Exhibit 99.1
Callidus Software Reports Record Fourth Quarter 2003 Results
Q4 Revenues Up 176%, Year Over Year
SAN JOSE, Calif., Jan. 22 /PRNewswire-FirstCall/ -- Callidus Software Inc.
(Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM) software
systems, today announced financial results for the fourth quarter and fiscal
year ended December 31, 2003.
Total fourth quarter revenues grew 176% to $22.3 million compared to
$8.1 million in the fourth quarter of 2002 and increased 13% sequentially from
the preceding third quarter. This represents Callidus Software's eighth
consecutive quarter of revenue growth. Fourth quarter net income was
$0.7 million, or $0.03 per share, compared to a net loss of $4.9 million, or
$3.50 per share, for the fourth quarter of 2002 and break-even in the third
quarter of 2003.
Non-GAAP net income for the fourth quarter was $2.0 million, or $0.08 per
share, as compared to a non-GAAP net loss of $4.8 million in the fourth
quarter of 2002 and non-GAAP net income of $0.9 million in the third quarter
of 2003. A reconciliation between GAAP and non-GAAP information, which
excludes stock-based compensation and applies an effective tax rate of 26%, is
contained in the attached tables.
For 2003, total revenues were $71.7 million, an increase of 170% over
total revenues of $26.6 million in 2002. Net income was $0.8 million, or
$0.04 per share, compared to a net loss of $19.1 million, or $13.98 per share,
in 2002. Excluding stock-based compensation and applying an effective tax
rate of 26%, non-GAAP net income was $4.2 million, or $0.20 per share, for
2003 compared to a non-GAAP net loss of $18.7 million, or $13.67 per share, in
2002.
"Callidus achieved record revenues in 2003, finishing the year with a
strong fourth quarter," said Reed Taussig, president and CEO of Callidus
Software. "Our products are helping customers turn incentive compensation
into a competitive advantage by truly influencing employee and channel partner
behaviors. We continued to demonstrate our market leadership position in the
fourth quarter by selling to top quality customers across a number of vertical
markets, including America Online, Auto Club Insurance Association, BMC
Software, SBC Communications and Wachovia Securities."
Q4 Financial Highlights
-- License revenues were a record $10.9 million, a growth rate of 261%
year-over-year and 9% sequentially.
-- Callidus Software sold 5,750,000 shares of common stock in an initial
public offering priced at $14.00 per share in November 2003. Net
proceeds to the company totaled approximately $72.2 million.
-- Net cash provided by operating activities for the fiscal year was $0.9
million. Cash and investments totaled $80.3 million at December 31,
2003 and includes the net proceeds from the company's initial public
offering.
-- Days Sales Outstanding (DSO) in accounts receivable at the end of the
fourth quarter of 2003 was 51 days, compared to 51 days at the end of
the third quarter of 2003.
Q4 Business Highlights
-- IBM and Callidus Software formed a global strategic alliance to deliver
comprehensive incentive compensation management solutions.
-- Callidus' TruePerformance(R) product won the prestigious industry award
"HR Product of The Year," as featured in the December 2003 issue of
Human Resource Executive magazine.
-- Callidus exercised its option to purchase a perpetual license to the
TruePerformance software code originally developed by Cezanne Software.
Callidus will no longer pay royalties to Cezanne and will own and
control future development of the award winning TruePerformance
product.
-- John R. Eickhoff, Executive Vice President and Chief Financial Officer
of Ceridian Corporation, joined Callidus' Board of Directors in
November 2003.
Guidance
-- Calendar year 2004 total revenues are projected to be between
$95 million and $100 million.
-- Calendar year 2004 earnings per share is projected to be between
$0.08 and $0.16 on a GAAP basis and non-GAAP earnings per share is
projected to be between $0.22 and $0.28. Diluted weighted average
shares outstanding for 2004 is estimated to be 29.3 million shares.
-- First quarter 2004 total revenues are projected to be between
$20 million and $22 million.
-- First quarter 2004 earnings per share, on a GAAP basis, is projected to
be between a loss of ($0.05) and ($0.02) and non-GAAP earnings per
share, excluding stock-based compensation charges, but giving effect to
an effective tax rate of 26%, is projected to be between $0.01 and
$0.03. Diluted weighted average shares outstanding for the first
quarter of 2004 is estimated to be 28.9 million shares.
Conference Call
Callidus Software's fourth quarter 2003 conference call is scheduled for
1:30 p.m. Pacific Standard Time (PST), Thursday, January 22, 2004. The
conference call is available via webcast and can be accessed live, and for one
week after the call, at the Investor Relations section of Callidus Software's
website at www.callidussoftware.com. To participate in the call via
telephone, the dial in number is 800-299-9086 (international 617-786-2903),
passcode 42034077. A replay of the conference call can be accessed after
4:00 p.m. PST, by calling 888-286-8010 (international 617-801-6888), passcode
59785976.
About Callidus Software
Founded in 1996, Callidus Software ( http://www.callidussoftware.com ) is
the leading provider of enterprise incentive management (EIM) systems to
global companies across multiple industries. Callidus' EIM systems allow
enterprises to develop and manage competitive incentive compensation linked to
the achievement of strategic business objectives. Through its TrueComp
Grid(TM) architecture, Callidus delivers the industry's only EIM solution that
combines the power and scalability of grid computing with the flexibility of
rules-based interface. Customers/Partners include Airborne Express, Inc.,
Allstate, Apple Computer, AOL Time Warner Corporation, AT&T Wireless, BMC
Software, Citizens Bank, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, Intuit,
JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and
Sun Microsystems.
Non-GAAP Financial Measures
The non-GAAP information provided in this press release is a supplement
to, and not a substitute for, our financial results presented in accordance
with generally accepted accounting principles (GAAP) in the United States.
The non-GAAP financial results exclude stock-based compensation expense and
apply an estimated effective tax rate of 26% in order to provide what we
believe is an additional tool for investors to use in understanding our
operational results and trends. These non-GAAP financial results are used
internally by management to evaluate our operations, plan and forecast for
future periods and to allocate resources within the organization. A
reconciliation between GAAP and non-GAAP financial measures is included in the
accompanying tables.
Note on Forward-Looking Statements
The forward looking statements included in this press release, including
guidance for the first quarter of 2004 and the 2004 fiscal year, reflect
management's best judgment based on factors currently known and involve risks
and uncertainties. These risks and uncertainties include, but are not limited
to, potential material fluctuations in financial results and future growth
rates, risk associated with development and market acceptance of new products
and product enhancements, decreases in customer spending, increased
competition or new entrants in the marketplace and other risks detailed in the
company's SEC reports, including its registration statement on Form S-1,
copies of which may be obtained by contacting Callidus Software's Investor
Relations department at 408-808-6577, or the Investor Relations section of
Callidus Software's website (www.callidussoftware.com). Actual results may
differ materially from those presently reported. We assume no obligation to
update the information contained in this release.
NOTE: Callidus Software, the Callidus Software logo, TrueComp, and
TruePerformance are registered trademarks and TrueAnalytics, TrueComp Grid,
TrueComp Manager, TrueComp Viewer, TrueDiagnostics, TrueInformation,
TrueIntegration, TruePortal, TrueReferral, TrueResolution, TrueService,
TrueSuccess,TrueSupport, Solutions for the Strategic Enterprise and Everyone
Profits are trademarks of Callidus Software Inc. in the United States and
other countries. Other trademarks are the property of their respective
holders.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
Revenues:
License revenues $10,909 $3,025 $37,526 $9,820
Maintenance and service
revenues 11,376 5,060 34,208 16,766
Total revenues 22,285 8,085 71,734 26,586
Cost of revenues:
License revenues 455 296 1,909 814
Maintenance and service
revenues 7,807 4,078 25,746 14,212
Total cost of revenues 8,262 4,374 27,655 15,026
Gross profit 14,023 3,711 44,079 11,560
Operating expenses:
Sales and marketing 6,598 4,286 20,813 13,527
Research and development 2,937 2,515 10,963 11,118
General and administrative 1,776 1,556 6,323 5,053
Stock-based compensation 2,008 58 4,577 424
Total operating expenses 13,319 8,415 42,676 30,122
Operating income (loss) 704 (4,704) 1,403 (18,562)
Interest expense (99) (174) (502) (582)
Other income, net 151 5 201 137
Income (loss) before provision for
income taxes and cumulative effect
of change in accounting principle 756 (4,873) 1,102 (19,007)
Provision for income taxes 92 -- 267 --
Income (loss) before cumulative
effect of change in accounting
principle 664 (4,873) 835 (19,007)
Cumulative effect of change in
accounting principle -- -- -- (123)
Net income (loss) $664 $(4,873) $835 $(19,130)
Basic income (loss) per share
attributable to common
stockholders $0.04 $(3.50) $0.06 $(13.98)
Diluted income (loss) per share $0.03 $(3.50) $0.04 $(13.98)
Shares used in basic per share
computation 11,650 1,394 4,003 1,368
Shares used in diluted per share
computation 24,475 1,394 21,294 1,368
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for per share data)
(unaudited)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
GAAP net income (loss) $664 $(4,873) $835 $(19,130)
Add back: Stock-based
compensation 2,008 58 4,577 424
Add back: Provision for income
taxes 92 -- 267 --
Non-GAAP income (loss) before
income taxes 2,764 (4,815) 5,679 (18,706)
Non-GAAP provision for income
taxes (26%) 719 -- 1,477 --
Non-GAAP net income (loss) $2,045 $(4,815) $4,202 $(18,706)
Non-GAAP diluted income (loss)
per share $0.08 $(3.45) $0.20 $(13.67)
Shares used in diluted per share
computation 24,475 1,394 21,294 1,368
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(unaudited)
December 31, December 31,
Assets 2003 2002
Current assets:
Cash and cash equivalents $56,330 $12,833
Short-term investments 3,141 --
Accounts receivable, net 14,850 4,395
Prepaid and other current assets 1,511 674
Total current assets 75,832 17,902
Long-term investments 20,795 --
Property and equipment, net 2,721 2,016
Intangible asset 2,000 --
Deposits and other assets 851 777
Total assets $102,199 $20,695
Liabilities and Stockholders' Equity
Current liabilities:
Bank line of credit $-- $2,765
Current portion of long-term debt 694 883
Accounts payable 3,504 1,978
Accrued payroll and related expenses 3,638 2,258
Accrued expenses 3,486 3,116
Deferred revenue 7,930 6,252
Total current liabilities 19,252 17,252
Long-term debt, less current portion 520 986
Deferred rent 180 88
Long-term deferred revenue 693 276
Total liabilities 20,645 18,602
Stockholders' equity
Convertible preferred stock -- 30
Common stock 24 2
Additional paid-in capital 184,399 96,935
Deferred stock-based compensation (9,327) (90)
Notes receivable from stockholders (83) (238)
Other comprehensive income 287 35
Accumulated deficit (93,746) (94,581)
Total stockholders' equity 81,554 2,093
Total liabilities and stockholders'
equity $102,199 $20,695
SOURCE Callidus Software Inc.
-0- 01/22/2004
/CONTACT: investors, Jon Pexton, +1-408-808-6577, or
ir@callidussoftware.com, or media, Jane Le Fevre, +1-408-808-6511, or
pr@callidussoftware.com, both of Callidus Software Inc./
/Web site: http://www.callidussoftware.com /
(CALD)
CO: Callidus Software Inc.
ST: California
IN: CPR STW
SU: ERN CCA ERP