SAN MATEO, Calif., April 18 /PRNewswire-FirstCall/ --
E.piphany, Inc. (Nasdaq: EPNY) today announced results for the quarter ended
March 31, 2002.
For the quarter ended March 31, 2002, the company reported revenues of
$22.1 million, compared to revenues of $39.3 million in the first quarter of
2001. First quarter license revenues were $10.9 million and services revenues
were $11.2 million, representing 49% and 51% of total revenues, respectively.
Excluding the amortization of goodwill, stock-based compensation and
restructuring charges, net loss for the quarter was $13.5 million, or
$(0.19) per share, compared to a net loss of $24.7 million, or $(0.37) per
share during the first quarter of 2001. Including the amortization of
purchased intangibles, stock-based compensation and restructuring charges, net
loss for the quarter was $17.0 million, or $(0.24) per share.
Pursuant to a 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 3% in the first quarter of
fiscal 2002 and 2001, respectively.
Roger Siboni, CEO of E.piphany, said, "During the quarter E.piphany
released E.6, the only end-to-end J2EE CRM solution that takes advantage of
our leadership in marketing and analytics to deliver Smart CRM. We also
continued to add blue chip customers to our roster by signing new transactions
with ING North America, Miller Brewing, the National Football League,
RealNetworks, SBC Communications, SWISS, Ticketmaster and Yamaha. Repeat
business also was strong this quarter as existing customers keep extending
their investments in E.piphany's products. While the first quarter presented
many challenges and we do not expect a fast economic recovery, we are very
pleased that in these tough times, we are gaining mindshare among the Global
2000 and constantly improving our market position so that we are well-
positioned to benefit when IT spending picks up."
Kevin Yeaman, chief financial officer, added, "Our balance sheet remains
solid with approximately $309 million in cash and DSO of 67 days. In a tough
quarter, we kept service margins at a healthy level and reduced total
operating costs without sacrificing our ability to execute our strategy."
E.piphany provides Smart CRM(TM) solutions for the largest global
enterprises. The company's integrated CRM suite, E.piphany E.6, 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 Smart CRM system is built on
the industry's most advanced, Web-based, CRM platform, resulting in fast and
easy deployment and adoption. Leading companies, including more than 35% of
the Fortune 100, use E.piphany products to enhance their customers'
experience, enable 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.
This press release contains forward-looking statements relating to future
economic recovery, mindshare gain and market position. 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 customers' individual purchasing decisions, delays in the development
and release of new US and international versions of E.piphany's products,
increases in the length of E.piphany's sales cycles, intense competition
including the introduction of new products and services by competitors, our
ability to hire and retain qualified personnel, and worsening general 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 any
statements made in this press release.
NOTE: E.piphany, E.6, Smart CRM and the E.piphany logo are trademarks of
E.piphany, Inc.
E.PIPHANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended
03/31/2002 3/31/2001 (A)
Revenues:
Product license $10,911 $22,432
Services 11,235 16,867
Total revenues 22,146 39,299
Cost of revenues:
Product license 246 744
Services 8,164 22,729
Total cost of revenues 8,410 23,473
Gross profit 13,736 15,826
Operating expenses:
Research and development 8,616 11,419
Sales and marketing 16,927 23,978
General and administrative 3,246 8,639
Restructuring costs 494 --
Amortization of goodwill and
purchased intangibles 2,648 270,436
Stock-based compensation 377 290
Total operating expenses 32,308 314,762
Operating loss (18,572) (298,936)
Other income, net 1,556 3,541
Loss before income taxes (17,016) (295,395)
Income taxes -- --
Net loss $(17,016) $(295,395)
Basic and diluted net loss per
share $(0.24) $(4.48)
Shares used in computing basic
and
diluted net loss per share 70,736 65,943
Excluding restructuring costs and
non-cash items (B):
Net loss $(13,497) $(24,669)
Basic and diluted net loss per
share $(0.19) $(0.37)
Shares used in computing basic
and diluted net loss per
share 70,736 65,943
(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 3% in the first quarter of fiscal
2002 and 2001, respectively.
(B) Non-cash items include amortization of goodwill and purchased
intangibles and stock-based compensation.
E.PIPHANY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 03/31/2002 12/31/2001
(unaudited)
Current assets:
Cash and cash equivalents $167,041 $202,940
Short-term investments 141,522 121,324
Accounts receivable, net 16,258 13,703
Prepaid expenses and other assets 3,255 3,866
Total current assets 328,076 341,833
Property and equipment, net 19,964 22,320
Goodwill and purchased intangibles, net 95,465 98,113
Other assets 3,488 3,589
$446,993 $465,855
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $467 $498
Trade accounts payable 1,240 2,537
Accrued liabilities 10,561 11,260
Accrued compensation 12,298 11,873
Current portion of restructuring costs 8,199 8,954
Deferred revenue 15,845 15,380
Total current liabilities 48,610 50,502
Restructuring costs, net of current
portion 21,303 23,454
Long-term debt, net of current portion 34 156
Other long-term liabilities 310 316
Total liabilities 70,257 74,428
Minority interest 35 35
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,809,736 3,807,410
Notes receivable (778) (778)
Accumulated and other comprehensive
income (946) (564)
Deferred compensation (520) (901)
Accumulated deficit (3,430,798) (3,413,782)
Total stockholders'
equity 376,701 391,392
$446,993 $465,855
SOURCE E.piphany, Inc.
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Related links:
http://www.epiphany.com
CONTACT:
investors, Todd Friedman, +1-650-356-3934, or
tfriedman@epiphany.com, or press, Heather McLellan,
+1-650-356-3863, or hmclellan@epiphany.com, both of E.piphany,
Inc.
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