Exhibit 99.03
UNAUDITED PRO FORMA CONDENSED COMBINING CONSOLIDATED
INCOME STATEMENT DATA
The following unaudited pro forma condensed income statements for the six
months ended June 30, 1999 and 1998 and fiscal year ended December 31, 1998 are
set forth herein to give effect as if the acquisition of Actuate BV had occurred
as of January 1, 1998. The pro forma adjustments and assumptions are based on
estimates, evaluations and other data currently available. The pro forma
condensed combining statement of operations is provided for illustrative
purposes only and is not necessarily indicative of the combined consolidated
results of operations that would have been reported had the acquisition occurred
on January 1, 1998, nor does it represent a forecast of the combined future
consolidated results of operations for any future period. All information
contained herein should be read in conjunction with Actuate Consolidated
Financial Statements and the notes thereto and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included in Actuate's
Form 10-K for the year ended December 31, 1998, and the financial statements and
notes thereto of Actuate BV included in this filing under Exhibit 99.01.
ACTUATE CORPORATION AND ACTUATE HOLDING, B.V.
Unaudited Pro Forma Condensed Combining Consolidated Income Statement Data
Six Months Ended June 30, 1999
(in thousands, except per share data)
Actuate Corp. Actuate B.V.
For the six For the period
Months ended from January
June 30, 1, 1999 to June Pro forma Pro forma
1999 18, 1999 Adjustments Combined
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Revenues:
License fees............................................ $14,088 $ 518 $(251) $14,355
Services................................................ 4,038 1,319 - 5,357
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Total revenues....................................... 18,126 1,837 (251) 19,712
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Operating expenses:
Cost of license fees.................................... 452 274 (251) 475
Cost of services........................................ 2,204 892 - 3,096
Sales and marketing..................................... 8,035 1,733 - 9,768
Research and development................................ 4,336 - - 4,336
General and administrative.............................. 1,492 827 - 2,319
Amortization of goodwill and other purchased
intangibles............................................ 368 - 838 1,206
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Total operating expenses............................. 16,887 3,726 587 21,200
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Income (loss) from operations............................. 1,239 (1,889) (838) (1,488)
Equity in losses of affiliate............................. (50) - - (50)
Interest and other income, net............................ 760 (239) - 521
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Income (loss) before income taxes......................... 1,949 (2,128) (603) (1,017)
Provision for income taxes................................ 225 - - 225
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Net income (loss)......................................... $ 1,724 $(2,128) $(603) $(1,242)
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Basic income (loss) per share............................. $ 0.13 - - $(0.09)
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Shares used in per share calculation...................... 13,287 - - 13,287
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See accompanying notes
ACTUATE CORPORATION AND ACTUATE HOLDING, B.V.
Unaudited Pro Forma Condensed Combining Consolidated Income Statement Data
Six Months Ended June 30, 1998
(in thousands, except per share data)
Actuate Corp. Actuate B.V.
For the six For the six
Months ended Months ended
June 30, June 30, Pro forma Pro forma
1998 1998 Adjustments Combined
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Revenues:
License fees..................................................... $ 7,009 $ 688 $ (272) $ 7,425
Services......................................................... 1,754 - - 1,754
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Total revenues..................................................... 8,763 688 (272) 9,179
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Operating expenses:
Cost of license fees............................................. 531 265 (272) 524
Cost of services................................................. 1,529 - - 1,529
Sales and marketing.............................................. 5,467 998 - 6,465
Research and development......................................... 3,574 - - 3,574
General and administrative....................................... 1,200 688 - 1,888
Amortization of goodwill and other purchased intangibles......... - - 1,206 1,206
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Total operating expenses...................................... 12,301 1,951 934 15,186
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Loss from operations............................................... (3,538) (1,263) (1,206) (6,007)
Interest and other income, net..................................... 36 20 - 56
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Net loss........................................................... $(3,502) $(1,243) $(1,206) $(5,951)
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Basic and diluted loss per share................................... $ (1.04) - - $ (1.77)
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Shares used in per share calculation............................... 3,358 - - 3,358
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See accompanying notes
ACTUATE CORPORATION AND ACTUATE HOLDING, B.V.
Unaudited Pro Forma Condensed Combining Consolidated Income Statement Data
Twelve Months Ended December 31, 1998
(in thousands, except per share data)
Actuate Corp. Actuate B.V.
For the twelve For the twelve
Months ended Months ended
December 31, December 31, Pro forma Pro forma
1998 1998 Adjustments Combined
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Revenues:
License fees.............................................. $17,750 $ 1,695 $ (861) $18,584
Services.................................................. 4,122 736 - 4,858
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Total revenues.............................................. 21,872 2,431 (861) 23,442
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Operating expenses:
Cost of license fees...................................... 1,012 874 (861) 1,025
Cost of services.......................................... 3,171 177 - 3,348
Sales and marketing....................................... 11,658 2,488 - 14,146
Research and development.................................. 7,373 - - 7,373
General and administrative................................ 2,563 1,403 - 3,966
Amortization of goodwill and other purchased intangibles.. - - 2,411 2,411
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Total operating expenses............................... 25,777 4,942 1,550 32,269
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Loss from operations........................................ (3,905) (2,511) (2,411) (8,827)
Interest and other income, net.............................. 739 (277) - 462
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Net loss.................................................... $(3,166) $(2,788) $(2,411) $(8,365)
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Basic and diluted loss per share............................ $ (0.41) - - $ (1.08)
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Shares used in per share calculation........................ 7,755 - - 7,755
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See accompanying notes
ACTUATE CORPORATION AND ACTUATE HOLDING, B.V.
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL INFORMATION
NOTE 1. The Actuate statements of operations for the six months ended June
30, 1999 and 1998 and the twelve months ended December 31, 1998 have been
combined with the Actuate BV statements of operations for the period from
January 1, 1999 to June 18, 1999, 1998 and the twelve months ended December 31,
1998. This method of combining the two companies is for the presentation of
unaudited pro forma condensed combining financial statements only. Actual
statements of operations of Actuate and Actuate BV have been combined from the
effective date of the Acquisition with no retroactive restatement. The unaudited
pro forma condensed combining financial statements, including the notes thereto,
should be read in conjunction with the historical consolidated financial
statements of Actuate and Actuate BV.
NOTE 2. Certain pro forma adjustments have been made to the accompanying
pro forma combined condensed financial statements as described below:
(a) Eliminate royalty income due to Actuate from Actuate BV and the related
cost of license for Actuate BV.
(b) Reflects amortization of goodwill and other purchased intangible in the six
months ended June 30, 1999 and 1998 and twelve months ended December 31,
1998 as if the acquisition of Actuate BV had occurred as of January 1,
1998.
NOTE 3. The pro forma condensed combining consolidated income statements do
not include the merger related costs of approximately $304,000 due to its non-
recurring nature.