed more than 60 contracts for new and add-on business worldwide. Customers in the U.S. included American Horizon Services Inc., Credit Suisse First Boston Corporation, Florida Power & Light, Heartland Health Systems, Jefferies & Company Inc., Mellon Capital Management, Sisters of Mercy Health Systems, Societe Generale, U.C.S.F. Stanford Healthcare, and Volpe Brown Whelan & Company LLC. Our international sales force signed contracts with Allied Dunbar, Credit Local de France, Credit Suisse First Boston, and Nomura International plc.
"The integration of Century Analysis, Inc. (CAI), which we acquired in September 1998, has been essentially completed. The combined strength of our products, our people and our partners positions us well to expand our leadership position in Enterprise Application Integration. We have built strong forward momentum through 1998 and with our sales volume, market capitalization and staff size, will continue to strengthen and expand our competitive advantage."
Comments by Steve Webb, NEON Chief Financial Officer
"The Securities & Exchange Commission (SEC) recently increased its focus on the determination of charges for acquired in-process research and development. As part of its ongoing review of charges taken by technology companies for acquisitions completed in 1998, the SEC has requested additional information on our calculation of charges of approximately $17.6 million for in-process R&D related to the acquisitions of MSB Consultants Ltd. in June and CAI in September. The company believes its accounting for the acquisitions was made in accordance with generally accepted accounting principles and established industry practices at the time. It is possible the SEC will require that we restate our quarterly results with respect to the amount of in-process research and development previously expensed to conform our valuation methodology to recently communicated views of the SEC staff. Although we do not know the outcome of our discussions with SEC staff, if restatement is required, we believe the effect would be to reduce the charges taken in 1998 and increase amortization of acquisition-related intangibles in future periods.
"Both our market presence and our financial condition continue to strengthen. For the year ended December 31, 1998, revenues were $65.8 million, an increase of 191 percent compared to revenues of $22.6 million for the year ended December 31, 1997. Approximately 30 percent of revenues were from markets outside the United States. Our DSO continued to improve; dropping to 93 for the fourth quarter of 1998 from 120 in the fourth quarter of 1997. At December 31, 1998, cash and liquid investments were $195 million, compared to $23 million at December 31, 1997. The company has total assets of $299 million and no long-term debt."
About New Era of Networks
New Era of Networks, Inc. is a leader in providing EAI solutions across multiple industry groups and the leader in providing packaged solutions that successfully integrate legacy applications, client/server and web-based applications, as well as popular ERP applications. With its acquisition of Century Analysis, Inc. (CAI), NEON has a rapidly growing base of more that 700 customers worldwide and has demonstrated that its products shorten implementation cycles, integrate disparate platforms, and allow information to be shared and managed across the enterprise. The NEON product suite supports EAI across the most popular hardware platforms, operating systems, and database types. NEON offers prepackaged format libraries for many popular applications such as IBM Lotus Notes, J.D. Edwards, PeopleSoft, SAP, Siebel Systems, and S.W.I.F.T. (Society for Worldwide Interbank Financial Telecommunication). NEON distribution partners include Cambridge Technology Partners, Compaq/Tandem, Hewlett-Packard, IBM, Logica, NIWS (Japan), PeopleSoft, SunGard, and others. For more information call 800-815-6366 or visit NEON's World Wide Web site at neonsoft.com.
This news release contains forward-looking statements based on current expectations that involve risks and uncertainties. NEON's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the company's public reports filed from time to time with the Securities and Exchange Commission, including the company's reports on the most current Form 10-Q and the company's most recent prospectus.
New Era of Networks, the NEON logotype, NEONet, NEONweb, Neonsoft, NEONaccess, NEONreplication, NEONmsgtrak, NEONenrich, NEONfix, Business EventManager, Enterprise ProcessExecutive, Rapport and OpenBroker are trademarks of New Era of Networks, Inc. IBM and MQSeries are registered trademarks of the IBM Corporation. MQSeries Integrator(TM) is a trademark of IBM Corporation. All other trademarks and registered trademarks are the property of the respective trademark owners.
NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
December 31, December 31,
ASSETS 1998 1997
(unaudited)
Current assets:
Cash and cash equivalents $174,172 $7,150
Short-term investments 10,659 10,515
Accounts receivable, net 28,310 11,073
Unbilled revenue 3,125 1,668
Prepaid expenses and other 2,356 1,020
Deferred income taxes, net 147 --
Total current assets 218,769 31,426
Property and equipment, net 10,556 2,416
Long term investments 11,260 5,059
Intangibles, net 51,277 704
Deferred income taxes, net 4,846 --
Other assets, net 1,970 624
Total assets $298,678 $40,229
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,650 $2,172
Accrued liabilities 7,857 2,082
Deferred revenue 9,407 1,177
Current portion of borrowings -- 67
Total current liabilities 22,914 5,498
Deferred revenue 149 --
Total liabilities 23,063 5,498
Stockholders' equity:
Common stock, $.0001 par value,
45,000,000 shares authorized,
30,333,778 and 18,212,314 shares
issued and outstanding,
respectively 3 1
Additional paid-in capital 295,571 46,191
Cumulative translation adjustment 58 57
Accumulated deficit (20,017) (11,518)
Total stockholders' equity 275,615 34,731
Total liabilities and
stockholders' equity $298,678 $40,229
NEW ERA OF NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended Year ended
December 31, December 31,
1998 1997 1998 1997
(unaudited) (unaudited) (unaudited)
Revenues:
Software licenses $16,422 $6,279 $40,977 $15,970
Services and
maintenance 10,887 1,993 24,837 6,676
Total revenues 27,309 8,272 65,814 22,646
Cost of revenues:
Cost of software
licenses 586 142 1,702 900
Cost of services
and maintenance 5,726 1,254 12,905 4,442
Total cost of
revenues 6,312 1,396 14,607 5,342
Gross profit 20,997 6,876 51,207 17,304
Operating Expenses
Sales and marketing 8,776 2,893 21,943 8,824
Research and
development 6,064 2,840 15,839 7,730
General and
administrative 2,608 853 6,572 2,335
Charge for acquired
in-process R&D 0 0 17,597 2,600
Amortization of
intangibles 1,165 48 1,777 66
Total operating
expenses 18,613 6,634 63,728 21,555
Income (Loss) from
operations 2,384 242 (12,521) (4,251)
Other income, net 1,061 301 2,744 746
Income (Loss) before
provision for income
taxes 3,445 543 (9,777) (3,505)
Provision for income
taxes (1,278) -- (1,278) --
Net income (loss) $4,723 $543 $(8,499) $(3,505)
Income (loss) per
common share, diluted $0.16 $0.03 $(0.38) $(0.32)
Weighted average shares
of common stock
outstanding,
diluted 30,094,866 19,531,432 22,277,472 10,958,302
Excluding tax credit,
acquisition charges
and amortization:
Net earnings (loss) $4,610 $591 $9,597 $(839)
Net earnings (loss)
per common share,
diluted $0.15 $0.03 $0.38 $(0.08)
Weighted average
shares of common
stock outstanding,
diluted 30,094,866 19,531,432 25,472,383 10,958,302
CONTACT: Cynthia King, Director of Investor Relations of New Era of Networks, Inc., 303-486-9369, cking@neonsoft.com.
SOURCE New Era of Networks, Inc.
/CONTACT: Cynthia King, Director of Investor Relations of New Era of
Networks, Inc., 303-486-9369, cking@neonsoft.com/>>>
Clearly HDIE has lost it momentum. None of us know for sure where its headed, but the current trend isn't the way I bet. Glass. |
