 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
| Press Releases |
|
| Media Coverage |
|
|
|
 |
|
 |
July 23, 2002
Onyx Software Achieves Sequential Improvement in Second Quarter Financial Results
2002 Q2 License Revenues More Than Double That of 2002 Q1
BELLEVUE, Wash. -- Onyx® Software Corp. (NASDAQ: ONXS), worldwide leader in successful CRM, announced today financial results for the quarter ended June 30, 2002 that are consistent with preliminary results announced on July 2. Second quarter financial performance highlights include:
- Revenue of $18.5 million, up from $14.6 million in 2002 Q1
- License revenue of $6.5 million, up from $3.1 million in 2002 Q1
- Continued strength in service gross margins
"The sequential improvement in our second quarter license revenue was largely driven by customers who broadened their Onyx deployments with add-on license purchases that were - in some cases - several times larger than their original investments," said Brent Frei, CEO of Onyx Software. "Onyx customers experience CRM success, and that word-of-mouth is increasingly coming into play as prospects dig deep in their evaluations of CRM vendors."
Financial Results
Revenue for the second quarter of 2002 was $18.5 million, compared to $29.8 million in the second quarter of 2001. Net loss for the second quarter of 2002 was $4.7 million, or $0.09 per share, compared to a net loss of $13.7 million or $0.35 per share in the second quarter of 2001. This comparison benefited from a change in accounting standards for intangibles, which was effective January 1, 2002. Net loss for the second quarter of 2001 would have been $12.3 million, or $0.31 per share had the current rules been in effect in the prior year.
Second quarter 2002 license revenue of $6.5 million, compared to $3.1 million in the first quarter of 2002. License revenue was $11.8 million in the second quarter of 2001.
Second quarter 2002 service revenue was $12.0 million, compared to $11.6 million in the first quarter of 2002. Service revenue was $18.0 million in the second quarter of 2001.
Overall gross margin of 71 percent in the second quarter improved from 62 percent in the first quarter, primarily as a result of the increase in higher margin license revenue. Overall gross margin in the second quarter of 2001 was 62 percent.
Service revenue gross margin in the second quarter of 2002 was 58 percent, compared to 55 percent in the first quarter of 2002, and higher than 41 percent in the second quarter of 2001.
On June 30, 2002, Onyx had cash balances of $28.6 million, compared to $33.6 million on March 31, 2002. In July, through the date of this release, the Company received payments totaling $6.4 million, including payment in full from a customer that represented approximately 17 percent of second quarter revenue. Eighty-six percent of the Company's second quarter license revenue has been collected as of the date of this release.
Onyx updated its restructuring costs with the addition of $3.9 million to reflect continued weak real estate demand in markets where the Company holds excess facilities.
Business Summary
Global businesses and leading organizations purchased Onyx Software licenses in the second quarter. Onyx new customer wins included Amway Korea Ltd - a subsidiary of Alticor, Inc., Haemonetics, The Andersons and Hitachi. Add-on customers included State Street, Suncorp, Colonial First State, Zurich Capital Markets, Agile Software, Mentor Graphics and Clean Harbors Environmental Services.
Of the 40 companies buying Onyx software licenses in the second quarter, 13 were new customers, compared to 16 in the first quarter of 2002. More than 120 customers engaged Onyx for professional services other than maintenance in the second quarter. Included in this number are engagements for Onyx Strategic Services, Onyx's in-house consultancy that helps companies align business objectives with CRM technology to enhance their return on their CRM investment.
The geographic distribution of second quarter license revenue was 65 percent in North America and 35 percent in international regions. Onyx direct sales provided 97 percent of license revenue, with the balance provided by partners.
Onyx 4.0 Introduced - Opens New Markets and Garners Partner Support
Onyx Software delivered one of the most significant product advances in the company's history with the launch of Onyx Enterprise CRM 4.0. This fourth Internet-based version of Onyx's CRM suite integrates fully with other enterprise and existing legacy applications, supports the use of industry-standard tools, and has a highly customizable and open standards interface. Onyx 4.0 was specifically designed to run on a web services-enabled platform. With this release, Onyx also broadened the suite's functional feature set and added support for the Oracle database - a strategic move that essentially increases Onyx's addressable market by more than 100 percent.
Onyx announced general availability of Onyx 4.0 on June 11 at an event attended by more than 100 customers, prospective customers, analysts, members of the media and partners - including event co-sponsors Microsoft and IBM. The product launch event was held at SAFECO field, home of The Seattle Mariners, who were one of the first Onyx customers to go live on Onyx 4.0. The Mariners completed the implementation in less than four weeks.
At the event, Onyx also announced its development of a new IBM AIX5L-based version of Onyx Enterprise CRM, Cognos announced its support for Onyx 4.0, and Onyx unveiled a global alliance agreement with Unisys Corp. to provide CRM solutions to companies in a variety of industries and geographies. Earlier in the quarter, Onyx achieved record-setting CRM enterprise application scalability at the Unisys ES7000 Performance Center. In a formal performance benchmark, Onyx Employee Portal scaled to more than 57,000 concurrent users and sustained sub-second user response on a 32-processor machine.
CRM vendors' support for Unicode is increasingly important to global companies, particularly those with operations in Asian markets. Onyx is one of the very few CRM vendors who fully support Unicode - an industry-wide, character-encoding standard for all languages. Unicode allows companies to use multi-lingual text in a single database. In particular, the ability to deploy Onyx across multiple Asian languages was a decisive factor in the second quarter win to be deployed at Amway Korea Ltd. Separately, Onyx Software signed a master reseller agreement for China in the second quarter.
Onyx Customers Deployed for CRM Success
In the United States, Onyx announced the go-live implementation of its new Onyx Partner Portal (OPP) on May 14, less than two months after the product became generally available. The UPMC Health Plan is Onyx's first healthcare customer to implement the Onyx Broker Portal (OBP) - a version of OPP specifically designed for healthcare companies to manage broker networks. UPMC has been named one of the 100 Most Wired hospitals and health systems in the United States by Hospitals & Health Networks, the journal of the American Hospital Association. Industry analyst statistics indicate that Onyx has significantly more healthcare provider and payer customers than its leading competitor.
In the United Kingdom, the Borough of Brent went live with its Onyx deployment in the second quarter. This solution was specifically designed for and marketed to government users by Onyx partner Deloitte & Touche.
In Australia, Suncorp went live with its initial phase of Onyx deployment in the second quarter. Suncorp is one of Australia's largest banks and insurance companies with more than 5,000 customer-facing CRM users.
Onyx Strengthens Sales and Marketing Team
On April 22, Onyx announced the appointment of former Sybase executive John A. Fraser as its new senior vice president to lead the company's sales, business development and services teams for the Americas. On July 9, Onyx announced the appointment of CRM marketing veteran Ben Kiker as its new chief marketing officer, as well as naming Bill Bunker vice president of the financial services vertical. Since March 31, several sales professionals have joined Onyx - many leaving other CRM and ERP companies.
"Onyx has a reputation for selling with integrity and delivering customer success. Our approach is proving to be particularly attractive to seasoned professionals, as well as customers and partners alike," Frei added.
Onyx Software Second Quarter Conference CallOnyx Software will host a conference call to discuss the results of the second quarter of 2002. We suggest 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: | Tuesday, July 23, 2002 |
| Time: | 4:30 pm (Eastern) / 1:30 pm (Pacific) |
| Web Access: | http://investor.onyx.com |
| Dial-In: | 1-888-202-2422 |
| International Dial-In: | 1-913-981-5592 |
| Replay: | 1-719-457-0820 (available through Tuesday, July 30, 11:45 pm) |
| Passcode: | 620849 |
About Onyx Software
Onyx Software Corp. (Nasdaq: ONXS), worldwide leader in delivering successful CRM, offers a fast, cost-effective, usable solution that shares critical information among employees, customers and partners through three role-specific, web services-based portals. The Onyx approach delivers real-world success by aligning CRM technology with business objectives, strategies and processes. Companies rely on Onyx across multiple departments to create a superior customer experience and a profitable bottom line. Onyx serves customers worldwide in a variety of industries - including financial services, health care, high technology and the public sector. Customers include Dreyfus Corp., Credit Suisse, Suncorp, Delta Dental, The Regence Group, Ingenix Health Intelligence, Agile Software, and Fluke Networks. More information can be found at 888-ASK-ONYX or info@onyx.com.
Forward-looking statement
This press release contains forward-looking statements, including statements about our ability to attract key management and employees, our reputation and the demand for our products and services and the size of the addressable market we may serve. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Factors that could affect Onyx's actual results include, but are not limited to, the acceptance of our products in the CRM market, general economic conditions, our ability to attract and retain key management and personnel, our ability to reduce our excess facilities costs, and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price" described in our quarterly report on form 10-Q for the period ended March 31, 2002 and other reports we periodically file with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Onyx undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
| Contact: | Rosemary Moothart Investor Relations Director Onyx Software (425) 519-4068 |
Bob Craig Onyx Software 617-314-6846 |
Onyx Software Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
----------------------- -----------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------- -----------------------
Revenue
License $ 6,509 $ 11,779 $ 9,563 $ 24,767
Service (A) 12,001 17,986 23,562 33,943
----------- ----------- ----------- -----------
Total revenue 18,510 29,765 33,125 58,710
----------- ----------- ----------- -----------
Costs of revenue
Cost of license 226 588 397 1,488
Amortization of
acquired technology 138 204 276 408
Cost of service 5,051 10,572 10,259 20,876
----------- ----------- ----------- -----------
Total cost of revenue 5,415 11,364 10,932 22,772
----------- ----------- ----------- -----------
Gross margin 13,095 18,401 22,193 35,938
Operating Expenses
Sales and marketing 7,062 16,196 13,059 35,384
Research and
development 4,023 5,844 7,976 13,073
General and
administrative 2,437 4,658 4,976 8,665
Restructuring and
other-related charges 3,941 3,589 6,558 3,589
Amortization and
impairment of goodwill
& other acquisition-
related intangibles
(B) 209 1,623 418 3,246
Amortization of stock-
based compensation 65 226 152 536
----------- ----------- ----------- -----------
Total operating
expenses 17,737 32,136 33,139 64,493
----------- ----------- ----------- -----------
Operating loss (4,642) (13,735) (10,946) (28,555)
Other income (expense),
net 31 125 (342) 357
Equity investment
losses and impairment - (500) - (2,000)
----------------------- -----------------------
Loss before income
taxes (4,611) (14,110) (11,288) (30,198)
Income tax provision
(benefit) 398 (8) 412 (102)
Minority interest in
loss of consolidated
subsidiary (339) (414) (472) (668)
----------- ----------- ----------- -----------
Net loss $ (4,670) $ (13,688) $ (11,228) $ (29,428)
=========== =========== =========== ===========
Basic and diluted net
loss per share $ (0.09) $ (0.35) $ (0.23) $ (0.76)
=========== =========== =========== ===========
Shares used in
computation of basic
and
diluted net loss per
share 50,418 39,213 49,275 38,505
=========== =========== =========== ===========
(A) Pursuant to the Financial Accounting Standards Board staff
announcement (Topic No. D-103), reimbursable expenses have been
reclassified into revenue, with a corresponding increase in cost
of revenue. The impact of the reclassification was to increase
service revenue by $502, or 4%, and $868, or 5%, in the second
quarter of 2002 and 2001, respectively. The impact of the
reclassification for the six months ended June 30, 2002 and 2001
was to increase service revenue by $915, or 4%, and $1.5 million,
or 5%, respectively. Application of Topic No. D-103 had no impact
on earnings for any period presented.
(B) Effective January 1, 2002, the Company adopted the provisions of
Statement of Financial Accounting Standards No. 142 "Goodwill and
Other Intangible Assets" (SFAS 142). Under SFAS 142, goodwill is
no longer amortized, beginning January 1, 2002. If the
non-amortization provisions of SFAS 142 had been effective in
2001, net loss and basic and diluted net loss per share for the
three months ended June 30, 2001, would have been a loss of $12.3
million and $0.31, respectively. For the six months ended June 30,
2001, net loss and basic and diluted net loss per share would have
been a loss of $26.7 million and $0.69, respectively.
Onyx Software Corporation
Supplemental Pro Forma Information:
(In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
----------------------- -----------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------- -----------------------
Operating loss $ (4,642) $ (13,735) $ (10,946) $ (28,555)
Adjustments to
reconcile operating
loss in the
financial statements to
pro forma operating
loss:
Restructuring charges
Facilities 3,881 1,227 6,460 1,227
Severance 60 1,333 358 1,333
Other - 1,029 (260) 1,029
----------- ----------- ----------- -----------
Total restructuring
charges 3,941 3,589 6,558 3,589
Amortization of
acquired technology 138 204 276 408
Amortization and
impairment of goodwill
and
other acquisition-
related intangibles 209 1,623 418 3,246
Amortization of stock-
based compensation 65 226 152 536
----------- ----------- ----------- -----------
Pro forma operating
loss $ (289) $ (8,093) $ (3,542) $ (20,776)
=========== =========== =========== ===========
Net loss $ (4,670) $ (13,688) $ (11,228) $ (29,428)
Adjustments to
reconcile net loss in
the
financial statements to
pro forma net loss:
Restructuring charges
Facilities 3,881 1,227 6,460 1,227
Severance 60 1,333 358 1,333
Other - 1,029 (260) 1,029
----------- ----------- ----------- -----------
Total restructuring
charges 3,941 3,589 6,558 3,589
Amortization of
acquired technology 138 204 276 408
Amortization and
impairment of goodwill
and
other acquisition-
related intangibles 209 1,623 418 3,246
Amortization of stock-
based compensation 65 226 152 536
Equity investment
losses and impairment - 500 - 2,000
Deferred income tax
associated with (118) (145) (207) (293)
acquisitions
----------- ----------- ----------- -----------
Pro forma net loss $ (435) $ (7,691) $ (4,031) $ (19,942)
=========== =========== =========== ===========
Pro forma basic and
diluted net loss per
share $ (0.01) $ (0.20) $ (0.08) $ (0.52)
=========== =========== =========== ===========
Shares used in
computation of pro
forma basic
and diluted net loss
per share 50,418 39,213 49,275 38,505
=========== =========== =========== ===========
Onyx Software Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
June 30, December 31,
2002 2001
----------- -----------
(Unaudited)
Assets
Current Assets:
Cash and cash
equivalents (C) 28,648 15,868
Accounts receivable,
net 15,735 20,029
Prepaid expenses and
other current assets 4,444 2,596
----------- -----------
Total current
assets 48,827 38,493
----------- -----------
Property and
equipment, net 10,149 12,884
Purchased technology,
net 475 751
Other intangibles,
net 1,879 3,467
Goodwill, net 8,180 7,396
Other assets 1,447 1,520
----------- -----------
Total Assets 70,957 64,511
=========== ===========
Liabilities and
Shareholders' Equity
Current Liabilities:
Accounts payable 1,641 2,826
Salary and benefits
payable 2,293 1,833
Accrued liabilities 3,318 3,260
Income taxes payable 960 695
Current portion long-
term liabilities 155 173
Current portion of
restructuring-
related liabilities 14,398 15,384
Deferred revenue 18,543 19,191
----------- -----------
Total current
liabilities 41,308 43,362
----------- -----------
Long-term liabilities 168 248
Long-term
restructuring-related
liabilities 9,205 9,930
Deferred tax liability 640 1,223
Minority interest in
joint venture 800 1,613
Shareholders' Equity
Common stock 139,162 118,557
Deferred stock-based
compensation (180) (809)
Accumulated deficit (119,519) (108,291)
Accumulated other
comprehensive loss (627) (1,322)
----------- -----------
Total
shareholders'
equity 18,836 8,135
----------- -----------
Total Liabilities and
Shareholders' Equity 70,957 64,511
=========== ===========
(C) Includes $5.5 million in restricted cash as of June 30, 2002,
which was pledged in connection with outstanding financing
arrangements.
| 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.