Backweb (NASDAQ:BWEB)
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BackWeb Technologies Ltd. (Nasdaq: BWEB), a leading
provider of offline and mobile web software, today reported financial
results for its third quarter and nine months ended September 30,
2005.
BackWeb(R) reported Q3 2005 revenue increased 51% to $1.78 million
compared to $1.18 million in the third quarter of 2004 and revenue of
$1.72 million, or 4%, in the second quarter of 2005. Higher license
revenues in particular, as well as continued strength in services,
drove the third quarter revenue increase. License sales in the period
included significant new and follow-on orders from Centocor, Dade
Behring, Pfizer and Siemens AG's Communications Group.
BackWeb continued its expense management discipline, reporting a
reduced net loss of $208,000, or $0.01 per share, for Q3 2005,
compared to a net loss of $1.54 million, or $0.04 per share, in Q3
2004, and a net loss of $233,000, or $0.01 per share, in Q2 2005.
For the first nine months of 2005, BackWeb's revenue rose 30% to
$5.16 million compared to $3.97 million in the first nine months of
2004. BackWeb reported a significantly lower net loss of $688,000, or
$0.02 per share, for the first nine months of 2005, compared to a net
loss of $4.23 million, or $0.10 per share, in the first nine months of
2004.
BackWeb's balance sheet and cash position continue to remain
solid, with no long-term debt and cash and investments totaling
approximately $8.62 million as of September 30, 2005.
BackWeb's Vice President Finance, Ken Holmes, commented, "The
third quarter was our strongest period of license revenue recognition
in three years and reflects customers who are either expanding
existing deployments or bringing BackWeb's value to other new
applications."
BackWeb's CEO, Bill Heye, commented, "Our Q3 success reflects
progress in both revenue growth and expense management toward our goal
of sustainable profitability. We believe that current market dynamics
are driving greater demand for the mobilization of key enterprise web
applications. In an effort to accelerate our revenue ramp in coming
quarters, we recently expanded our senior management team with the
appointments of two proven industry executives to head worldwide sales
and marketing and business development. Already, we are seeing the
benefit of their contributions as they expand our sales outreach and
work toward new partnering opportunities. While these additions, as
well as the planned ramp in sales, marketing and partnering activity
will moderately increase our expenses going forward, we believe the
growing opportunities for mobile software justify these investments at
this time."
Mr. Heye concluded, "Also supporting our sales and marketing
effort is a growing base of customers who have achieved successful
deployments of our solutions, some with deployments exceeding 10,000
users. A number of our customers have already returned to BackWeb to
expand their original deployments or to deploy our mobility solutions
in new applications or divisions. Additionally, our partnership with
Oracle's PeopleSoft(R) Enterprise ePerformance application is gaining
traction and contributed to an important business win in the recent
quarter. Expanding our base of partnerships of this type is a major
focus of our company, and we hope to demonstrate more progress in this
area in the coming quarters."
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) 2005 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.
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BackWeb Technologies Ltd.
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2005 2004
Unaudited
-------------
ASSETS
Current assets:
Cash and investments $ 8,617 $10,320
Trade accounts receivable, net 1,145 1,677
Other current assets 298 378
------------- -------------
Total current assets 10,060 12,375
Long-term investments and other assets 33 26
Property and equipment, net 206 154
------------- -------------
Total assets $10,299 $12,555
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,779 $ 1,800
Deferred revenue 1,121 2,672
------------- -------------
Total current liabilities 2,900 4,472
Long-term liabilities 21 145
Total shareholders' equity 7,378 7,938
------------- -------------
Total liabilities and shareholders'
equity $10,299 $12,555
============= =============
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BackWeb Technologies Ltd.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Nine months ended
------------------- -------------------
September September September September
30, 2005 30, 2004 30, 2005 30, 2004
Unaudited Unaudited Unaudited Unaudited
--------- --------- --------- ---------
Revenue:
License $ 942 $ 124 $ 2,569 $ 1,043
Service 840 1,057 2,588 2,923
--------- --------- --------- ---------
Total revenue 1,782 1,181 5,157 3,966
Cost of revenue:
License 14 12 27 53
Service 183 347 533 960
--------- --------- --------- ---------
Total cost of revenue 197 360 560 1,013
--------- --------- --------- ---------
Gross profit 1,585 821 4,597 2,953
--------- --------- --------- ---------
Operating expenses:
Research and development 530 768 1,670 2,527
Sales and marketing 787 1,236 2,317 3,273
General and administrative 511 423 1,359 1,533
--------- --------- --------- ---------
Total operating expenses 1,828 2,427 5,346 7,333
--------- --------- --------- ---------
Loss from operations (243) (1,606) (749) (4,380)
Finance and other income, net 35 68 61 149
--------- --------- --------- ---------
Net loss $ (208) $ (1,538) $ (688) $ (4,231)
========= ========= ========= =========
Net loss per share $ (0.01) $ (0.04) $ (0.02) $ (0.10)
========= ========= ========= =========
Shares used in computing net
loss per share 41,036 40,717 40,971 40,669
========= ========= ========= =========
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