BOZEMAN, Mont., Oct. 25 /PRNewswire-FirstCall/ -- RightNow® Technologies (Company
Profile, Past
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Studies) (Nasdaq: RNOW - News), a leading provider of on demand CRM software solutions, today announced results for the third quarter ended September 30, 2004. RightNow reported consolidated revenues of $16.4 million for the quarter, an increase of 78 percent from the comparable quarter last year. Revenues for the nine months ended September 30, 2004 were $44 million, an increase of 74 percent from $25.3 million for the nine month period ended September 30, 2003.
Third quarter 2004 net income was $1.4 million, or $0.05 per diluted share, compared to a loss of $(1.0) million, or $(0.07) per diluted share, in the third quarter of 2003. Net income for the nine months ended September 30, 2004 was $2.2 million or $0.08 per diluted share, compared to a loss of $(2.8) million or $(0.19) per diluted share for the nine months ended September 30, 2003.
"This is the 27th quarter of sequential revenue growth which we believe validates our business model and our continued focus on customer success. Additionally, this quarter we expanded our Customer Relationship Management solution set to fulfill increasing customer demands and address opportunities in the middle market and in divisions of Global 2000 companies. We are encouraged by our results and the performance of our organization in this our first quarter as a public company. To capitalize on this success and our current momentum in the CRM market, we plan to expand our sales and marketing initiatives next year," said Greg Gianforte, Founder and Chief Executive Officer.
During the third quarter, the company added 88 new customers and renewed or expanded relationships with others, including the U.S. Department of Homeland Security, Bass Pro Shops, EasyJet, University of Michigan School of Business, Harrah's Entertainment, NACCO, Reuters, and 12 different government entities in the United Kingdom.
The company unveiled RightNow CRM(TM) 7.0, a complete, on demand CRM solution for customer service, sales and marketing during its annual user conference in October, which more than 300 customers attended. The company has signed 27 RightNow CRM 7.0 customers to date, including 21 for the full CRM suite and six for sales force automation. These customers include Register.com, Inc., Graco Inc., Ixio Corporation, Friend Communications, Inc., Group300, Datanautics and Authentium.
In August 2004 the company completed its initial public offering of 6.4 million shares of common stock at an IPO price of $7.00 per share. Net proceeds from the offering were $40.1 million, of which $2.7 million was used to pay down long-term debt.
Susan Carstensen, Chief Financial Officer, added, "Benefiting from our IPO, we closed the quarter with a strong balance sheet. Cash and investments were approximately $48 million, cash from operations was $1.1 million for the quarter and $3.4 million through the first nine months of the year, and deferred revenue grew by $3.7 million for the quarter and $8.9 million for the nine month period to $44.5 million at September 30, 2004."
Guidance
* For the fourth quarter of 2004, revenue is anticipated to be in the
range of $16.9 to $17.3 million and EPS in the range of $.03 to $.04.
* For the year ended 2005, revenue is anticipated to be in the range of
$80 to $84 million and EPS in the range of $.15 to $.19.
* In conjunction with the filing of its 2003 income tax return, the
company elected to change its method of tax accounting for prepaid,
term license agreements in accordance with the provisions of the
recent IRS Revenue Procedure 2004-34. The election allows the
deferral of income over the term of the agreements, subject to certain
limitations, resulting in a closer alignment of taxable income with
book income. The change has no effect on gross deferred tax assets,
but it does increase our 2003 year-end net operating loss
carry-forwards by $8 million and decrease deductible timing
differences by a like amount. As a result, we expect our effective
tax rate for 2005 to be in the range of 4% - 6%.
Quarterly Conference Call
RightNow Technologies will discuss its quarterly results via teleconference at 4:30 p.m. (ET)/2:30 p.m. (MT) today, October 25, 2004. To access the call, please dial (800) 289-0496 with confirmation code 978881 at least five minutes prior to the 4:30 p.m. (ET)/2:30 p.m. (MT) start time. A live audio webcast of the call will also be available at www.shareholder.com/rnow/medialist.cfm. A replay of today's conference call will be available on the company Web site at www.shareholder.com/rnow/, under the Investor Webcasts menu, from 5:00 p.m. (MT) on October 25, 2004 until 5:00 p.m. November 1, 2004 (MT).
About RightNow Technologies, Inc.
RightNow (Nasdaq: RNOW - News) provides organizations with industry-leading on demand CRM solutions to build customer-focused businesses. RightNow's acclaimed technology, comprehensive services and commitment to customer success deliver high returns on investment for its customers. More than 1,100 organizations worldwide use RightNow solutions including British Airways, British Telecom, Cisco Systems, Continental Tire North America, The Dow Chemical Company, John Deere, Nikon and the Social Security Administration. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For further information, please visit www.rightnow.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words, and include, but are not limited to, statements regarding projected results of operations, the impact of tax accounting elections, and management's future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to; risks associated with our business model; our ability to develop or acquire, introduce, market and gain market acceptance for new products and enhancements to existing products in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures and other factors such as the availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the rate at which our present and future customers adopt our existing and future products and services; our ability to expand operations; possible fluctuations in our operating results including our revenue mix and our rate of growth; interruptions or delays in our hosting operations; breaches of our security measures; our ability to expand, retain and motivate our employees and manage our growth; and the impact of potential acquisitions, if any. Furt her information on potential factors that could affect our financial results is included in our registration statement on Form S-1 and in other filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. FRNOW
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