Exhibit 99.1
BLUE MARTINI SOFTWARE ANNOUNCES FINANCIAL RESULTS FOR THE
FOURTH QUARTER OF 2004
SAN MATEO, Calif., (February 8, 2005) – Blue Martini Software, Inc. (NASDAQ: BLUE) today reported financial results for the fourth quarter of 2004. Total revenues for the fourth quarter of 2004 were $5.4 million, compared to $8.0 million for the fourth quarter of 2003. Net loss for the fourth quarter of 2004 was $1.6 million, or $0.13 per share, compared to net loss of $2.9 million, or $0.26 per share, for the fourth quarter of 2003. Total revenues for fiscal year 2004 were $28.3 million, compared to $32.6 million for fiscal year 2003. Net loss for fiscal year 2004 was $12.1 million, or $0.99 per share, compared to fiscal year 2003 net loss of $17.6 million, or $1.61 per share.
Blue Martini Software had cash, cash equivalents, short-term investments and restricted cash totaling $32.9 million or $2.55 per share outstanding at December 31, 2004. Cash balances declined by $1.9 million in the fourth quarter of 2004 compared to a decline of $3.5 million in the fourth quarter of 2003.
“Our financial results for the quarter were affected by the continued challenges of closing traditional software deals. We are making progress toward a business model that can enhance the predictability and linearity of our financial results—a model focused on our installed base and service solutions. I am pleased that we reduced our expenses and were able to further reduce our net loss and cash burn for both the quarter and the full year,” said Monte Zweben, Blue Martini’s Chairman and CEO. “Going forward, in an effort to leverage our core strengths and existing customer relationships, we intend to focus our direct sales efforts on pursuing new business with retailers and retail-like companies such as gaming companies. In addition, we are introducing managed service solutions to enable our customers to use our solutions sooner with less investment allocation and shorter implementation cycles. We also continue to be encouraged by our partners’ interest in building their reseller businesses in targeted markets and geographies.”
For additional information on Blue Martini Software’s reported results, see the accompanying financial tables.
Blue Martini Software’s fourth-quarter financial results will be discussed on Tuesday February 8, 2005 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 February 23, 2005 by dialing (303) 590-3000, passcode #11023148 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 licensed 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 less than we expect of our new solution packs or managed services solutions, or not at all, or that the perceived benefits of such solutions to our business may not occur in the timeframe we expect, or 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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues: | ||||||||||||||||
License | $ | 804 | $ | 3,010 | $ | 7,321 | $ | 11,479 | ||||||||
Professional services | 2,285 | 2,723 | 11,791 | 12,795 | ||||||||||||
Maintenance | 2,325 | 2,278 | 9,174 | 8,321 | ||||||||||||
Total revenues | 5,414 | 8,011 | 28,286 | 32,595 | ||||||||||||
Cost of revenues: | ||||||||||||||||
License | 149 | 495 | 846 | 1,607 | ||||||||||||
Professional services | 2,039 | 1,815 | 7,717 | 10,636 | ||||||||||||
Maintenance | 695 | 721 | 4,294 | 3,049 | ||||||||||||
Total cost of revenues | 2,883 | 3,031 | 12,857 | 15,292 | ||||||||||||
Gross profit | 2,531 | 4,980 | 15,429 | 17,303 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 1,662 | 4,508 | 13,855 | 18,732 | ||||||||||||
Research and development | 1,220 | 2,168 | 7,541 | 9,713 | ||||||||||||
General and administrative | 1,247 | 1,449 | 4,945 | 6,786 | ||||||||||||
Amortization of deferred stock compensation | 92 | — | 188 | 1,336 | ||||||||||||
Impairment of long-lived assets | — | — | — | (673 | ) | |||||||||||
Restructuring charges | 178 | — | 1,678 | 180 | ||||||||||||
Total operating expenses | 4,399 | 8,125 | 28,207 | 36,074 | ||||||||||||
Loss from operations | (1,868 | ) | (3,145 | ) | (12,778 | ) | (18,771 | ) | ||||||||
Interest income and other, net | 263 | 205 | 710 | 1,184 | ||||||||||||
Net loss | $ | (1,605 | ) | $ | (2,940 | ) | $ | (12,068 | ) | $ | (17,587 | ) | ||||
Basic and diluted net loss per common share | $ | (0.13 | ) | $ | (0.26 | ) | $ | (0.99 | ) | $ | (1.61 | ) | ||||
Shares used in computing basic and diluted net loss per common share | 12,500 | 11,490 | 12,200 | 10,950 | ||||||||||||
BLUE MARTINI SOFTWARE, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
December 31, 2004 | December 31, 2003 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents, short-term investments and restricted cash | $ | 32,948 | $ | 46,188 | ||||
Accounts receivable, net | 2,516 | 3,787 | ||||||
Prepaid expenses and other current assets | 1,329 | 1,334 | ||||||
Total current assets | 36,793 | 51,309 | ||||||
Property and equipment, net | 198 | 469 | ||||||
Intangible and other assets, net | 267 | 302 | ||||||
Total assets | $ | 37,258 | $ | 52,080 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 490 | $ | 891 | ||||
Accrued employee compensation | 792 | 2,951 | ||||||
Accrued restructuring charges | 1,372 | 794 | ||||||
Other current liabilities | 3,007 | 4,216 | ||||||
Deferred revenues | 4,024 | 4,522 | ||||||
Total current liabilities | 9,685 | 13,374 | ||||||
Deferred revenues, less current portion | 172 | 350 | ||||||
Accrued restructuring charges, less current portion | 279 | 1,637 | ||||||
Total liabilities | 10,136 | 15,361 | ||||||
Stockholders’ equity: | ||||||||
Common stock and additional paid-in-capital (12,938 and 11,542 shares outstanding in 2004 and 2003, respectively) | 261,817 | 258,155 | ||||||
Deferred stock compensation | (1,005 | ) | — | |||||
Accumulated other comprehensive income | (1,036 | ) | (850 | ) | ||||
Accumulated deficit | (232,654 | ) | (220,586 | ) | ||||
Total stockholders’ equity | 27,122 | 36,719 | ||||||
Total liabilities and stockholders’ equity | $ | 37,258 | $ | 52,080 | ||||