SAN MATEO, Calif., April 21 /PRNewswire-FirstCall/ --
E.piphany, Inc. (Nasdaq: EPNY) today announced results for the quarter ended
March 31, 2003.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO )
For the quarter ended March 31, 2003, the company reported revenues of
$22.5 million, compared to revenues of $22.1 million in the first quarter of
2002. First quarter license revenues were $10.4 million and service revenues
were $12.1 million, representing 46% and 54% of total revenues, respectively.
Net loss under generally accepted accounting principles ("GAAP") for the
quarter was $10.9 million, or $(0.15) per share, compared to a net loss under
GAAP of $17.0 million, or $(0.24) per share during the first quarter of 2002.
On a non-GAAP basis, net loss for the quarter excluding the amortization of
purchased technology and intangibles, stock-based compensation and
restructuring costs was $6.7 million, or $(0.09) per share, compared to a non-
GAAP net loss of $13.5 million, or $(0.19) per share during the first quarter
of 2002.
Roger Siboni, president and chief executive officer, commented, "I am
pleased with our execution this quarter, especially in light of the world
situation and the general spending environment in the enterprise software
sector. We continue to achieve the strategic milestones that we set for
ourselves last year. We also continue to have success selling E.6 across each
of our Marketing, Sales and Service product lines. We added 10 new customers
in the quarter, including Autotrader.com, Alliance Unichem, AT&T Wireless,
Auchan, CR Firenze and Liberty Mutual. Additionally, we continue to grow our
existing engagements at customers such as AOL/Time Warner, Barclaycard and
KLM."
Kevin Yeaman, chief financial officer, added, "Our balance sheet at the
end of the quarter remains strong with cash and investments of $277 million,
DSOs of 37 days, and deferred revenue of $20.4 million."
About E.piphany
E.piphany is a leading provider of marketing, sales, and service solutions
for the largest global enterprises. The company's integrated CRM suite, the
E.piphany E.6 software solution, is driven by real-time intelligence to enable
global businesses to understand their customers and take the optimal actions
to improve customer satisfaction, increase revenue, and reduce costs.
E.piphany E.6 solutions are built on the industry's most advanced, component-
based CRM platform, resulting in fast and easy deployment and adoption.
Leading companies, including more than 35 of the Fortune 100, use E.piphany
software products to enhance their customers' experiences, enable
organizational effectiveness, and drive value. With worldwide headquarters in
San Mateo, California, E.piphany has regional operations and offices
throughout North America, Europe, Asia Pacific, Japan, and Latin America. For
more information, visit us at http://www.epiphany.com.
This press release contains forward-looking statements, including
statements relating to E.piphany's continued achievement of strategic
milestones, successful selling efforts, growth of existing customer
engagements 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 our public
reports filed with the Securities and Exchange Commission, such as those
discussed in the "Risk Factors" section included in the our Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and in the our prior press releases.
E.piphany assumes no duty to update forward-looking statements.
The non-GAAP financial measure (net loss excluding certain charges)
presented in the text of this press release and accompanying supplementary
financial information represents a financial measure used by the Company's
management to evaluate the quarterly operating performance of the Company. The
Company's management believes these non-GAAP measures provide our investors,
potential investors, securities analysts and others with useful additional
information to evaluate the performance of our business. Please see the
attached statement of operations for reconciliation of our non-GAAP net loss
number to our GAAP net loss number for the period presented.
(tables to follow)
E.PIPHANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended
3/31/03 3/31/02
Revenues:
Product license $10,391 $10,911
Services 12,120 11,235
Total revenues 22,511 22,146
Cost of revenues:
Product license 252 246
Services 7,564 8,164
Amortization of purchased technology 1,828 2,432
Total cost of revenues 9,644 10,842
Gross profit 12,867 11,304
Operating expenses:
Research and development 8,560 8,616
Sales and marketing 12,316 16,927
General and administrative 2,574 3,246
Restructuring costs 2,243 494
Amortization of purchased intangibles 152 216
Stock-based compensation 27 377
Total operating expenses 25,872 29,876
Operating loss (13,005) (18,572)
Other income, net 2,104 1,556
Net loss $(10,901) $(17,016)
Basic and diluted net loss per share $(0.15) $(0.24)
Shares used in computing basic and diluted net
loss per share 72,833 70,736
Non-GAAP financial measures and reconciliation
Net loss $(10,901) $(17,016)
Less: Amortization of purchased technology 1,828 2,432
Less: Restructuring costs 2,243 494
Less: Amortization of purchased intangibles 152 216
Less: Stock-based compensation 27 377
Net loss excluding restructuring costs and
certain non-cash items $(6,651) $(13,497)
Basic and diluted net loss per share excluding
restructuring costs and certain non-cash items $(0.09) $(0.19)
Shares used in computing basic and diluted net
loss per share 72,833 70,736
E.PIPHANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 3/31/03 12/31/02
Current assets:
Cash and cash equivalents $80,573 $93,435
Short-term investments 34,210 69,279
Accounts receivable, net 9,017 6,852
Prepaid expenses and other assets 6,342 7,389
Short-term restricted cash 1,191 1,191
Total current assets 131,333 178,146
Long-term investments 152,756 115,068
Long-term restricted cash 7,987 7,984
Property and equipment, net 10,691 12,269
Goodwill, net 81,499 81,499
Purchased intangibles, net 3,768 5,748
Other assets 2,222 2,553
$390,256 $403,267
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations $89 $156
Accounts payable 930 2,417
Accrued liabilities 7,594 8,280
Accrued compensation 9,197 9,064
Current portion of restructuring costs 8,518 8,206
Deferred revenue 20,368 20,526
Total current liabilities 46,696 48,649
Restructuring costs, net of current portion 24,025 24,740
Capital lease obligations, net of current portion -- --
Other long-term liabilities 518 496
Total liabilities 71,239 73,885
Minority interest
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,815,528 3,815,216
Stockholders' notes receivable (422) (556)
Accumulated and other comprehensive loss 360 296
Deferred compensation (83) (109)
Accumulated deficit (3,496,373) (3,485,472)
Total stockholders' equity 319,017 329,382
$390,256 $403,267
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:
Investor Relations, Todd Friedman of
E.piphany, +1-650-356-3934 or tfriedman@epiphany.com
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