Exhibit 99.1
BLUE MARTINI SOFTWARE ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2004
SAN MATEO, Calif., (October 26, 2004) – Blue Martini Software, Inc. (NASDAQ: BLUE) today reported financial results for the third quarter of 2004. Total revenues for the third quarter of 2004 were $6.8 million, compared to $9.1 million for the third quarter of 2003. License revenues for the third quarter of 2004 were $1.6 million, consistent with the preliminary results announced on October 1, 2004, compared to $4.2 million for the third quarter of 2003. Net loss for the third quarter of 2004 was $3.1 million, or $0.25 per share, compared to net loss of $4.5 million, or $0.40 per share, for the third quarter of 2003.
Blue Martini Software had cash, cash equivalents and short-term investments totaling $34.8 million or $2.80 per share outstanding at September 30, 2004.
“In what continues to be a challenging environment for enterprise software providers, we have significantly lowered our expenses, to allow us to reach profitability at a lower revenue level,” said Monte Zweben, Blue Martini’s Chairman and CEO. “In today’s risk-averse IT environment, we are seeking to increase top-line growth by reducing the perceived risk of acquisition and implementation of our solutions. We are introducing new, easier-to-implement solution packs to address this buyer caution and make our solutions more accessible to our current and prospective customers.”
For additional information on Blue Martini Software’s reported results, see the accompanying financial tables.
Blue Martini Software’s third-quarter financial results will be discussed Tuesday, October 26, 2004 at 1:30 pm PT and available by calling (303) 262-2131 at least 5 minutes prior to the start time, or by logging in to the investor relations section at www.bluemartini.com. A replay of the call will be available via telephone through November 9, 2004 by dialing (303) 590-3000, passcode #11010797 and via the company’s website for at least three months.
About Blue Martini Software: Blue Martini Software is a leading provider of sales optimization systems. Our software proactively guides sales people, partners, and customers through sales interactions, helping them to sell more. Over 170 companies worldwide including Carrefour, DuPont, Harley Davidson, Kohl’s, Mitsubishi, Panasonic, Saks Fifth Avenue, and Sprint have adopted our sales optimization systems to sell more effectively. Blue Martini Software is headquartered in San Mateo, California and can be reached at 650-356-4000 orwww.bluemartini.com..
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Note to editors: “Blue Martini” and “Blue Martini Software” are trademarks of Blue Martini Software, 2600 Campus Drive, San Mateo, CA 94403. Other product and company names mentioned in this news release may be the trademarks of their respective owners and are mentioned for identification purposes only.
This news release regarding Blue Martini Software’s financial results includes forward-looking statements, based on current expectations, that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: the risk that we may not achieve profitability; the risk that current or prospective customers may purchase our new solution packs in lower quantities than we expect, or not at all; risks associated with quarterly fluctuations in Blue Martini Software’s revenues or other operating results: risks associated with failure by Blue Martini Software to meet financial guidance; risks associated with the development and licensing of software generally, including potential delays in software development or release, technical difficulties in software deployment or use, and long and variable sales cycles; competition and technological changes and developments; financial and other impacts of staffing reductions and other cost-control measures; risks associated with foreign operations and economies; and general economic and market conditions. Details on these and other risks are set forth in Blue Martini Software’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission (“SEC”). These filings are available on a website maintained by the SEC atwww.sec.gov. Blue Martini Software assumes no obligation to update the information in this news release.
Contacts:
Investors: Lasse Glassen, Financial Relations Board, 310-407-6555, ir@bluemartini.com
Media: Laurie Gibson, b3 Communications, 650-969-0764,lgibson@b3communications.com
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FINANCIAL TABLES FOLLOW
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BLUE MARTINI SOFTWARE, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues: | ||||||||||||||||
License | $ | 1,585 | $ | 4,203 | $ | 6,517 | $ | 8,469 | ||||||||
Professional services | 2,965 | 2,711 | 9,506 | 10,072 | ||||||||||||
Maintenance | 2,246 | 2,140 | 6,849 | 6,043 | ||||||||||||
Total services | 5,211 | 4,851 | 16,355 | 16,115 | ||||||||||||
Total revenues | 6,796 | 9,054 | 22,872 | 24,584 | ||||||||||||
Cost of revenues: | ||||||||||||||||
License | 215 | 439 | 697 | 1,112 | ||||||||||||
Service | 2,958 | 3,357 | 9,277 | 11,149 | ||||||||||||
Total cost of revenues | 3,173 | 3,796 | 9,974 | 12,261 | ||||||||||||
Gross profit | 3,623 | 5,258 | 12,898 | 12,323 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 3,106 | 5,131 | 12,193 | 14,224 | ||||||||||||
Research and development | 1,491 | 2,643 | 6,321 | 7,545 | ||||||||||||
General and administrative | 723 | 1,818 | 3,698 | 5,337 | ||||||||||||
Amortization of deferred stock compensation | — | 569 | 96 | 1,336 | ||||||||||||
Impairment of long-lived assets and goodwill | — | (102 | ) | — | (673 | ) | ||||||||||
Restructuring charges | 1,500 | — | 1,500 | 180 | ||||||||||||
Total operating expenses | 6,820 | 10,059 | 23,808 | 27,949 | ||||||||||||
Loss from operations | (3,197 | ) | (4,801 | ) | (10,910 | ) | (15,626 | ) | ||||||||
Interest income and other, net | 118 | 334 | 447 | 979 | ||||||||||||
Net loss | $ | (3,079 | ) | $ | (4,467 | ) | $ | (10,463 | ) | $ | (14,647 | ) | ||||
Basic and diluted net loss per common share | $ | (0.25 | ) | $ | (0.40 | ) | $ | (0.86 | ) | $ | (1.36 | ) | ||||
Shares used in computing basic and diluted net loss per common share | 12,370 | 11,110 | 12,100 | 10,767 | ||||||||||||
BLUE MARTINI SOFTWARE, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
September 30, 2004 | December 31, 2003 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short-term investments | $ | 34,809 | $ | 46,188 | ||||
Accounts receivable, net | 3,820 | 3,787 | ||||||
Prepaid expenses and other current assets | 1,398 | 1,334 | ||||||
Total current assets | 40,027 | 51,309 | ||||||
Property and equipment, net | 278 | 469 | ||||||
Intangible and other assets, net | 267 | 302 | ||||||
Total assets | $ | 40,572 | $ | 52,080 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 254 | $ | 891 | ||||
Accrued employee compensation | 1,628 | 2,951 | ||||||
Accrued restructuring charges | 1,669 | 794 | ||||||
Other current liabilities | 2,960 | 4,216 | ||||||
Deferred revenues | 4,956 | 4,872 | ||||||
Total current liabilities | 11,467 | 13,724 | ||||||
Accrued restructuring charges, less current portion | 741 | 1,637 | ||||||
Total liabilities | 12,208 | 15,361 | ||||||
Stockholders’ equity: | ||||||||
Common stock and additional paid-in-capital (12,443 and 11,542 shares outstanding in 2004 and 2003, respectively) | 260,467 | 258,155 | ||||||
Accumulated other comprehensive income | (1,054 | ) | (850 | ) | ||||
Accumulated deficit | (231,049 | ) | (220,586 | ) | ||||
Total stockholders’ equity | 28,364 | 36,719 | ||||||
Total liabilities and stockholders’ equity | $ | 40,572 | $ | 52,080 | ||||