Customer Wins Include ABN Amro/Banco Real, GE Plastics, Hutchison 3G,
Johnson & Johnson, Marriott Vacations and Rank Corporation.
SAN MATEO, Calif., Oct. 22 /PRNewswire/ -- E.piphany, Inc. (Nasdaq: EPNY)
today announced results for the quarter ended September 30, 2001.
For the quarter ended September 30, 2001, the company reported revenues of
$28.5 million, compared to revenues of $39.1 million in the third quarter of
2000. Third quarter license revenues were $16.2 million and service revenues
were $12.3 million, representing 57% and 43% of total revenues, respectively.
Excluding the amortization and write-down of goodwill, stock-based
compensation and non-recurring charges, net loss for the quarter was
$15.0 million, or $(0.22) per share, compared to a net loss of $7.0 million,
or $(0.11) per share during the third quarter of 2000.
"E.piphany executed well through the continuing economic downturn," said
Roger Siboni, president and chief executive officer. "I was particularly
pleased with the quality of our new customers, including Epson, GE Plastics,
Johnson & Johnson, and Marriott Vacations domestically, and ABN Amro/Banco
Real, Energex, Hutchison 3G and Rank Corporation internationally. In
challenging times like these, it is imperative that we focus on revenue as
well as internal costs. Our improvement in service margins and low cash burn
are evidence of our successful execution."
Kevin Yeaman, chief financial officer, added, "Our balance sheet remains
solid with approximately $338 million in cash and DSO of 43 days. In the
third quarter, we raised service margins to more than 20% and r a one time, non-cash charge in the third quarter totaling
approximately $1.9 billion. The non-cash charge relates to a write-down of
goodwill and intangible assets for acquisitions made with stock over the last
two years. "This action recognizes macro-economic conditions have led to a
reduction in market value in the stock that we paid for these acquisitions,"
said Mr. Yeaman. Including the amortization of goodwill, stock-based
compensation and non-recurring charges, net loss for the third quarter of 2001
was $1.98 billion, or $(28.68) per share.
This press release contains forward-looking statements relating to
revenue, internal cost management, operating efficiency and cash management.
Actual results could differ materially from such forward-looking statements.
Factors that could cause actual results to differ materially include delays in
the development and release of new US and international versions of
E.piphany's products, difficulties in assimilating recently acquired
companies, increases in E.piphany's sales cycles, intense competition
including the introduction of new products and services by competitors,
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.
About E.piphany
E.piphany is a leading provider of next-generation customer relationship
management software for the Customer Economy. By providing an integrated suite
of software solutions, the E.piphany E.5(TM) solution blends web-based
analytic and operational CRM to unify all inbound and outbound marketing,
sales and service customer interactions. E.piphany E.5 enables a single,
enterprise-wide view of each customer to help global businesses better
understand and proactively serve customers in real time. With worldwide
headquarters in San Mateo, California, E.piphany has regional operations and
offices throughout North America, Europe and Asia Pacific.
E.PIPHANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Nine months ended
09/30/2001 09/30/2000 09/30/2001 09/30/2000
(unaudited) (unaudited) (unaudited)(unaudited)
Revenues:
Product license $16,200 $21,382 $ 54,893 $43,943
Services 12,306 17,758 42,788 34,131
Total revenues 28,506 39,140 97,681 78,074
Cost of revenues:
Product license 474 342 1,663 766
Services 9,319 17,307 44,739 32,703
Total cost of
revenues 9,793 17,649 46,402 33,469
Gross profit 18,713 21,491 51,279 44,605
Operating expenses:
Research and development 10,147 8,533 32,355 17,699
Sales and marketing 21,925 19,872 70,126 46,989
General and
administrative 4,672 6,207 20,232 12,503
Restructuring charge 32,436 32,436 --
In-process research and
development charge -- -- -- 47,000
Amortization and
write-down of goodwill
and purchased intangibles 1,935,315 269,904 2,480,201 427,162
Stock-based compensation 410 332 1,156 1,993
Total operating
expenses 2,004,905 304,848 2,636,506 553,346
Operating loss (1,986,192) (283,357) (2,585,227) (508,741)
Other income, net 3,039 6,088 12,635 16,948
Loss before income
taxes (1,983,153) (277,269) (2,572,592) (491,793)
Income taxes -- -- -- --
Net loss $(1,983,153) $(277,269) $(2,572,592) $(491,793)
Basic and diluted net
loss per share $(28.68) $(4.35) $(38.00) $(9.28)
Shares used in
computing basic and
diluted net loss
per share 69,152 63,813 67,691 53,022
Excluding restructuring
charge and non-cash
items (A):
Net loss $(14,992) $(7,033) $(58,799) $(15,638)
Basic and diluted net
loss per share $(0.22) $(0.11) $(0.87) $(0.29)
Shares used in
computing basic
and diluted net
loss per share 69,152 63,813 67,691 53,022
(A) Non-cash items include in-process research and development charge,
amortization and write-down of goodwill and purchased intangibles,
and amortization of stock-based compensation.
E.PIPHANY, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS 09/30/2001 12/31/2000
(unaudited)
Current assets:
Cash and cash equivalents $214,761 $319,634
Short-term investments 123,010 77,339
Accounts receivable, net 13,527 27,592
Prepaid expenses and other assets 4,196 5,152
Total current assets 355,494 429,717
Property and equipment, net 24,063 21,789
Goodwill and purchased intangibles,
net 115,105 2,541,245
Other assets 3,643 2,323
$498,305 $2,995,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease
obligations 18,224 23,412
Total current liabilities 54,892 56,265
Restructuring costs 17,991 --
Long-term debt, net of current
portion 244 618
Total liabilities 73,127 56,883
Minority interest 35 --
Stockholders' equity:
Common stock 7 6
Additional paid-in capital 3,804,380 3,746,759
Notes receivable (891) (2,668)
Accumulated and other comprehensive
income (100) (550)
Deferred compensation (1,314) (1,009)
Accumulated deficit (3,376,939) (804,347)
Total stockholders' equity 425,143 2,938,191
$498,305 $2,995,074
SOURCE E.piphany, Inc.
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Related links:
http://www.epiphany.com
CONTACT:
investors, Todd Friedman, +1-650-356-3934, or
tfriedman@epiphany.com, or media, Heather McLellan,
+1-650-356-3863, or hmclellan@epiphany.com, both of E.piphany
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