Versata (NASDAQ:VATA)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Versata Charts. Click Here for more Versata Charts.](/p.php?pid=staticchart&s=N%5EVATA&p=8&t=15)
Versata, Inc. (Nasdaq:VATA), a leading independent
provider of rapid application development platforms to automate and
manage complex, data-intensive business systems, today reported its
financial results for the second quarter ended April 30, 2005.
Total revenue for the first quarter was $2.5 million, a 9 percent
increase from last quarter but down substantially from the same period
a year ago. Software license revenue increased 52 percent
sequentially, to $237,000, but was down year-over-year. Versata's
decline in revenue was attributed to several factors, including
extending the Versata 6(TM) beta test, longer than expected purchasing
cycles in the customer pipeline, and the company's CEO search.
On the bottom line, Versata booked a quarterly GAAP net loss of $2
million, or $0.25 per share. This compares with $1.9 million, or $0.23
per share, last quarter and $880,000, or $0.11, for the same period
last year. The company used $2.5 million of its cash to fund
operations during the second quarter, compared to $1.3 million last
quarter. Versata ended the quarter with slightly more than $6 million
in cash and short-term investments. The company recognizes it cannot
continue to burn cash at this rate and is currently exploring several
options to boost working capital.
"We take no comfort in our license revenue this quarter or last,"
said Will Frederick, CFO and interim CEO and president of Versata.
"While we did well in other areas of the business, it was not enough
to offset the shortfall in license revenue. And our lackluster sales
of new licenses had a direct impact on total revenue and cash flow.
These issues aside, we believe we are still taking the proper steps to
improve Versata's financial performance and our long-term view of
Versata's prospects has not changed."
Regaining Momentum in the Third Quarter
Versata is off to a much better start in the third quarter. Newly
signed customers include Sparda Bank of Hamburg eG, a leading German
credit union, and HSB Engineering Insurance Ltd., a subsidiary of AIG
and an international engineering insurance company. Goldman Sachs &
Co., a global investment banking and securities firm, also recently
became a customer and purchased the first license for the Versata BAM
Dashboard(TM), introduced by Versata at the end of the fourth quarter.
Gaining Traction
The company also reported that customers have responded well to
the newly introduced Versata 6 platform. For example, Equifax, in a
recent joint Webinar with Gartner analyst Jim Sinur, gave a strong
review of the product. And the State of Utah offered similar accolades
for its Versata-powered system for paperlessly administering state
unemployment benefits, which is scheduled to go live this fall. In the
meantime, Versata is seeing demand for the application from other
states and believes it could be a substantial revenue generator within
the next 12 months.
Quarterly Conference Call
Versata will host its quarterly conference call, open to all
interested parties, at 2:00 pm (PDT), 5:00 pm (EDT), today. The call
will be available over the Internet at www.versata.com.
About Versata
Versata provides solutions for automating and simplifying the
building, maintenance and ongoing evolution of large, complex,
data-intensive enterprise applications. These applications typically
access multiple data sources, incorporate multiple database tables and
user interfaces, execute very complex business transactions and
support thousands of users. The Versata solution effectively and
efficiently replaces time intensive hand-coding efforts with simple,
intuitive business rules and graphical process flow specification.
Versata Global 2000 customers include Bank of America, B. T., CGI-AMS,
Daimler/Chrysler, JPMorganChase & Co., Meridian Health Care
Management, Merrill Lynch and Union Bank of California. For more
information, please visit http://www.versata.com, or call +1 (800)
984-7638 and +1 (510) 628-1000 for international calls.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results
may vary materially from the expectations contained in the
forward-looking statements. Forward-looking statements in this press
release include in particular, statements regarding: Versata's future
expectations, beliefs, hopes, intentions or strategies; Versata's
plans to control costs, reduce total cash burn, grow year-over-year
revenue, focus on driving to positive cash flow; customer prospects
and market opportunities; industry technology leadership in
business-rules-driven application creation and management; and demand
for Versata products. These statements are not guarantees of future
performance and actual results could differ materially from Company's
current expectations. Factors that could cause or contribute to such
differences include, but are not limited to: inability to finalize
delayed revenue pipeline opportunities; unforeseen technical
difficulties with Versata 6; market acceptance of Versata products;
the introduction of new products by competitors or the entry of new
competitors into the markets for Versata's products; economic and
political conditions in the United States and abroad; and other risks
detailed in Versata's Annual Report filed on Form 10-K, registration
statement, and periodic reports filed with the Securities and Exchange
Commission, available at www.sec.gov. As a result, actual results may
vary, perhaps materially, from those contained in the forward-looking
statements. All forward looking statements included in this press
release are based upon information available to Versata as of the date
hereof, and Versata does not assume any obligations to update such
statements to reflect events or circumstances after the date of this
document, or provide reasons if actual results differ materially from
those projected in such statements.
Versata, Versata 6, Versata BAM Dashboard, and the Versata logo
are registered trademarks or trademarks of Versata, Inc. in the United
States and other countries. All other brands and products are
trademarks of their respective holder(s).
-0-
*T
VERSATA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND NET LOSS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
-------------------- -----------------
2005 2004 2005 2004
---------- --------- -------- --------
Revenue:
Software license $237 $1,294 $393 $2,517
Maintenance and support 1,533 1,453 3,096 2,890
Professional services 744 983 1,333 1,739
---------- --------- -------- --------
Total revenue 2,514 3,730 4,822 7,146
---------- --------- -------- --------
Cost of revenue:
Software license 21 51 41 117
Maintenance and support 342 353 667 751
Professional services 1,075 831 1,943 1,561
---------- --------- -------- --------
Total cost of revenue 1,438 1,235 2,651 2,429
---------- --------- -------- --------
Gross profit 1,076 2,495 2,171 4,717
---------- --------- -------- --------
Operating expense:
Sales and marketing 1,271 1,413 2,524 2,913
Product development 1,026 884 1,966 2,115
General and administrative 808 1,105 1,592 2,179
Stock-based compensation - 100 - 223
Restructuring and other - (99) - 571
---------- --------- -------- --------
Total operating expense 3,105 3,403 6,082 8,001
---------- --------- -------- --------
Loss from operations (2,029) (908) (3,911) (3,284)
Interest income, net 35 35 73 57
Other non-operating income, net (12) (7) (22) (35)
---------- --------- -------- --------
Net loss $(2,006) $(880) $(3,860) $(3,262)
========== ========= ======== ========
Basic and diluted net loss per
share $(0.25) $(0.11) $(0.47) $(0.41)
========== ========= ======== ========
Weighted-average common shares
outstanding 8,180 8,082 8,179 7,995
========== ========= ======== ========
VERSATA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, October 31,
2005 2004
------------ -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $5,235 $5,202
Short-term investments 770 4,640
Accounts receivable, net 673 1,986
Prepaid expenses and other current assets 723 495
------------ -----------
Total current assets $7,401 $12,323
Property and equipment, net 845 772
Other assets 112 112
------------ -----------
Total assets $8,358 $13,207
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,142 $1,188
Accrued liabilities 1,441 1,653
Current portion of accrued restructuring and
other 99 757
Current portion of capital lease obligations 85 65
Current portion of deferred revenue 2,915 3,553
------------ -----------
Total current liabilities 5,682 7,216
Deferred revenue, less current portion 473 588
Other long-term liabilities 260 150
------------ -----------
Total liabilities 6,415 7,954
------------ -----------
Stockholders' equity:
Preferred stock - -
Common stock 45 45
Additional paid-in capital 217,547 216,903
Accumulated other comprehensive loss (871) (777)
Accumulated deficit (214,778) (210,918)
------------ -----------
Total stockholders' equity 1,943 5,253
------------ -----------
Total liabilities and stockholders' equity $8,358 $13,207
============ ===========
*T