SAN MATEO, Calif., July 18 /PRNewswire-FirstCall/ --
E.piphany, Inc. (Nasdaq: EPNY) today announced results for the quarter ended
June 30, 2002.
For the quarter ended June 30, 2002, the company reported revenues of
$19.4 million, compared to revenues of $32.3 million in the second quarter of
2001. Second quarter license revenues were $6.8 million and service revenues
were $12.6 million, representing 35% and 65% of total revenues, respectively.
Excluding the amortization of goodwill and purchased intangibles, stock-based
compensation and restructuring costs, net loss for the quarter was $12.3
million, or $(0.17) per share, compared to a net loss of $19.1 million, or
$(0.28) per share during the second quarter of 2001. Including the
amortization of goodwill and purchased intangibles, stock-based compensation
and restructuring costs, net loss for the quarter was $26.3 million, or
$(0.37) per share, compared to a net loss of $294.0 million, or $(4.30) per
share during the second quarter of 2001.
For the six months ended June 30, 2002, E.piphany reported total revenues
of $41.5 million, compared to revenues of $71.6 million in the same period of
2001. The net loss excluding the amortization of goodwill and purchased
intangibles, stock-based compensation and restructuring charges for the six
month period in 2002 was $25.8 million, or $(0.36) per share, compared to a
net loss excluding the amortization of goodwill and purchased intangibles and
stock-based compensation for the same period of 2001 of $43.8 million, or
$(0.65) per share. The net loss including the amortization of goodwill and
purchased intangibles, stock-based compensation and restructuring costs for
the six month period in 2002 was $43.3 million, or $(0.61) per share, compared
to a net loss of $589.4 million, or $(8.79) per share during the same period
of 2001.
Roger Siboni, president and chief executive officer, commented, "In the
first half of 2002, we launched a major product release that will culminate in
the third quarter with E.6 Service. This will provide us with the most
complete J2EE CRM product suite available to the market today. We continue to
maintain and grow a blue chip list of existing customers and added more
top-quality customers to our roster in the second quarter, including Renault,
Petsmart and Advanced Elastomer Systems, L.P., who was recently acquired by
ExxonMobil Chemical Company. We also extended our relationships with existing
customers such as Barclaycard, Washington Mutual and NEC. And we have
continued to garner accolades from industry press and analysts for product
quality and innovation as well as customer satisfaction."
Kevin Yeaman, chief financial officer, added, "Our balance sheet remains
solid with more than $300 million in cash, DSO of 50 days and an increase in
deferred revenue of approximately 15%."
This press release contains forward-looking statements relating to
E.piphany product releases, momentum with new and existing customers, positive
affirmation from industry press and analysts, and the strength of E.piphany's
balance sheet. 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 delays in the
development and release of new US and international versions of E.piphany's
products, increases in 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
forward-looking statements.
About E.piphany
E.piphany is the leading provider Smart CRM solutions. The company's
integrated CRM suite is driven by intelligence and operates in real-time to
enable global businesses to understand and dynamically and continually serve
customers. The company's CRM system is completely Web-based, resulting in fast
and easy deployment and adoption. Leading companies -- including more than
35% of the Fortune 100 partner with E.piphany 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 the North America, Latin Europe, Asia
Pacific, Latin America and Japan.
E.PIPHANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
6/30/02 6/30/01(A) 6/30/02 6/30/01(A)
Revenues:
Product license $6,817 $16,261 $17,728 $38,693
Services 12,581 15,994 23,816 32,861
Total revenues 19,398 32,255 41,544 71,554
Cost of revenues:
Product license 324 445 570 1,189
Services 8,030 15,070 16,194 37,799
Total cost of revenues 8,354 15,515 16,764 38,988
Gross profit 11,044 16,740 24,780 32,566
Operating expenses:
Research and development 8,950 10,789 17,566 22,208
Sales and marketing 12,747 24,223 29,674 48,201
General and administrative 3,141 6,921 6,387 15,560
Restructuring costs 11,228 -- 11,722 --
Amortization of goodwill
and purchased intangibles 2,640 274,450 5,288 544,886
Stock-based compensation 168 456 545 746
Total operating expenses 38,874 316,839 71,182 631,601
Operating loss (27,830) (300,099) (46,402) (599,035)
Other income, net 1,540 6,055 3,096 9,596
Net loss $(26,290) $(294,044) $(43,306) $(589,439)
Basic and diluted net
loss per share $(0.37) $(4.30)$ (0.61) $(8.79)
Shares used in computing
basic and diluted net
loss per share 71,704 68,306 71,190 67,061
Excluding restructuring
costs and non-cash items(B):
Net loss $(12,254) $(19,138) $(25,751) $(43,807)
Basic and diluted net
loss per share $(0.17) $(0.28) $(0.36) $(0.65)
Shares used in computing
basic and diluted net
loss per share 71,704 68,306 71,190 67,061
(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 1% and 4% in the three months ended 2002 and 2001,
respectively. The impact of the reclassification was to increase
revenues by 2% and 4% in the six months ended 2002 and 2001,
respectively.
(B) Non-cash items include restructuring costs, amortization of
goodwill and purchased intangibles and stock-based compensation.
E.PIPHANY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 6/30/02 12/31/01
(unaudited)
Current assets:
Cash and cash equivalents $163,478 $202,940
Short-term investments 139,894 121,324
Accounts receivable, net 10,704 13,703
Prepaid expenses and other assets 3,352 3,866
Total current assets 317,428 341,833
Property and equipment, net 16,069 22,320
Goodwill and purchased intangibles,
net 92,541 98,113
Other assets 2,594 3,589
$428,632 $465,855
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $345 $498
Accounts payable 1,017 2,537
Accrued liabilities 9,299 11,260
Accrued compensation 9,504 11,873
Current portion of restructuring
costs 9,553 8,954
Deferred revenue 18,021 15,380
Total current
liabilities 47,739 50,502
Restructuring costs, net of current
portion 25,756 23,454
Capital lease obligations, net of
current portion -- 156
Other long-term liabilities 157 316
Total liabilities 73,652 74,428
Minority interest -- 35
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,813,344 3,807,410
Stockholders' notes receivable (730) (778)
Accumulated and other comprehensive
loss (147) (564)
Deferred compensation (406) (901)
Accumulated deficit (3,457,088) (3,413,782)
Total stockholders'
equity 354,980 391,392
$428,632 $465,855
SOURCE E.piphany, Inc.
 back to top
Related links:
http://www.epiphany.com
CONTACT:
Investor Relations, 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
|
