Plumtree (NASDAQ:PLUM)
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Plumtree Software Announces Second Quarter 2004 Operating Results
Company Records Sequential Revenue Growth and Exceeds Guidance
SAN FRANCISCO, July 15 /PRNewswire-FirstCall/ -- Enterprise Web leader
Plumtree Software (NASDAQ:PLUM) today announced results for its second quarter
ended June 30, 2004. Revenue for the second quarter of 2004 was $19.5 million,
compared to $17.7 million in revenue for the first quarter of 2004 and $17.0
million in revenue for the comparable quarter last year. Net loss for the
second quarter of 2004 calculated in accordance with generally accepted
accounting principles (GAAP) was $3.7 million, or $0.12 per share, compared to
a net loss of $3.4 million, or $0.11 per share, for the first quarter of 2004,
and net loss of $1.1 million, or $0.04 per share, for the comparable quarter
last year. Non-GAAP net loss for the second quarter of 2004 was approximately
$2.7 million, or $0.09 per share, compared to non-GAAP net loss of $2.6 million
or $0.08 per share, for the first quarter of 2004 and non-GAAP net loss of
$107,000, or $0.00 per share, for the comparable quarter last year.
Non-GAAP net income excludes charges for amortization of deferred stock- based
compensation, amortization of acquired technology, charges related to
restructuring, and assumes an effective tax rate of 30% on net income, if any.
A reconciliation of these non-GAAP results to GAAP results is included in the
financial tables below.
As of June 30, 2004, Plumtree's cash, cash equivalents and short-term
investments were $62.8 million, down from $68.5 million in the previous
quarter. Plumtree has no long-term debt. "We are pleased that we made progress
on all of the objectives we outlined last quarter: improved pipeline
development, better sales execution, and driving growth through a
solutions-focused selling model," said John Kunze, CEO of Plumtree Software.
"The key additions to the management team and improved company-wide operational
execution are beginning to show positive results."
Second Quarter Highlights
Second quarter 2004 highlights include:
Customer Success: Plumtree completed 78 transactions this quarter, adding 36
new customers including the American Diabetes Association, Amtrak, Buckman
Laboratories International, Defense Commissary Agency and Electric Power
Research Institute. Unilever, one of the world's largest consumer goods
companies, expanded its Plumtree Enterprise Web Suite license to serve its
235,000 employees in over 90 countries worldwide. Plumtree also announced
successful deployments at Fortune 500 customers including ADC
Telecommunications, Cinergy and Dole Food Company, Inc.
Solutions-Focused Sales Organization: To improve sales execution and
solutions-selling focus, Plumtree hired several well-seasoned sales executives
from applications companies including:
-- VP of Western Region Sales, Jim Priestly, former VP of Mid-Market Sales
for SAP America;
-- VP of Eastern Region Sales, Bill Null, former VP of Life Sciences Sales
for I-many, Inc.;
-- VP of Public Sector Sales, Dennis Reilly, former Regional Sales
Director of Federal Civilian Agencies for PeopleSoft; and
-- VP of Sales Consulting, Mardi Diamond, former VP of Customer Services
for Cornus Consulting.
Worldwide Channels: Plumtree hired Tony Sanders as vice president of worldwide
channels responsible for all channels including system integrators, independent
software vendors and OEMs. Sanders joins Plumtree from Oracle Corporation where
he most recently served as vice president of North America application
channels.
Collaborative Applications: Plumtree formed a new solutions group to develop,
market and sell portal-based applications for the retail space, based on
success with customers including Applebee's International, Best Buy, Hy- Vee,
Groupe Casino and O'Charley's. Plumtree also launched an executive dashboard
services offering, combining new integration products with a deployment
methodology designed to deliver dashboard applications rapidly and at low cost.
United Technology Corp. (UTC), the aerospace and technology corporation that
ranks number 51 on the Fortune 500 list, added HandySoft's Plumtree-Powered
SOXA Accelerator(TM) to its Enterprise Web deployment as its technology
solution for Sarbanes-Oxley reporting compliance.
Industry Recognition: Following a #1 rating in InfoWorld's portal product
review last quarter, Plumtree this quarter bested BEA by 32%, Microsoft by 18%,
IBM by 13% and Vignette by 10% in total score in the Network Computing product
review. Plumtree was also placed in the leader quadrant of Gartner's Smart
Enterprise Suite 2004 Magic Quadrant.* According to Gartner guidelines, leader
quadrant vendors are performing well today, have a clear vision of market
direction and are actively building competencies to sustain their leadership
position in the market. Plumtree-powered portals at the Defense Finance and
Accounting Service and Workplace Safety and Insurance Board Ontario were named
among the world's top 10 government intranets by usability analyst firm the
Norman Nielsen Group.
Developer Support: Over 1,500 developers joined Plumtree's developer program
since its launch in February 2004, leading to a strong showing at Plumtree's
first annual Advanced Developer Conference. The event featured case studies
from customers including Bankers Bank, FTN Financial and Cox Enterprises as
well as best practices, sample code and hands-on developer labs to help both
Java and .NET developers build service-oriented applications using Plumtree's
Enterprise Web Suite.
Q3 2004 Financial Outlook
Plumtree Software currently anticipates third quarter 2004 revenue to be
between $19 million and $20 million. On a non-GAAP basis, the company projects
a third quarter 2004 net loss between $0.11 and $0.14 per share. Non-GAAP net
earnings per share in Plumtree's third quarter outlook excludes amortization of
deferred stock-based compensation estimated to be $100,000, amortization of
acquired technology of approximately $400,000, and assumes an effective tax
rate of 30% on net income, if any. Giving effect to these exclusions, third
quarter 2004 GAAP net loss is currently expected to be between $0.14 and $0.17
per share. For a discussion of factors that could cause actual results to
differ materially from these targets, see "Safe Harbor Statement and Caution"
below.
Conference Call
Interested parties can hear the conference call concerning Plumtree's financial
results for the second quarter on Thursday, July 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 773-756-4600. 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 third quarter 2004 financial results. An audio replay of
the call will also be available until July 30th, 2004. The dial-in number for
the audio replay is 402-220-0307. 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 its products to over 640 customers, including
Boeing, Ford Motor Company, Procter & Gamble and the U.S. Navy.
Contacts
JoAnn Horne
Investor Contact
415-445-3233
Carilu Dietrich
Press Contact
415-399-7047
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:
statements regarding our current financial outlook for the third quarter of
2004; our corporate objectives, including improved pipeline development, better
sales execution and growth through a solutions focused selling model;
anticipated benefits from our key senior management additions and recent sales
and channel executive hirings; and market opportunities presented by our
channel initiatives and independent developer program; as well as our position
within the emerging service oriented application market. These forward looking
statements are subject to numerous risks and uncertainties and actual results
may vary materially. We may not achieve anticipated future operating results or
our corporate objectives. Our success depends on, among other factors,
continued customer demand and interest in our current and new products; our
success in building product pipeline, improving sales execution and achieving
growth through our solutions sales model, through our recent sales realignment,
management additions and otherwise; and the success of our channel initiatives
and developer program. Other risks and uncertainties include risks associated
with 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;
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; failure to
manage technological change; our ability to expand into and within global
markets; 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 Disclaimer
*Smart Enterprise Suite 2004 Magic Quadrant , G. Phifer et al, May 17, 2004.
The Magic Quadrant is copyrighted May 17, 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.
Use of GAAP and Non-GAAP Results
Plumtree's management believes that a presentation of operating costs and
expenses excluding amortization of deferred stock-based compensation,
amortization of acquired technology and charges related to restructuring, and
assuming a fixed effective tax rate, provides a meaningful basis for evaluating
our underlying cost and expense levels. Presentation of non-GAAP 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 non-GAAP 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 Six Months
Ended Ended
June 30, June 30,
2004 2003 2004 2003
Revenue:
Licenses $7,911 $7,691 $14,782 $16,142
Services and maintenance 11,557 9,340 22,408 18,058
Total revenue 19,468 17,031 37,190 34,200
Cost of revenue:
Licenses 422 251 850 629
Services and maintenance 4,638 2,804 8,756 4,990
Total cost of revenue 5,060 3,055 9,606 5,619
Gross margin 14,408 13,976 27,584 28,581
Operating expenses:
Research and development 5,886 5,342 11,395 10,091
Sales and marketing 8,623 7,405 16,635 14,333
General and administrative 2,752 1,547 5,139 3,170
Total operating expenses 17,261 14,294 33,169 27,594
Pro forma income (loss) from
operations (2,853) (318) (5,585) 987
Interest and other income, net 140 211 289 538
Pro forma income (loss) before income
taxes (2,713) (107) (5,296) 1,525
Pro forma income taxes ** -- -- -- 458
Pro forma net income (loss) $(2,713) $(107) $(5,296) $1,067
Pro forma net income (loss) per share:
Basic $(0.09) $(0.00) $(0.17) $0.04
Diluted $(0.09) $(0.00) $(0.17) $0.03
Shares used to compute net income
(loss) per share:
Basic 31,882 30,419 31,670 30,044
Diluted 31,882 30,419 31,670 32,588
* Pro forma statements of operations excludes $134, $312, $371 and $902
of amortization of stock based compensation, respectively and $394,
$394, $788 and $788, of amortization of acquired technology,
respectively. In addition, the Pro Forma Statement of Operations for
the three months and the six months ended June 30, 2004 excludes $307
of restructuring costs.
** 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 Six Months
Ended Ended
June 30, June 30,
2004 2003 2004 2003
Revenue:
Licenses $7,911 $7,691 $14,782 $16,142
Services and maintenance 11,557 9,340 22,408 18,058
Total revenue 19,468 17,031 37,190 34,200
Cost of revenue:
Licenses 422 251 850 628
Services and maintenance 4,638 2,804 8,756 4,990
Amortization of stock-based
compensation & acquired
technology 425 449 872 945
Total cost of revenue 5,485 3,504 10,478 6,563
Gross margin 13,983 13,527 26,712 27,637
Operating expenses:
Research and development 5,886 5,342 11,395 10,091
Sales and marketing 8,623 7,405 16,635 14,333
General and administrative 2,752 1,547 5,139 3,170
Restructuring charges 307 -- 307 --
Amortization of stock-based
compensation 103 257 287 746
Total operating expenses 17,671 14,551 33,763 28,340
Income (loss) from operations (3,688) (1,024) (7,051) (703)
Interest and other income, net 140 211 289 537
Income (loss) before income taxes (3,548) (813) (6,762) (166)
Provision for income taxes 139 258 301 376
Net income (loss) $(3,687) $(1,071) $(7,063) $(542)
Net income (loss) per share:
Basic $(0.12) $(0.04) $(0.22) $(0.02)
Diluted $(0.12) $(0.04) $(0.22) $(0.02)
Shares used to compute net income
(loss) per share:
Basic 31,882 30,419 31,670 30,044
Diluted 31,882 30,419 31,670 30,044
PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
June 30, December 31,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $62,780 $67,689
Accounts receivables, net of allowances 19,587 17,171
Other current assets 2,405 2,079
Total current assets 84,772 86,939
Property and equipment, net 1,981 1,798
Other long-term assets 1,233 2,025
$87,986 $90,762
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,845 $1,312
Accrued and other current liabilities 12,585 12,084
Deferred revenues 20,984 19,027
Total current liabilities 35,414 32,423
Long-term liabilities 416 448
Total Liabilities 35,830 32,871
Total Stockholders' Equity 52,156 57,891
$87,986 $90,762
DATASOURCE: Plumtree Software
CONTACT: Investors, JoAnn Horne, +1-415-445-3233 or
, for Plumtree Software; or, Press, Carilu
Dietrich of Plumtree Software, +1-415-399-7047 or
Web site: http://www.plumtree.com/