Plumtree Software Announces First Quarter 2004 Operating Results
Plumtree Hires New Chief Operating Officer, Vice President of
Worldwide Sales SAN FRANCISCO, April 15 /PRNewswire-FirstCall/ --
Enterprise Web leader Plumtree Software today announced results for
its first quarter ended March 31, 2004. Revenue for the first
quarter of 2004 was $17.7 million, compared to $18.8 million in
revenue for the fourth quarter of 2003 and $17.2 million in revenue
for the comparable quarter last year. Net loss for the first
quarter of 2004 calculated in accordance with generally accepted
accounting principles (GAAP) was $3.4 million, or $0.11 per share,
compared to a net loss of $552,000, or $0.02 per share, for the
fourth quarter of 2003, and net income of $529,000, or $0.02 per
share, for the comparable quarter last year. Pro forma net loss for
the first quarter of 2004 was approximately $2.6 million, or $0.08
per share, compared to pro forma net income of $270,000, or $0.01
per share, for the fourth quarter of 2003 and pro forma net income
of $1.1 million, or $0.04 per share, for the comparable quarter
last year. Pro forma net income excludes charges for amortization
of deferred stock-based compensation, amortization of acquired
technology, and assumes an effective tax rate of 30% on net income,
if any. A reconciliation of these pro forma results to GAAP is
included in the financial tables below. As of March 31, 2004,
Plumtree's cash, cash equivalents and short-term investments had
increased for the fourteenth consecutive quarter, totaling
approximately $68.5 million, up from $67.7 million in the previous
quarter. Plumtree has no long-term debt. "This quarter, we invested
in four long-term growth initiatives: channels, partner
applications, industry solutions and a product strategy of Radical
Openness," said Plumtree President and CEO John Kunze. "We seeded
future market opportunities with the launch of our partner
applications program, reorganized our field organization around
retail and life sciences industry solutions, and, most importantly,
hired senior executives from Oracle and BearingPoint to execute on
a multi-channel applications strategy. These efforts will take
time, but our strong balance sheet and our fundamental assets of
customer success and open technology position us to be the openness
leader in the emerging market for service-oriented applications."
First Quarter Highlights First quarter 2004 highlights include:
Executive Leadership: Plumtree hired Paul Ciandrini, Oracle's
former senior vice president of North American application sales,
as Chief Operating Officer. At Oracle, Mr. Ciandrini grew sales
year over year by 43%. Mr. Ciandrini is responsible for worldwide
sales, consulting, marketing, product management, channel and
business development. Announced separately today, Plumtree also
hired BearingPoint's Ira Pollack as Vice President of Plumtree's
World Wide Sales. At BearingPoint, Mr. Pollack was responsible for
$500 million in sales as Vice President of Sales for the Consumer
Industrial and Technology Industry. Customer Success: Plumtree
completed 67 transactions, adding 27 new customers including the
J.M. Smucker Company, American Medical Response, The Toro Company,
National Association of Realtors and a Fortune 500 retailer.
Plumtree announced successful deployments to 80,000 users at Airbus
and 27,000 users at Centrica. Ten customers joined Plumtree on a
successful eight-city tour to share best practices and technical
insights for building high-ROI applications. Service-Oriented
Applications Program: Plumtree launched its Applications Incubator
program to support partners building Plumtree-powered service-
oriented applications. Applications partner HandySoft launched
version 2.0 of its Plumtree-powered Sarbanes-Oxley Accelerator
application and was instrumental in helping Plumtree win five new
customers this quarter. Plumtree launched a new Web Applications
Catalog and Governance Solution to help organizations control Web
sprawl with templates, best practices and a set of portlets for
documenting and governing the creation of Web applications. Yahoo!
Partnership: Plumtree announced Yahoo! Messaging for the Enterprise
Web, adding real-time messaging and presence awareness to the
services available to customers and partners building
service-oriented applications with Plumtree's technologies.
Industry Recognition: InfoWorld, a leading technology publication,
gave the Plumtree Enterprise Web Suite the highest possible rating
in an InfoWorld product review for the suite's ability to manage
service-oriented applications. Plumtree's Enterprise Web Suite
outperformed IBM's WebSphere Portal by 13% and Microsoft's
SharePoint Portal Server by 21%. Additionally, Gartner positioned
Plumtree in the leader quadrant in the annual Magic Quadrant for
Horizontal Portal Products.* Developer Support: Plumtree announced
the industry's first developer program and conference for building
service-oriented applications. The developer program provides equal
support for both Java and .NET coding on a wide range of
application servers, and gives developers access to Plumtree
engineers, peer collaboration groups and extensive developer
training. The Advanced Developer Conference will be held May 3 - 5
in San Francisco. Q2 2004 Financial Outlook Plumtree Software
currently anticipates second quarter 2004 revenue to be between
$17.5 million and $18.5 million. On a pro forma basis, the company
projects a second quarter 2004 net loss between $0.10 and $0.13 per
share. Pro forma net earnings per share in our second quarter
outlook excludes charges related to management restructuring of
approximately $400,000, amortization of deferred stock-based
compensation estimated to be $200,000, amortization of acquired
technology of approximately $395,000, and assumes an effective tax
rate of 30% on net income, if any. Giving effect to these
exclusions, first quarter 2004 GAAP net loss is currently expected
to be between ($0.14) and ($0.17) per share. Conference Call
Interested parties can hear the conference call concerning
Plumtree's financial results for the first quarter on Thursday,
April 15, 2004 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time)
via live Webcast by visiting http://www.plumtree.com/ir, or
alternatively, they may listen to a teleconference by calling
773-756-4629. The passcode for the teleconference is PLUMTREE. The
Webcast replay of the call will be available at
http://www.plumtree.com/ir from the conclusion of the initial
Webcast until the release of Plumtree's second quarter 2004
financial results. An audio replay of the call will also be
available until the release of Plumtree's second quarter 2004
financial results. The dial-in number for the audio replay is
402-530-7780. The passcode for the audio replay is PLUMTREE. About
Plumtree Software Plumtree Software is the Enterprise Web leader.
Plumtree's mission is to create a comprehensive Web environment for
employees, customers and partners across the enterprise to interact
with different systems and work together. Plumtree's Enterprise Web
solution consists of integration products for bringing resources
from traditional systems together on the Web, shared services such
as collaboration, content management and search for building new
Web applications, and a portal platform for delivering these Web
applications to broad audiences. Plumtree's independence and its
Web Services Architecture allow this solution to span rival
platforms and systems, helping to maximize customers' return on
their existing technology investments. With offices in more than a
dozen countries, Plumtree has licensed over 600 customers,
including Boeing, Ford Motor Company, Procter & Gamble and the
U.S. Navy. Safe Harbor Statement and Caution This press release
contains forward-looking statements within the meaning of the
Federal Securities laws. These forward-looking statements include,
but are not limited to statements regarding our current financial
outlook for the second quarter of 2004; our investment in long-term
initiatives including ongoing product transition to "Radical
Openness," sales force alignment around industry verticals; and
market opportunities presented by our application incubator program
and channel initiatives; as well as our position within the
emerging service oriented application market. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties that could cause actual results to differ, perhaps
materially, from those anticipated or suggested by such
forward-looking statements. Our operating results are subject to
customer demand for, satisfaction with, and return on investment
and other benefits associated with our Enterprise Web Suite and
other products; market acceptance and sales impact of our "Radical
Openness" initiatives and third party applications development
strategy; the impact of new senior executives and management
restructuring; our ability to successfully execute on our sales
force realignment, maintain customer and partner interest in our
product development efforts, and to maintain our reputation and
position in the market; our financial discipline, general sales and
financial performance expectations. Other risks and uncertainties
include, without limitation, risks associated with our limited
operating history; an uncertain general economic environment;
adverse conditions in worldwide IT spending trends; failure to
expand our customer base; the impact of increasing competition; the
length and complexity of Plumtree's sales cycle; timing and market
acceptance of our new products; the success of major version
releases; the ability of our customers to deploy our products
successfully and their willingness to act as references; changes in
the needs and priorities of existing and potential customers;
reduced market acceptance of our products and services; failure to
manage technological change; our ability to maintain and increase
the size and productivity of our direct sales force and to expand
into and within global markets; our ability to attract and retain
channel and line of business application partners; our ability to
manage costs; our ability to provide a return on investment to our
customers; the impact of geopolitical conflicts and events; and
those other risks and uncertainties contained in the Company's most
recent Annual Report filed with the Securities and Exchange
Commission ("SEC") on Form 10-K, and all subsequent SEC filings.
Copies of filings made with the SEC are available through the SEC's
electronic data gathering analysis retrieval system (EDGAR) at
http://www.sec.gov/. We undertake no obligation following the date
of this release to update or revise our forward-looking statements
or to update the reasons actual results could differ materially
from those anticipated in forward-looking statements. We caution
you not to place undue reliance upon any such forward-looking
statements, which speak only as of the date such statements are
made. Past performance is not indicative of future results. We
cannot guarantee any future operating results, activity,
performance or achievement. NOTE: Plumtree is a registered
trademark of Plumtree Software, Inc. and/or its affiliates in the
U.S. and/or other countries. All other registered and unregistered
trademarks in this document are the sole property of their
respective owners. *Magic Quadrant for Horizontal Portal Products,
2004, G. Phifer, R. Valdes, D. Gootzit, K. Underwood, J. Correia,
W. Andrews, March 30, 2004. The Magic Quadrant is copyrighted March
30, 2004 by Gartner, Inc. and is reused with permission. The Magic
Quadrant is a graphical representation of a marketplace at and for
a specific time period. It depicts Gartner's analysis of how
certain vendors measure against criteria for that marketplace, as
defined by Gartner. Gartner does not endorse any vendor, product or
service depicted in the Magic Quadrant, and does not advise
technology users to select only those vendors placed in the
"Leaders" quadrant. The Magic Quadrant is intended solely as a
research tool, and is not meant to be a specific guide to action.
Gartner disclaims all warranties, express or implied, with respect
to this research, including any warranties of merchantability or
fitness for a particular purpose. Each third party opinion or
survey results noted in this release contains only one subjective
evaluation of a technology market, representing marketplace
characteristics at a given time and are subject to change without
notice. These results and opinions should not be deemed to be an
endorsement of Plumtree or any company or product. Any analyst
opinion or survey represents only one of many information sources
available and decision-makers should not rely solely on any one
evaluation. Industry surveys and published analyst opinions are not
an indication of future results. We caution you not to place undue
reliance upon any survey or analyst report. Investor Contact Joann
Horne 415-445-3233 Press Contact Carilu Dietrich 415-399-7047
Condensed Consolidated Statements of Operations and Condensed
Consolidated Balance Sheet Plumtree's management believes that a
presentation of operating costs and expenses excluding amortization
of deferred stock-based compensation, amortization of acquired
technology, and assuming a fixed effective tax rate, provides a
meaningful basis for evaluating our underlying cost and expense
levels. Presentation of pro forma net income and earnings per share
information provides greater comparability of Plumtree's financial
results against historical results as well as those of other
enterprise software companies and financial models of securities
analysts. A reconciliation of pro forma results to GAAP results is
provided in the financial tables below. PLUMTREE SOFTWARE, INC. PRO
FORMA* CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share amounts) /----- Pro Forma -----/ Three
Months Ended March 31, 2004 2003 (Unaudited) Revenue: Licenses
$6,871 $8,451 Services and maintenance 10,852 8,718 Total revenue
17,723 17,169 Cost of revenue: Cost of revenue 4,547 2,563 Gross
margin 13,176 14,606 Operating expenses: Research and development
5,509 4,749 Sales and marketing 8,011 6,928 General and
administrative 2,387 1,623 Total operating expenses 15,907 13,300
Pro forma income from operations (2,731) 1,306 Interest and other
income, net 149 326 Pro forma income before income taxes (2,582)
1,632 Pro forma income taxes ** -- 490 Pro forma net income
$(2,582) $1,142 Pro forma net income per share: Basic $(0.08) $0.04
Diluted $(0.08) $0.04 Shares used to compute net income per share:
Basic 31,478 29,668 Diluted 31,478 32,490 * Pro forma statements of
operations exclude $237 and $591 of amortization of stock based
compensation, respectively and $394 and $394 of amortization of
acquired technology, respectively. ** Assumes an annualized
effective tax rate of 30% on net income, if any. PLUMTREE SOFTWARE,
INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands,
except per share amounts) Three Months Ended March 31, 2004 2003
(Unaudited) Revenue: Licenses $6,871 $8,451 Services and
maintenance 10,852 8,718 Total revenue 17,723 17,169 Cost of
revenue: Cost of revenue 4,547 2,563 Amortization of stock-based
compensation & acquired technology 447 496 Total cost of
revenue 4,994 3,059 Gross margin 12,729 14,110 Operating expenses:
Research and development 5,509 4,749 Sales and marketing 8,011
6,928 General and administrative 2,387 1,623 Amortization of
stock-based compensation 184 489 Total operating expenses 16,091
13,789 Income (loss) from operations (3,362) 321 Interest and other
income, net 149 326 Income (loss) before income taxes (3,213) 647
Provision for income taxes 162 118 Net income (loss) $(3,375) $529
Net income (loss) per share: Basic $(0.11) $0.02 Diluted $(0.11)
$0.02 Shares used to compute net income (loss) per share: Basic
31,478 29,668 Diluted 31,478 32,490 PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) As of As of
March 31, December 31, 2004 2003 (Unaudited) ASSETS Current assets:
Cash, cash equivalents and short-term investments $68,529 $67,689
Accounts receivables, net of allowances 16,508 17,171 Other current
assets 2,452 2,079 Total current assets 87,489 86,939 Property and
equipment, net 1,846 1,798 Other long-term assets 1,556 2,025
$90,891 $90,762 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $1,312 $1,312 Accrued and other
current liabilities 12,652 12,084 Deferred revenues 20,652 19,027
Total current liabilities 34,616 32,423 Long-term liabilities 432
448 Total Liabilities 35,048 32,871 Total Stockholders' Equity
55,843 57,891 $90,891 $90,762 DATASOURCE: Plumtree Software
CONTACT: investors, Joann Horne, +1-415-445-3233, or , or media,
Carilu Dietrich, +1-415-399-7047, or , both of Plumtree Software
Web site: http://www.plumtree.com/
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