The Vantive Corporation Reports First
Quarter Earnings and Revenues
SANTA CLARA, Calif.--(BUSINESS WIRE)--April 21,
1999--The Vantive Corporation (Nasdaq: VNTV - news) today
announced revenues and earnings for the first quarter of 1999. The results are in line with the
Company's preliminary results announced on Monday, April 19, 1999.
For the quarter ended March 31, 1999, revenues increased 23% to $44.8 million, compared with
revenues of $36.3 million in the first quarter of 1998. Net income for the quarter was $252,000, or
$0.01 per diluted share, compared to $3.7 million, or $0.14 per diluted share in the prior year quarter.
Additionally, the Company announced earlier this week that Thomas L. Thomas, former Senior Vice
President of Electronic Business and Information Services and Chief Information Officer at 3Com
Corporation, has joined Vantive as Chairman and Chief Executive Officer.
''I am excited to join Vantive full time in this new role,'' said Mr. Thomas. ''I believe we are at the
dawn of a new era in the enterprise application market. My experience building 3Com's e-business
practice complements the outstanding job Phil Dunkelberger has done at Vantive positioning the
company to meet the needs of the e-customer. The combination of these strengths is what will drive
Vantive's growth into the new millennium. I believe Vantive's flexible and scalable Web architecture,
customer-focused approach, and corporate culture are the foundation of our commitment to our
customers and their customers.''
''Tom's experience will be a tremendous asset as we continue to combine traditional corporate
environments with the dynamic opportunities of the Internet,'' commented Phil Dunkelberger, President
and COO of Vantive. ''This is a great opportunity to capitalize on Tom's 3Com experience building
world-class e-commerce solutions while leveraging the years of customer loyalty and technology
leadership we have developed at Vantive. Our marketing focus on the e-customer is generating
positive response from our customers and I am looking forward to expanding these marketing initiatives
as the year progresses.''
''Despite the shortfall in license revenues, the quarter produced a number of positive financial trends
which demonstrate the fiscal strength of the company,'' said Len LeBlanc, Chief Financial Officer.
''For the quarter, receivables days sales outstanding of 81 remained approximately the same as the
prior quarter, and increases in deferred revenue and cash show the company continues to effectively
manage its business. Our balance sheet provides a solid foundation to implement the strategic programs
we have in place for the rest of 1999.''
About The Vantive Corporation
Vantive is a worldwide leader in the front-office software market with more than 700 customers and
$163 million in revenue in 1998. Vantive's vision is to bring technology solutions to the front-office that
creates competitive advantage through strong and enduring customer relationships. The Vantive
Enterprise is an integrated suite of web-enabled software that increases sales, marketing, call center,
help desk and field service effectiveness. Vantive Enterprise is differentiated by its rich functionality;
proven mobile solutions; component-based, high-performance architecture; and time- and
cost-effective implementations. Vantive is supported by extensive software, consulting, and service
partner programs that provide further technology and vertical expertise as well as integration support.
Founded in 1990, Vantive is headquartered in Santa Clara, and distributes its products in more than two
dozen countries. Contact the Vantive Corp. at 1-800-VANTIVE, 408/982-5700, or www.vantive.com.
Some of the statements contained in this news release, including those regarding revenues, earnings,
and growth rate projections are based on expectations and assumptions that involve a number of risks
and uncertainties and are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 32E of the Securities and Exchange Act of 1934, as
amended, and are subject to the safe harbors created thereby. The Company's future actual results
could differ materially from the forward-looking statements made herein because of the following
factors among others: demand for the Company's products; the intense level of product and price
competition; the ability of the Company to rapidly develop and market new and existing products and to
control the associated costs; the ability of the Company to manage its direct sales force and indirect
distribution channels; the ability of the Company to attract and retain key personnel; the level of orders
which are received and can be shipped in a quarter; general economic conditions in the United States
and worldwide markets served by the Company and those other factors discussed from time to time in
the Company's public reports filed with the Securities and Exchange Commission, such as those
discussed under ''Business Risks'' included in the Company's report on Form 10-K and subsequent
quarterly reports on Form 10-Q.
The Vantive Corporation
Condensed Consolidated Balance Sheet
(In Thousands)
March 31, December 31,
1999 1998
--------- ---------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 56,586 $ 51,636
Short-term investments 40,131 43,174
Accounts receivable, net 40,303 42,110
Prepaid expenses and
other current assets 18,535 18,433
-------- --------
Total current assets 155,555 155,353
Property and equipment, net 23,672 23,736
Other assets 4,890 5,179
======== ========
TOTAL ASSETS $184,117 $184,268
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and
accrued liabilities $ 28,564 $ 29,842
Deferred revenues 17,859 16,089
--------- ---------
Total current liabilities 46,423 45,931
Convertible Debt 69,000 69,000
Long-term liabilities 724 299
STOCKHOLDERS' EQUITY
Common stock 27 27
Additional paid-in-capital 70,913 72,233
Retained earnings (deficit) (2,970) (3,222)
--------- ---------
Total stockholders'
equity 67,970 69,038
========= =========
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 184,117 $ 184,268
========= =========
The Vantive Corporation
Condensed Consolidated Statement of Earnings
(In Thousands, Except Per Share Data)
Three Months Ended
March 31,
---------------------------------
1999 1998
--------------- ---------------
(unaudited) (unaudited)
Revenues
License $ 22,156 $ 22,517
Service 22,644 13,763
-------- --------
Total revenues 44,800 36,280
Costs of Revenues
Cost of license 573 204
Cost of service 13,636 7,312
-------- --------
Total cost of revenues 14,209 7,516
-------- --------
Gross margin 30,591 28,764
Operating Expenses
Sales and marketing 19,209 14,126
Research and
development 8,447 5,944
General and
administrative 3,126 3,002
-------- --------
Total operating expenses 30,782 23,072
Operating income (191) 5,692
Other income 574 211
-------- --------
Income before income
taxes 383 5,903
Provision for income
taxes 131 2,184
======== ========
Net income $ 252 $ 3,719
======== ========
Basic EPS $ 0.01 $ 0.15
======== ========
Diluted EPS $ 0.01 $ 0.14
======== ========
Basic - Shares used in
per share computation 26,452 25,384
Diluted - Shares used in
per share computation 28,324 27,210
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