SAN MATEO, Calif., Jan. 23 /PRNewswire-FirstCall/ --
E.piphany, Inc. (Nasdaq: EPNY) today announced results for the quarter ended
December 31, 2002.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO )
For the quarter ended December 31, 2002, the company reported revenues of
$22.5 million, compared to revenues of $28.4 million in the fourth quarter of
2001. Fourth quarter license revenues were $9.3 million and service revenues
were $13.2 million, representing 41% and 59% of total revenues, respectively.
Net loss under generally accepted accounting principles ("GAAP") for the
quarter was $14.8 million, or $(0.20) per share, compared to a net loss under
GAAP of $36.8 million, or $(0.53) per share during the fourth quarter of 2001.
Net loss excluding the amortization of goodwill and purchased intangibles,
stock-based compensation and restructuring costs for the quarter was
$8.1 million, or $(0.11) per share, compared to a net loss of $8.9 million, or
$(0.13) per share during the fourth quarter of 2001.
For the year ended December 31, 2002, E.piphany reported total revenues of
$83.8 million, compared to revenues of $128.8 million in 2001. The net loss
under GAAP for 2002 was $71.7 million, or $(1.00) per share, compared to a net
loss under GAAP of $2.6 billion, or $(38.25) per share during 2001. The net
loss excluding the amortization of goodwill and purchased intangibles,
stock-based compensation and restructuring costs for 2002 was $44.4 million,
or $(0.62) per share, compared to a net loss for 2001 of $67.7 million, or
$(0.99) per share.
Roger Siboni, president and chief executive officer, commented, "I am
pleased with our progress in the quarter and believe that we are achieving
the strategic milestones that we set for ourselves. After launching our E.6
Service product last quarter, which completed the E.6 Suite, we continued to
have success selling across each of our Marketing, Sales and Service product
lines. We added 14 new customers in the quarter, including Ameriquest
Mortgage, British Gas, eBay, Hoffman LaRoche, KLM, USAA and Zales.
Additionally, we continued to grow our existing engagements at customers such
as American Express, Cigna and Exxon. In addition to meeting our product and
customer milestones, we continue to achieve a superior level of customer
satisfaction. A recent AMR survey of all major CRM vendors reported, 'In
terms of overall satisfaction, no vendor was able to produce nearly as many
satisfied customers as E.piphany.'"
Kevin Yeaman, chief financial officer, added, "Our balance sheet at the
end of the year remains strong. During the fourth quarter, cash and
investments decreased less than $2 million to $287 million, DSO declined to
28 days, and deferred revenue increased 22% to $20.5 million."
This press release contains forward-looking statements, including
statements relating to E.piphany's continued achievement of strategic
milestones, successful selling efforts, customer satisfaction and balance
sheet strength. Actual results could differ materially from such
forward-looking statements. Factors that could cause actual results to differ
materially from the forward-looking statements include the degree of interest
in and acceptance of E.piphany's new products, increases in the length of
E.piphany's sales cycles, reduced IT spending by customers and potential
customers, the introduction of new products and services by competitors and
intense competition generally, our ability to hire and retain qualified
personnel, and general and industry-specific economic conditions. These
factors and others are described in more detail in the Company's public
reports filed with the Securities and Exchange Commission, such as those
discussed in the "Risk Factors" section included in the Company's Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and in the Company's prior
press releases. E.piphany assumes no duty to update forward-looking
statements.
About E.piphany
E.piphany provides Smart CRM(TM) solutions for the largest global
enterprises. The company's integrated suite of applications for Marketing,
Sales, and Service, the E.piphany E.6(TM) solution, is driven by real-time
intelligence to enable global businesses to better understand their customers
and take the optimal action to improve customer satisfaction, increase revenue
and reduce costs. E.piphany's applications are built on the industry's most
advanced CRM architecture resulting in fast and easy deployment, the ability
to adapt to changing business demands, and permanent cost of ownership
advantage. Leading companies, including more than 35 percent of the Fortune
100, use E.piphany products to enhance the customer experience, improve
organizational effectiveness and drive value. With worldwide headquarters in
San Mateo, California, E.piphany has regional operations and offices
throughout North America, Asia Pacific, Europe, Japan and Latin America. For
more information go to: http://www.epiphany.com .
E.PIPHANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Years ended
12/31/02 12/31/01 12/31/02 12/31/01
(A) (A)
Revenues:
Product license $9,304 $16,223 $33,788 $71,116
Services 13,187 12,187 50,042 57,714
Total revenues 22,491 28,410 83,830 128,830
Cost of revenues:
Product license 426 353 1,297 2,016
Services 7,566 8,852 31,500 56,330
Total cost of revenues 7,992 9,205 32,797 58,346
Gross profit 14,499 19,205 51,033 70,484
Operating expenses:
Research and development 8,259 8,637 34,143 40,992
Sales and marketing 12,509 17,827 54,352 87,953
General and administrative 3,282 4,025 12,729 24,257
Restructuring costs 3,945 10,535 16,086 42,971
Amortization of goodwill
and purchased intangibles 2,647 16,998 10,582 2,497,199
Stock-based compensation 52 405 665 1,561
Total operating
expenses 30,694 58,427 128,557 2,694,933
Operating loss (16,195) (39,222) (77,524) (2,624,449)
Other income, net 1,414 2,379 5,834 15,014
Net loss $(14,781) $(36,843) $(71,690) $(2,609,435)
Basic and diluted net
loss per share $(0.20) $(0.53) $(1.00) $(38.25)
Shares used in
computing basic and
diluted net loss per
share 72,554 69,969 71,711 68,224
Non-GAAP financial measures
and reconciliation
Net loss (14,781) (36,843) (71,690) (2,609,435)
Less: Restructuring
costs 3,945 10,535 16,086 42,971
Less: Amortization of
goodwill and purchased
intangibles 2,647 16,998 10,582 2,497,199
Less: Stock-based
compensation 52 405 665 1,561
Net loss excluding
restructuring costs
and certain non-cash
items $(8,137) (8,905) (44,357) (67,704)
Basic and diluted net
loss per share
excluding
restructuring costs
and certain non-cash
items $(0.11) (0.13) (0.62) (0.99)
Shares used in
computing basic
and diluted net loss
per share 72,554 69,969 71,711 68,224
(A) Pursuant to the Financial Accounting Standards Board staff
announcement (Topic No. D-103), reimbursable expenses
have been reclassified into revenues, with a corresponding
increase in cost of revenues. The impact of the reclassification
was to increase revenues by 2% and 1% in the three months ended
December 31, 2002 and 2001, respectively. The impact of the
reclassification was to increase revenues by 2% and 3% in the
years ended December 31, 2002 and 2001, respectively.
E.PIPHANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 12/31/02 12/31/01
Current assets:
Cash and cash equivalents $93,435 $192,378
Short-term investments 69,279 121,324
Accounts receivable, net 6,852 13,703
Prepaid expenses and other
assets 7,389 5,061
Short-term restricted cash 1,191 --
Total current
assets 178,146 332,466
Long-term investments 115,068 --
Long-term restricted cash 7,984 9,367
Property and equipment, net 12,269 22,320
Goodwill, net 81,499 81,783
Purchased intangibles, net 5,748 16,330
Other assets 2,553 3,589
$403,267 $465,855
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital
lease obligations $156 $498
Accounts payable 2,417 2,537
Accrued liabilities 8,280 11,260
Accrued compensation 9,064 11,873
Current portion of
restructuring costs 8,206 8,954
Deferred revenue 20,526 15,380
Total current
liabilities 48,649 50,502
Restructuring costs, net of current
portion 24,740 23,454
Capital lease obligations, net of
current portion -- 156
Other long-term liabilities 496 316
Total
liabilities 73,885 74,428
Minority interest -- 35
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,815,216 3,807,410
Stockholders' notes receivable (556) (778)
Accumulated and other
comprehensive loss 296 (564)
Deferred compensation (109) (901)
Accumulated deficit (3,485,472) (3,413,782)
Total
stockholders'
equity 329,382 391,392
$403,267 $465,855
SOURCE E.piphany, Inc.
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Related links:
http://www.epiphany.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 1-888-776-6555 or +1-212-782-2840
CONTACT:
investors, Todd Friedman, +1-650-356-3934, or
tfriedman@epiphany.com, or press, Kim Stocks, +1-650-356-5863, or
kstocks@epiphany.com, both of E.piphany
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