Exhibit 99.1
ASCENTIAL SOFTWARE CORPORATION
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended December 31, 2003 | Three Months Ended December 31, 2002 | |||||||||||||||||||||||||
Pro Forma | Pro Forma | |||||||||||||||||||||||||
GAAP | Adjustments(1) | Adjusted | GAAP | Adjustments(1) | Adjusted | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||
Licenses | $ | 30,011 | $ | — | $ | 30,011 | $ | 18,847 | $ | (77 | ) | $ | 18,770 | |||||||||||||
Services | 34,461 | — | 34,461 | 15,204 | (96 | ) | 15,108 | |||||||||||||||||||
64,472 | — | 64,472 | 34,051 | (173 | ) | 33,878 | ||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||
Cost of licenses | 4,463 | (1,463 | ) | 3,000 | 3,605 | (1,113 | ) | 2,492 | ||||||||||||||||||
Cost of services | 13,644 | (1,055 | ) | 12,589 | 7,448 | (432 | ) | 7,016 | ||||||||||||||||||
Sales and marketing | 26,875 | (587 | ) | 26,288 | 15,851 | — | 15,851 | |||||||||||||||||||
Research and development | 9,801 | (376 | ) | 9,425 | 4,767 | — | 4,767 | |||||||||||||||||||
General and administrative | 10,995 | (3,937 | ) | 7,058 | 9,747 | (3,530 | ) | 6,217 | ||||||||||||||||||
Merger, realignment and other charges (2) | 1,771 | (1,771 | ) | — | 4,299 | (4,299 | ) | — | ||||||||||||||||||
67,549 | (9,189 | ) | 58,360 | 45,717 | (9,374 | ) | 36,343 | |||||||||||||||||||
Operating income (loss) | (3,077 | ) | 9,189 | 6,112 | (11,666 | ) | 9,201 | (2,465 | ) | |||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
Interest income | 2,195 | — | 2,195 | 4,633 | — | 4,633 | ||||||||||||||||||||
Interest expense | (119 | ) | — | (119 | ) | (6 | ) | — | (6 | ) | ||||||||||||||||
Adjustment to gain on sale of database business | — | — | — | (3,200 | ) | 3,200 | — | |||||||||||||||||||
Impairment of long-term investments | — | — | — | (2,187 | ) | 2,187 | — | |||||||||||||||||||
Other, net | 1,850 | (1,989 | ) | (139 | ) | (986 | ) | 623 | (363 | ) | ||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 849 | 7,200 | 8,049 | (13,412 | ) | 15,211 | 1,799 | |||||||||||||||||||
Income tax expense (benefit) (4) | (16,494 | ) | 18,909 | 2,415 | (3,244 | ) | 3,680 | 436 | ||||||||||||||||||
NET INCOME (LOSS) | $ | 17,343 | $ | (11,709 | ) | $ | 5,634 | $ | (10,168 | ) | $ | 11,531 | $ | 1,363 | ||||||||||||
NET INCOME (LOSS) PER COMMON SHARE(3) | ||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.09 | $ | (0.17 | ) | $ | 0.02 | |||||||||||||||||
Diluted | $ | 0.28 | $ | 0.09 | $ | (0.17 | ) | $ | 0.02 | |||||||||||||||||
SHARES USED IN PER SHARE CALCULATIONS(3) | ||||||||||||||||||||||||||
Basic | 59,541 | 59,541 | 59,229 | 59,229 | ||||||||||||||||||||||
Diluted | 62,115 | 62,115 | 59,229 | 59,396 | ||||||||||||||||||||||
(1) | The following table summarizes the adjustments for the respective periods presented: |
Three Months Ended | Three Months Ended | ||||||||
December 31, 2003 | December 31, 2002 | ||||||||
Net income (loss), GAAP | $ | 17,343 | $ | (10,168 | ) | ||||
Mercator transition costs | 3,587 | — | |||||||
Database transaction and transition costs, including merger, realignment and other costs | 200 | 5,113 | |||||||
Adjustment to gain on sale of database business | — | 3,200 | |||||||
Amortization of acquired intangibles | 2,273 | 1,345 | |||||||
Stock based compensation charges | 211 | — | |||||||
Merger, realignment and other charges, excluding database | 929 | 2,279 | |||||||
Litigation settlement (income) costs | — | 623 | |||||||
Loss on long term investments | — | 2,187 | |||||||
Content management activity, net | — | 464 | |||||||
Income tax expense (benefit) | (18,909 | ) | (3,680 | ) | |||||
Pro forma adjusted net income | $ | 5,634 | $ | 1,363 | |||||
(2) | Merger, realignment and other charges principally include severance and real estate costs related to the consolidation or elimination of offices. These costs are the result of a realignment of the business due to business combinations, a sale of a business or the termination of a product line. | |
(3) | On June 17, 2003 the Company effected a 1-for-4 reverse stock split. Accordingly, all share and earnings per share figures have been restated as though the reverse split was in effect for all periods presented. | |
(4) | An assumed tax rate of 30% has been used in calculating the tax provision related to pro forma results, which excludes a non-recurring tax benefit included in the GAAP tax provision. |
ASCENTIAL SOFTWARE CORPORATION
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Twelve Months Ended December 31, 2003 | Twelve Months Ended December 31, 2002 | |||||||||||||||||||||||||
Pro Forma | Pro Forma | |||||||||||||||||||||||||
GAAP | Adjustments(1) | Adjusted | GAAP | Adjustments(1) | Adjusted | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||
Licenses | $ | 92,550 | $ | — | $ | 92,550 | $ | 59,611 | $ | (137 | ) | $ | 59,474 | |||||||||||||
Services | 93,036 | (176 | ) | 92,860 | 53,407 | (1,389 | ) | 52,018 | ||||||||||||||||||
185,586 | (176 | ) | 185,410 | 113,018 | (1,526 | ) | 111,492 | |||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||
Cost of licenses | 15,291 | (4,899 | ) | 10,392 | 18,350 | (10,068 | ) | 8,282 | ||||||||||||||||||
Cost of services | 40,050 | (1,765 | ) | 38,285 | 33,089 | (4,305 | ) | 28,784 | ||||||||||||||||||
Sales and marketing | 79,950 | (1,416 | ) | 78,534 | 73,080 | (763 | ) | 72,317 | ||||||||||||||||||
Research and development | 27,515 | (725 | ) | 26,790 | 24,044 | (3,077 | ) | 20,967 | ||||||||||||||||||
General and administrative | 30,838 | (7,384 | ) | 23,454 | 41,054 | (15,027 | ) | 26,027 | ||||||||||||||||||
Merger, realignment and other charges (2) | 3,857 | (3,857 | ) | — | 23,669 | (23,669 | ) | — | ||||||||||||||||||
In-process research and development | 2,000 | (2,000 | ) | — | 1,170 | (1,170 | ) | — | ||||||||||||||||||
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199,501 | (22,046 | ) | 177,455 | 214,456 | (58,079 | ) | 156,377 | |||||||||||||||||||
Operating income (loss) | (13,915 | ) | 21,870 | 7,955 | (101,438 | ) | 56,553 | (44,885 | ) | |||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
Interest income | 11,129 | — | 11,129 | 20,194 | — | 20,194 | ||||||||||||||||||||
Interest expense | (207 | ) | — | (207 | ) | (84 | ) | — | (84 | ) | ||||||||||||||||
Adjustment to gain on sale of database business | — | — | — | 3,040 | (3,040 | ) | — | |||||||||||||||||||
Impairment of long-term investments | — | — | — | (2,187 | ) | 2,187 | — | |||||||||||||||||||
Other, net | 2,502 | (1,989 | ) | 513 | (929 | ) | (2,504 | ) | (3,433 | ) | ||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | (491 | ) | 19,881 | 19,390 | (81,404 | ) | 53,196 | (28,208 | ) | |||||||||||||||||
Income tax expense (benefit) (4) | (16,296 | ) | 22,115 | 5,819 | (17,831 | ) | 11,649 | (6,182 | ) | |||||||||||||||||
NET INCOME (LOSS) | $ | 15,805 | $ | (2,234 | ) | $ | 13,571 | $ | (63,573 | ) | $ | 41,547 | $ | (22,026 | ) | |||||||||||
NET INCOME (LOSS) PER COMMON SHARE(3) | ||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.23 | $ | (1.03 | ) | $ | (0.36 | ) | ||||||||||||||||
Diluted | $ | 0.26 | $ | 0.23 | $ | (1.03 | ) | $ | (0.36 | ) | ||||||||||||||||
SHARES USED IN PER SHARE CALCULATIONS(3) | ||||||||||||||||||||||||||
Basic | 58,409 | 58,409 | 61,931 | 61,931 | ||||||||||||||||||||||
Diluted | 59,703 | 59,703 | 61,931 | 61,931 | ||||||||||||||||||||||
(1) | The following table summarizes the adjustments for the respective periods presented: |
Twelve Months Ended | Twelve Months Ended | ||||||||
December 31, 2003 | December 31, 2002 | ||||||||
Net income (loss), GAAP | $ | 15,805 | $ | (63,573 | ) | ||||
Mercator transition costs | 4,956 | — | |||||||
In-process research and development | 2,000 | 1,170 | |||||||
Database transaction and transition costs, including merger, realignment and other costs | 3,111 | 22,916 | |||||||
Adjustment to gain on sale of database business | — | (3,040 | ) | ||||||
Amortization of acquired intangibles | 6,446 | 4,628 | |||||||
Stock based compensation charges | 211 | — | |||||||
Merger, realignment and other charges, excluding database | 1,983 | 14,133 | |||||||
Asset impairment due to termination of a product line | — | 727 | |||||||
Litigation settlement (income) costs | 1,125 | (2,504 | ) | ||||||
Loss on long term investments | — | 2,187 | |||||||
Content management activity, net | 49 | 12,979 | |||||||
Income tax expense (benefit) | (22,115 | ) | (11,649 | ) | |||||
Pro forma adjusted net income (loss) | $ | 13,571 | $ | (22,026 | ) | ||||
(2) | Merger, realignment and other charges principally include severance and real estate costs related to the consolidation or elimination of offices. These costs are the result of a realignment of the business due to business combinations, a sale of a business or the termination of a product line. | |
(3) | On June 17, 2003 the Company effected a 1-for-4 reverse stock split. Accordingly, all share and earnings per share figures have been restated as though the reverse split was in effect for all periods presented. | |
(4) | An assumed tax rate of 30% has been used in calculating the tax provision related to pro forma results, which excludes a non-recurring tax benefit included in the GAAP tax provision. |
ASCENTIAL SOFTWARE CORPORATION
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
Three Months Ended December 31, 2003 | Three Months Ended September 30, 2003 | |||||||||||||||||||||||||
Pro Forma | Pro Forma | |||||||||||||||||||||||||
GAAP | Adjustments(1) | Adjusted | GAAP | Adjustments(1) | Adjusted | |||||||||||||||||||||
NET REVENUES | ||||||||||||||||||||||||||
Licenses | $ | 30,011 | $ | — | $ | 30,011 | $ | 22,353 | $ | — | $ | 22,353 | ||||||||||||||
Services | 34,461 | — | 34,461 | 23,536 | — | 23,536 | ||||||||||||||||||||
64,472 | — | 64,472 | 45,889 | — | 45,889 | |||||||||||||||||||||
COSTS AND EXPENSES | ||||||||||||||||||||||||||
Cost of licenses | 4,463 | (1,463 | ) | 3,000 | 3,874 | (1,210 | ) | 2,664 | ||||||||||||||||||
Cost of services | 13,644 | (1,055 | ) | 12,589 | 10,331 | (213 | ) | 10,118 | ||||||||||||||||||
Sales and marketing | 26,875 | (587 | ) | 26,288 | 19,531 | (829 | ) | 18,702 | ||||||||||||||||||
Research and development | 9,801 | (376 | ) | 9,425 | 6,834 | (349 | ) | 6,485 | ||||||||||||||||||
General and administrative | 10,995 | (3,937 | ) | 7,058 | 6,472 | (539 | ) | 5,933 | ||||||||||||||||||
Merger, realignment and other charges (2) | 1,771 | (1,771 | ) | — | 1,654 | (1,654 | ) | — | ||||||||||||||||||
In-process research and development | — | — | — | 2,000 | (2,000 | ) | — | |||||||||||||||||||
67,549 | (9,189 | ) | 58,360 | 50,696 | (6,794 | ) | 43,902 | |||||||||||||||||||
Operating income (loss) | (3,077 | ) | 9,189 | 6,112 | (4,807 | ) | 6,794 | 1,987 | ||||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||||||
Interest income | 2,195 | — | 2,195 | 2,719 | — | 2,719 | ||||||||||||||||||||
Interest expense | (119 | ) | — | (119 | ) | (58 | ) | — | (58 | ) | ||||||||||||||||
Other, net | 1,850 | (1,989 | ) | (139 | ) | 576 | — | 576 | ||||||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 849 | 7,200 | 8,049 | (1,570 | ) | 6,794 | 5,224 | |||||||||||||||||||
Income tax expense (benefit) (4) | (16,494 | ) | 18,909 | 2,415 | 129 | 1,439 | 1,568 | |||||||||||||||||||
NET INCOME (LOSS) | $ | 17,343 | $ | (11,709 | ) | $ | 5,634 | $ | (1,699 | ) | $ | 5,355 | $ | 3,656 | ||||||||||||
NET INCOME (LOSS) PER COMMON SHARE(3) | ||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.09 | $ | (0.03 | ) | $ | 0.06 | |||||||||||||||||
Diluted | $ | 0.28 | $ | 0.09 | $ | (0.03 | ) | $ | 0.06 | |||||||||||||||||
SHARES USED IN PER SHARE CALCULATIONS(3) | ||||||||||||||||||||||||||
Basic | 59,541 | 59,541 | 58,195 | 58,195 | ||||||||||||||||||||||
Diluted | 62,115 | 62,115 | 58,195 | 59,946 | ||||||||||||||||||||||
(1) | The following table summarizes the adjustments for the respective periods presented: |
Three Months Ended | Three Months Ended | ||||||||
December 31, 2003 | September 30, 2003 | ||||||||
Net income (loss), GAAP | $ | 17,343 | $ | (1,699 | ) | ||||
Mercator transition costs | 3,587 | 1,369 | |||||||
In-process research and development | — | 2,000 | |||||||
Database transaction and transition costs, including merger, realignment and other costs | 200 | 816 | |||||||
Amortization of acquired intangibles | 2,273 | 1,555 | |||||||
Stock based compensation charges | 211 | — | |||||||
Merger, realignment and other charges, excluding database | 929 | 1,054 | |||||||
Income tax expense (benefit) | (18,909 | ) | (1,439 | ) | |||||
Pro forma adjusted net income | $ | 5,634 | $ | 3,656 | |||||
(2) | Merger, realignment and other charges principally include severance and real estate costs related to the consolidation or elimination of offices. These costs are the result of a realignment of the business due to business combinations, a sale of a business or the termination of a product line. | |
(3) | On June 17, 2003 the Company effected a 1-for-4 reverse stock split. Accordingly, all share and earnings per share figures have been restated as though the reverse split was in effect for all periods presented. | |
(4) | An assumed tax rate of 30% has been used in calculating the tax provision related to pro forma results, which excludes a non-recurring tax benefit included in the GAAP tax provision. |