IMMEDIATE RELEASE
Investor Relations Contacts:
Yvonne Donaldson Bob Joyce
BindView Corp. Financial Dynamics
Tel: 713-561-4023 617-747-3620
yvonne.donaldson@bindview.com bjoyce@fd-us.com
http://www.bindview.com
BINDVIEW ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER OF 2004
HOUSTON - APRIL 29, 2004 - BindView Corporation (NASDAQ:BVEW), a
leading provider of policy compliance, vulnerability management and directory
administration solutions, today announced results for the first quarter ended
March 31, 2004.
Revenues for the first quarter of 2004 were $15.0 million, compared
with $13.0 million in the first quarter of 2003, an increase of 15 percent
year-over-year. License revenues for the first quarter of 2004 were $5.9
million, up 14 percent from the first quarter of 2003, and services revenues for
the first quarter of 2004 were $9.1 million, up 15 percent over the first
quarter of 2003. Services revenues for the quarter were comprised of maintenance
revenues of $7.5 million and professional services revenues of $1.6 million, up
from $7.0 million in maintenance revenues and $0.9 million in professional
services revenues in the first quarter of 2003.
Operating costs and expenses for the first quarter of 2004 were $15.7
million, compared with $14.3 million for the first quarter of 2003. This
increase was primarily due to investments in sales and marketing infrastructure
to support higher revenue growth and costs related to expansion of the Company's
R&D operations in India.
Operating loss for the quarter was $2.7 million, compared with a $2.8
million operating loss in the first quarter of 2003. Net loss for the quarter
was $2.6 million, or $0.06 per share, compared with a net loss of $2.7 million,
or $0.06 per share, in the first quarter of 2003.
At March 31, 2004, the Company's cash and cash equivalents were $39.2
million compared with $35.4 million at the end of the preceding quarter. At
March 31, 2004, the company had no outstanding debt.
"Q1 was a good quarter with progress being made on virtually all
fronts," said BindView President and CEO Eric Pulaski. "We are well-positioned
and carrying good momentum into Q2 and the balance of 2004. The pipeline is
healthy in both size and transaction mix, including a growing number of large
transactions in which we continue to fare well competitively. As a result, we
are reiterating our first-half and full-year targets."
FINANCIAL OUTLOOK
The Company expects to achieve its previously announced estimates for
the first half and full year 2004. For the first half of 2004, the Company
estimates revenues will range between $32.0 million to $36.0 million and its net
loss to range between $2.0 million and $4.0 million ($0.04 and $0.08 per share).
For the second quarter of 2004, revenues are estimated to exceed $17.0 million
and the net loss to be less than $1.4 million. The Company believes that its
ability to achieve the high end of its revenue range for the first half of 2004
is dependent on a number of factors, including higher closure rates on large
transactions in the sales pipeline and an overall improvement in sales
efficiency.
STOCK REPURCHASE PROGRAM
The Company announced today that its Board of Directors has approved a
stock repurchase program for the second quarter of 2004. At its discretion, the
Company may spend up to $2.5 million for the repurchase of stock in the open
market, subject to Securities and Exchange Commission guidelines and
restrictions set forth in Rule 10b-18.
FIRST QUARTER HIGHLIGHTS
Premium Support: Launched a new 7x24 technical support solution for customers
who desire a customized program for securing their IT infrastructures. Customers
may choose the option of a Technical Account Manager (TAM) who provides a single
point of contact for resolving technical issues. With the TAM option, customers
receive an annual Health Check to ensure full utilization of their BindView
solutions.
SAP Compliance: Launched extended audit, analysis and reporting support with
bv-Control for SAP Systems to help customers meet Sarbanes-Oxley and
international due care requirements.
BindView Report Packs for FISMA: Launched a fully integrated compliance solution
to help federal customers meet mandated requirements for the Federal Information
Security Management Act (FISMA). BindView was cited by the EPA - and the EPA by
the Office of Management and Budget -- as being a key contributor to the
agency's ability to meet compliance requirements.
New Version of bv-Admin for Windows 7.20: BindView is the first company to offer
customers an Active Directory management solution that consolidates audit logs
and provides a comprehensive audit trail for security violations.
Password Self Service 7.20 Adds Platform: BindView announced additional platform
support for Sun iPlanet, adding to its offerings on Windows, SAP, LINUX and
UNIX. With its extensible platform architecture, Password Self Service allows
plug-ins for any LDAP-based application.
Cyber Security Industry Alliance: Announced BindView as a founding member of
CSIA, along with 13 other security vendors. The new advocacy group is dedicated
to improving cyber security through public policy, education and
technology-focused initiatives.
SCHEDULED CONFERENCE CALL
The Company will conduct a conference call today at 4:00 p.m. CDT to
discuss details of the first quarter financial results. The conference will be
available for replay at 1-800-361-0912, pass code 590464, from 7:00 p.m. CDT,
through May 27, 2004. Interested parties should dial 888-203-1112; code 590464.
A Webcast also will be provided live at
http://www.bindview.com/About/IR/Calls.cfm..
ABOUT BINDVIEW CORPORATION
BindView Corporation is a leading provider of proactive business
policy, IT security and directory management software worldwide. BindView
solutions and services enable customers to centralize and automate policy
compliance, vulnerability assessment, directory administration and migration
across the entire organization. With BindView insight at work(TM), customers
benefit from reduced risk and improved operational efficiencies with a
verifiable return on investment. More than 20 million licenses have shipped to
5,000 companies worldwide, spanning all major business segments and the public
sector. Contact BindView via e-mail at info@bindview.com or visit BindView's
World Wide Web Site at http://www.bindview.com. BindView can also be reached at
1-800-749-8439 or at 1-713-561-4000.
Statements in this news release not based on historical fact are
"forward-looking" statements pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Actual results could differ
materially because of factors such as the risk factors and other matters
described from time to time in BindView's Form 10-K filings, Form 10-Q filings,
and other periodic filings with the Securities and Exchange Commission,
including without limitation the time required for large transactions to close
and the general willingness of customers to make investments in information
technology.
# # #
BINDVIEW DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
<Table>
<Caption>
THREE MONTHS ENDED
MARCH 31,
--------------------
2004 2003
-------- --------
Revenues:
Licenses $ 5,912 $ 5,196
Services 9,051 7,851
-------- --------
14,963 13,047
-------- --------
Cost of revenues:
Licenses 140 116
Services 1,831 1,432
-------- --------
1,971 1,548
-------- --------
Gross profit 12,992 11,499
Operating costs and expenses:
Sales and marketing 9,180 7,758
Research and development 4,576 4,235
General and administrative 1,898 1,777
Restructuring -- 549
-------- --------
15,654 14,319
-------- --------
Operating loss (2,662) (2,820)
Other income 94 119
-------- --------
Loss before income taxes (2,568) (2,701)
Provision for income taxes 70 --
-------- --------
Net loss $ (2,638) $ (2,701)
======== ========
Loss per share - basic and diluted $ (0.06) $ (0.06)
======== ========
Number of shares used to calculate per
share amounts, basic and diluted 47,329 46,342
</Table>
BINDVIEW DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
<Table>
<Caption>
MARCH 31, DECEMBER 31,
2004 2003
--------- ------------
(UNAUDITED)
Cash and cash equivalents $ 39,244 $ 35,449
Cash - restricted 2,250 2,250
Accounts receivable, net 7,430 14,337
Other 1,978 2,180
--------- ---------
Total current assets 50,902 54,216
Property and equipment, net 5,726 6,564
Investments and other 2,795 2,498
--------- ---------
Total assets $ 59,423 $ 63,278
--------- ---------
Accounts payable $ 1,396 $ 2,066
Accrued liabilities 4,262 4,879
Accrued compensation 2,518 5,275
Deferred revenues 15,148 13,351
--------- ---------
Total current liabilities 23,324 25,571
Deferred revenues 1,522 1,477
Other 1,977 2,087
Common stock 1 1
Additional paid-in capital 106,168 105,176
Accumulated deficit (74,672) (72,034)
Note receivable from shareholder (326) (392)
Accumulated other comprehensive income 1,429 1,392
--------- ---------
Total shareholders' equity 32,600 34,143
--------- ---------
Total liabilities and shareholders' equity $ 59,423 $ 63,278
--------- ---------
Common shares outstanding 47,562 47,034
</Table>