SAN MATEO, Calif., Oct. 20 /PRNewswire-FirstCall/ -- E.piphany, Inc.
(Nasdaq: EPNY) today announced results for the quarter ended September 30,
2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020724/EPNYLOGO )
For the quarter ended September 30, 2003, the company reported revenues of
$24.2 million, compared to revenues of $19.8 million in the third quarter of
2002. Third quarter license revenues were $10.2 million and service revenues
were $14.0 million, representing 42% and 58% of total revenues, respectively.
Net loss under generally accepted accounting principles ("GAAP") for the
quarter was $4.3 million, or $(0.06) per share, compared to a net loss under
GAAP of $13.6 million, or $(0.19) per share during the third 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 $3.1 million, or $(0.04) per share, compared to a non-
GAAP net loss of $10.5 million, or $(0.15) per share during the third quarter
of 2002.
For the nine months ended September 30, 2003, E.piphany reported total
revenues of $68.9 million, compared to revenues of $61.3 million for the same
period in 2002. The net loss under GAAP for the 2003 nine month period was
$24.7 million, or $(0.34) per share, compared to a net loss under GAAP of
$56.9 million, or $(0.80) per share during the same period in 2002. On a non-
GAAP basis, net loss for the nine month period ended September 30, 2003
excluding the amortization of purchased technology and intangibles, stock-
based compensation and restructuring costs was $16.5 million, or $(0.22) per
share, compared to a non-GAAP net loss of $36.2 million, or $(0.51) per share
during the nine month period in 2002.
"We continue to gain traction and market share with our E.6 products,"
said Karen Richardson, Chief Executive Officer. "One year ago, we launched the
industry's first complete CRM suite based entirely on a service-oriented,
component-based architecture. This launch was the culmination of a two-year
product development initiative that produced the first platform technically
capable of tackling the biggest issues facing CRM - long and costly
implementation times, slow return on investment and very high total cost of
ownership due to the inflexibility of the software. We are very pleased with
the market response to E.6, both from a customer and industry analyst
perspective. We continue to add new customers to our list of blue chip names,
and many existing customers have significantly expanded their use of E.piphany
solutions to include our operational CRM and Interaction Advisor products. In
the third quarter, we signed significant transactions with existing customers
such as Bell Canada, Cigna, eBookers, Washington Mutual and Wells Fargo, while
adding seven more new clients, including Bank of Austria, ESCADA and Land
Rover."
Kevin Yeaman, chief financial officer, added, "Our balance sheet at the
end of the quarter remains strong with cash and investments of $264 million
and DSOs of 35 days. Additionally, we executed better than forecasted on cost
controls, which is a key element in our drive to profitability."
About E.piphany
The E.piphany E.6 CRM Software Suite enables global organizations to align
touchpoints, processes and technologies around the customer. Built on the
industry's most advanced, service-oriented architecture, the E.6 software
solution creates benefits that cross departments and geographies, and result
in rapid, measurable ROI. With the E.6 Suite of Marketing, Service and Sales
software solutions, every customer interaction is driven by real-time
intelligence, enabling businesses to better understand their customers and
optimize every interaction from both a revenue generation and customer
retention viewpoint. More than 460 companies, including nearly 40 of the
Fortune 100, use E.piphany software products to enhance their customers'
experiences while, at the same time, realizing the companies' business
objectives. With worldwide headquarters in San Mateo, California, E.piphany
serves customers in more than 40 countries worldwide.
This press release contains forward-looking statements relating to
E.piphany's sales and marketing traction with E.6, new customers,
profitability 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 Nine months ended
9/30/03 9/30/02 9/30/03 9/30/02
Revenues:
Product license $10,239 $6,756 $30,169 $24,484
Services 13,969 13,039 38,708 36,855
Total revenues 24,208 19,795 68,877 61,339
Cost of revenues:
Product license 419 301 1,083 871
Services 6,993 7,740 22,007 23,934
Amortization of purchased
technology 755 2,438 4,053 7,295
Total cost of revenues 8,167 10,479 27,143 32,100
Gross profit 16,041 9,316 41,734 29,239
Operating expenses:
Research and development 7,753 8,318 24,495 25,884
Sales and marketing 9,947 12,169 33,334 41,843
General and administrative 2,831 3,060 8,318 9,447
Restructuring costs 518 419 3,840 12,141
Amortization of purchased
intangibles 8 209 261 640
Stock-based compensation 8 68 47 613
Total operating expenses 21,065 24,243 70,295 90,568
Operating loss (5,024) (14,927) (28,561) (61,329)
Other income, net 1,090 1,324 4,426 4,420
Net loss before provision for
taxes (3,934) (13,603) (24,135) (56,909)
Provision for taxes 414 -- 522 --
Net Loss $(4,348) $(13,603) $(24,657) $(56,909)
Basic and diluted net loss per
share $(0.06) $(0.19) $(0.34) $(0.80)
Shares used in computing basic
and diluted net loss per share 73,727 72,099 73,318 71,463
Certain amounts from prior periods have been reclassified to conform to
the current year presentation.
E.PIPHANY, INC.
NON-GAAP FINANCIAL MEASURES AND RECONCILIATION
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
9/30/03 9/30/02 9/30/03 9/30/02
Net loss: GAAP Basis $(4,348) $(13,603) $(24,657) $(56,909)
Less: Amortization of purchased
technology 755 2,438 4,053 7,295
Less: Restructuring costs 518 419 3,840 12,141
Less: Amortization of purchased
intangibles 8 209 261 640
Less: Stock-based compensation 8 68 47 613
Net loss: Excluding
restructuring costs and certain
non-cash items $(3,059) $(10,469) $(16,456) $(36,220)
Basic and diluted net loss per
share excluding restructuring
costs and certain non-cash items $(0.04) $(0.15) $(0.22) $(0.51)
Shares used in computing basic
and diluted net loss per share 73,727 72,099 73,318 71,463
E.PIPHANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
ASSETS 9/30/03 12/31/02
Current assets:
Cash, cash equivalents and short-
term investments $139,460 $162,714
Accounts receivable, net 9,357 6,852
Prepaid expenses and other assets 4,973 7,389
Short-term restricted cash 1,226 1,191
Total current assets 155,016 178,146
Long-term investments 116,421 115,068
Long-term restricted cash 7,268 7,984
Property and equipment, net 7,620 12,269
Goodwill, net 81,499 81,499
Purchased intangibles, net 1,434 5,748
Other assets 1,295 2,553
$370,553 $403,267
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations $12 $156
Accounts payable 969 2,417
Accrued compensation 8,671 9,064
Accrued liabilities 6,988 8,280
Current portion of restructuring costs 7,547 8,206
Deferred revenue 16,569 20,526
Total current liabilities 40,756 48,649
Restructuring costs, net of current portion 21,766 24,740
Other long-term liabilities 204 496
Total liabilities 62,726 73,885
Stockholders' equity:
Common stock 7 7
Additional paid-in capital 3,818,314 3,815,216
Stockholders' notes receivable -- (556)
Accumulated and other
comprehensive income (loss) (302) 296
Deferred compensation (63) (109)
Accumulated deficit (3,510,129) (3,485,472)
Total stockholders'
equity 307,827 329,382
$370,553 $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,
+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
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