Plumtree (NASDAQ:PLUM)
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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/