Callidus Software Announces First Quarter 2009 ResultsQ1 2009 Total Revenues $25.9 Million; Recurring Revenues $11.7 Million, Up 41% Year Over Year
SAN JOSE, CA -- (Marketwire - April 30, 2009) - Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced financial results for the first quarter ended March 31, 2009.
Total first quarter revenues were $25.9 million, down 8%, compared to the same quarter last year, reflecting the impact of a challenging economy. Recurring revenues, which include subscription and support, were $11.7 million, an increase of 41% over the first quarter of 2008.
First quarter services revenues were $11.2 million, down 29%, while first quarter license revenues were $3.0 million, down 25%, in each case, compared to the first quarter of 2008.
First quarter GAAP net loss was $2.8 million or ($0.10) per share, which included $1.0 million of stock-based compensation expense, $0.2 million of amortization of acquired intangible assets and $0.2 million in restructuring charges. This compares to GAAP net loss of $2.6 million, or ($0.09) per share, for the first quarter of 2008, which included $1.7 million of stock-based compensation expense, $0.4 million of amortization of acquired intangible assets, and a $0.4 million in restructuring charges.
First quarter non-GAAP net loss was $1.5 million, or ($0.05) per share, compared to a non-GAAP net loss of $0.1 million, or ($0.01) per share, for the same period last year. Non-GAAP net loss excludes stock-based compensation expense, restructuring expense and amortization of acquired intangible assets.
Cash and investments totaled $37.9 million at March 31, 2009, a decrease of $2.7 million from December 31, 2008.
"I am pleased with our increase in year to year recurring revenues in this difficult environment," said Leslie Stretch, president and CEO at Callidus Software. "I am also excited about the quick progress we've made with our new products, Callidus Plan Communicator, TrueMBO, and TrueQuota. We successfully launched and sold these products, which are important extensions to our suite of offerings. I am proud of the marquee customers that we continue to attract and retain. The ability to sign brands such as Vodafone and Westpac is proof of the mission-critical nature and strategic value of our solutions."
Recent Business Highlights
- -- New Products: Callidus launched and sold TrueMBO and TrueQuota, multi-
tenant SaaS offerings that address bonus and quota management.
- -- New Products: Callidus released the latest version of TrueProducer,
which includes significant enhancements to producer reporting and
analytics.
- -- New Partner: Callidus extended its partner ecosystem by signing a
partnership with The Hahn Group.
- -- Industry Recognition: In the first quarter, Callidus won the
SearchCRM.com 2008 Product of the Year award in the "Sales Force
Automation" category.
Financial Outlook
- -- Total revenues for the second quarter of 2009 are expected to be
between $22.0 million and $24.0 million.
- -- GAAP operating expenses, including stock-based compensation of
approximately $1.3 million, are expected to be between $12.8 million and
$13.8 million in the second quarter of 2009.
Conference Call
A conference call to discuss the first quarter 2009 results and outlook is scheduled for 1:30 p.m. Pacific Daylight Time (PDT) today. The conference call will be available via live webcast at the Investor Relations section of Callidus Software's website at www.callidussoftware.com. To participate in the call via telephone, the dial-in number will be 866-700-6293 (international: +1 617-213-8835), passcode 80169844.
A webcast replay and telephone playback of the conference call will be available after 3:30 p.m. PDT today through May 7, 2009. The webcast replay will be available at the Investor Relations section of Callidus Software's website under Calendar of Events. The telephone replay will be available by calling 888-286-8010 (International: +1 617-801-6888) passcode 54896493.
About Callidus Software®
Callidus Software (www.callidussoftware.com) (NASDAQ: CALD) is the market and technology leader in Sales Performance Management (SPM). Performance-based compensation is one of the largest investments for all companies. Callidus' customers gain a competitive advantage by maximizing the return on this strategic asset. Our award-winning Software-as-a-Service (SaaS) applications set the standard for pervasive performance management across the enterprise. Over 1.9 million employees and channel partners have their performance managed by Callidus Software.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including estimates of second quarter 2009 total revenues, operating expenses, 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, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, uncertainty regarding SPM market, customer cancellations or non-renewal of 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 on-demand services, 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 for 2008, 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.
Non-GAAP Financial Measures
Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net income and earnings per share. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense pursuant to SFAS 123(R) and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
© 1998-2009 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, TrueTarget 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
March 31,
------------------
2009 2008
-------- --------
Revenues:
Recurring $ 11,697 $ 8,284
Services 11,202 15,855
License 3,001 3,984
-------- --------
Total revenues 25,900 28,123
Cost of revenues:
Recurring (1) 5,785 3,279
Services (1) (2) 9,309 12,688
License 191 242
-------- --------
Total cost of revenues 15,285 16,209
-------- --------
Gross profit 10,615 11,914
Operating expenses:
Sales and marketing (1) 5,862 7,376
Research and development (1) 3,801 3,685
General and administrative (1) 3,567 3,394
Restructuring 166 397
-------- --------
Total operating expenses 13,396 14,852
-------- --------
Operating loss (2,781) (2,938)
Interest and other income, net 29 531
-------- --------
Income (loss) before provision for income taxes (2,752) (2,407)
Provision (benefit) for income taxes 58 221
-------- --------
Net Income (loss) $ (2,810) $ (2,628)
======== ========
Basic net income (loss) per share $ (0.10) $ (0.09)
======== ========
Diluted net income (loss) per share $ (0.10) $ (0.09)
======== ========
Shares used in basic per share computation 29,549 29,756
======== ========
Shares used in diluted per share computation 29,549 29,756
======== ========
(1) Stock-based compensation included in amounts above
by category:
Recurring 163 137
Services 13 290
Sales and marketing 232 489
Research and development 142 290
General and administrative 427 525
-------- --------
Total stock-based compensation $ 977 $ 1,731
======== ========
(2) Acquisition related asset amortization $ 188 $ 417
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31 December 31
Assets 2009 2008
---------- ----------
Current assets:
Cash and cash equivalents $ 21,696 $ 35,390
Short-term investments 12,191 1,455
Accounts receivable, net 25,098 22,710
Deferred income taxes 360 360
Prepaid and other current assets 3,462 4,104
---------- ----------
Total current assets 62,807 64,019
Long-term investments 4,044 3,828
Property and equipment, net 4,710 4,890
Goodwill 5,528 5,655
Intangible assets, net 3,179 3,208
Deferred income taxes, noncurrent 811 811
Deposits and other assets 1,303 1,468
---------- ----------
Total assets $ 82,382 $ 83,879
========== ==========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,379 $ 2,447
Accrued payroll and related expenses 5,639 7,128
Accrued expenses 3,675 5,027
Deferred income taxes 816 816
Deferred revenue 24,803 21,881
---------- ----------
Total current liabilities 38,312 37,299
Long-term deferred revenue 721 1,202
Deferred income taxes, noncurrent 33 -
Other liabilities 1,127 1,412
---------- ----------
Total liabilities 40,193 39,913
---------- ----------
Stockholders' equity
Common stock 30 29
Additional paid-in capital 208,457 207,493
Accumulated other comprehensive income 189 121
Accumulated deficit (166,487) (163,677)
---------- ----------
Total stockholders' equity 42,189 43,966
---------- ----------
Total liabilities and stockholders' equity $ 82,382 $ 83,879
========== ==========
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three months ended
March 31,
-----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net loss $ (2,810) $ (2,628)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation expense 703 543
Amortization of intangible assets 435 658
Provision for doubtful accounts and service
remediation reserves 40 (17)
Stock-based compensation 977 1,731
Deferred income taxes 33 -
Net accretion on investments 2 (85)
Put option (gain) loss 93 -
(Gain) loss on investments classified as trading
securities (123) -
Changes in operating assets and liabilities:
Accounts receivable (2,467) 2,580
Prepaid and other current assets 642 (373)
Other assets 70 297
Accounts payable 955 (635)
Accrued expenses (1,730) (3,758)
Accrued payroll and related expenses (1,461) (545)
Deferred revenue 2,451 2,171
---------- ----------
Net cash provided by (used in) operating
activities (2,190) (61)
---------- ----------
Cash flows from investing activities:
Purchases of investments (10,760) (7,237)
Proceeds from maturities and sale of investments - 12,826
Purchases of property and equipment (624) (483)
Purchases of intangible assets (100) (100)
Acquisition, net of cash acquired (14) (7,500)
---------- ----------
Net cash provided by (used in) investing
activities (11,498) (2,494)
---------- ----------
Cash flows from financing activities:
Net proceeds from issuance of common stock 990 2,445
Repurchases of stock (742) (2,552)
Cash used to net share settle equity awards (259) -
---------- ----------
Net cash (used in) provided by financing
activities (11) (107)
---------- ----------
Effect of exchange rates on cash and cash
equivalents 5 (26)
---------- ----------
Net increase (decrease) in cash and cash
equivalents (13,694) (2,688)
Cash and cash equivalents at beginning of period 35,390 21,813
---------- ----------
Cash and cash equivalents at end of period $ 21,696 $ 19,125
========== ==========
Supplemental disclosures of cash flow information:
Cash paid for income taxes $ - $ 7
========== ==========
Non-cash investing and financing activities:
Purchases of property and equipment not paid as
of quarter-end $ 407 $ 247
========== ==========
Purchases of intangible assets not paid as of
quarter-end $ 406 $ -
========== ==========
Deferred direct stock-based compensation costs $ (1) $ -
========== ==========
Callidus Software Inc.
Unaudited Reconciliation of Non-GAAP to GAAP Financial Measures
In thousands
Three months ended
March 31,
--------------------
2009 2008
--------- ---------
Non-GAAP operating expense reconciliation:
Operating expenses $ 13,396 $ 14,852
Operating expenses, as a % of total
revenues 52% 53%
Add back:
Non-cash stock-based compensation $ (801) $ (1,304)
Non-cash amortization of acquired
intangible assets (125) (104)
Special Charges (166) (397)
--------- ---------
Non-GAAP Operating Expenses $ 12,304 $ 13,047
--------- ---------
Non-GAAP Operating income (loss), as a %
of total revenues 48% 46%
Non-GAAP operating income (loss)
reconciliation:
Operating income (loss) $ (2,781) $ (2,938)
Operating income (loss), as a % of total
revenues -11% -10%
Add back:
Non-cash stock-based compensation $ 977 $ 1,731
Non-cash amortization of acquired
intangible assets 188 417
Special Charges 166 397
--------- ---------
Non-GAAP Operating income (loss) $ (1,450) $ (393)
--------- ---------
Non-GAAP Operating income (loss), as a %
of total revenues -6% -1%
Non-GAAP Net income (loss) reconciliation:
Net income (loss) $ (2,810) $ (2,628)
Net income (loss), as a % of total
revenues -11% -9%
Add back:
Non-cash stock-based compensation $ 977 $ 1,731
Non-cash amortization of acquired
intangible assets 188 417
Special Charges 166 397
--------- ---------
Non-GAAP Net income (loss) $ (1,479) $ (83)
--------- ---------
Non-GAAP Net income (loss), as a %
of total revenues -6% 0%
Non-GAAP Net income (loss) per share
reconciliation:
Net income (loss) per diluted share $ (0.10) $ (0.09)
Add back:
Non-cash stock-based compensation 0.03 0.06
Non-cash amortization of acquired
intangible assets 0.01 0.01
Special Charges 0.01 0.01
--------- ---------
Non-GAAP Net income (loss) $ (0.05) $ (0.01)
--------- ---------
Shares used in calculation of GAAP and Non-
GAAP net income (loss) per share:
--------- ---------
Basic 29,549 29,756
--------- ---------
Diluted 29,549 29,756
--------- ---------
Investor Relations Contact:
Ron Fior
408-808-6518
ir@callidussoftware.com
Press Contact:
Jock Breitwieser
408-975-6683
pr@callidussoftware.com
