SAN MATEO, Calif., Oct. 17 /PRNewswire-FirstCall/ --
E.piphany, Inc. (Nasdaq: EPNY) today announced results for the quarter ended
September 30, 2002.
(Photo: http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO )
For the quarter ended September 30, 2002, the company reported revenues of
$19.8 million, compared to revenues of $29.2 million in the third quarter of
2001. Third quarter license revenues were $6.8 million and service revenues
were $13.0 million, representing 34% and 66% of total revenues, respectively.
Excluding the amortization of goodwill and purchased intangibles, stock-based
compensation and restructuring costs, net loss for the quarter was $10.5
million, or $(0.15) per share, compared to a net loss of $15.0 million, or
$(0.22) per share during the third quarter of 2001. Including the
amortization of goodwill and purchased intangibles, stock-based compensation
and restructuring costs, net loss for the quarter was $13.6 million, or
$(0.19) per share, compared to a net loss of $2.0 billion, or $(28.68) per
share during the third quarter of 2001.
For the nine months ended September 30, 2002, E.piphany reported total
revenues of $61.3 million, compared to revenues of $100.8 million in the same
period of 2001. The net loss excluding the amortization of goodwill and
purchased intangibles, stock-based compensation and restructuring costs for
the nine month period in 2002 was $36.2 million, or $(0.51) per share,
compared to a net loss for the same period of 2001 of $58.8 million, or
$(0.87) per share. The net loss including the amortization of goodwill and
purchased intangibles, stock-based compensation and restructuring costs for
the nine month period in 2002 was $56.9 million, or $(0.80) per share,
compared to a net loss of $2.6 billion, or $(38.00) per share during the same
period of 2001.
Roger Siboni, president and chief executive officer, commented, "I am
pleased that we executed well in the third quarter on both product and
financial fronts. The launch of E.6 Service in August completed the E.6
Platform, the only component-based, fully-J2EE complete CRM suite available.
We continue to maintain and grow a blue chip list of existing customers and
added more top-quality customers to our roster in the third quarter, including
Fosters Brewing Group, General Nutrition Center, Manchester United, Mutual of
Omaha and Volkswagen. We also extended our relationships with existing
customers such as Banamex, BT Cellnet, Cigna, ING Direct and Vanguard. While
we do not expect the economy to show any drastic improvement, we are confident
that our recently released E.6 Platform and strong balance sheet will provide
the foundation to execute on our strategy into 2003."
Kevin Yeaman, chief financial officer, added, "Our balance sheet remains
solid with approximately $290 million in cash and investments and DSO of 42
days."
This press release contains forward-looking statements relating to
E.piphany's momentum with new and existing customers and ability to execute on
its strategy in 2003. 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, the degree of interest in and acceptance of E.piphany's new
products, increases in E.piphany's sales cycles, reduced IT spending by
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 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 provides Smart CRM(TM) solutions for the largest global
enterprises. The company's integrated suite of applications for Marketing,
Sales, and Service, the E.piphany E.6(TM) solution, 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 applications are built on the industry's most
advanced CRM architecture resulting in fast and easy deployment, the ability
to adapt to changing business demands, and permanent cost of ownership
advantage. Leading companies, including more than 35 percent of the Fortune
100, use E.piphany products to enhance the customer experience, improve
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. For
more information go to: http://www.epiphany.com .
E.PIPHANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
09/30/2002 9/30/01(A)09/30/2002 9/30/01 (A)
Revenues:
Product license $6,756 $16,200 $24,484 $54,893
Services 13,039 12,999 36,855 45,860
Total revenues 19,795 29,199 61,339 100,753
Cost of revenues:
Product license 301 474 871 1,663
Services 7,740 10,012 23,934 47,811
Total cost of
revenues 8,041 10,486 24,805 49,474
Gross profit 11,754 18,713 36,534 51,279
Operating expenses:
Research and
development 8,318 10,147 25,884 32,355
Sales and marketing 12,169 21,925 41,843 70,126
General and
administrative 3,060 4,672 9,447 20,232
Restructuring costs 419 32,436 12,141 32,436
Amortization of goodwill
and purchased
intangibles 2,647 1,935,315 7,935 2,480,201
Stock-based
compensation 68 410 613 1,156
Total operating
expenses 26,681 2,004,905 97,863 2,636,506
Operating loss (14,927) (1,986,192) (61,329) (2,585,227)
Other income, net 1,324 3,039 4,420 12,635
Net loss $(13,603) $(1,983,153) $(56,909) $(2,572,592)
Basic and diluted
net loss
per share $(0.19) $(28.68) $(0.80) $(38.00)
Shares used in
computing basic
and diluted net
loss per share 72,099 69,152 71,463 67,691
Excluding restructuring
costs and certain
non-cash items (B):
Net loss $(10,469) $(14,992) $(36,220) $(58,799)
Basic and diluted
net loss
per share $(0.15) $(0.22) $(0.51) $(0.87)
Shares used in
computing basic
and diluted net
loss per share 72,099 69,152 71,463 67,691
(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% in each of the three
months ended 2002 and 2001, respectively. The impact of the reclassification
was to increase revenues by 2% and 3% in the nine months ended 2002 and 2001,
respectively.
(B) Certain non-cash items include amortization of goodwill and purchased
intangibles and stock-based compensation.
E.PIPHANY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 09/30/2002 12/31/2001
(unaudited)
Current assets:
Cash and cash equivalents $115,538 $192,378
Short-term investments 123,929 121,324
Accounts receivable, net 9,093 13,703
Prepaid expenses and other assets 5,977 5,061
Total current assets 254,537 332,466
Restricted cash 9,337 9,367
Long-term investments 40,004 --
Property and equipment, net 14,405 22,320
Goodwill, net 81,499 81,783
Purchased intangibles, net 8,395 16,330
Other assets 2,701 3,589
$410,878 $465,855
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $249 498
Accounts payable 1,976 2,537
Accrued liabilities 8,958 11,260
Accrued compensation 9,067 11,873
Current portion of restructuring costs 8,459 8,954
Deferred revenue 16,790 15,380
Total current liabilities 45,499 50,502
Restructuring costs, net of current portion 23,853 23,454
Capital lease obligations, net of
current portion -- 156
Other long-term liabilities 162 316
Total liabilities 69,514 74,428
Minority interest -- 35
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,813,410 3,807,410
Stockholders' notes receivable (730) (778)
Accumulated and other comprehensive loss (295) (564)
Deferred compensation (337) (901)
Accumulated deficit (3,470,691) (3,413,782)
Total stockholders' equity 341,364 391,392
$410,878 $465,855
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, +1-650-356-3934, or
tfriedman@epiphany.com, or media, Kim Stocks, +1-650-356-5863,
kstocks@epiphany.com, both of E.piphany, Inc.
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