Primus Knowledge Solutions (NASDAQ:PKSI)
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Primus Confirms Year to Date Revenue Growth of 29% Compared to
2003
Operating Expenses Decrease 16% Sequentially From First Quarter 2004
SEATTLE, Aug. 4 /PRNewswire-FirstCall/ -- Primus Knowledge Solutions, Inc.
(NASDAQ:PKSI) today announced financial results for the quarter ended June 30,
2004, consistent with preliminary financial results presented on July 8, 2004.
Revenue for the second quarter ended June 30, 2004 was approximately $5.8
million, an increase of 55% compared to $3.7 million for the second quarter of
2003. Total operating expenses for the second quarter of 2004 were
approximately $5.9 million compared to $5.1 million for the second quarter of
2003 and $7.0 million in the first quarter of 2004. Net loss for the second
quarter of 2004 was approximately $2.1 million or ($0.09) per share, compared
to net loss of $2.7 million or ($0.14) per share for the second quarter of 2003
and $3.0 million or ($0.13) per share in the first quarter of 2004.
During the second quarter of 2004, revenue from sales to one customer
represented approximately 22% of total revenue. The enterprise license
agreement with this customer did not result in an increase in cash or
receivables during the period, as the customer chose to use funds on deposit
against the amount due. Revenue for the six months ended June 30, 2004 was
approximately $11.8 million, an increase of 29% compared to $9.2 million for
the same period of 2003. Total operating expenses for the six months ended June
30, 2004 were approximately $12.9 million (including a restructuring charge of
$461,000) compared to $10.5 million for the same period of 2003. Net loss for
the six months ended June 30, 2004 was approximately $5.1 million or ($0.22)
per share, compared to a net loss of $3.8 million, or ($0.20) per share for the
same period of 2003.
As of June 30, 2004, Primus had cash of approximately $8.3 million compared to
$11.8 million at March 31, 2004.
"We are pleased with our 29% year over year revenue growth for the first six
months of 2004, as well as our 16% reduction in operating costs compared to
last quarter," said Michael Brochu, president and chief executive officer of
Primus. "With the recent release of our new product set, Knowledge Center 6.0,
and the addition of Bill Moore as executive vice president of worldwide sales
and services, we enter the second half of the year with solid momentum."
Corporate Conference Call
Michael Brochu, president and chief executive officer, and Ron Stevens, chief
financial officer, invite you to participate in a conference call reviewing
complete second quarter 2004 results today at 2:00 p.m. PDT.
The conference call number is 800-374-1745. Please call five minutes in advance
to ensure that you are connected prior to the presentation. A playback of the
call will be made available for one week, two hours after the completion of the
call and the call will also be available for playback via Primus' website at
http://www.primus.com/. Playback call numbers are 800-642-1687 for domestic
calls and 706-645-9291 for international calls. The pass code for the playback
is 8670824.
About Primus
Primus Knowledge Solutions develops award-winning software that enables
companies to provide a superior customer experience via contact centers, help
desks, Web self-service, and electronic communication channels. Primus
technology powers every interaction with knowledge to increase customer
satisfaction and reduce operational costs. Primus continues to receive industry
accolades for its robust product suite. In 2003, Primus received the STAR Award
for "Best Support Technology Vendor" from the Service & Support Professionals
Association (SSPA), was recognized for its trend-setting products and named one
of the "100 Companies that Matter in Knowledge Management" by KMWorld magazine,
and received the CRM Excellence Award from the editors of Customer Interaction
Solutions magazine. Global organizations such as 3Com, Allied Irish Bank, The
Boeing Company, CompuCom, Eastman Kodak Co., EMC, Ericsson, Inc., Fujitsu
Limited, Inc., IBM, HSBC, Orange, Motorola and T-Mobile rely on Primus
technology to enhance their customer service and support initiatives. Visit
http://www.primus.com/ for more information.
NOTE: Primus and Primus Knowledge Solutions are registered trademarks of
Primus Knowledge Solutions, Inc. Other products and company names mentioned in
this press release may be the trademarks of their respective owners.
Any statements, expectations and assumptions contained in this press release
that do not describe historical facts, such as statements about anticipated
future financial results, such as anticipated revenues, cash flows and
operating results, constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. There is no guarantee
that these results will actually occur. Any forward-looking statements
contained in this release are based on current expectations, are not guarantees
of future performance, and are subject to a number of risks and uncertainties.
Factors that could cause actual results to differ materially from current
expectations include the following: difficulties encountered in the
integration of personnel and products from recent acquisitions; difficulties
encountered in the integration, deployment, or implementation of our products
and customer's systems; failure in customer's widespread adoption and use of
our products; quality of customer's databases of solutions; fluctuations in
customer demand; use of the Web as a delivery vehicle for customer support or
eCRM solutions; risk resulting from new product introductions and customer
acceptance of new products; rapid technological change; the risks associated
with competition, pricing policies and the rapid consolidation of competitors;
continued growth in the use of the Internet; the ability of Primus to manage
its growth and integration efforts and the ability of Primus to compete
successfully in the future, as well as other risks identified in Primus'
Securities and Exchange Commission filings, including but not limited to those
appearing under the caption "Factors Affecting our Future Operating Results" in
Primus' most recent Annual Report on Form 10-K and Quarterly Reports on Form
10-Q, which are available at http://www.sec.gov/.
CONTACT: Primus Investor Relations, +1-206-834-8341, or , or Primus Public
Relations, +1-206-834-8325, or .
Primus Knowledge Solutions, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents $8,335 $12,154
Accounts receivable, net 2,730 5,475
Prepaids and other assets 827 1,001
Total current assets 11,892 18,630
Property and equipment, net 1,166 1,415
Goodwill 11,841 11,785
Other intangible assets, net 3,075 3,608
Deposits and other assets 225 225
Total assets $28,199 $35,663
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $2,028 $2,555
Accrued and other liabilities 1,457 2,170
Compensation-related accruals 980 1,733
Obligations due under credit facility 349 395
Deferred revenue 7,230 8,797
Total current liabilities 12,044 15,650
Total shareholders' equity 16,155 20,013
Total liabilities and shareholders' equity $28,199 $35,663
Primus Knowledge Solutions, Inc.
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30
2004 2003 2004 2003
Revenue:
License $1,517 $466 $3,170 $2,841
Service 4,238 3,251 8,659 6,364
Total revenue 5,755 3,717 11,829 9,205
Cost of revenue:
License 134 57 366 154
Service 1,431 1,242 2,946 2,381
Amortization of
purchased intangibles 374 -- 587 --
Total cost of revenue 1,939 1,299 3,899 2,535
Gross profit 3,816 2,418 7,930 6,670
Operating expenses:
Sales and marketing 2,307 2,527 5,207 5,125
Research and
development 2,135 1,874 4,487 3,690
General and
administrative 1,469 702 2,766 1,675
Restructuring charges -- -- 461 --
Total operating expenses 5,911 5,103 12,921 10,490
Loss from operations (2,095) (2,685) (4,991) (3,820)
Other income
(expense), net 2 12 (24) 67
Loss before income
taxes (2,093) (2,673) (5,015) (3,753)
Income tax expense (24) (31) (66) (81)
Net loss $(2,117) $(2,704) $(5,081) $(3,834)
Basic and diluted
net loss per
Share amounts $(0.09) $(0.14) $(0.22) $(0.20)
Weighted average
shares used in
computing basic
and diluted net
loss per share
amounts 23,766,889 19,053,898 23,488,281 19,053,860
DATASOURCE: Primus Knowledge Solutions, Inc.
CONTACT: Primus Investor Relations, +1-206-834-8341, or
, or Primus Public Relations, +1-206-834-8325, or
Web site: http://www.primus.com/