BackWeb(R) Achieves Substantial Bottom-Line Improvement in 2005 on Revenue Growth of 25%; Expands Customer Base and Establishes
February 09 2006 - 5:33AM
Business Wire
BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading provider of
offline and mobility software for web applications, today reported
financial results for its fourth quarter and year ended December
31, 2005. For the full year 2005, BackWeb's revenue rose 25.6% to
$6.91 million compared to $5.50 million in 2004. BackWeb reported a
significantly lower full year net loss of $989,000, or $0.02 per
share, in 2005, compared to a net loss of $5.14 million, or $0.13
per share, for the full year 2004. BackWeb reported Q4 2005 revenue
increased 14.4% to $1.75 million compared to $1.53 million in the
fourth quarter of 2004. The year-over-year increase was primarily
due to higher license revenues, complemented with a modest
improvement in service revenue. License sales in the period
included revenue from new customers such as BAE Systems Inc.,
Enhanced Care Initiatives, and Tibotec Therapeutics; new sales made
to existing customers such as Ortho Biotech Products, L.P. and
Novartis Pharmaceuticals Corporation; and revenues from partners
such as SAP and Ignite Technologies. Included in Q4 2005 revenue
was $250,000, which is the last of the revenue to be recognized
from a significant license and distribution agreement with F-Secure
Corporation announced in October 2004. Expenses in the quarter were
slightly higher than in the fourth quarter of 2004 and third
quarter of 2005, reflecting modest investments in the sales and
marketing departments during the fourth quarter of 2005. BackWeb's
Q4 2005 net loss was $301,000, or $0.01 per share, an increase over
the Q3 2005 net loss of $208,000, or $0.01 per share, but well
below the Q4 2004 net loss of $911,000, or $0.02 per share.
BackWeb's Vice President Finance, Ken Holmes, said, "In 2005, we
increased sales while cutting expenses which conserved our cash
position. Our balance sheet remained solid, with no long-term debt
and with cash and investments totaling approximately $7.9 million.
In 2006, we will pursue top-line growth with disciplined spending
and modest investments in sales and marketing." BackWeb's CEO, Bill
Heye, commented, "For the first time in our history, our flagship
Offline Access Server (OAS) product accounted for the majority of
our license revenue in 2005. We will continue to focus on the OAS
product so that its growth continues and offsets the ending of
quarterly revenue contributions recorded throughout 2005 from the
F-Secure agreement. Our key accomplishments in 2005 were growing
our customer base and expanding our partnerships. In particular, we
launched new partnerships with systems integrators in key
industries and initiated partner activity with Oracle. These
partnerships made important contributions to our revenues in 2005.
Our recent investments in sales and marketing are aimed at
increasing the number of partnerships and expanding our sales
coverage. We believe enterprises will continue to focus on web
applications and mobile solutions to help their people become more
productive. As they invest in mobile web productivity, we are
positioned to capitalize on this trend, as was evidenced in 2005 by
our new customer signings and by existing customers who expanded
their use of our software." About BackWeb Technologies: BackWeb
mobilizes critical web applications and content for mobile
workforces and remote offices. Mobile professionals can be
productive anytime, anywhere, without interruption, regardless of
connection status or network availability. BackWeb's patented web
and polite synchronization mobile solution delivers a seamless and
simple user experience. The solution is commonly deployed to sales
forces, field employees, mobile managers and remote operations.
Typical e-business applications include enterprise sales force
automation, CRM, e-learning and training and Human Capital
Management (HCM). Content examples include document repositories
and rich media. BackWeb customers include market leaders such as
Boehringer Ingelheim, Eastman Kodak, GE Healthcare,
Hewlett-Packard, Johnson & Johnson, KLA Tencor, Lam Research,
and Pfizer. BackWeb also serves customers through partnerships with
BEA, Oracle PeopleSoft and SAP. BackWeb's operations are centered
in San Jose, California, and Rosh Ha 'ayin, Israel with field
offices in New York and Europe. Make every minute of your mobile
professional's day productive; visit www.backweb.com or call (877)
222-5932. (C) 2006 BackWeb Technologies Ltd. All rights reserved.
BackWeb is a registered trademark and Offline Access Server is a
trademark of BackWeb Technologies Ltd. All other trademarks are
property of their respective owners. Statements in this news
release, which are not purely historical, are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
including statements of beliefs, plans, expectations or intentions
regarding the future. Such forward-looking statements include
statements regarding: BackWeb's ability to achieve sustainable
profitability; the expected contributions to our business of
BackWeb's new officers; our planned increase in sales, marketing
and partnering activity and the resulting expected increase to our
expenses; and our efforts to expand our partnership base. Actual
results could differ materially from those in such forward-looking
statements. Factors that could cause actual results to differ
materially from expectations include, but are not limited to, the
ability of BackWeb's new and existing sales personnel to
effectively transition to the new sales execution model; the
uncertainty of market acceptance of offline access products or our
ability to license those products to customers; general economic
conditions or any downturn in IT industry spending; the ability of
BackWeb to develop innovative technology and deliver solutions that
meet customer needs; and the potential emergence of competitive
technologies or competitor companies. In addition, please refer to
our periodic filings with the Securities and Exchange Commission,
including our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2005, which contain more detailed descriptions of the risk
factors facing our business. BackWeb assumes no obligation to
update any of the forward-looking statements in this release. -0-
*T BackWeb Technologies Ltd. Condensed Consolidated Balance Sheets
(in thousands) December 31, December 31, 2005 2004 Unaudited
------------ ASSETS Current assets: Cash and investments $7,876
$10,320 Trade accounts receivable, net 1,554 1,677 Other current
assets 325 378 ------------ ------------ Total current assets 9,755
12,375 Long-term investments and other assets 35 26 Property and
equipment, net 213 154 ------------ ------------ Total assets
$10,003 $12,555 ============ ============ LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and
accrued liabilities $1,933 $1,800 Deferred revenue 977 2,672
------------ ------------ Total current liabilities 2,910 4,472
Long-term liabilities 8 145 Total shareholders' equity 7,085 7,938
------------ ------------ Total liabilities and shareholders'
equity $10,003 $12,555 ============ ============ BackWeb
Technologies Ltd. Condensed Consolidated Statements of Operations
(in thousands, except per share data) Three months ended Year ended
------------------- ------------------- December December December
December 31, 2005 31, 2004 31, 2005 31, 2004 Unaudited Unaudited
--------- --------- Revenue: License $ 743 $ 550 $ 3,312 $ 1,593
Service 1,010 983 3,599 3,906 -------- -------- -------- --------
Total revenue 1,754 1,533 6,911 5,499 Cost of revenue: License 7 20
33 72 Service 150 209 684 1,170 -------- -------- -------- --------
Total cost of revenue 157 229 717 1,242 -------- -------- --------
-------- Gross profit 1,597 1,304 6,194 4,257 -------- --------
-------- -------- Operating expenses: Research and development 508
811 2,178 3,338 Sales and marketing 1,135 1,039 3,452 4,313 General
and administrative 296 612 1,656 2,145 -------- -------- --------
-------- Total operating expenses 1,939 2,462 7,286 9,796 --------
-------- -------- -------- Loss from operations (342) (1,158)
(1,092) (5,539) Finance and other income, net 41 247 103 98
-------- -------- -------- -------- Net loss $ (301) $ (911) $
(989) $ (5,143) ======== ======== ======== ======== Net loss per
share $ (0.01) $ (0.02) $ (0.02) $ (0.13) ======== ========
======== ======== Shares used in computing net loss per share
41,133 40,773 41,011 40,711 ======== ======== ======== ======== *T
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