|
Press Release |
|||
|
CHORDIANT ANNOUNCES RECORD THIRD-QUARTER 2000 FINANCIAL RESULTS$0.14 Pro Forma Net Loss Per Share on $9.7 Million Revenues; 139% Annual and 31% Sequential Revenue GrowthCUPERTINO, Calif., October 24, 2000 – Chordiant Software, Inc. (Nasdaq:CHRD), leading developer of a unified CRM solution for companies with extreme customer demands, today announced its financial results for the third quarter ended September 30, 2000. Total net revenues were $9.7 million, more than double the $4.1 million reported for the third quarter of 1999 and a 31% sequential increase from $7.4 million for the second quarter of 2000. Third-quarter license revenues were $5.3 million, up from $1.9 million a year earlier. Service revenues were $4.4 million, up from $2.2 million a year ago. On the September 30, 2000 balance sheet, total deferred revenue was $24.0 million, up from $10.1 million at December 31, 1999. The September total consisted of current deferred revenue of $15.2 million and long-term deferred revenue of $8.8 million. Before the effect of non-cash charges related to the amortization of deferred stock-based compensation, purchased in-process research and development, and the amortization of acquired intangible assets, third-quarter net loss was $5.4 million, or a loss of $0.14 per share on a pro forma basis, compared with a net loss of $5.3 million, or a loss of $0.22 per share pro forma, for the same quarter a year ago. After the effect of these charges—a portion of which relate to the acquisition of White Spider Software, Inc. in July 2000—third-quarter net loss was $8.0 million, or a loss of $0.22 per share pro forma, compared with a net loss of $5.5 million, or a loss of $0.23 per share pro forma, for the same quarter of 1999. In addition to total deferred revenue, Chordiant’s September 30 balance sheet included cash, cash equivalents and short-term investments totaling $66.5 million. “Our penetration of large enterprise accounts among Global 500 companies continued strong through the third quarter, yielding record revenue growth and a healthy balance of deferred revenue,” said Sam Spadafora, chairman and chief executive officer of Chordiant. “During the quarter, we completed our acquisition of White Spider Software and moved aggressively to integrate its XML-based knowledge management software with our eCRM solution. As a result, we are on plan and expect to deliver the new Chordiant Knowledge System to customers during the current quarter. We were selected by General American Life Insurance Company to support a new e-business program designed to improve customer satisfaction and service that leverages our extensive experience in the insurance market for eCRM.” During the quarter, Chordiant also began an engagement with British Sky Broadcasting. Mike Hughes, managing director, British Sky Broadcasting - Sky Services, stated, “We have selected the Chordiant solution to deliver personalized business process to millions of consumers across multiple channels simultaneously. This investment will help put clear, blue water between ourselves and the competition.” For the nine months ended September 30, 2000, total net revenues were $22.1 million, up 81% from $12.2 million for the same period of the prior year. Nine-month net loss was $18.6 million, or a loss of $0.51 per share pro forma, excluding non-cash charges of $5.9 million for stock-based compensation and one-time charges of $4.6 million for the write-off of purchased in-process research and development and amortization of intangibles. This compared with a net loss of $14.7 million, or a loss of $0.64 per share pro forma, excluding non-cash charges of $0.8 million for stock-based compensation, a year earlier. Including the charges for stock-based compensation, write-offs and goodwill amortization, net loss for the nine months of 2000 was $29.1 million, or a loss of $0.80 per share pro forma. Management Changes In addition to third-quarter 2000 results, Chordiant announced today two changes in its senior management team. Stephen Kelly, senior vice president of Worldwide Field Operations, has been promoted to the new position of president and chief operating officer, reporting to Spadafora as chairman and chief executive officer, effective from October 24, 2000. After four years with Chordiant, Steven Springsteel, executive vice president and chief financial officer, has resigned to join a privately held, venture capital-funded company. Cary Morgan, vice president and corporate controller, who joined the company in January 1997, will assume management responsibilities for all finance and accounting operations during the search for Mr. Springsteel’s successor. Quarterly Business Highlights During the third quarter of 2000, Chordiant:  Secured a total of five new engagements with new and existing customers - including British Sky Broadcasting, General American Life Insurance, Halifax plc., General Motors’ Onstar Division, and Direct Line Financial Services - and expects to make complete announcements of these engagements shortly.  Recorded international revenues of approximately 69% of total net revenues, reflecting continued strong momentum in European markets.  Acquired White Spider Software, Inc., a specialist in Internet knowledge management and next-generation XML-based software applications, and initiated development of an integrated eCRM solution based on White Spider technology, which Chordiant expects to begin shipping in the fourth quarter, as planned.  Formed strategic partnerships with Caro Systems, Infogain, MarketFirst, and Witness Systems for the development and delivery of integrated eCRM solutions. About Chordiant Software, Inc. Chordiant delivers integrated multi-channel eBusiness software, which enables consumer companies to implement best business practices over the Web, via email and mobile devices, through call centers, or in branches. It includes built-in support for voice, data and Internet integration, as well as a comprehensive workflow engine. Chordiant empowers high-value contacts designed to consistently retain customers, grow revenue and drive profits during every contact. The Chordiant system has been selected by several of the world's leading consumer companies, including Thomas Cook Global Services, Lloyds TSB, Barclays Mercantile, Direct Line, General Motors, First USA Bank, and Bank One International. Headquartered in Cupertino, California, Chordiant maintains regional offices in Chicago, Dallas, New York, London, Amsterdam, and Munich. The company's Web site can be found at www.chordiant.com This news release includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, quarterly fluctuations in operating results, failure to meet financial expectations of analysts and investors, risk as related to market acceptance of Chordiant products, customization and deployment delays or errors associated with Chordiant products, impact of long sales and implementation cycles, reliance on a limited number of customers for a majority of revenue, need to maintain and enhance business relationships with systems integrators and other parties, concentration of sales in a limited number of industries, ability to manage growth, hardware and software incompatibilities and dependence on third-party software, activities by Chordiant and others regarding protection of intellectual property, release of competitive products and other actions by competitors, and economic downturns in either domestic or foreign markets. These forward-looking statements are generally identified by words such as "expect," "anticipate," "intend," "believe," "hope," "assume," "estimate," "plan," and other similar words and expressions. Chordiant does not undertake an obligation to update forward-looking statements. Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. Chordiant, CCS-Customer Communications Solution, and One Click, One Call, One Customer are trademarks of Chordiant Software, Inc. All other trademarks and servicemarks mentioned are property of their respective holders. © 2000 Chordiant Software, Inc. All Rights Reserved. Editorial Contact: Steven R. Springsteel, EVP/CFO Chordiant Software 408-517-6112 springsteel@chordiant.com top of page |
|||