SAN MATEO, Calif., July 24 /PRNewswire-FirstCall/ -- E.piphany, Inc.
(Nasdaq: EPNY) today announced results for the quarter ended June 30, 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO )
For the quarter ended June 30, 2003, the company reported revenues of
$22.2 million, compared to revenues of $19.4 million in the second quarter of
2002. Second quarter license revenues were $9.5 million and service revenues
were $12.6 million, representing 43% and 57% of total revenues, respectively.
Net loss under generally accepted accounting principles ("GAAP") for the
quarter was $9.4 million, or $(0.13) per share, compared to a net loss under
GAAP of $26.3 million, or $(0.37) per share during the second 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 $12.3 million, or $(0.17) per share during the second
quarter of 2002.
For the six months ended June 30, 2003, E.piphany reported total revenues
of $44.7 million, compared to revenues of $41.5 million for the same period in
2002. The net loss under GAAP for the 2003 six month period was
$20.3 million, or $(0.28) per share, compared to a net loss under GAAP of
$43.3 million, or $(0.61) per share during the same period in 2002. On a
non-GAAP basis, net loss for the six month period excluding the amortization
of purchased technology and intangibles, stock-based compensation and
restructuring costs was $13.4 million, or $(0.18) per share, compared to a
non-GAAP net loss of $25.8 million, or $(0.36) per share during the six month
period in 2002.
E.piphany also announced today several changes to its management
structure. Roger Siboni will remain Chairman of the Board of Directors, Karen
Richardson has been promoted to Chief Executive Officer and has been named a
director of the company, and Phil Fernandez has been promoted to President and
Chief Operating Officer. (See separate release)
Roger Siboni, Chairman, commented, "We are very pleased with our execution
this quarter. Over the past year, we have systematically built a product and
customer success story around our E.6 suite of applications, while at the same
time creating an organization that is more focused on achieving profitability.
It is on this foundation that we now take the next step of promoting Karen and
Phil to their new roles, allowing me to focus all my energies on helping the
sales organization drive our E.6 products and vision into the marketplace."
Karen Richardson, CEO, added, "While the environment for selling software
remains challenging, we continue to achieve the strategic milestones that we
set for ourselves over a year ago. We have been successful because we have
aligned the company around a smaller set of objectives and then executed very
well against those objectives. The results can be seen in the success of E.6
across each of our Marketing, Sales, Service and Interaction Advisor product
lines. We added eight new customers in the quarter, including Banco de
Credito e Inversiones, Interval International, Lifetouch Studios, Park Place
Entertainment, Swisscom and Telus Mobility. Additionally, we have continued to
substantially grow our existing engagements at customers such as AT&T Wireless
and California State Automobile Association."
Kevin Yeaman, chief financial officer, added, "Our balance sheet at the
end of the quarter remains strong with cash and investments of $269 million
and DSOs of 32 days."
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 serves customers in more than 40 countries
around the world. For more information, visit us at http://www.epiphany.com.
This press release contains forward-looking statements relating to
E.piphany's continued achievement of strategic milestones 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 our public reports filed with the Securities
and Exchange Commission, such as those discussed in the "Risk Factors" section
included in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
in our prior press releases. E.piphany assumes no duty to update
forward-looking statements.
This press release includes certain non-GAAP financial measures, including
non-GAAP net loss and net loss per share amounts, that exclude the
amortization of purchased technology and intangibles, stock-based compensation
and restructuring costs. These non-GAAP financial measures are not prepared in
accordance with generally accepted accounting principles and may be different
from non-GAAP financial measures used by other companies. Non-GAAP financial
measures should not be considered as a substitute for measures of financial
performance prepared in accordance with GAAP. E.piphany's management believes
that these non-GAAP financial measures provide meaningful supplemental
information regarding the performance of the company's business operations.
These measures also facilitate management's internal comparisons to our
historical operating results and to our competitors' operating results,
operational forecasting and budgeting. E.piphany has reported similar
non-GAAP financial measures to our investors in the past and believes that the
inclusion of comparative numbers at this time provides consistency in our
financial reporting. Investors and potential investors are encouraged to
review the reconciliation of the non-GAAP financial measures contained within
this press release with their most directly comparable GAAP financial results.
E.PIPHANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six months ended
6/30/2003 6/30/2002 6/30/2003 6/30/2002
Revenues:
Product license $9,539 $6,817 $19,930 $17,728
Services 12,619 12,581 24,739 23,816
Total revenues 22,158 19,398 44,669 41,544
Cost of revenues:
Product license 412 324 664 570
Services 7,454 8,030 15,018 16,194
Amortization of purchased
technology 1,470 2,424 3,298 4,856
Total cost of revenues 9,336 10,778 18,980 21,620
Gross profit 12,822 8,620 25,689 19,924
Operating expenses:
Research and development 8,193 8,950 16,753 17,566
Sales and marketing 11,074 12,747 23,390 29,674
General and administrative 2,915 3,141 5,489 6,387
Restructuring costs 1,079 11,228 3,322 11,722
Amortization of purchased
intangibles 101 216 253 432
Stock-based compensation 12 168 39 545
Total operating expenses 23,374 36,450 49,246 66,326
Operating loss (10,552) (27,830) (23,557) (46,402)
Other income, net 1,144 1,540 3,248 3,096
Net loss $(9,408) $(26,290) $(20,309) $(43,306)
Basic and diluted net loss
per share $(0.13) $(0.37) $(0.28) $(0.61)
Shares used in computing
basic and diluted net loss
per share 73,400 71,704 73,115 71,190
Non-GAAP financial measures and
reconciliation
Net loss (9,408) (26,290) (20,309) (43,306)
Less: Amortization of
purchased technology 1,470 2,424 3,298 4,856
Less: Restructuring costs 1,079 11,228 3,322 11,722
Less: Amortization of
purchased intangibles 101 216 253 432
Less: Stock-based
compensation 12 168 39 545
Net loss excluding
restructuring costs and
certain non-cash items $(6,746) $(12,254) $(13,397) $(25,751)
Basic and diluted net loss
per share excluding
restructuring costs and
certain non-cash items $(0.09) $(0.17) $(0.18) $(0.36)
Shares used in computing
basic and diluted net loss
per share 73,400 71,704 73,115 71,190
E.PIPHANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 6/30/2003 12/31/2002
(unaudited)
Current assets:
Cash and cash equivalents $103,498 $93,435
Short-term investments 18,689 69,279
Accounts receivable, net 7,886 6,852
Prepaid expenses and other assets 5,024 7,389
Short-term restricted cash 1,917 1,191
Total current assets 137,014 178,146
Long-term investments 137,491 115,068
Long-term restricted cash 7,267 7,984
Property and equipment, net 9,219 12,269
Goodwill, net 81,499 81,499
Purchased intangibles, net 2,197 5,748
Other assets 1,927 2,553
$376,614 $403,267
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $55 $156
Accounts payable 1,260 2,417
Accrued liabilities 7,217 8,280
Accrued compensation 8,209 9,064
Current portion of restructuring costs 7,588 8,206
Deferred revenue 16,238 20,526
Total current liabilities 40,567 48,649
Restructuring costs, net of current portion 23,769 24,740
Other long-term liabilities 209 496
Total liabilities 64,545 73,885
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,818,002 3,815,216
Stockholders' notes receivable (397) (556)
Accumulated and other comprehensive
loss 309 296
Deferred compensation (71) (109)
Accumulated deficit (3,505,781) (3,485,472)
Total stockholders' equity 312,069 329,382
$376,614 $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:
investors, Todd Friedman of E.piphany, Inc.,
+1-650-356-3934, or tfriedman@epiphany.com; or media, Brandon
McCormick of Access Communication, +1-415-844-6218, or
bmccormick@accesspr.com, for E.piphany, Inc.
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