Dendrite International (DRTE) 8-K Dendrite Reports Record Second Quarter Results

Exhibit 99.1

Dendrite Reports Record Second Quarter Results
	•     GAAP E.P.S. of $0.28, up 65% from prior year
	•     Adjusted E.P.S. of $0.29, up 53% from prior year
	•     Confirms full year business outlook of low double-digit revenue growth and greater than 25% adjusted E.P.S. growth
	Bedminster, N.J., July 28, 2005 - Dendrite International, Inc. (NASDAQ: DRTE) today reported its financial results for the quarterly period ending June 30, 2005.
	Financial Results
	Revenues increased 15% versus the second quarter of 2004 to $115.1 million. Marketing solutions revenues of $27.1 million were up 17% versus the same period of the prior year. Sales solutions revenues, including $3.9 million of software license fee revenue, totaled $83.0 million in the second quarter of 2005 and increased 14% over the same period in 2004. Sales solutions revenues included $4.0 million resulting from an early contract termination by a mid-tier client that is ceasing its U.S. operations.
	The Company reported second quarter 2005 GAAP diluted earnings of $0.28 per share, compared to GAAP diluted earnings of $0.17 per share for the second quarter of 2004. Excluding approximately $1.1 million of non-cash amortization expense pertaining to acquisition-related intangible assets, second quarter 2005 adjusted earnings were $0.29 per diluted share. Dendrite also indicated that without the $4.0 million contract settlement, adjusted earnings per share would have been $0.24 per diluted share. The Company previously reported adjusted earnings of $0.19 per diluted share in the second quarter of 2004. A reconciliation of GAAP results to adjusted results can be found on the unaudited financial tables included with this press release.
	Dendrite ended the second quarter of 2005 with $56.1 million in cash and cash equivalents. Accounts receivable days sales outstanding (DSO) improved to 63

1405/1425 Route 206 South • Bedminster, NJ • 07921

P: 908.443.2000 • F: 908.443.2100

days, down three days from the prior quarter.  The Company generated approximately $13.7 million of cash from operations.

Business Highlights

Dendrite announced it completed the second quarter with a number of significant business achievements, including:

•Securing a strategic contract with AstraZeneca in the US for a broad range of Dendrite’s Integrated Marketing solutions, including PhysicanConnect^SM thought leader identification analysis as well as Sample Fulfillment solutions. And, adding approximately 1,200 users in China for Dendrite’s First Source Sales Applications™

•Expanding the alliance with Sanofi-Aventis in the US for the Company’s sales support services for additional users, and sample management services including sample fulfillment and auditing services

•Expanding the alliance with Warner Chilcott through a three-year sales and services contract extension to upgrade more than 400 users on Dendrite’s Mobile Intelligence™ application (newly launched Version 4.0 platform)

•Extending its relationship with PDI Inc., to provide PDI’s dedicated sales teams with Dendrite’s ForceMobile™ an ForceAnalyzer™ solutions

•Winning a significant regional contract with UCB in Europe for over 600 users to adopt Dendrite’s WebForce™ solution

•Adding more than 1,000 users in Europe for Dendrite’s Pharbase^SM solution

•Adding more than a 1,000 j-ForceNET™ users for support services across multiple pharmaceutical companies in Japan

•Securing multiple contracts with various pharmaceutical companies in the US for Regulatory, Compliance, and Validation solutions offered through Dendrite’s BuzzeoPDMA division

Outlook

The Company confirmed its 2005 full year outlook of low double-digit revenue growth excluding any 2005 acquisitions and, based on achieving this plan,targets adjusted E.P.S. growth of more than 25% versus prior year adjusted E.P.S.   Adjusted E.P.S. for 2005 excludes the $9.4 million of charges taken in the first quarter and approximately $4.2 million of non-cash amortization expense pertaining to acquisition-related intangible assets, which would result in expected GAAP E.P.S. growth of more than 11% versus the prior year.

2

This outlook is based on current expectations and assumptions and constitutes “forward-looking information.”  The Company can give no assurance that such expectations and assumptions will prove to be correct.  The Company does not intend to update such outlook to reflect actual results or changes in expectations or assumptions during the period other than in connection with regularly scheduled earnings releases.

Additionally, at such time in the future as the Company may provide additional revenue, earnings and other outlook information (including subsequent outlook provided as part of its quarterly sales and earnings releases), prior revenues, earnings or other related outlook (including any prior rolling 6-month outlook) should no longer be considered current.

To participate in Dendrite’s earnings call web cast on July 28, 2005 at 5 p.m. EDT, or to obtain replay information, please visit the Investors’ Highlights Section of our website at www.dendrite.com .

About Dendrite

Founded in 1986, Dendrite International (NASDAQ: DRTE) provides diversified sales, marketing, clinical and compliance solutions to the global life sciences and pharmaceutical industry.  With clients in more than 50 countries, including the world top 20 pharmaceutical companies, Dendrite strives to be the first source for expert promotional and sales effectiveness solutions.  For more information, please visit www.dendrite.com.

Investor Relations

Christine Croft
908-443-4265
christine.croft@dendrite.com

Note: Dendrite is a registered trademark of Dendrite International, Inc.

This document contains forward-looking statements that may be identified by such forward-looking terminology as “expect,” “believe,” “anticipate,” “will,” “intend,” “plan,” “target,” “outlook,” “guidance,” and similar statements or variations. Such forward-looking statements are based on our current expectations, estimates, assumptions and projections and involve significant risks and uncertainties, including risks which may result from our dependence on the pharmaceutical industry; fluctuations in quarterly revenues due to lengthy sales and implementation cycles for

3

our products; our fixed expenses in relation to fluctuating revenues and variations in customers’ budget cycles; dependence on certain major customers; changes in demand for our products and services attributable to any weakness experienced in the  economy or mergers, acquisitions and consolidations in the pharmaceutical industry; successful and timely development and introduction of new products and versions; rapid technological changes; risks associated with foreign currency fluctuations as they affect our non-U.S. operations; increased competition; risks associated with our expanded international operations and our ability to adopt and respond successfully to the unique risks involved in our non-U.S. operations; risks associated with acquisitions; our ability to effectively manage our growth; the protection of our proprietary technology; our ability to compete in the Internet-related products and services market; the continued demand for Internet-related products and services; the ability of our third party vendors to respond to technological change; our ability to maintain our relationships with third-party vendors;  less favorable than anticipated results from strategic relationships or acquisitions; dependence of data solutions on strategic relationships; events which may affect the U.S. and world economies; and catastrophic events which could negatively affect our information technology infrastructure. Other important factors that should be reviewed and carefully considered are included in the Company’s 10-K, 10-Qs, and other reports filed with the SEC. Actual results may differ materially. The Company assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in expectations or assumptions or other changes affecting such forward-looking statements.

4

TABLE 1

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended June 30,												Six Months Ended June 30,
	2005			%		2004			%		Change		2005			%		2004			%		Change
Revenues:
Services & Technology:
Sales solutions	$	83,036		72.2	%	$	72,633		72.7	%	14	%	$	153,213		71.4	%	$	143,044		73.4	%	7	%
Marketing solutions	27,094			23.5	%	23,212			23.2	%	17	%	51,705			24.1	%	44,013			22.6	%	17	%
Shipping	4,936			4.3	%	4,062			4.1	%	22	%	9,595			4.5	%	7,914			4.1	%	21	%
Total revenues	115,066			100.0	%	99,907			100.0	%	15	%	214,513			100.0	%	194,971			100.0	%	10	%
Operating Costs & Expenses:
Operating costs (including shipping)	58,829			51.1	%	50,422			50.5	%	17	%	112,480			52.4	%	100,229			51.4	%	12	%
Selling, general and administrative	34,075			29.6	%	33,934			34.0	%	0	%	69,863			32.6	%	66,091			33.9	%	6	%
Research and development	1,454			1.3	%	2,722			2.7	%	-47	%	3,272			1.5	%	5,744			2.9	%	-43	%
Facility and other charges	—			0.0	%	—			0.0	%	0	%	9,372			4.4	%	—			0.0	%	0	%
Amortization of acquired intangible assets	1,130			1.0	%	1,226			1.2	%	-8	%	2,380			1.1	%	2,253			1.2	%	6	%
Other operating income	—			0.0	%	—			0.0	%	0	%	—			0.0	%	(339		)	-0.2	%	-100	%
Total operating costs & expenses	95,488			83.0	%	88,304			88.4	%	8	%	197,367			92.0	%	173,978			89.2	%	13	%
Operating income	19,578			17.0	%	11,603			11.6	%	69	%	17,146			8.0	%	20,993			10.8	%	-18	%
Interest (income) expense, net	(24		)	0.0	%	4			0.0	%	NM		(165		)	-0.1	%	(3		)	0.0	%	NM
Other expense (income), net	20			0.0	%	(18		)	0.0	%	-211	%	(3		)	0.0	%	(61		)	0.0	%	-95	%
Income before income tax expense	19,582			17.0	%	11,617			11.6	%	69	%	17,314			8.1	%	21,057			10.8	%	-18	%
Income tax expense	7,539			6.6	%	4,331			4.3	%	74	%	6,666			3.1	%	8,107			4.2	%	-18	%
Net income	$	12,043		10.5	%	$	7,286		7.3	%	65	%	$	10,648		5.0	%	$	12,950		6.6	%	-18	%
Net income per share:
Basic	$	0.28				$	0.18				56	%	$	0.25				$	0.31				-19	%
Diluted	$	0.28				$	0.17				65	%	$	0.24				$	0.30				-20	%
Shares used in computing net income per share:
Basic	42,592					41,464							42,531					41,192
Diluted	43,630					43,342							43,687					42,941

NM - Not meaningful.

TABLE 2

DENDRITE INTERNATIONAL, INC.

ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended June 30, (1)												Six Months Ended June 30, (2)
	2005			%		2004			%		Change		2005			%		2004			%		Change
Revenues:
Services & Technology:
Sales solutions	$	83,036		72.2	%	$	72,633		72.7	%	14	%	$	153,213		71.4	%	$	143,044		73.4	%	7	%
Marketing solutions	27,094			23.5	%	23,212			23.2	%	17	%	51,705			24.1	%	44,013			22.6	%	17	%
Shipping	4,936			4.3	%	4,062			4.1	%	22	%	9,595			4.5	%	7,914			4.1	%	21	%
Total revenues	115,066			100.0	%	99,907			100.0	%	15	%	214,513			100.0	%	194,971			100.0	%	10	%
Operating Costs & Expenses:
Operating costs (including shipping)	58,829			51.1	%	50,422			50.5	%	17	%	112,480			52.4	%	100,229			51.4	%	12	%
Selling, general and administrative	34,075			29.6	%	33,934			34.0	%	0	%	69,863			32.6	%	66,091			33.9	%	6	%
Research and development	1,454			1.3	%	2,722			2.7	%	-47	%	3,272			1.5	%	5,744			2.9	%	-43	%
Other operating income	—			0.0	%	—			0.0	%	0	%	—			0.0	%	(339		)	-0.2	%	-100	%
Total operating costs & expenses	94,358			82.0	%	87,078			87.2	%	8	%	185,615			86.5	%	171,725			88.1	%	8	%
Operating income	20,708			18.0	%	12,829			12.8	%	61	%	28,898			13.5	%	23,246			11.9	%	24	%
Interest (income) expense, net	(24		)	0.0	%	4			0.0	%	NM		(165		)	-0.1	%	(3		)	0.0	%	NM
Other expense (income), net	20			0.0	%	(18		)	0.0	%	-211	%	(3		)	0.0	%	(61		)	0.0	%	-95	%
Income before income tax expense	20,712			18.0	%	12,843			12.9	%	61	%	29,066			13.5	%	23,310			12.0	%	25	%
Income tax expense	7,974			6.9	%	4,788			4.8	%	67	%	11,190			5.2	%	8,974			4.6	%	25	%
Net income	$	12,738		11.1	%	$	8,055		8.1	%	58	%	$	17,876		8.3	%	$	14,336		7.4	%	25	%
Net income per share:
Basic	$	0.30				$	0.19				58	%	$	0.42				$	0.35				20	%
Diluted	$	0.29				$	0.19				53	%	$	0.41				$	0.33				24	%
Shares used in computing net income per share:
Basic	42,592					41,464							42,531					41,192
Diluted	43,630					43,342							43,687					42,941

Note:The non-GAAP financial information set forth above is not prepared in accordance with U.S. generally accepted accounting principles (GAAP).  These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.  Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.  The Company believes that disclosing non-GAAP statements of operations provide further insight into the operating performance of the Company and are useful to investors to help them analyze operating trends and perform comparisons across periods. Management uses the adjusted numbers to manage the business and evaluate operating performance on a period-to-period comparative basis.

(1)See Table 3 for the Reconciliation of Adjusted (NON-GAAP) to GAAP Statement of Operations for the three months ended June 30, 2005 and 2004.

(2)See Table 4 for the Reconciliation of Adjusted (NON-GAAP) to GAAP Statement of Operations for the six months ended June 30, 2005 and 2004.

NM- Not meaningful.

TABLE 3

DENDRITE INTERNATIONAL, INC.

RECONCILIATION OF ADJUSTED (NON-GAAP) TO GAAP STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2005 AND 2004

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended June 30, 2005									Three Months Ended June 30, 2004
	Total Adjusted			Amortization (1)			GAAP			Total Adjusted			Amortization (1)			GAAP
Revenues:
Services & Technology:
Sales solutions	$	83,036		$	—		$	83,036		$	72,633		$	—		$	72,633
Marketing solutions	27,094			—			27,094			23,212			—			23,212
Shipping	4,936			—			4,936			4,062			—			4,062
Total revenues	115,066			—			115,066			99,907			—			99,907
Operating Costs & Expenses:
Operating costs (including shipping)	58,829			—			58,829			50,422			—			50,422
Selling, general and administrative	34,075			—			34,075			33,934			—			33,934
Research and development	1,454			—			1,454			2,722			—			2,722
Facility and other charges	—			—			—			—			—			—
Amortization of acquired intangible assets	—			1,130			1,130			—			1,226			1,226
Total operating costs & expenses	94,358			1,130			95,488			87,078			1,226			88,304
Operating income	20,708			(1,130		)	19,578			12,829			(1,226		)	11,603
Interest (income) expense, net	(24		)	—			(24		)	4			—			4
Other expense (income), net	20			—			20			(18		)	—			(18		)
Income before income tax expense	20,712			(1,130		)	19,582			12,843			(1,226		)	11,617
Income tax expense	7,974			435			7,539			4,788			457			4,331
Net income	$	12,738		$	(695	)	$	12,043		$	8,055		$	(769	)	$	7,286
Net income per share: (2)
Basic	$	0.30		$	(0.02	)	$	0.28		$	0.19		$	(0.02	)	$	0.18
Diluted	$	0.29		$	(0.02	)	$	0.28		$	0.19		$	(0.02	)	$	0.17
Shares used in computing net income per share:
Basic	42,592			42,592			42,592			41,464			41,464			41,464
Diluted	43,630			43,630			43,630			43,342			43,342			43,342

(1)Represents exclusion of acquisition related amortization expense of definite lived intangible assets.  This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.

(2)EPS does not appear to foot across due to the mathematical rounding of the individual calculations.

TABLE 4

DENDRITE INTERNATIONAL, INC.

RECONCILIATION OF ADJUSTED (NON-GAAP) TO GAAP STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2005 AND 2004

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Six Months Ended June 30, 2005																	Six Months Ended June 30, 2004
	Total Adjusted			Amortization (1)				Facility Charges			Severance Charges			GAAP				Total Adjusted				Amortization (1)			GAAP
Revenues:
Services & Technology:
Sales solutions	$	153,213		$	—			$	—		$	—		$	153,213			$	143,044			$	—		$	143,044
Marketing solutions	51,705			—				—			—			51,705				44,013				—			44,013
Shipping	9,595			—				—			—			9,595				7,914				—			7,914
Total revenues	214,513			—				—			—			214,513				194,971				—			194,971
Operating Costs & Expenses:
Operating costs (including shipping)	112,480			—				—			—			112,480				100,229				—			100,229
Selling, general and administrative	69,863			—				—			—			69,863				66,091				—			66,091
Research and development	3,272			—				—			—			3,272				5,744				—			5,744
Facility and other charges	—			—				7,649			1,723			9,372				—				—			—
Amortization of acquired intangible assets	—			2,380				—			—			2,380				—				2,253			2,253
Other operating income	—			—				—			—			—				(339			)	—			(339			)
Total operating costs & expenses	185,615			2,380				7,649			1,723			197,367				171,725				2,253			173,978
Operating income	28,898			(2,380			)	(7,649		)	(1,723		)	17,146				23,246				(2,253		)	20,993
Interest (income), net	(165		)	—				—			—			(165			)	(3			)	—			(3			)
Other (income), net	(3		)	—				—			—			(3			)	(61			)	—			(61			)
Income before income taxes	29,066			(2,380			)	(7,649		)	(1,723		)	17,314				23,310				(2,253		)	21,057
Income taxes	11,190			916				2,945			663			6,666				8,974				867			8,107
Net income	$	17,876		$		(1,464	)	$	(4,704	)	$	(1,060	)	$		10,648		$		14,336		$	(1,386	)	$		12,950
Net income per share: (2)
Basic	$	0.42		$		(0.03	)	$	(0.11	)	$	(0.02	)	$		0.25		$		0.35		$	(0.03	)	$		0.31
Diluted	$	0.41		$		(0.03	)	$	(0.11	)	$	(0.02	)	$		0.24		$		0.33		$	(0.03	)	$		0.30
Shares used in computing net income per share:
Basic	42,531			42,531				42,531			42,531			42,531				41,192				41,192			41,192
Diluted	43,687			43,687				43,687			43,687			43,687				42,941				42,941			42,941

(1)Represents exclusion of acquisition related amortization expense of definite lived intangible assets.  This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.

(2)EPS does not appear to foot across due to the mathematical rounding of the individual calculations.

TABLE 5

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE DATA)

(UNAUDITED)

	June 30,			December 31,
	2005			2004
Assets
Current Assets:
Cash and cash equivalents	$	56,138		$	64,020
Accounts receivable, net	80,239			71,653
Prepaid expenses and other current assets	5,822			6,935
Deferred income taxes	5,535			5,029
Facility held for sale	—			—
Total current assets	147,734			147,637
Property and equipment, net	55,719			45,283
Other assets	8,542			7,922
Long-term receivable	—			—
Goodwill	83,430			80,963
Intangible assets, net	22,363			19,876
Purchased capitalized software, net	751			1,056
Capitalized software development costs, net	9,851			9,170
Deferred income taxes	12,351			9,873
	$	340,741		$	321,780
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	10,215		$	8,171
Income taxes payable	13,508			12,013
Capital lease obligations	1,616			1,689
Accrued compensation and benefits	15,497			16,058
Accrued professional and consulting fees	5,958			7,413
Accrued facility and other charges	2,653			—
Other accrued expenses	18,337			19,284
Purchase accounting restructuring accrual	2,262			3,000
Deferred revenues	13,921			13,347
Total current liabilities	83,967			80,975
Capital lease obligations	2,217			3,036
Purchase accounting restructuring accrual	3,437			4,143
Accrued facility and other charges	4,668			—
Deferred rent	2,371			2,070
Other non-current liabilities	3,784			3,967
Stockholders’ Equity:
Preferred stock, no par value, 15,000,000 shares authorized, none issued	—			—
Common stock, no par value, 150,000,000 shares authorized, 45,171,795 and 44,913,584 shares issued; 42,633,047 and 42,374,836 shares outstanding at June 30, 2005 and December 31, 2004, respectively	128,304			125,237
Retained earnings	138,149			127,501
Deferred compensation	(168		)	(123		)
Accumulated other comprehensive income	277			1,239
Less treasury stock, at cost	(26,265		)	(26,265		)
Total stockholders’ equity	240,297			227,589
	$	340,741		$	321,780

TABLE 6

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

	Six Months Ended June 30,
	2005			2004
Operating activities:
Net income	$	10,648		$	12,950
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,135			10,446
Write-off of property and equipment	1,030			—
Amortization of deferred compensation, net of forfeitures	34			115
Deferred income tax benefit	(3,060		)	—
Other adjustments for non-cash items	—			901
Changes in assets and liabilities, net of effects from acquisitions:
(Increase) decrease in accounts receivable	(7,247		)	9,780
Decrease in prepaid expenses and other current assets	1,027			870
(Increase) decrease in other assets	(804		)	693
Decrease in accounts payable and accrued expenses	(102		)	(3,576		)
Increase in accrued facility and other charges	7,339			—
Decrease in purchase accounting restructuring accrual	(1,630		)	(4,278		)
Increase in income taxes payable	2,090			675
Increase (decrease) in deferred revenue	716			(3,787		)
(Decrease) increase in other non-current liabilities	(182		)	114
Net cash provided by operating activities	20,994			24,903
Investing activities:
Acquisitions, net of cash acquired	(10,172		)	(6,812		)
Purchases of property and equipment	(17,753		)	(8,615		)
Additions to capitalized software development costs	(2,439		)	(2,074		)
Net cash used in investing activities	(30,364		)	(17,501		)
Financing activities:
Repayments of long-term debt	—			(1,689		)
Repayments of acquired loan	—			(624		)
Payments on capital lease obligations	(890		)	(592		)
Issuance of common stock	2,527			5,580
Net cash provided by financing activities	1,637			2,675
Effect of foreign exchange rate changes on cash	(149		)	168
Net (decrease) increase in cash and cash equivalents	(7,882		)	10,245
Cash and cash equivalents, beginning of year	64,020			30,405
Cash and cash equivalents, end of period	$	56,138		$	40,650

TABLE 7

DENDRITE INTERNATIONAL, INC.

PURCHASED INTANGIBLE ASSET AMORTIZATION

(IN THOUSANDS)

(UNAUDITED)

	2005
	Actuals				Forecast						Full Year Projections* (b)
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		2005		2006		2007		2008		2009		Thereafter
Synavant Intangible Detail
Covenants not to compete	$	263	$	218	$	—	$	—	$	481	$	—	$	—	$	—	$	—	$	—
Backlog (a)	22		22		22		21		87		—		—		—		—		—
Pharbase Database	65		65		65		65		260		260		260		260		260		899
Customer relationships	112		111		112		111		446		446		446		446		446		2,882
Synavant Amortization Total	462		416		199		197		1,274		706		706		706		706		3,781
PharmaVision Amortization (c)	81		77		86		86		330		237		—		—		—		—
Schwarzeck Amortization (c)	76		67		77		77		297		307		106		—		—		—
SAI Amortization	153		152		152		153		610		446		—		—		—		—
UTO Brain Amortization (c)	45		51		48		48		192		191		191		191		191		787
MDM Amortization	191		191		191		176		749		704		280		93		78		153
Buzzeo Amortization	242		176		174		174		766		777		692		604		479		1,432
Total Amortization Expense	$	1,250	$	1,130	$	927	$	911	$	4,218	$	3,368	$	1,975	$	1,594	$	1,454	$	6,153

(a) Backlog is amortized as the backlog revenue is recognized.

(b) Amortization is recorded on a straight-line basis within each respective year.

(c) Amortization expense will fluctuate based upon movements in foreign currency.

* See “forward-looking” statement included as part of this release.  It does not reflect or assume any additional acquisitions.

TABLE 8

DENDRITE INTERNATIONAL, INC.

RECONCILIATION OF ADJUSTED (NON-GAAP) TO GAAP STATEMENT OF OPERATIONS

YEAR ENDED DECEMBER 31, 2004

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Year Ended December 31, 2004
	Total Adjusted			Amortization (1)			GAAP
Revenues:
Services & Technology:
Sales solutions	$	286,544		$	—		$	286,544
Marketing solutions	95,292			—			95,292
Shipping	17,361			—			17,361
Total revenues	399,197			—			399,197
Operating Costs & Expenses:
Operating costs (including shipping)	205,896			—			205,896
Selling, general and administrative	132,016			—			132,016
Research and development	9,316			—			9,316
Amortization of acquired intangible assets	—			4,851			4,851
Other operating (income)	(707		)	—			(707		)
Total operating costs & expenses	346,521			4,851			351,372
Operating income	52,676			(4,851		)	47,825
Interest (income), net	(64		)	—			(64		)
Other expense, net	277			—			277
Income before income taxes	52,463			(4,851		)	47,612
Income taxes	19,886			1,839			18,047
Net income	$	32,577		$	(3,012	)	$	29,565
Net income per share:
Basic	$	0.78		$	(0.07	)	$	0.71
Diluted	$	0.76		$	(0.07	)	$	0.69
Shares used in computing net income per share:
Basic	41,503			41,503			41,503
Diluted	43,075			43,075			43,075

(1)Represents exclusion of acquisition related amortization expense of definite lived intangible assets.  This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.