Novadigm Announces Second Quarter Results MAHWAH, N.J., Oct. 27
/PRNewswire-FirstCall/ -- Novadigm, Inc. , a leading provider of
adaptive software change and configuration management solutions,
today reported financial results for the second quarter of fiscal
2004, ending September 30, 2003. Revenues for the second quarter of
fiscal 2004 were $13 million compared to $16.5 million for the same
quarter last year. Net loss for the second quarter of the current
fiscal year was $2.0 million, or $0.10 per basic and diluted share,
compared to a break even for the same period in the last fiscal
year. The company ended the quarter with $23 million in cash, cash
equivalents and marketable securities down from $26.8 million at
the end of the prior quarter. Revenues for the six months ended
September 30, 2003 were $24.2 million compared to $27.6 million for
the same period last year. Net loss for the six months ended
September 30, 2003 was $5 million, or $0.26 per basic and diluted
share, compared to a net loss of $6.8 million, or $0.34 per basic
and diluted share, for the same period a year ago. "North America
continued to lead in license revenue production this past quarter,
with increasing contribution from Europe, and a modest public
sector contribution. We closed two commercial transactions over $1
million in the quarter, as well as two pilot agreements with
significant new commercial customers, each with over $1 million in
incremental license revenue potential over the next several
quarters, and a third pilot with a major new public sector
customer," said Albion Fitzgerald, Novadigm chief executive
officer. "While IT spending conditions continued to be constrained
during the quarter, particularly in Europe, our expanded product
set is providing us with a broader range of enterprise
opportunities and a stronger value proposition and competitive
differentiation. At the same time, our strategic investments in
technology, channels and customers are enabling us to maintain our
market leadership position for the long-term," concluded
Fitzgerald. "Our North American organization continued to
demonstrate improved proficiency in closing large agreements, and
our European organization closed another major new enterprise deal
this quarter. We are also seeing increasing opportunities and
activities in our longer-cycle public sector business," said Gerald
Labie, Novadigm president and chief operating officer. "Going
forward, we're taking our enhanced product set to an expanded
enterprise audience through a number of significant marketing
activities in Europe and North America this quarter, while
continuing to strengthen our direct sales organizations and our
partner relationships," concluded Labie. Highlights for the second
quarter included: -- New customers included Barclay's Bank,
Energis, Finaref, National Science Foundation, Wisconsin Electric
Power, and the US Army -- Expanded licenses with over 27 customers
including, Deutchser Ring, Employers Mutual Casualty, ESPN, Iowa
Farm Bureau, JB Hunt, Kindred Healthcare, Mitre, Republic Mortgage
Insurance, Smiths Aerospace, Standard Charter Bank, Tennant
Company, Toronto Police Services, Vodafone GmbH and Watson Wyatt --
Expanded and new customer licenses through EDS and HP as well as
other partners in Europe, Japan and Latin America -- Fourth annual
European Connections user group meetings in Paris, Berlin and
London hosted more than 150 customers and business partners --
Novadigm customer KeyCorp earned the prestigious CIO 100 award from
IDG's CIO magazine for maximizing return on investment and
demonstrating resourceful use of IT systems, staff and budgets. Key
reported a less than 12-month payback and 84% efficiency
improvement in their software management process as a result of
using Novadigm's Radia Management Suite. Conference Call
Information Investors are invited to listen to the live conference
call at 5:00 p.m., eastern time, today over the Internet through
Novadigm's website, located at http://www2.novadigm.com/ir/main.asp
. To listen to the live call, please go to the web site at least
fifteen minutes early to download and install any necessary audio
software. For those who cannot listen to the live broadcast, a
replay will be available on the Novadigm website shortly after the
call. Investors may also listen to a telephone replay of the
conference call by dialing 800-642-1687 (international callers dial
706 645-9291), reservation 3266261, starting at 7:00 p.m., eastern
time today until 11:00 p.m., eastern time, on November 3. ABOUT
NOVADIGM Novadigm is a leading provider of software and content
management solutions for enterprise and Internet computing
environments that enable organizations to reduce software
management costs, speed time-to-market, expand marketing channels
and open new sources of revenue. Novadigm's suite of integrated
products, based on the company's market-leading technology, work
seamlessly together as the only end-to-end solution that can
efficiently, reliably and scalably deploy and manage the full range
of today's software and content, personalized for a wide range of
computing devices, across virtually any network. Novadigm customers
-- Global 1000 business enterprises, software vendors and service
providers around the world -- report software management savings of
80 percent or more, time-to-market improvements of 70 percent or
more, and reliability typically greater than 99 percent. For more
information on Novadigm, please visit http://www.novadigm.com/ or
call 1-800-626-6682. This press release contains 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,
that are based on management's beliefs, as well as assumptions made
by, and information currently available to, management. Where
possible, Novadigm has attempted to identify these statements by
using words such as "intend," "expect," "anticipate," "will,"
"target" and similar expressions. The forward looking-statements
are subject to certain risks, uncertainties and other factors that
could cause actual results to differ materially from those
expressed in or applied by the forward looking statements. These
risks, uncertainties and other factors include the number, size and
timing of customer orders, the timing and market acceptance of
Novadigm's new products, the dependence on resellers, the level and
pricing of international sales, changes in the level of operating
expenses, technological advances and new product introductions by
Novadigm's competitors, competitive conditions in the industry,
foreign currency exchange rates and the resolution of patent
related claims and proceedings. In addition, the sales cycle for
the Company's products is lengthy and unpredictable depending upon
the interest of the prospective customer in the Company's products,
the size of the order, the decision-making and acceptance
procedures within the customer's organization, the complexity of
implementation and other factors. The Company's operating results
may also vary significantly due to seasonal trends, as a result of
efforts by the Company's direct sales personnel to meet annual
quotas, lower international revenues in the summer months when many
European businesses experience lower sales, the establishment of
calendar year capital budgets by prospective customers, as well as
other factors. Novadigm may not be able to achieve or maintain
profitability on a quarterly or annual basis in the future. These
and other risks and uncertainties that could affect Novadigm's
future operating results are described from time to time in
Novadigm's filings with the Securities and Exchange Commission. In
particular, see the Risk Factors described in Novadigm's Form 10-Q
for the fiscal quarter ended June 30, 2003. Except as expressly
required by the federal securities laws, Novadigm undertakes no
obligation to update or revise these forward-looking statements or
forecasts to reflect new events or changed circumstances or for any
other reason. NOVADIGM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts) (unaudited) Three
Months Ended Six Months Ended September 30, September 30, 2003 2002
2003 2002 REVENUES: Licenses $5,667 $10,552 $10,031 $15,281
Maintenance and services 7,370 5,961 14,185 12,291 Total revenues
13,037 16,513 24,216 27,572 OPERATING EXPENSES: Cost of licenses -
amortization of intangible asset 334 333 668 667 Cost of
maintenance and services 3,669 3,344 6,878 6,902 Sales and
marketing 6,239 7,132 11,926 13,446 Research and development 2,180
2,587 4,494 5,182 General and administrative 2,721 3,031 5,363
5,762 Amortization of intangible -- -- -- 2,018 Total operating
expenses 15,143 16,427 29,329 33,977 Operating income (loss)
(2,106) 86 (5,113) (6,405) Interest income, net 42 112 122 223
Other income (expense), net 110 (109) 5 (433) Income (loss) before
provision for income taxes (1,954) 89 (4,986) (6,615) Provision for
income taxes -- 43 24 208 Net income (loss) $(1,954) $46 $(5,010)
$(6,823) Earnings (loss) per share-basic $(0.10) $0.00 $(0.26)
$(0.34) Weighted average basic common shares outstanding 19,125
19,706 19,164 19,939 Earnings (loss) per share-diluted $(0.10)
$0.00 $(0.26) $(0.34) Weighted average diluted common shares
outstanding 19,125 20,230 19,164 19,939 NOVADIGM, INC. CONSOLIDATED
BALANCE SHEETS (in thousands, except per share data) (unaudited)
September 30, March 31, 2003 2003 ASSETS Current assets: Cash and
cash equivalents $20,412 $15,666 Restricted cash 150 150 Short-term
marketable securities 2,463 13,760 Accounts receivable, net 12,931
15,656 Prepaid expenses and other current assets 2,523 1,175 Total
current assets 38,479 46,407 Property and equipment, net 2,365
2,182 Intangible asset 1,391 2,059 Other assets 1,049 788 Total
assets $43,284 $51,436 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $3,621 $3,598 Accrued liabilities
2,278 3,670 Accrued payroll and other compensation 3,527 4,211
Deferred revenue 10,872 12,235 Total current liabilities 20,298
23,714 Long-term liabilities 58 71 Stockholders' equity: Common
stock, par value $0.001: Authorized--30,000 shares Issued -- 19,080
and 19,247 issued as of September 30, 2003 and March 31, 2003,
respectively 19 19 Additional paid-in capital 86,251 86,314
Stockholders notes receivable -- (233) Accumulated deficit (64,251)
(59,241) Accumulated comprehensive income 909 792 Total
stockholders' equity 22,928 27,651 Total liabilities and
stockholders equity $43,284 $51,436 DATASOURCE: Novadigm, Inc.
CONTACT: Wallace Ruiz, Chief Financial Officer of Novadigm, Inc.,
+1-201-512-7809, or ; or Jody Burfening/Kathy Price of
Lippert/Heilshorn & Assoc., +1-212-838-3777, or , for Novadigm,
Inc. Web site: http://www.novadigm.com/
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