Exhibit 99.1
Callidus Software Reports First Quarter 2004 Results
Q1 Revenues Up 25%, Year over Year
SAN JOSE, Calif., April 21 /PRNewswire-FirstCall/ -- Callidus Software
Inc. (Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM)
software systems, today announced financial results for the first quarter
ended March 31, 2004 consistent with its revised outlook provided on March 29,
2004.
Total first quarter revenues grew 25% to $16.5 million compared to $13.1
million in the first quarter of 2003. First quarter net loss was $6.1 million,
or ($0.25) per share, compared to a net loss of $0.4 million, or ($0.26) per
share, for the first quarter of 2003.
Non-GAAP net loss for the first quarter was $4.3 million, or $0.18 per
share, as compared to non-GAAP net income of $0.6 million, or $0.03 per share
in the first quarter of 2003. A reconciliation between GAAP and non-GAAP
information is contained in the attached tables.
"Maintenance and service revenues were up year-over-year; however, product
revenues were significantly below our initial expectations for the quarter.
Callidus' financial results are dependent on a relatively small number of
large software license transactions that often close at the end of a quarter.
In this quarter, we failed to close several transactions due to customers'
merger and acquisition activities. In addition, a number of customers did not
conclude contracts for their own internal reasons which resulted in a
shortfall of our license revenues and negatively impacted our bottom line,"
said Reed Taussig, president and CEO of Callidus Software.
"We believe that our prospective customers remain committed to Callidus
and that many will join our list of top quality customers, which includes:
AT&T Wireless, BMC Software, CUNA Mutual Insurance, JP Morgan Chase & Co. and
SBC Communications. We remain enthusiastic about our prospects, given the
emerging opportunity of the EIM market, our strong product position and our
dedication to customer satisfaction," continued Taussig.
Q1 2004 Financial Summary
-- License revenues were $4.5 million, declining 41% year-over-year.
-- Maintenance and service revenues were $11.9 million; increasing 120%
year-over-year.
-- Operating expenses, excluding stock-based compensation, were $12.1
million in Q1 2004, an increase of $4.5 million from Q1 2003. The
increase is the result of continued investment in all areas of the
business to drive future growth and meet the needs of a public company.
-- Operating cash flow for the quarter was approximately breakeven. Cash
and investments totaled $79.3 million on March 31, 2004.
-- Days Sales Outstanding (DSO) in accounts receivable at the end of the
quarter was 66 days, compared to 51 days at the end of the fourth
quarter of 2003.
Q1 2004 Business Highlights
-- Gartner Research Note 2004 Sales Incentive Compensation MarketScope
report places Callidus Software as the highest rated company in their
report.
-- Callidus ships TrueComp 4.2, combining easy to use rules editing with
highly scalable grid computing to satisfy the EIM requirements of the
Global 2000.
-- Forrester Research, Inc. issues a Quick Take report in March
recognizing Callidus Software's success, momentum and market
leadership.
-- Richard Furino promoted to Vice President, North American Services and
Support. Rick joined Callidus in November 2003 from Washington Mutual,
a Callidus customer, where he was Senior Vice President of the
Technology Services Group managing an engineering organization of over
1,000.
Guidance
-- Second quarter 2004 total revenues are expected to be approximately
$21.0 million. License revenues are expected to be about $9.0 million.
-- Second quarter 2004 net loss per share, on a GAAP basis, is projected
to be approximately ($0.08) and non-GAAP net loss per share, excluding
stock-based compensation, is expected to be approximately ($0.01),
equal to the current consensus. Basic and diluted weighted average
shares outstanding for the second quarter of 2004 is estimated to be
24.3 million shares.
-- For the full year 2004, total revenues are expected to be approximately
$84 million. Net loss per share is expected to be approximately
($0.23) on a GAAP basis and break-even on a non-GAAP basis. Basic and
diluted weighted average shares outstanding for the full year 2004 is
estimated to be 24.7 million shares.
IPO Lock-up Expiration
An estimated 18.3 million shares of common stock will be released from IPO
lock-up provisions and will be available to be traded beginning on May 18,
2004. Additionally, an estimated 2.2 million shares of stock options will be
exercisable and available to be traded on May 18, 2004.
Conference Call
Callidus Software's first quarter 2004 conference call is scheduled for
1:30 p.m. Pacific Daylight Time (PDT), Wednesday, April 21, 2004. The
conference call is available via webcast and can be accessed live, and for two
weeks 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 800-299-6183 (international 617-801-9713),
passcode 94172908. A replay of the conference call can be accessed after 3:30
p.m. PDT, by calling 888-286-8010 (international 617-801-6888), passcode
72447445.
About Callidus Software
Founded in 1996, Callidus Software (www.CallidusSoftware.com) is the
leading provider of 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 Apple Computer, AT&T Wireless, BMC Software, CUNA
Mutual Insurance, DIRECTV, Dun & Bradstreet, IBM, JP Morgan Chase & Co.,
Pennzoil-Quaker State Company, and SBC Communications.
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 in
net income situations apply an estimated effective tax rate of 26%. The non-
GAAP financial measures 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 second quarter and full year of 2004, 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,
timing of software license orders, potential material fluctuations in
financial results and future growth rates, decreases in customer spending,
increased competition or new entrants in the marketplace and other risks
detailed in the company's SEC reports, including its From 10-K, 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, Everyone Profits,
TrueChannel, TrueComp, and TrueInformation, TruePerformance, True Referral,
and TrueResolution are trademarks of Callidus Software Inc. All other
trademarks are the property of their respective owners.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended
March 31,
2004 2003
Revenues:
License revenues $4,539 $7,708
Maintenance and service revenues 11,923 5,427
Total revenues 16,462 13,135
Cost of revenues:
License revenues 263 498
Maintenance and service revenues 8,610 4,271
Total cost of revenues 8,873 4,769
Gross profit 7,589 8,366
Operating expenses:
Sales and marketing 6,400 3,554
Research and development 3,710 2,703
General and administrative 1,972 1,282
Stock-based compensation 1,744 1,120
Total operating expenses 13,826 8,659
Operating loss (6,237) (293)
Interest expense (79) (96)
Other income, net 272 20
Loss before provision for income taxes (6,044) (369)
Provision for income taxes 25 -
Net loss $(6,069) $(369)
Basic net loss per share $(0.25) $(0.26)
Diluted net loss per share $(0.25) $(0.26)
Shares used in basic per share
computation 23,988 1,401
Shares used in diluted per share
computation 23,988 1,401
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for per share data)
(unaudited)
Three months ended
March 31,
2004 2003
GAAP net loss $(6,069) $(369)
Add back: Stock-based compensation 1,744 1,120
Add back: Provision for income
taxes -- --
Non-GAAP income (loss) before
income taxes (4,325) 751
Non-GAAP provision for income taxes (26%) -- 195
Non-GAAP net income (loss) $(4,325) $556
Non-GAAP diluted net income (loss)
per share $(0.18) $0.03
Shares used in diluted per share
computation 23,988 19,947
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, December 31,
Assets 2004 2003
Current assets:
Cash and cash equivalents $43,647 $56,330
Short-term investments 35,660 23,936
Accounts receivable, net 9,417 14,850
Prepaid and other current assets 1,758 1,511
Total current assets 90,482 96,627
Property and equipment, net 3,071 2,721
Intangible asset 1,900 2,000
Deposits and other assets 931 851
Total assets $96,384 $102,199
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt $655 $694
Accounts payable 2,658 3,504
Accrued payroll and related expenses 3,628 3,638
Accrued expenses 3,649 3,542
Deferred revenue 7,394 7,930
Total current liabilities 17,984 19,308
Long-term debt, less current portion 370 520
Deferred rent 194 180
Long-term deferred revenue 475 693
Total liabilities 19,023 20,701
Stockholders' equity
Common stock 24 24
Additional paid-in capital 184,152 184,343
Deferred stock-based compensation (7,344) (9,328)
Notes receivable from stockholders (83) (83)
Other comprehensive income 427 288
Accumulated deficit (99,815) (93,746)
Total stockholders' equity 77,361 81,498
Total liabilities and
stockholders' equity $96,384 $102,199
SOURCE Callidus Software Inc.
-0- 04/21/2004
/CONTACT: Investor Relations: Jon Pexton, +1-408-808-6577, or
ir@callidussoftware.com, or Press, 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