EXHIBIT 99.1
PERSISTENCE SOFTWARE ANNOUNCES
SECOND QUARTER FINANCIAL RESULTS
SAN MATEO, CALIF. -- JULY 24, 2003 -- Persistence(R) Software (NASDAQ:
PRSW), a leading provider of data services software for distributed data access
and management, today announced financial results for the second quarter ended
June 30, 2003.
For the quarter, revenues were $2,876,000, compared with $2,523,000 for
the first quarter of 2003. The Company reported a net loss of $624,000, or
$(0.26) per share compared with a net loss of $1,008,000 or $(0.42) per share
for the first quarter of 2003. Revenues for the second quarter last year were
$5,730,000 with a net profit of $215,000 or $.10 per share. All per share
numbers have been adjusted to reflect a 1-for-10 reverse stock split that was
effected in the second quarter of 2003.
Cash balances at June 30, 2003 were $ 6.2 million compared to $7.1
million as of March 31, 2003 and $7.3 million as of June 30, 2002.
Christopher Keene, chief executive officer of Persistence Software,
Inc., commented, "We were pleased to see the license revenue component grow by
28 percent compared to the first quarter of 2003. At the same time, our loss
narrowed by 38 percent from the first quarter of this year as we continue to
conservatively manage expenses."
Mr. Keene continued "Yesterday we announced that NetJets(R), the
fractional jet ownership leader and pioneer, has successfully deployed
Persistence's data services architecture, which integrates and continuously
synchronizes all information within the business so that critical applications
all have the same up-to-date information about customers, planes and crews. This
customer is indicative of the wide range of applications where Persistence's
Data Services products can improve the efficiency for sharing and distributing
critical data."
The Company will discuss these results in a conference call scheduled
for 4:15 p.m. Eastern July 24, 2003. Interested parties can access the call by
dialing (877) 858-9308 or by accessing the webcast at
http://www.persistence.com/company/ir.php. A replay of the call will be
available at (706) 645-9291, access number 1707747, for 3 days following the
call; and the webcast can be accessed at
http://www.persistence.com/company/ir.php for 30 days.
ABOUT PERSISTENCE
Persistence Software provides to Global 2000 companies the Data
Services infrastructure to create real-time, highly scalable applications
without incurring the high costs of additional hardware and replicated
databases. Data Services addresses a critical need for most global companies to
eliminate costs from their highly fragmented data infrastructure by creating
integrated and synchronized data across the enterprise.
Founded in 1991, Persistence is a publicly traded company (NASDAQ:
PRSW) with a large, established customer base. Over the past 11 years,
Persistence pioneered the core data services technologies and has been awarded
seven caching and mapping patents, some of which have been licensed to Sun and
Cisco Systems. Persistence data services solutions power some of the world's
most demanding applications, including those of Citibank, FedEx, Eurocontrol,
Reuters, Sabre and Wells Fargo. Please visit http://www.persistence.com for more
information. Persistence Software is headquartered in San Mateo, California.
Please visit http://www.persistence.com for more information.
Except for the historical information contained herein, the matters discussed in
this press release are forward-looking statements involving risks and
uncertainties, which could cause actual results to differ materially from those
in such forward-looking statements. Potential risks and uncertainties include,
but are not limited to, Persistence Software's limited operating history;
potential fluctuations in our operating results; our potential need to raise
cash in the future; uncertainties related to our long sales cycle; our reliance
on a relatively small number of customers; our dependence on revenues from
EdgeXtend, which was only released in 2002; our need to manage our resources or
attract and retain the services of key employees; our need to deliver products
that are free of defects and errors and meet rapidly changing technology
standards and customer requirements; our need to build a strong direct sales
team and develop third party sales channels; our dependence on enterprise-wide
system deployments; and our need to address competition from companies with
substantially greater resources. Further information regarding these and other
risks and uncertainties is included in our annual Report on Form 10-K for the
year ended December 31, 2002, as amended, our Form 10-Q for the quarter ended
March 31, 2003, as amended, and our other filings with the Securities and
Exchange Commission.
-Financial tables follow-
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
( In thousands, except per share amounts )
THREE MONTHS ENDED SIX MONTHS ENDED
JUN. 30, JUN. 30, JUN. 30, JUN. 30,
2003 2002 2003 2002
-------- -------- -------- --------
Revenues:
Licenses $ 1,656 $ 4,104 $ 2,950 $ 4,937
Service 1,220 1,626 2,449 2,954
-------- -------- -------- --------
Total revenues 2,876 5,730 5,399 7,891
-------- -------- -------- --------
Cost of revenues:
Licenses 22 75 61 102
Service 459 759 936 1,527
-------- -------- -------- --------
Total cost of revenues 481 834 997 1,629
-------- -------- -------- --------
Gross profit 2,395 4,896 4,402 6,262
-------- -------- -------- --------
Operating expenses:
Sales and marketing 1,545 2,586 3,076 5,020
Research and development 803 1,038 1,652 2,156
General and administrative 657 919 1,300 1,846
Amortization of purchased intangibles -- 142 -- 354
-------- -------- -------- --------
Total operating expenses 3,005 4,685 6,028 9,376
-------- -------- -------- --------
Profit / (Loss) from operations (610) 211 (1,626) (3,114)
Interest and other income, net (14) 4 (6) 20
-------- -------- -------- --------
Net profit / (loss) $ (624) $ 215 $(1,632) $(3,094)
-------- -------- -------- --------
Basic net profit / (loss) per share $ (0.26) $ 0.11 $ (0.68) $ (1.54)
-------- -------- -------- --------
Diluted net profit / (loss) per share N/A $ 0.10 N/A $ (1.54)
-------- -------- -------- --------
Shares used in calculating basic net
profit / (loss) per share 2,406 2,015 2,404 2,012
-------- -------- -------- --------
Shares used in calculating diluted net
profit / (loss) loss per share N/A 2,048 N/A 2,012
-------- -------- -------- --------
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
( In thousands )
AS OF
JUN. 30, DEC. 31,
2003 2002
--------- ---------
Assets:
Current assets:
Cash, cash equivalents $ 6,174 $ 8,903
Accounts receivable, net 1,948 1,252
Prepaids and other current assets 222 392
--------- ---------
Total current assets 8,344 10,547
Property and equipment, net 205 375
Purchased intangibles, net 78 123
Deposits and other assets 55 55
--------- ---------
Total assets $ 8,682 $ 11,100
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Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 412 $ 325
Accrued liabilities 1,836 1,910
Deferred revenues (net of long term portion) 2,257 2,529
Current portion of long-term obligations 713 841
--------- ---------
Total current liabilities 5,218 5,605
Long-term liabilities
Long-term portion of deferred revenues 373 691
Long-term obligations 35 93
--------- ---------
Total long-term liabilities 408 784
--------- ---------
Total liabilities 5,626 6,389
--------- ---------
Stockholders' equity:
Common stock, net 66,062 66,072
Accumulated deficit (63,002) (61,370)
Other (4) 9
--------- ---------
Total stockholders' equity 3,056 4,711
--------- ---------
Total liabilities and stockholders' equity $ 8,682 $ 11,100
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