Exhibit 99.1
PRESS RELEASE
Agile Software Corporation 6273 San Ignacio Avenue San Jose, CA 95119 Voice: (408) 284-4000 Fax: (408) 284-4002 | ||||
Media Contact Terri Pruett Agile Software Corporation Terri.Pruett@agile.com (408) 284-4048 |
Agile Reports Second Quarter Fiscal 2005 Results
License revenues up 36% over prior year; Bottom line continues to improve
San Jose, CA—November 17, 2004—Agile Software Corporation (NASDAQ: AGIL), a leading provider of product lifecycle management (PLM) solutions, today announced results for the second quarter of fiscal 2005, which ended October 31, 2004. Total revenues for the quarter were $28.2 million, compared to $24.7 million for the second quarter of fiscal 2004. License revenues for the second quarter of fiscal 2005 were $11.2 million, compared to $8.2 million for the second quarter of fiscal 2004.
Net loss for the second quarter of fiscal 2005, on a generally accepted accounting principles (GAAP) basis, was $92,000, or ($0.00) per share, compared to $15.7 million, or ($0.31) per share for the second quarter of fiscal 2004.
Non-GAAP net income for the second quarter of fiscal 2005 (which excludes amortization of intangibles and stock compensation) was $672,000 or $0.01 per share. Non- GAAP net loss for the second quarter of fiscal 2004 (which excludes restructuring and other charges, stock compensation, amortization of intangibles, acquisition-related compensation and acquired in-process research and development) was $1.5 million, or ($0.03) per share. Reconciliation between our net loss/income on a GAAP and non-GAAP basis is provided in a table immediately following the non-GAAP Condensed Consolidated Statements of Operations below.
Management Commentary
“We are continuing to see strong indications that PLM has become a strategic imperative. We have accepted orders for a number of broad-based PLM initiatives from customers across a range of industries. There is little doubt in our minds that executives are paying much more attention to ‘how products happen’ in their companies,” said Bryan Stolle, Agile CEO. “At the same time, the overall environment for enterprise software remains difficult. Despite the increased demand, pricing remains tough as buyers that have become accustomed to significant software and consulting discounts try to balance their desire to rapidly drive PLM deployments with low risk partners like Agile against their desire for the deepest discount. We are pleased that in this
environment, we were able to double our quarter-over-quarter profits (on a non-GAAP basis), despite continued G&A expenditures that were made in order to comply with the Sarbanes-Oxley Act.”
“We are very pleased with our continued operational improvement that has resulted in sequential and year-over-year revenue and margin increases,” said Jay Fulcher, Agile president & COO. “We see broader adoption of both our new and existing products by customers across several of the key vertical markets we serve including electronics and high technology, life sciences, consumer packaged goods and industrial products.”
Customer Wins and Expansions
During the quarter, the Company added 18 new customers. Organizations that purchased new or additional licenses of Agile’s PLM solutions include: Albertson’s, Inc., BAE, Bayer, Braun, Brocade, Coherent, Ditech, Ethicon, Ferag, Fujitsu, Funai, GN Netcom, Handtmann, Harris, Intier, Johnson and Johnson, Juniper, McAfee, Medtronic, Micron, Netgear, Philips, Playtex, Powerwave, Qualcomm, Proxim, RheinMetall, Siemens, Sharp, Shure, Sverdrup, Tellabs, Texas Instruments, Thermo Electron, Thyssen Krupp, Tyco Healthcare, Varian, Veritas Software and WhereNet.
Awards
Agile received several notable awards last quarter including:
• | Agile was named toSoftware Magazine’s 22nd Annual Software 500, a list of the world’s foremost software and services providers. The Software 500 is a revenue-based ranking of the world’s largest software and services suppliers targeting enterprise IT organizations. |
• | The Educational Society for Resource Management (APICS) recognized Agile and Lucent Technologies for Technology Partnership excellence. The APICS Technology Partnership Award recognizes a collaborative effort between a technical provider and a corporate customer, where the combined efforts increase a company’s success. |
• | Agile received Frost & Sullivan’s 2004 Market Leadership Award. Frost & Sullivan’s research shows that Agile holds the highest share of PLM software sales in the U.S. life sciences industry. |
Conference Call Details
Agile will discuss its second quarter results and management’s forward looking guidance on a conference call today beginning at 2:00pm Pacific Time. A Web cast of the conference will be available on Agile’s Web site at www.agile.com under the ‘Investor Relations’ section. You may access replays of the Web cast for ninety days after the call at http://www.agile.com/investors. Financial and statistical information to be discussed in the call will be available on the company’s Web site immediately prior to commencement of the call. Additional investor information can be accessed at www.agile.com or by calling Agile’s Investor Relations at (408) 284-4011.
About Agile Software Corporation
Agile Software Corporation (NASDAQ: AGIL) helps companies drive profits, accelerate innovation, reduce costs, and ensure regulatory compliance throughout the product lifecycle. With a broad suite of enterprise class PLM solutions, time-to-value focused implementations, and a uniqueGuaranteed Business ResultsSM program, Agile helps companies get the most from their products. Alcatel, Boeing, Dell Inc., Flextronics International, GE Medical, Haemonetics, Hitachi, Johnson and Johnson, Leapfrog, Lockheed Martin, Magna Steyr, Siemens, QUALCOMM and ZF are among the approximately 1,200 customers in the automotive, aerospace and defense, consumer products, electronics and high technology, industrial products, and life sciences industries that have realized high impact results through their use of Agile solutions. For more information, call 408-284-4000 or visit www.agile.com.
NOTE: Agile and Agile Software are registered trademarks and Agile Product Collaboration, Agile Product Cost Management, Agile Product Service & Improvement, Agile Product Portfolio Management, Agile Engineering Collaboration, Agile Product Governance and Compliance and the Agile logo are trademarks of Agile Software Corporation in the U.S. and/or other countries. Guaranteed Business Results is a service mark of Agile Software Corporation. All other brand or product names are trademarks and registered trademarks of their respective holders.
Agile Software Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues: | ||||||||||||||||
License | $ | 11,206 | $ | 8,243 | $ | 21,520 | $ | 15,627 | ||||||||
Service | 17,011 | 16,425 | 33,178 | 27,304 | ||||||||||||
Total revenues | 28,217 | 24,668 | 54,698 | 42,931 | ||||||||||||
Cost of revenues: | ||||||||||||||||
License | 1,164 | 976 | 2,241 | 1,786 | ||||||||||||
Service | 7,960 | 7,794 | 15,439 | 12,553 | ||||||||||||
Stock compensation | 53 | 52 | 143 | 52 | ||||||||||||
Acquisition-related compensation | — | 256 | — | 256 | ||||||||||||
Amortization of intangible assets | 177 | 160 | 355 | 160 | ||||||||||||
Total cost of revenues | 9,354 | 9,238 | 18,178 | 14,807 | ||||||||||||
Gross profit | 18,863 | 15,430 | 36,520 | 28,124 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing: | ||||||||||||||||
Other sales and marketing | 11,037 | 9,563 | 21,214 | 17,671 | ||||||||||||
Stock compensation | 85 | 2,133 | 244 | 2,673 | ||||||||||||
Research and development: | ||||||||||||||||
Other research and development | 5,507 | 5,892 | 10,822 | 11,176 | ||||||||||||
Stock compensation | 8 | 56 | 23 | 112 | ||||||||||||
General and administrative: | ||||||||||||||||
Other general and administrative | 2,693 | 2,501 | 5,354 | 4,261 | ||||||||||||
Stock compensation | 51 | 457 | 123 | 491 | ||||||||||||
Acquisition-related compensation | — | 562 | — | 562 | ||||||||||||
Amortization of intangible assets | 390 | 756 | 1,046 | 756 | ||||||||||||
Acquired in-process research and development | — | 500 | — | 500 | ||||||||||||
Restructuring and other charges | — | 9,201 | 2,132 | 9,201 | ||||||||||||
Total operating expenses | 19,771 | 31,621 | 40,958 | 47,403 | ||||||||||||
Loss from operations | (908 | ) | (16,191 | ) | (4,438 | ) | (19,279 | ) | ||||||||
Interest and other income, net | 1,078 | 763 | 1,878 | 1,593 | ||||||||||||
Income (loss) before income taxes | 170 | (15,428 | ) | (2,560 | ) | (17,686 | ) | |||||||||
Provision for income taxes | 262 | 243 | 535 | 660 | ||||||||||||
Net loss | $ | (92 | ) | $ | (15,671 | ) | $ | (3,095 | ) | $ | (18,346 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.00 | ) | $ | (0.31 | ) | $ | (0.06 | ) | $ | (0.37 | ) | ||||
Weighted average shares (basic and diluted) | 52,677 | 51,248 | 52,560 | 50,197 | ||||||||||||
Agile Software Corporation
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
See adjustments listed in table below which reconcile non-GAAP
financial measure of net loss to GAAP financial measure of net loss
(In thousands, except per share data)
(Unaudited)
Three Months Ended October 31, | Six Months Ended October 31, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Revenues: | ||||||||||||||||
License | $ | 11,206 | $ | 8,243 | $ | 21,520 | $ | 15,627 | ||||||||
Service | 17,011 | 16,425 | 33,178 | 27,304 | ||||||||||||
Total revenues | 28,217 | 24,668 | 54,698 | 42,931 | ||||||||||||
Cost of revenues: | ||||||||||||||||
License | 1,164 | 976 | 2,241 | 1,786 | ||||||||||||
Service | 7,960 | 7,794 | 15,439 | 12,553 | ||||||||||||
Total cost of revenues | 9,124 | 8,770 | 17,680 | 14,339 | ||||||||||||
Gross profit | 19,093 | 15,898 | 37,018 | 28,592 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 11,037 | 9,563 | 21,214 | 17,671 | ||||||||||||
Research and development | 5,507 | 5,892 | 10,822 | 11,176 | ||||||||||||
General and administrative | 2,693 | 2,501 | 5,354 | 4,261 | ||||||||||||
Total operating expenses | 19,237 | 17,956 | 37,390 | 33,108 | ||||||||||||
Loss from operations | (144 | ) | (2,058 | ) | (372 | ) | (4,516 | ) | ||||||||
Interest and other income, net | 1,078 | 763 | 1,878 | 1,593 | ||||||||||||
Income (loss) before income taxes | 934 | (1,295 | ) | 1,506 | (2,923 | ) | ||||||||||
Provision for income taxes | 262 | 243 | 535 | 660 | ||||||||||||
Net income (loss) | $ | 672 | $ | (1,538 | ) | $ | 971 | $ | (3,583 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic and diluted | $ | 0.01 | $ | (0.03 | ) | $ | 0.02 | $ | (0.07 | ) | ||||||
Weighted average shares outstanding | ||||||||||||||||
Basic | 52,677 | 51,248 | 52,560 | 50,197 | ||||||||||||
Diluted | 54,300 | 51,248 | 54,219 | 50,197 | ||||||||||||
The above non-GAAP Statements of Operations have been adjusted to eliminate the following: | ||||||||||||||||
Stock compensation | $ | 197 | $ | 2,698 | $ | 533 | $ | 3,328 | ||||||||
Acquisition-related compensation | — | 818 | — | 818 | ||||||||||||
Amortization of intangible assets | 567 | 916 | 1,401 | 916 | ||||||||||||
Acquired in-process research and development | — | 500 | — | 500 | ||||||||||||
Restructuring and other charges | — | 9,201 | 2,132 | 9,201 | ||||||||||||
$ | 764 | $ | 14,133 | $ | 4,066 | $ | 14,763 | |||||||||
Agile Software Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 31, 2004 | April 30, 2004 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 139,103 | $ | 113,069 | ||
Short-term investments | 52,710 | 56,763 | ||||
Accounts receivable, net | 20,708 | 19,998 | ||||
Other current assets | 5,871 | 5,356 | ||||
Total current assets | 218,392 | 195,186 | ||||
Long-term investments | 43,992 | 68,389 | ||||
Property and equipment, net | 8,807 | 8,696 | ||||
Goodwill | 35,485 | 34,724 | ||||
Intangible assets, net | 4,055 | 5,456 | ||||
Other assets | 1,337 | 2,186 | ||||
Total assets | $ | 312,068 | $ | 314,637 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable and other liabilities | $ | 28,130 | $ | 25,281 | ||
Deferred revenue | 17,382 | 20,104 | ||||
Total current liabilities | 45,512 | 45,385 | ||||
Other non-current liabilities | 6,080 | 7,758 | ||||
Total liabilities | 51,592 | 53,143 | ||||
Total stockholders’ equity | 260,476 | 261,494 | ||||
Total liabilities and stockholders’ equity | $ | 312,068 | $ | 314,637 | ||