Agile Beats Top and Bottom-line Consensus Estimates
SAN JOSE, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Agile Software
Corporation (Nasdaq: AGIL), a leading provider of product lifecycle management
(PLM) solutions, today announced results for the third quarter of fiscal 2006,
which ended January 31, 2006. Total revenues for the quarter were $32.8
million, compared to $30.3 million for the third quarter of fiscal 2005.
License revenues for the third quarter of fiscal 2006 were $13.4 million,
compared to $12.5 million achieved in the third quarter of fiscal 2005.
Net loss for the third quarter of fiscal 2006, on a generally accepted
accounting principles (GAAP) basis, was $4.1 million, or ($0.08) per share,
compared to a net income of $290,000 or $0.01 per share for the third quarter
of fiscal 2005.
Non-GAAP net loss for the third quarter of fiscal 2006 (which excludes
amortization of intangibles, stock compensation and restructuring charges) was
$122,000 or $0.00 per share. Non-GAAP net income for the third quarter of
fiscal 2005 (which excludes amortization of intangibles and stock
compensation) was $984,000 or $0.02 per share. Reconciliation between our net
income (loss) on a GAAP and non-GAAP basis is provided in a table immediately
following the Condensed Consolidated Statements of Operations below.
Management Commentary
"Historically, our Q3 has been challenging as it includes the holiday
season. This year, our quarter ended with very satisfying results -- most
notably, the fact that we hit our highest quarter in license revenues in more
than four years," said Bryan Stolle, Agile CEO. "We are continuing to see PLM
adoption grow across all sizes of companies -- from large enterprises to
start-ups -- and industries, as is evidenced with our increasing numbers of
EHT, life sciences and consumer packaged goods customers."
"We are particularly pleased with our strong license revenue rebound from
Q2," said Jay Fulcher, Agile president and COO. "We are also encouraged by
our bottom line results, as we have been proactive and aggressive in managing
our costs while still making the necessary investments to drive our business.
We believe we are well-positioned for further revenue growth and achieving
profitability in the future."
Customer Wins and Expansions
Organizations that purchased new or additional licenses include
Arthrocare, Ball Aerospace, Bally Gaming, B/E Aerospace, Conexant,
CooperVision, Digirad, Draeger Medical, Eastman Kodak, Foxlink, GN Resound,
W.L. Gore, Grandstream Networks, Harman, Herbalife, Hewlett Packard, Intier,
Logitech, Metaldyne, NEC Computers, NACCO, nVIDIA, Overland Storage, Phoenix,
Plexus, Powerwave, Siemens, Spirent, Synthon, Synthes, Texas Instruments and
V-ZUG.
Conference Call Details
Agile will discuss its third quarter results and management's forward
looking guidance on a conference call today beginning at 2:00pm Pacific Time.
A Web cast of the conference will be available on Agile's Web site at
http://www.agile.com under the 'Investor Relations' section. You may access replays
of the Web cast for ninety days after the call at
http://www.agile.com/investors. Financial and statistical information to be
discussed in the call will be available on the company's Web site immediately
prior to commencement of the call. Additional investor information can be
accessed at http://www.agile.com or by calling Agile's Investor Relations at
(408) 284-4011.
About Agile Software Corporation
Agile Software Corporation helps companies drive profits, accelerate
innovation, reduce costs, and ensure regulatory compliance throughout the
product lifecycle. With a broad suite of enterprise class PLM solutions,
time-to-value focused implementations, and a unique Guaranteed Business
Results(SM) program, Agile helps companies get the most from their products.
Alcatel, Bayer, Dell Inc., Flextronics International, Foxconn, Harris,
Hitachi, Leapfrog, Lockheed Martin, Magna Steyr, Playtex, Siemens, Quanta,
QUALCOMM and ZF are among the over 10,000 customers in the automotive,
aerospace and defense, consumer products, electronics, high tech, industrial
products, and life sciences industries that have licensed Agile solutions.
For more information, call 408-284-4000 or visit http://www.agile.com.
Agile, the Agile logo and Agile Software are registered trademarks and
Agile On Demand, Agile Advantage, Agile Product Collaboration, Agile Product
Cost Management, Agile Product Governance & Compliance, Agile Product Service
& Improvement, Agile Product Quality Management, Agile Product Portfolio
Management, Agile Engineering Collaboration, Agile Product Interchange and
AgileMD are trademarks of Agile Software Corporation in the U.S. and/or other
countries. Guaranteed Business Results is a service mark of Agile Software
Corporation. All other brand or product names are trademarks and registered
trademarks of their respective holders.
Non-GAAP Financial Measures
In addition to reporting our financial results in accordance with
generally accepted accounting principles, or GAAP, we are also providing with
this press release non-GAAP net income (loss) and non-GAAP net income (loss)
per share information, together with a reconciliation between the GAAP and
non-GAAP information. In preparing our non-GAAP information, we have excluded
where applicable, stock-based compensation (a non-cash charge), acquisition-
related amortization of intangible assets and acquired in-process research and
development (non-cash charges), acquisition related compensation (a non-
recurring charge), and restructuring and other charges. Because of the non-
recurring or infrequent nature and/or non-cash nature of several of these
charges, we believe that excluding them provides both management and investors
with additional insight into our current operations, the trends affecting the
Company and the Company's marketplace performance. In particular, management
finds it useful to exclude the non-cash charges in order to more readily
correlate the Company's operating activities with the Company's ability to
generate cash from operations, and excludes the non-recurring and infrequently
incurred cash items as a means of more accurately predicting liquidity
requirements. Accordingly, management uses these non-GAAP measures, along
with the comparable GAAP information, in evaluating our historical performance
and in planning our future business activities. Please note that our non-GAAP
measures may be different than those used by other companies. The additional
non-GAAP financial information we present should be considered in conjunction
with, and not as a substitute for, our financial information presented in
accordance with GAAP.
Safe Harbor Statement
This press release contains "forward-looking statements," as defined under
securities laws, including statements relating to the Company's expectations
regarding the Company's financial results in future periods and the general
adoption of PLM. Actual results may differ materially and adversely from those
expressed in any forward-looking statements. These factors include, but are
not limited to, overall spending patterns for enterprise software in general
and for PLM in particular and other risk factors detailed in the Company's
filings with the Securities and Exchange Commission. For additional
information regarding the risks inherent in our business, please see "Risk
Factors" included in our Annual Report on Form 10-K for the year ended April
30, 2005, and in our Quarterly Report on Form 10-Q for the quarter ended
October 31, 2005, as filed with the Securities and Exchange Commission. We
undertake no obligation to revise our forward-looking statements to reflect
events or circumstances after the date hereof as a result of new information,
future events or otherwise.
Agile Software Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
2006 2005 2006 2005
Revenues:
License $13,405 $12,455 $36,882 $33,975
Service 19,397 17,825 61,783 51,003
Total revenues 32,802 30,280 98,665 84,978
Cost of revenues:
License 842 1,243 2,449 3,484
Service (1) 9,840 8,460 32,253 24,042
Amortization of intangible
assets 726 178 2,176 533
Total cost of revenues 11,408 9,881 36,878 28,059
Gross profit 21,394 20,399 61,787 56,919
Operating expenses:
Sales and marketing (1) 12,376 12,043 37,538 33,501
Research and development (1) 8,923 5,651 25,678 16,496
General and administrative (1) 3,239 2,942 9,553 8,419
Amortization of intangible
assets 627 357 1,856 1,403
Restructuring charges 1,729 -- 1,729 2,132
Total operating expenses 26,894 20,993 76,354 61,951
Loss from operations (5,500) (594) (14,567) (5,032)
Interest and other income, net 1,597 1,169 3,751 3,047
Income (loss) before income taxes (3,903) 575 (10,816) (1,985)
Provision for income taxes 237 285 644 820
Net income (loss) $(4,140) $290 $(11,460) $(2,805)
Net income (loss) per share:
Basic and diluted $(0.08) $0.01 $(0.21) $(0.05)
Weighted average shares
Basic 54,808 53,058 54,052 52,732
Diluted 54,808 54,840 54,052 52,732
(1) Effective May 1, 2005, Agile adopted FAS 123(R), "Share-Based
Payments," and uses the modified prospective method to value its
share-based payments. Accordingly, for the three and nine months
ended January 31, 2006, stock compensation was accounted under FAS
123(R) while for the three and nine months ended January 31, 2005,
stock compensation was accounted under APB 25, "Accounting for Stock
Issued to Employees." The amounts in the tables above include stock
compensation as follows:
Cost of service revenue $144 $36 $417 $179
Sales and marketing 462 87 1,353 331
Research and development 123 2 326 25
General and administrative 207 34 611 157
Total stock compensation $936 $159 $2,707 $692
Agile Software Corporation
Non-GAAP Financial Measures and Reconciliations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
2006 2005 2006 2005
GAAP net income (loss) to non-
GAAP net
income (loss) reconciliation:
GAAP net loss $(4,140) $290 $(11,460) $(2,805)
Stock compensation (1) 936 159 2,707 692
Amortization of intangible
assets 1,353 535 4,032 1,936
Restructuring charges 1,729 -- 1,729 2,132
Non-GAAP net income
(loss) $(122) $984 $(2,992) $1,955
GAAP basic and diluted to non-
GAAP basic and
diluted earnings (loss) per
share reconciliation:
GAAP basic and diluted earnings
(loss) per share $(0.08) $0.01 $(0.21) $(0.05)
Stock compensation (1) 0.02 -- 0.05 0.01
Amortization of intangible
assets 0.03 0.01 0.07 0.04
Restructuring charges 0.03 -- 0.03 0.04
Non-GAAP basic and
diluted earnings
(loss) per share $0.00 $0.02 $(0.06) $0.04
Weighted average shares used
in calculating
non-GAAP diluted net income
per share 54,808 54,840 54,052 54,432(2)
(1) Effective May 1, 2005, Agile adopted FAS 123(R), "Share-Based
Payments," and uses the modified prospective method to value its
share-based payments. Accordingly, for the three and nine months
ended January 31, 2006, stock compensation was accounted under FAS
123(R) while for the three and nine months ended January 31, 2005,
stock compensation was accounted under APB 25, "Accounting for Stock
Issued to Employees."
(2) Weighted average shares used in calculating non-GAAP diluted net
income per share for the nine months ended January 31, 2005 were
computed while giving effect to all dilutive potential common
shares, which were anti-dilutive for the purpose of calculating GAAP
diluted net loss per share.
Agile Software Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 31, April 30,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $102,078 $81,760
Short-term investments 84,216 93,444
Accounts receivable, net 22,836 26,899
Other current assets 4,784 5,157
Total current assets 213,914 207,260
Long-term investments 14,101 23,176
Property and equipment, net 9,112 10,067
Intangible assets, net 8,404 12,735
Other assets 1,038 1,127
Goodwill 66,713 66,658
Total assets $313,282 $321,023
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other
liabilities $27,993 $26,694
Deferred revenue 26,483 25,190
Total current liabilities 54,476 51,884
Other non-current liabilities 6,177 8,258
Total liabilities 60,653 60,142
Total stockholders' equity 252,629 260,881
Total liabilities and
stockholders' equity $313,282 $321,023
SOURCE Agile Software Corporation
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