 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
| Press Releases |
|
| Media Coverage |
|
|
|
 |
|
 |
Aug 10, 2001 Onyx Software Announces Financial Results
Second Quarter Revenue Grew Sequentially Restatement Reduces 2000 Revenues By $2.2 Million
BELLEVUE, Wash. - Onyx® Software Corporation (NASDAQ: ONXS) today announced financial results for the three- and six-month periods ended June 30, 2001, and restated prior results with the effect of reducing 2000 annual revenues and earnings by $2.2 million, a revenue impact that was less than two percent. The restatement also reduced services revenues and bad debt expense in the first quarter of 2001 by $74,000 and $384,000 respectively, and consequently improved reported earnings by $310,000.
Financial Results
Revenue for the second quarter of 2001 was $28.9 million, up 5 percent from $27.6 million in the second quarter of 2000, a modest sequential quarter increase over the first quarter 2001 level. Reported operating results for the second quarter of 2001 were a loss of $13.7 million or a loss of $0.35 per share, compared with a loss of $738,000 or a loss of $0.02 per share in the second quarter of 2000.
Pro forma net loss for the second quarter of 2001, excluding the amortization of intangibles, stock-based compensation expense, restructuring-related costs and impairment of certain assets, was $7.7 million or a loss of $0.20 per share, compared to income of $560,000 or earnings of $0.01 per share in the second quarter of 2000.
Second quarter reported and pro forma results include bad debt expense of $1.6 million.
Revenue for the six month period ended June 30, 2001 was $57.2 million, up 13 percent from $50.8 million in the six month period ended June 30, 2000. Reported operating results for the six months ended June 30, 2001 were a loss of $29.4 million or a loss of $0.76 per share, compared with a loss of $1.2 million or a loss of $0.04 per share in the six months ended June 30, 2000.
Pro forma net loss for the six month period ended June 30, 2001, excluding the amortization of intangibles, stock-based compensation expense, restructuring-related costs and write-down of certain assets, was $19.9 million or a loss of $0.52 per share, compared with income of $1.3 million or earnings of $0.03 per share in the six month period ended June 30, 2000.
On July 24, 2001, Onyx postponed the earnings release previously scheduled for that date to conduct an investigation spurred by the Company's discovery late in the earnings release cycle of an unauthorized side agreement. That investigation included a review of transactions from 1999, 2000 and the first six months of 2001. The investigation efforts were directed by Onyx Software's audit committee of the Board of Directors, and carried out by the company's outside law firm and its auditors with the full cooperation of the company. The restatement includes two definitive unauthorized side agreements and two possible unauthorized side agreements aggregating $797,000. In addition, upon completion of the investigation procedures and a thorough review of all the facts now available with the benefit of hindsight, the company believed it was appropriate to reverse three other transactions aggregating $1,417,000 - all of which have not been paid. These were all transactions in the fourth quarter of 2000 and resulted in a $2.2 million adjustment to revenues. The investigation found that both finance and executive management acted in good faith.
Revenue for the fourth quarter of 2000 previously reported as $37.9 million has been restated to $35.7 million. Reported operating results for the fourth quarter of 2000 previously reported as a net loss of $581,000, or a loss of $0.02 per share, has been restated to a net loss of $2.8 million or a loss of $0.08 per share.
Revenue for 2000 previously reported as $121.5 million has been restated to $119.3 million. Reported operating results for 2000 previously reported as a net loss of $2.5 million, or a loss of $0.07 per share, has been restated to a net loss of $4.7 million, or a loss of $0.13 per share.
Revenue for the first quarter of 2001 previously reported as $28.4 million has been restated to $28.3 million. Reported operating results for the first quarter of 2001 previously reported as a net loss of $16.0 million, or a loss of $0.42 per share, has been restated to a net loss of $15.7 million, or a loss of $0.42 per share.
Business Summary
"Despite the very difficult economic environment, we achieved sequential quarter revenue growth," said Onyx Software chief executive officer, Brent Frei. "We continued to take aggressive action to reduce costs and better position the company for profitable growth. We benefited from our traditional strength in the mid-market, and also booked two end-user sales over one million dollars in the second quarter. We believe strong add-on purchases from existing customers demonstrate continued customer satisfaction," Frei added.
Onyx added 38 new customers during the second quarter, compared to 33 in the prior quarter, for a total over 800 worldwide. A diverse group of companies and industry sectors contributed to Onyx second quarter revenue, and no customer represented more than 6 percent of the total revenue.
New customers included mid-market and large enterprise customers, such as Ryland Homes (NYSE:RYL), RHB Bank, Toyota Financial Services, Westcoast Energy (Toronto:W.TO), Calor Gas, Foster-Wheeler (NYSE:FWC), and cruise-operator Costa Crociere SPA.
Existing customers making significant add-on purchases included Airborne Express, Ingenix Health Intelligence - a segment of UnitedHealth Group, Phillips Oral Healthcare, Advent Software, Agile Software, Interwoven, Timberline Software and Singapore Cable Vision.
International operations contributed 27 percent of total revenue.
Onyx Japan, the company's majority-owned joint venture initiated late last year, demonstrated encouraging partnering progress and revenue growth in the second quarter. Onyx Japan shipped the Japanese version of the web-based Onyx Customer Portal and Onyx KnowledgeBase during the Quarter.
"We continue to see robust opportunities for initial and add-on business, but timing of revenue remains difficult to predict as prospects and customers delay IT investment decisions in the face of economic uncertainty," said Brian Henry, executive VP and chief financial officer.
Onyx Software's strategy for long-term profitable growth is to attract the best people, develop strong and meaningful partnerships, and integrate advanced technology into its products. The company demonstrated second quarter progress on each of these fronts, while emphasizing efforts to hasten its return to profitability.
Onyx continues to attract high caliber professionals, evidenced by second quarter appointments including Brian Henry as executive VP and chief financial officer, Nobuo Hashimoto as president of Onyx Japan, Dennis Allan as VP of European Operations and Alvin Kok Kah Sing as VP and managing director of Asia Pacific.
"The addition of strong business leaders with regional profit and loss responsibility helps drive the tremendous international opportunity for Onyx Software," said Les Rechan, president and chief operating officer.
Onyx announced a strategic alliance with Avanade, Inc., a joint venture between Microsoft and Accenture, to deliver Onyx's customer relationship management (CRM) solutions on the Microsoft .NET server. The alliance offers businesses a complete solution for large-scale integrations of CRM applications. Through this strategic alliance, Avanade and Onyx will offer end-to-end CRM solutions to address customer demand for scalability and reliability.
Onyx also announced partnerships with FileNet, MarketFirst, Brainshark, Firepond, Brightware, and AvantGo.
Technology leadership continued to be a significant competitive differentiator for Onyx in the second quarter. Onyx shipped the third-generation of its award-winning thin-client CRM portal that has now been purchased by more than 300 clients worldwide. Onyx believes that it continues to enjoy competitive advantage in hosted solutions.
Onyx continues to build on its strong Microsoft relationship, becoming the only CRM software company to-date to achieve Microsoft Advanced Server Certification. Onyx received Microsoft certification for Onyx Enterprise Application Server (OEAS), the company's new XML-based customer management platform. OEAS is designed to give large, complex enterprises a single, flexible platform for effectively managing mission-critical customer and partner relationships in a highly personalized and targeted way.
Onyx bettered its own CRM application scalability record. Demonstrating its new three-tier internet architecture, Onyx posted sub-second average user response times for more than 40,000 concurrent users on a single eight processor database server.
Earnings Conference Call
The Onyx Software earnings conference call is scheduled to start promptly at 4:30 pm Eastern (1:30 pm Pacific.) We suggest that you access the call 10-15 minutes prior to the start time by signing on at http://investor.onyx.com. The call will be archived and available for replay at this same URL. Alternatively, you can participate by phone.
When: Friday, August 10, 2001
About Onyx Software
Time: 4:30 pm (Eastern) / 1:30 pm (Pacific)
Dial-In: 1-800-289-0468
International Dial-In: 1-913-981-5517
Replay: 1-719-457-0820 (available through midnight, August 17)
Passcode: 427078
Onyx Software Corp. (NASDAQ: ONXS), is a global supplier of customer relationship management (CRM) enterprise applications that power a company's entire business world, connecting sales, marketing and service organizations with customers, prospects and partners. Through an innovative mix of Internet technology, strategic services and customer commitment, Onyx helps companies create the seamless, branded customer experiences they need to forge competitive advantage and build real business value. Its reliable, scalable, flexible, holistic solutions enable companies to attract, acquire and retain customers and partners across all channels and touch points. Onyx customers include American Express, Broadwing, Commerce One, Credit Suisse, Dreyfus, FirstWorld Communications, Portland Trail Blazers, Prudential Investments and Sierra Health Services. Get more information at 888-ASK-ONYX or info@onyx.com.
Onyx Software Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
(Unaudited)(Unaudited)(Unaudited)(Unaudited)
---------- ---------- ---------- ----------
Revenues
License $11,779 $16,615 $24,767 $30,956
Service 17,118 11,020 32,445 19,863
--------- --------- --------- ---------
Total revenues 28,897 27,635 57,212 50,819
Costs of revenues
Cost of license 588 831 1,488 1,491
Acquisition-related
amortization -
technology 204 205 408 410
Cost of service 9,704 5,634 19,378 10,148
--------- --------- --------- ---------
Total cost of revenues 10,496 6,670 21,274 12,049
--------- --------- --------- ---------
Gross margin 18,401 20,965 35,938 38,770
Operating Expenses
Sales and marketing 16,196 13,421 35,384 24,801
Research and development 5,844 4,784 13,073 8,542
General and
administrative 4,684 2,458 8,750 4,577
Restructuring and
other-related charges 3,589 -- 3,589 --
Acquisition-related
amortization - other
intangibles 1,623 881 3,246 1,557
Amortization of stock-based
compensation 226 146 536 352
--------- --------- --------- ---------
Total operating expenses 32,162 21,690 64,578 39,829
Operating loss (13,761) (725) (28,640) (1,059)
Interest income, net 151 291 442 483
Equity investment
losses and impairment (500) (200) (2,000) (437)
--------- --------- --------- ---------
Loss before income taxes (14,110) (634) (30,198) (1,013)
Income tax provision (benefit) (8) 104 (102) 212
Minority interest in loss
of consolidated subsidiary (414) -- (668) --
--------- --------- --------- ---------
Net loss $(13,688) $(738) $(29,428) $(1.225)
========= ========= ========= =========
Basic and diluted
net loss per share $(0.35) $(0.02) $(0.76) $(0.04)
========= ========= ========= =========
Shares used in computation
of basic and diluted
net loss per share 39,213 34,720 38,505 34,487
========= ========= ========= =========
Onyx Software Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
Dec. 31,
June 30, 2000
2001 (Restated,
(Unaudited)(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $20,387 $11,492
Short-term marketable securities 4,902 5,522
Accounts receivable, net 27,376 41,135
Prepaid expenses and
other current assets 6,118 4,533
--------- ---------
Total current assets 58,783 62,682
Property and equipment, net 28,872 20,848
Purchased technology, net 1,315 1,958
Other intangibles, net 21,121 19,674
Other assets 2,028 3,878
--------- ---------
Total Assets $112,119 $109,040
========= =========
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $5,039 $6,792
Salary and benefits payable 3,829 5,778
Accrued liabilities 5,743 4,691
Current portion
long-term liabilities 172 242
Income taxes payable 650 808
Restructuring-related liabilities 425 --
Deferred revenues 18,195 19,119
--------- ---------
Total current liabilities 34,053 37,430
Long-term liabilities 339 428
Deferred tax liability 1,908 2,201
Minority Interest in joint venture 2,228 2,895
Shareholders' Equity
Common stock 113,963 75,416
Notes payable to shareholders
in the form of equity 4,320 4,320
Notes receivable from officers -- (157)
Deferred stock-based compensation (1,384) (413)
Accumulated deficit (42,204) (12,776)
Accumulated other comprehensive loss (1,104) (304)
--------- ---------
Total shareholders' equity 73,591 66,086
--------- ---------
Total Liabilities
and Shareholders' Equity $112,119 $109,040
========= =========
Onyx Software Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Three Months
Ended Year Ended Ended
Dec. 31, Dec.31, March 31,
2000 2000 2001
------------ ---------- -------------
(Restated, (Restated, (Restated,
Unaudited) Unaudited) Unaudited)
Revenues
License $22,342 $73,701 $12,988
Service 13,378 45,608 15,327
--------- --------- ---------
Total revenues 35,720 119,309 28,315
Costs of revenues
Cost of license 1,152 3,520 900
Acquisition-related
amortization - technology 205 820 204
Cost of service 7,027 23,552 9,674
--------- --------- ---------
Total cost of revenues 8,384 27,892 10,778
--------- --------- ---------
Gross margin 27,336 91,417 17,537
Operating Expenses
Sales and marketing 18,935 59,182 19,188
Research and
development 6,368 21,046 7,229
General and
administrative 3,564 11,120 4,066
Restructuring and
other-related charges -- -- --
Acquisition-related
amortization - other
intangibles 1,429 4,332 1,623
Amortization of
stock-based compensation 91 548 310
--------- --------- ---------
Total operating expenses 30,387 96,228 32,416
Operating loss (3,051) (4,811) (14,879)
Interest income, net 124 788 291
Equity investment
losses and impairment -- (500) (1,500)
--------- --------- ---------
Loss before income taxes (2,927) (4,523) (16,088)
Income tax
provision (benefit) 84 404 (94)
Minority interest in loss
of consolidated
subsidiary (216) (216) (254)
--------- --------- ---------
Net loss $(2,795) $(4.711) $(15.740)
========= ========= =========
Basic and diluted
net loss per share $(0.08) $(0.13) $(0.42)
========= ========= =========
Shares used in computation
of basic and diluted
net loss per share 35,628 34,922 37,821
========= ========= =========
| Contact: | Rosemary Moothart Investor Relations Director Onyx Software (425) 519-4068 |
Bob Craig Onyx Software 617-314-6846 |
| 2006 Press Archive |
|
| 2005 Press Archive |
|
| 2004 Press Archive |
|
| 2003 Press Archive |
|
| 2002 Press Archive |
|
| 2001 Press Archive |
|
| 2000 Press Archive |
|
| 1999 Press Archive |
|
| MEDIA CONTACTS | ||||||||||||
| ||||||||||||
info@onyx.com
Copyright © 2008 Onyx Software, a Consona CRM solution.