 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
| Press Releases |
|
| Media Coverage |
|
|
|
 |
|
 |
October 28, 2004
Onyx Software Announces Third Quarter Results
BELLEVUE, Wash -- Onyx® Software Corporation today announced financial results for the quarter ended September 30, 2004.
Financial Results
Revenues for the third quarter of 2004 were $13.7 million, compared to $15.4 million for the third quarter of 2003.
Reported net loss for the third quarter of 2004 was ($0.9) million, or ($0.06) per share, compared to a loss of ($0.3) million, or ($0.02) per share in the third quarter of 2003.
Non-GAAP operating loss for the third quarter of 2004 was ($1.0) million compared to a non-GAAP operating income of $0.6 million in the third quarter of 2003. Onyx believes that supplementary disclosure regarding non-GAAP operating results assists in comparing current operating results with those of past periods. A reconciliation of non-GAAP operating income (loss) and non-GAAP net income (loss) to reported GAAP operating income (loss) and net loss is attached to the financial tables included below in this release.
License revenue for the third quarter of 2004 was $2.4 million, compared to license revenue in the third quarter of 2003 of $3.6 million. Service revenue in the third quarter of 2004 was $11.3 million, compared to $11.8 million in the third quarter of 2003.
On September 30, 2004, Onyx had cash and cash equivalents of $9.9 million, compared to $12.3 million on June 30, 2004, reflecting the impact of the operating loss, timing of receivables, and $0.4 million paid for severance and excess facilities. In the first half of October 2004, Onyx cash collections from customers exceeded $4.0 million.
Business Summary
"I believe that our overall business outlook is more positive than third quarter results reflect," said Janice P. Anderson, Chair and Chief Executive Officer of Onyx Software. "We're well-positioned in a number of large opportunities and continue to see solid competitive win rates. Towards our goal of greater revenue consistency and profitable growth, we've named a new country leader in Japan, added sales and channel management talent in EMEA and recently named Jack Denault as Senior Vice President of the Americas," Anderson noted.
Thirty-three companies and organizations contributed to Onyx Software's third quarter software license revenue. Nine became new customers and twenty-four existing customers made additional license purchases. New customers included Metron North America, SpectraSite Inc., Fundtech, Ltd. and the State of New York. Add-on revenue customers included Cambridgeshire County Council, Gentiva Health Services, Hong Kong Jockey Club and Starbucks Coffee Company.
Onyx Software's recently enhanced contact center capabilities contributed to its selection in several larger third quarter wins. Among them, the company secured an order from market-focused partner Affiliated Computer Services, Inc. (ACS), a premier provider of diversified business process and information technology outsourcing solutions to commercial and government clients worldwide. ACS selected Onyx Employee Portal 5.0 (OEP 5.0) to power a consolidated contact center project for the State of New York.
Onyx Strengthens Contact-Center Capabilities
Onyx has seen strong interest in the powerful scripting enhancements and email management features in the OEP 5.0 release that went GA late in the first quarter. In the third quarter, Onyx built upon that strength with new additions to the product portfolio designed to offer comprehensive contact center solutions while deepening key partner relationships.
Onyx and SimpliCTI Software Solutions announced the general availability of a pre-configured adapter which integrates contact center interactions between Avaya Interaction Center (IC) 6.1 software and Onyx Enterprise CRM 5.0. The adapter is designed to help customers quickly and easily integrate Onyx CRM and Avaya Interaction Center, thus minimizing installation time and simplifying deployments.
A member of the Avaya DeveloperConnection Program for the past three years, Onyx continues to actively develop, promote and sell solutions that interoperate with Avaya Interaction Center. The adaptor has successfully completed compliance testing by Avaya's DeveloperConnection Technical Team, validating the product interoperability between the Onyx Software and Avaya systems.
Onyx Optimizes its CRM Offering for BlackBerry Wireless Platform
On October 4, 2004, Onyx Software announced a new mobile CRM offering, the Onyx Employee Portal for BlackBerry, optimized for BlackBerry® wireless platform from Research In Motion (RIM). The optimized Onyx offering is designed to increase the productivity of mobile professionals by providing personalized access to client data and high priority tasks maintained for them in corporate Onyx CRM applications.
A broad range of Onyx CRM capabilities are accessible through BlackBerry, including contact management, pipeline management, opportunity management, task management, quick search features, and email integration with the Onyx incidents feature.
Onyx CRM for BlackBerry is the latest addition to the Onyx Portable CRM product family, which includes products for offline laptop access with data synchronization and wireless access for mobile devices like the BlackBerry and other leading handheld devices.
Onyx Customers Recognized for CRM Leadership For the second consecutive year, Onyx Software's customers were recognized for leadership by CRM Magazine in its annual CRM Leaders Awards during DCI's Customer Relationship Management Conference & Exposition in San Francisco on August 31, 2004.
"Onyx has a long standing history of satisfied customers which is hard to come by in this industry," said Ginger Conlon, Editor-in-Chief CRM Magazine. "We see the real leaders emerge from what their customers have to say. Onyx continues to shine as they once again prove they are leaders -- based on their technology and market presence -- but more important, their fervent commitment to customer success."
The CRM Elite awards showcase six companies "that set out to get measurable results, then met or surpassed their expectations." The 2004 Influential Leaders "spotlight those people who have had a significant impact on their organization or on the industry in the last year." Onyx was the only company to have its customers recognized in both categories. Onyx customer Netegrity received the CRM Elite award for mid-market suite CRM, and Michael Catalonello, Senior Vice President and Chief Sales Executive, Reed Business Information, was one of only two CRM customers recognized as an influential leader.
Netegrity Testifies to 300% ROI with Onyx CRM
Netegrity was presented with the CRM Elite award for excellence in achieving exceptional ROI from its CRM initiative. For every dollar invested in Onyx, Netegrity estimates it achieves a three-fold return. Some of the direct return on investment Netegrity achieved with Onyx included the following:
- Successfully managing a 45 percent increase in case volume without increasing customer support staff
- Decreased service backlog 40 percent and concurrently decreased average resolution time 35 percent
Significant User Adoption Receives Award Recognition
Reed Business Information (RBI), part of the Reed Elsevier Group, is the largest business-to-business publisher in the U.S. with titles including, Variety, Publishers Weekly and Design News. CRM Magazine recognized Onyx customer Michael Catalonello, Senior Vice President and Chief Sales Executive, of RBI as an Influential Leader - those who, by their words and actions, have made a significant impact within their company over the past year.
Catalonello led the effort to create a centralized CRM solution for RBI's North American operations to help manage and drive subscription and advertising services for over 130 titles in the media, manufacturing, electronics, construction and retail industries, achieving significant user adoption.
Onyx and Fujitsu Sign Reseller Agreement
Onyx announced in the third quarter that it has signed a Reseller Agreement with Fujitsu Limited. Under the terms of the agreement, Fujitsu will resell Onyx Enterprise CRM in Japan and will provide consulting and implementation services. Fujitsu and Onyx are also evaluating joint application service provider (ASP) based business opportunities in Japan.
Business Outlook
While a wide range of potential results are possible, Onyx expects fourth quarter total revenue to be higher than total revenue in the third quarter. Onyx expects sequentially higher quarterly license revenue in the fourth quarter to be partially offset by sequentially lower quarterly service revenue. Fourth quarter operating expenses excluding any restructuring and severance are expected to be in the same range as the third quarter level. Fourth quarter cash is likely to equal or exceed third quarter levels.
Onyx Software Third Quarter Conference Call
Onyx Software will host a conference call to discuss the results of the third quarter of 2004. We suggest you access the call 10-15 minutes prior to the start time by signing on at http://www.onyx.com or www.companyboardroom.com. The call will be archived and available for replay at these same URLs. Alternatively, you can participate by phone.
When: Thursday, October 28, 2004
Time: 8:30 a.m. Eastern/5:30 a.m. Pacific
Web Access: www.onyx.com or www.companyboardroom.com
Dial-In: 1-800-884-5695
International Dial-In: 1-617-786-2960
Passcode: 62142697
Replay: 1-617-801-6888 (available through November 4, 2004 11:45 p.m.)
Passcode: 92830273
Onyx Software Corporation (Nasdaq: ONXS), a worldwide leader in delivering successful CRM, offers a fast, cost-effective, easy to use 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, healthcare, high technology and the public sector. Customers include Amway, United Kingdom lottery operator Camelot, Delta Dental, Microsoft Corporation, Mellon Financial Corporation, The Regence Group, State Street Corporation and Suncorp. More information can be found at (888) ASK-ONYX, or email info@onyx.com. Forward-Looking Statement
Onyx Software Corporation
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
------- ------- ------- -------
Revenue
License $ 2,399 $ 3,633 $ 9,579 $ 9,374
Service 11,274 11,767 33,131 36,043
------- ------- ------- -------
Total revenue 13,673 15,400 42,710 45,417
Costs of revenue
Cost of license 154 175 613 657
Amortization of acquired
technology - 84 - 252
Cost of service 4,674 5,251 13,645 16,129
------- ------- ------- -------
Total cost of revenue 4,828 5,510 14,258 17,038
Gross margin 8,845 9,890 28,452 28,379
Operating Expenses
Sales and marketing 4,956 4,460 14,337 16,025
Research and development 2,655 2,798 7,973 9,074
General and administrative 2,210 2,158 6,361 6,253
Restructuring and other-related
charges (42) 162 442 1,256
Amortization of other
acquisition-related
intangibles 209 209 627 627
Amortization of stock-based
compensation - 4 - 32
------- ------- ------- -------
Total operating expenses 9,988 9,791 29,740 33,267
Operating income (loss) (1,143) 99 (1,288) (4,888)
Other income (expense), net (41) (117) (355) 3
Change in fair value of
outstanding warrants 102 (123) 314 134
------- ------- ------- -------
Loss before income taxes (1,082) (141) (1,329) (4,751)
Income tax provision (benefit) (61) 86 88 7
Minority interest in income
(loss) of consolidated subsidiary (89) 32 (65) (200)
------- ------- ------- -------
Net Loss $ (932) $ (259) $(1,352) $(4,558)
======= ======= ======= =======
Basic and diluted net loss per
share (A) $ (0.06) $ (0.02) $ (0.09) $ (0.34)
======= ======= ======= =======
Shares used in computation of
basic and diluted net loss per
share (A) 14,554 13,902 14,317 13,284
======= ======= ======= =======
(A) On July 23, 2003, the company announced a one-for-four reverse
stock split authorized by its shareholders. All share and per
share amounts in the accompanying consolidated financial
statements have been adjusted to reflect this reverse stock split.
Onyx Software Corporation
Supplemental Non-GAAP Information:
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
------- ------- ------- -------
Operating income (loss) $(1,143) $ 99 $(1,288) $(4,888)
Adjustments to reconcile operating
income (loss) in the financial
statements to non-GAAP operating
income (loss):
Restructuring charges (benefit)
Facilities - (10) 155 359
Severance (42) 50 287 688
Asset impairments - 122 - 209
------- ------- ------- -------
Total restructuring charges
(benefit) (42) 162 442 1,256
Amortization of acquired
technology - 84 - 252
Amortization of other
acquisition-related intangibles 209 209 627 627
Amortization of stock-based
compensation - 4 - 32
------- ------- ------- -------
Non-GAAP operating income (loss) $ (976) $ 558 $ (219) $(2,721)
======= ======= ======= =======
Net loss $ (932) $ (259) $(1,352) $(4,558)
Adjustments to reconcile net loss
in the financial statements to
non-GAAP net income (loss):
Restructuring charges (benefit)
Facilities - (10) 155 359
Severance (42) 50 287 688
Asset impairments - 122 - 209
------- ------- ------- -------
Total restructuring charges
(benefit) (42) 162 442 1,256
Amortization of acquired
technology - 84 - 252
Amortization of other
acquisition-related intangibles 209 209 627 627
Amortization of stock-based
compensation - 4 - 32
Change in fair value of
outstanding warrants (102) 123 (314) (134)
Deferred income tax associated
with Acquisitions (71) (71) (213) (213)
------- ------- ------- -------
Non-GAAP net income (loss) $ (938) $ 252 $ (810) $(2,738)
======= ======= ======= =======
Non-GAAP diluted and basic net
income (loss) per share $ (0.06) $ 0.02 $ (0.06) $ (0.21)
======= ======= ======= =======
Shares used in computation of Non-
GAAP diluted net income (loss)
per share 14,554 14,012 14,317 13,284
======= ======= ======= =======
Shares used in computation of Non-
GAAP basic net income (loss) per
share 14,554 13,902 14,317 13,284
======= ======= ======= =======
Onyx Software Corporation
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)
Sept. 30, Dec. 31,
2004 2003
--------- ---------
Assets
Current Assets:
Cash and cash equivalents (B) $ 9,899 $ 11,850
Accounts receivable, net 11,729 12,245
Prepaid expenses and other current assets 1,980 1,666
Deferred tax asset 348 362
--------- ---------
Total current assets 23,956 26,123
Property and equipment, net 3,921 4,277
Purchased technology, net 4,095 -
Other intangibles, net - 675
Goodwill, net 9,658 9,508
Deferred tax asset 170 -
Other assets 833 842
--------- ---------
Total Assets $ 42,633 $ 41,425
========= ---------
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 811 $ 883
Salary and benefits payable 1,234 946
Accrued liabilities 2,036 1,536
Income taxes payable 466 770
Restructuring-related liabilities 965 2,758
Purchased technology obligation 972 -
Current portion of term loan 167 -
Deferred revenue 14,550 15,053
--------- ---------
Total current liabilities 21,201 21,946
Long-term accrued liabilities 463 544
Long-term deferred revenue 2,185 1,025
Long-term restructuring-related liabilities - 405
Long-term restructuring-related liabilities -
warrants 251 565
Long-term purchased technology obligation 842 -
Long-term deferred rent 412 293
Term loan 264 -
Deferred tax liability - 229
Minority interest in joint venture 50 119
Shareholders' Equity
Common stock 144,570 142,682
Accumulated deficit (129,567) (128,215)
Accumulated other comprehensive loss 1,962 1,832
--------- ---------
Total shareholders' equity 16,965 16,299
--------- ---------
Total Liabilities and Shareholders' Equity $ 42,633 $ 41,425
========= =========
(B) Includes $0 and $1.7 million in restricted cash as of September
30, 2004 and December 31, 2003, respectively.
| Contact: | Rosemary Moothart Investor Relations Director Onyx Software (425) 519-4068 |
| 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.