Callidus Software Announces Fourth Quarter and Full Year 2007 ResultsRecord Annual Revenues $101.7 Million; Up 34% Year Over Year Record Q4 On-Demand ACV Bookings $6.5 Million
SAN JOSE, CA -- 01/29/2008 -- Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced financial results for the fourth quarter and fiscal year ended December 31, 2007.
Total fourth quarter revenues were up 4% to $24.9 million, compared to the same quarter last year. Fourth quarter license revenues were down 26% to $6.8 million, fourth quarter subscription and support revenues were up 27% to $6.5 million, and fourth quarter services and other revenues were up 19% to $11.6 million, in each case, compared to the fourth quarter of 2006. In addition, the net new Annual Contract Value (ACV) of on-demand bookings in the quarter was up over 850% to $6.5 million, compared to the same quarter last year, and up over 150%, compared to Q3 2007.
Fourth quarter net loss was $2.7 million, or ($0.09) per share, and included $1.0 million of stock-based compensation expense, $1.5 million of restructuring expense and a benefit for income taxes of $0.6 million. This compares to net income of $0.1 million, or $0.00 per share, for the fourth quarter of 2006, which included $1.1 million of stock-based compensation expense and a benefit for income taxes of approximately $62,000.
Cash and investments totaled $50.6 million at December 31, 2007, a decrease of $2.3 million from December 31, 2006.
For the full fiscal year 2007, total revenues were up 34% from $76.1 million in 2006 to $101.7 million. License revenues were up 3% to $28.6 million in 2007. Subscription and support revenues were up 33% to $23.9 million in 2007. Annual Contract Value Bookings for the On-Demand business were up 285% to $11.7 million in 2007. Net loss for fiscal 2007 was $12.3 million, or ($0.42) per share, which included $5.0 million of stock-based compensation, $1.5 million of restructuring expense and a benefit for income taxes of $0.5 million. This compares to 2006 net loss of $8.7 million, or ($0.31) per share, which included $4.8 million of stock-based compensation expense and a benefit for income taxes of approximately $62,000.
"Callidus crossed $100 million in annual revenues for the first time in 2007," said Leslie Stretch, president and CEO at Callidus Software. "Our revenues, combined with our on-demand bookings, reflect the growing demand for sales performance management solutions. I am especially pleased with the strong growth in our on-demand business. We ended 2007 with $14.8 million in cumulative ACV bookings, up 78% compared to the end of Q3. We were also able to deliver improved operating expenses in Q4 as we realized some early cost savings from the reduction in force we executed in December. We expect further improvements will crystallize in 2008."
"I am pleased with how quickly we were able to innovate and meet the growing demand for Software-as-a-Service (SaaS). We continue to grow our business rapidly and believe that we are the clear market leader in the on-demand SPM space. Our on-demand customers range from 100 payees to over 5,000 payees and span many industries in over 120 countries," Stretch concluded.
Recent Business Highlights
- -- Including the Compensation Technologies acquisition, Callidus now has
over 44,000 payees signed-up for its Callidus On-Demand solution.
- -- Callidus signed an exclusive resale agreement with IMS Health, the
world's leading provider of market intelligence to the pharmaceutical and
healthcare industries. Callidus On-Demand will be deployed as the software
platform for IMS' new IMS Precision Compensation™ offering.
- -- Callidus was one of only two vendors to receive a "Positive" rating
from Gartner, Inc., the highest rating given in the firm's MarketScope for
Insurance Incentive Compensation Management Applications, 2007. In the
report, Gartner evaluated eight incentive compensation management vendors.
- -- Callidus released Version 5.2 of its suite of software products. The
5.2 release delivered key enhancements to scalability, analytics, and
producer management.
- -- Callidus acquired Compensation Technologies to add a consulting and
hosting business to the portfolio as part of the drive to enhance the SaaS
business.
- -- Callidus executed cost savings measures, including the reduction of
its workforce by 8%. Callidus also announced a $10 million share
repurchase program, which is expected to begin on February 1, 2008.
Financial Outlook
- -- Total revenues for the first quarter of 2008, which will include
revenues from Compensation Technologies, is expected to be between $25.0
million and $26.5 million.
- -- Operating expenses, including stock-based compensation of
approximately $1.0 million, are expected to be between $13.2 million and
$14.0 million as compared to $15.5 million in the fourth quarter of 2007.
- -- For fiscal 2008, we expect subscription and support revenues to be
between $35.0 million and $40.0 million, an increase of 47% to 67% from the
previous year. As we increase our focus on our on-demand service, license
revenues will likely be lower in 2008 compared to 2007. We are not
providing full-year guidance on total revenues, expenses, or earnings per
share. Moving forward, we anticipate that subscription and support
revenues and improved profitability will be central characteristics of our
business.
Conference Call
A conference call to discuss the fourth quarter and 2007 results and outlook is scheduled for today at 1:30 p.m. Pacific Standard Time (PST). The conference call will be available via live-webcast at the Investor Relations section of Callidus' website at www.callidussoftware.com. To participate in the call by telephone, the dial-in number is 866-543-6407 (international: +1-617-213-8898), passcode 41833135.
A webcast replay and telephone playback of the conference call will be available after 3:30 p.m. PST today through February 5, 2008. The webcast replay will be available at the Investor Relations section of Callidus' website under Calendar of Events. The telephone replay will be available by calling 888-286-8010 (international: +1-617-801-6888), passcode 54876891.
About Callidus Software®
Callidus Software (www.callidussoftware.com) (NASDAQ: CALD) is the leading provider of on-premise and on-demand Sales Performance Management (SPM) solutions to global companies across a broad range of industries. Our software allows innovative enterprises of all sizes to strategically manage incentive compensation, set quota targets, administer producers, and align territories, resulting in improved sales and distribution performance. Over 1.8 million salespeople, brokers, and channel representatives have their sales performance managed by Callidus Software's products.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including expected growth in subscription and maintenance revenues, estimates of first quarter 2008 total revenues, perpetual license revenues, operating expenses, expected cost savings in 2008, stock buy-backs, and stock-based compensation expense, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, uncertainty regarding the SPM market, customer cancellations or non-renewal of software maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, uncertainty regarding the demand for and profitability of our hosted on-demand offering, increased competition or new entrants in the marketplace, litigation and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K and its Form 10-Q for the third quarter of 2007, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or from the Investor Relations section of Callidus Software's website (www.callidussoftware.com). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
© 1998-2008 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral, TrueResolution, and TrueService+ are trademarks, servicemarks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended Year ended
December 31, December 31,
-------- -------- -------- --------
2007 2006 2007 2006
-------- -------- -------- --------
Revenues:
License $ 6,756 $ 9,104 $ 28,625 $ 27,773
Subscription and
support 6,501 5,138 23,907 18,006
Services and other 11,648 9,820 49,125 30,329
-------- -------- -------- --------
Total revenues 24,905 24,062 101,657 76,108
Cost of revenues:
License 238 157 884 546
Subscription and
support (1) 2,850 1,726 11,043 6,253
Services and other (1) 10,274 8,498 43,555 28,541
-------- -------- -------- --------
Total cost of revenues 13,362 10,381 55,482 35,340
-------- -------- -------- --------
Gross profit 11,543 13,681 46,175 40,768
Operating expenses:
Sales and marketing (1) 7,650 7,534 30,806 25,463
Research and
development (1) 3,782 3,726 15,563 14,558
General and
administrative (1) 2,619 3,093 13,991 12,367
Restructuring 1,458 - 1,458 -
-------- -------- -------- --------
Total operating expenses 15,509 14,353 61,818 52,388
-------- -------- -------- --------
Operating loss (3,966) (672) (15,643) (11,620)
Interest and other
income, net 593 712 2,832 2,709
-------- -------- -------- --------
Income (loss) before
provision for income taxes (3,373) 40 (12,811) (8,911)
Provision (benefit)
for income taxes (645) (62) (501) (62)
-------- -------- -------- --------
Income (loss) before
cumulative effect of
a change in accounting
principle (2,728) 102 (12,310) (8,849)
Cumulative effect of a
change in accounting
principle - - - 128
-------- -------- -------- --------
Net Income (loss) $ (2,728) $ 102 $(12,310) $ (8,721)
======== ======== ======== ========
Basic net income (loss)
per share $ (0.09) $ 0.00 $ (0.42) $ (0.31)
======== ======== ======== ========
Diluted net income (loss)
per share $ (0.09) $ 0.00 $ (0.42) $ (0.31)
======== ======== ======== ========
Shares used in basic per
share computation 29,573 28,260 29,068 27,690
======== ======== ======== ========
Shares used in diluted per
share computation 29,573 30,018 29,068 27,690
======== ======== ======== ========
- ---------------
(1) Stock-based compensation
included in amounts
above by category:
Subscription and support $ 72 $ 53 $ 250 $ 193
Services and other 207 212 838 832
Sales and marketing 288 251 1,162 1,045
Research and development 258 235 995 917
General and
administrative 180 337 1,709 1,766
-------- -------- -------- --------
Total stock-based
compensation $ 1,005 $ 1,088 $ 4,954 $ 4,753
======== ======== ======== ========
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31, December 31,
Assets 2007 2006
----------- -----------
Current assets:
Cash and cash equivalents $ 21,778 $ 12,082
Short-term investments 28,824 40,857
Accounts receivable, net 23,575 23,064
Deferred income taxes 204 —
Prepaid and other current assets 4,038 3,939
----------- -----------
Total current assets 78,419 79,942
Property and equipment, net 4,438 4,086
Intangible assets, net 2,335 500
Deferred income taxes, noncurrent 483 —
Deposits and other assets 1,918 666
----------- -----------
Total assets $ 87,593 $ 85,194
=========== ===========
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 2,901 $ 899
Accrued payroll and related expenses 7,326 6,647
Accrued expenses 4,140 3,721
Deferred revenue 15,231 13,726
----------- -----------
Total current liabilities 29,598 24,993
Long-term deferred revenue 2,326 1,578
Other liabilities 1,089 1,243
----------- -----------
Total liabilities 33,013 27,814
----------- -----------
Stockholders’ equity
Common stock 30 28
Additional paid-in capital 203,110 193,499
Accumulated other comprehensive income 456 408
Accumulated deficit (149,016) (136,555)
----------- -----------
Total stockholders’ equity 54,580 57,380
----------- -----------
Total liabilities and
stockholders’ equity $ 87,593 $ 85,194
=========== ===========
Investor Relations Contact:
Ron Fior
408-808-6577
ir@callidussoftware.com
Press Contact:
Jock Breitwieser
408-975-6683
pr@callidussoftware.com
