EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For additional information contact:
Teresa M. Gyulafia Jeanne Prayther
Director of Marketing Communications Chief Financial Officer
+ 1-561-981-2004 + 1-561-981-2119
tgyulafia@daleen.com jprayther@daleen.com
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Daleen Reports Third Quarter 2003 Operating Results
Revenues Increase for Fourth Consecutive Quarter; Net Loss Down By 74%
BOCA RATON, Fla. - October 27, 2003 - Daleen Technologies, Inc. (OTCBB:
DALN.OB), a global provider of licensed and outsourced billing and customer
management, operational support systems (OSS) and revenue assurance solutions
for traditional and next generation service providers, today reported revenues
of $4.9 million for the third quarter of 2003, a 17% increase over its second
quarter 2003 reported revenues of $4.2 million. Net loss for the third quarter
was $371,000, or $0.01 per share, a decrease of 74% over the $1.4 million, or
$0.03 per share loss reported in each of the first and second quarters of 2003,
and compared to a $1.7 million net loss, or $0.07 per share in the third quarter
of 2002, prior to Daleen's acquisition of the assets and certain liabilities of
Abiliti Solutions.
"Throughout this year, we have maintained an intense focus on leveraging
our products, delivery channels and technical expertise to drive incremental
revenue growth from our current and new customers," said Gordon Quick, president
and CEO of Daleen. "We believe these efforts, and our improved business model,
have had a significant and positive impact on our results, and will continue to
foster healthy growth for Daleen."
Third Quarter Highlights
o Revenues increased for the fourth consecutive quarter, as a result of work
related to recent contracts, professional services engagements and
outsourcing services. Daleen's RevChain(R) implementation for ETB in
Bogota, Colombia, which was announced in June 2003, is fully staffed and
the project is progressing as expected.
o Revenues from Daleen's core customer base remain strong. During the third
quarter, Daleen was engaged in active professional services work for more
than 50% of its current customers, not including service bureau clients
supported through BillingCentral(R). Additionally, Australian telecom
carrier AAPT signed a two-year contract for the continued support and
maintenance of its RevChain platform.
o Total expenses were $5.3 million for the quarter, compared to $5.7 million
and $5.6 million, respectively, for the second and first quarters of 2003.
o The company's total cash and cash equivalents used in the quarter were
$530,000, compared to $1.4 million and $500,000, respectively, in the
second and first quarters of 2003.
o Daleen expanded its long-standing strategic partnership with Danet to
collaborate in bringing practical, ROI-driven revenue assurance and cost
management solutions to convergent telecom service providers, including the
new Asuriti(TM) software and Danet's financial assurance solutions.
o Daleen delivered Release 6.0 of its RevChain billing and customer
management software. RevChain 6.0 offers performance improvements and
expanded rating and discounting capabilities that are designed to give
service providers more flexibility in supporting loyalty groups and
affinity marketing.
"This was a strong quarter across the board, as evidenced by the
incremental revenue growth, reduced expense levels and a significant decrease in
our net loss," said Jeanne Prayther, chief financial officer for Daleen. "More
importantly, the cumulative results we have achieved through consecutive
quarters of revenue growth and sustained, effective cost management are a key
factor in driving our business toward a positive cash flow position."
About Daleen
Daleen Technologies, Inc. is a global provider of high performance billing and
customer care, OSS revenue assurance software, with a comprehensive outsourcing
solution for traditional and next generation service providers. Daleen's
solutions utilize advanced technologies to enable providers to reach peak
operational efficiency while driving maximum revenue from products and services.
Core products include its RevChain(R) billing and customer management software,
Asuriti(TM) event management and revenue assurance software, and
BillingCentral(R) ASP outsourcing services. More information is available at
WWW.DALEEN.COM.
Information with Respect to Forward-Looking Statements. Statements in this
release may be considered "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. These include statements
regarding the intent, belief or current expectations of the Company and the
assumptions on which these statements are based. Prospective investors are
cautioned that any such forward- looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual results
to differ materially from those in forward-looking statements include business
concentration; the Company's ability to continue as a going concern; the
Company's ability to successfully implement its aggregation strategy; the
Company's inability to achieve profitability; customers' and potential
customers' market position and lack of financial resources; the costs and
success of the Company's international expansion; the ability of the Company to
develop and protect its intellectual property; the Company's relationship with
third party software vendors and service providers; competition; the Company's
ability to retain senior management and other key personnel; low price and
volatility of the Company's common stock and the impact of the delisting from
The Nasdaq SmallCap Market; the on-going securities class action against the
Company; and the rights and preferences of the series F convertible preferred
stock. These factors and others are described in the Company's most recent SEC
filings including its 2003 Annual Meeting Proxy Statement and the most recently
filed Form 10-K and in the Company's Quarterly Reports on Form 10-Q. The Company
undertakes no obligation to update the forward-looking statements in this news
release.
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(C)Daleen Technologies, Inc. All rights reserved. Daleen, the Daleen logo,
RevChain, Asuriti, and BillingCentral are trademarks, or service marks, of
Daleen Technologies, Inc. in the United States and other countries. All other
trademarks and registered trademarks are property of their respective owners.
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
September 30 December 31
2003 2002
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Assets
Current assets:
Cash and cash equivalents $ 4,150 $ 6,589
Restricted Cash 30 30
Accounts receivalbe, net 1,361 2,761
Cost in excess of billings 1,047 -
Other current assets 483 1,022
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Total current assets 7,071 10,402
Property and equipment, net 1,155 1,989
Goodwill 5,086 5,086
Other assets 427 1,312
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Total assets $ 13,739 $ 18,789
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 144 368
Accrued payroll and other accrued expenses 2,478 2,576
Billings in excess of costs 135 616
Deferred revenue 418 1,279
Other current liabilities 56 217
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Total current liabilities 3,231 5,056
Other long term liabilities 4 26
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Total liabilities 3,235 5,082
Total stockholders' equity 10,504 13,707
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Total liabilities and stockholders' equity $ 13,739 18,789
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Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Unaudited
Three Months Ended Nine Months Ended
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September 30 June 30 March 31 September 30 September 30 September 30
2003 2003 2003 2002 2003 2002
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Revenue:
Professional services and other $ 4,411 $ 3,982 $ 3,824 $ 849 $ 12,216 $ 3,831
License fees 513 231 245 397 989 1,361
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Total revenue 4,924 4,213 4,069 1,246 13,205 5,192
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Cost of revenue:
Professional services and other 1,446 1,109 1,067 404 3,611 1,980
License fees 11 165 303 34 479 171
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Total cost of revenue 1,457 1,274 1,370 438 4,090 2,151
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Gross margin 3,467 2,939 2,699 808 9,115 3,041
Operating expenses:
Sales and marketing 813 831 900 789 2,543 3,028
Research and development 1,586 1,602 1,681 713 4,870 3,098
General and administrative 1,464 1,517 1,614 1,093 4,595 3,681
Impairment charges 0 500 0 0 500 0
Restructuring charges 0 0 0 0 0 745
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Total operating expenses 3,863 4,450 4,195 2,595 12,508 10,552
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Operating loss (396) (1,511) (1,496) (1,787) (3,393) (7,511)
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Total interest income and nonoperating expense, net 25 99 78 42 192 712
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Net loss applicable to common shareholders $ (371) $(1,412) $ (1,418) $ (1,745) $ (3,201) $ (6,799)
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Net loss applicable to common shareholders per share-
basic and diluted $ (0.01) $ (0.03) $ (0.03) $ (0.07) $ (0.07) $ (0.29)
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Weighted average outstanding shares - basic and diluted 45,829 45,829 45,829 23,376 45,829 23,049
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