Backweb (NASDAQ:BWEB)
Historical Stock Chart
From Jun 2019 to Jun 2024
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