BILLERICA, Mass., July 30 /PRNewswire/ -- Peritus Software Services, Inc.
(Nasdaq: PTUS) today announced results for the three months and six months
ended June 30, 1997, its first report of results of operations as a publicly
traded company.
For the three months ended June 30, 1997, revenue increased to
$8,982,000, up 176% from revenue of $3,260,000 in the comparable period in
1996. Net income totaled $438,000, or pro forma $0.03 per share, up from a
loss of $2,465,000 in the comparable period in 1996.
For the six months ended June 30, 1997, revenue increased to
$16,841,000, up 185% from revenue of $5,908,000 in the comparable period in
1996. Net income totaled $844,000, or pro forma $0.07 per share, up from a
loss of $5,177,000 in the comparable period in 1996.
On July 2, 1997, the Company completed its initial public offering of
4,025,000 shares, 2,800,000 being sold by the Company and the balance by
selling stockholders, at a price per share of $16. The net proceeds to the
Company from the offering were approximately $41 million. The Company plans
to use the net proceeds from the offering for the repayment of indebtedness,
research and development, working capital and general corporate purposes and
possible acquisitions.
Douglas A. Catalano, President and COO of Peritus, stated "We are pleased
with the closing of our initial public offering and with the results of our
financial performance for the second quarter and the first half of the year.
Revenue continued to grow and expenses were essentially in line with our 1997
plan." Summarizing certain significant developments for the quarter, Mr.
Catalano noted: "During the second quarter, we entered into a direct license
with the State of New Jersey to use our Peritus Automate:2000(R) service
technologies, which the state will use in its own code renovation factories.
We also added five new partners to our Powered by Peritus partner program and
added to our software maintenance outsourcing business."
Peritus provides software products and services that enable organizations
to improve the productivity, quality, and effectiveness of their information
technology ("IT") systems maintenance or "software evolution" functions. The
Company's solutions, which employ software tools, methodologies and processes,
are designed to automate the labor-intensive processes involved in conducting
"mass change" and other software maintenance tasks. In 1996, the Company
released its first software product, its AutoEnhancer/2000(TM) software, which
is aimed at the most pressing mass change challenge, the "Year 2000 problem".
The Company licenses this software directly to end users as well as through
consultants, systems integrators and distributors. The Company also provides
software maintenance outsourcing services to large organizations that seek to
enhance the productivity of their IT systems and application software
maintenance functions.
This press release may contain certain forward-looking statements which
involve risks and uncertainties. The Company's actual results may differ
significantly from the results discussed in such statements. Certain factors
that could cause actual results to differ materially from those discussed in
such forward-looking statements include the risks described in the Company's
Registration Statement on Form S-1 filed with the SEC in connection with its
recent initial public offering, which factors are incorporated herein by
reference.
NOTE: Peritus is a registered trademark, Automate:2000 is a registered
servicemark and AutoEnhancer/2000 is a trademark of Peritus Software Services,
Inc.
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share related data)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1997 1996 1997
Revenue:
Outsourcing
services $2,514 $3,044 $ 4,758 $5,563
License 45 4,643 45 8,787
Other services 701 1,295 1,105 2,491
Total revenue 3,260 8,982 5,908 16,841
Cost of revenue:
Outsourcing
services 2,199 2,358 4,433 4,403
License --- 148 --- 275
Other services 672 1,036 1,178 2,325
Total cost of
revenue 2,871 3,542 5,611 7,003
Gross profit 389 5,440 297 9,838
Operating expenses:
Sales and marketing 729 2,035 1,383 3,418
Research and development 1,401 1,969 2,761 3,603
General and administrative 707 875 1,455 1,800
Total operating expenses 2,837 4,879 5,599 8,821
Income (loss) from operations(2,448) 561 (5,302) 1,017
Interest (expense) income, net(61) (7) (99) 20
Income (loss) before
estimated income taxes
and minority interest (2,509) 554 (5,401) 1,037
Provision (benefit) for
estimated income taxes (62) 124 (204) 172
Minority interest in
consolidated subsidiary (18) 8 20 (21)
Net income (loss) $(2,465) $438 $(5,177) $844
Pro forma income (loss)
per share(A) $(0.22) $0.03 $(0.51) $0.07
Weighted average common
and common equivalent
shares outstanding 11,083 12,753 10,105 12,732
(A) The weighted average number of common and common equivalent shares
outstanding during the period includes the effect of the assumed conversion of
all convertible preferred stock as of the beginning of all periods presented.
PERITUS SOFTWARE SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(unaudited)
Pro forma
December 31, June 30, June 30,
1996 1997 1997(A)
Assets
Cash $7,388 $2,473 $43,580
Accounts receivable 4,163 7,996 7,996
Costs and estimated
earnings in excess of
billings on uncompleted
contracts 3,595 2,971 2,971
Prepaid expenses and
other current assets 119 594 276
Total current assets 15,265 14,034 54,823
Property and equipment
and other assets 2,460 2,846 2,846
$17,725 $16,880 $57,669
Liabilities Redeemable Stock
and Stockholders' Equity (Deficit)
Accounts payable $497 $924 $924
Accrued expenses 2,087 2,138 2,138
Deferred revenue 3,262 1,007 1,007
Other current liabilities 1,201 1,132 1,132
Total current liabilities 7,047 5,201 5,201
Long-term debt and other liabilities 1,693 1,863 1,863
Redeemable convertible
preferred stock and
common stock right 12,287 13,019 ---
Stockholders' equity (deficit) (3,302) (3,203) 50,605
$17,725 $16,880 $57,669
(A)On a pro forma basis, giving effect to the lapse of the redeemable
common stock right and the conversion of all outstanding shares of Class B
common stock and convertible preferred stock into common stock and the
issuance and sale by the Company of 2.8 million shares of common stock upon
the closing of the Company's initial public offering on July 2, 1997 and after
deducting the underwriting discount and estimated offering expenses of $875.
SOURCE Peritus Software Services, Inc.
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CONTACT:
Allen K. Deary of Peritus Software Services,
Inc., 508-670-0800, fax: 508-262-9948 or Internet:
adeary@peritus.com or Elliott O. May of Peritus Software
Services, Inc., 508-670-2500 or fax: 508-670-1172, Internet:
emay@peritus.com
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