[PERSISTENCE LETTERHEAD]
FOR IMMEDIATE RELEASE PRESS RELEASE
Contact: Professional Investment Community and Media
- -------- -------------------------------------------
Brian Tobin Joe Diaz, Joe Dorame or Tom Nelson
Corporate Controller RCG Capital Markets Group, Inc.
Persistence Software, Inc. 480.675.0400
650.372.3647
btobin@persistence.com
PERSISTENCE SOFTWARE ANNOUNCES
FOURTH QUARTER FINANCIAL RESULTS
SAN MATEO, CALIF. -- JANUARY 29, 2004 -- Persistence(R) Software (NASDAQ: PRSW),
a leading provider of data services software for distributed data access and
management, today announced financial results for the fourth quarter of fiscal
2003 ended December 31, 2003.
For the fourth quarter, revenues were $2.1 million compared with $2.6 million
for the fourth quarter of 2002. The Company reported net income for the quarter
of $139,000, or $0.05 per share, fully diluted, compared with a net loss of $1.9
million, or $(0.88) per share, fully diluted, for the fourth quarter of 2002.
For the year, Persistence reported revenue of $9.3 million, compared to revenue
of $14.6 million for 2002. The Company reported a net loss of $2.7 million, or
$(1.11), compared with a net loss of $5.4 million, or $(2.65) per share last
year. The Company completed the year with cash balances of $5.7 million. Results
for the fourth quarter and the year were impacted positively by a one-time
reversal of a previously accrued expense related to purchased technology in the
amount of $225,000, or $0.09 per share fully diluted.
Christopher Keene, chief executive officer of Persistence, commented, "We are
pleased with the progress made this year in dramatically reducing our operating
losses. We continue to aggressively manage expenses, with an eye toward future
profitability, while we work to drive sales in a very difficult environment."
The Company will discuss these results in a conference call scheduled for 4:15
p.m. Eastern January 29, 2004. 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 4953336,
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
Founded in 1991, Persistence is a publicly traded company (NASDAQ: PRSW).
Persistence Software provides innovative software tools to manage application
data for mission-critical systems with stringent response times. Since 1991,
Persistence products have helped over 100 data-intensive companies achieve
breakthrough application performance, scalability and developer productivity,
including Adobe Systems, Citigroup, Fiducia AG, Intershop, Motorola, Nokia,
Reuters Financial Software and Sabre.
Persistence has pioneered application data management technologies for
object-relational mapping, clustered object caching and cache synchronization.
Sun, Cisco and Sybase have licensed patented Persistence technology.
Traditional IT architectures depend on distributed databases and unstructured
messaging to keep global business data synchronized. These traditional
architectures are increasingly unable to meet business requirements for
mission-critical applications, including complex data, fast response times and
geographic distribution. Persistence Software enables a new approach to managing
data for mission-critical applications, called a Data Services Architecture. The
core concept is to create a single, consistent software layer for managing data
access and distribution. This architecture is designed to eliminate data errors
and delays, while also reducing development time and costs.
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 THE JAVA
PROGRAMMING LANGUAGE AND THE ENTERPRISE JAVABEANS STANDARD BECOMING WIDELY
ACCEPTED STANDARDS, FAILURE 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, THE QUARTERLY REPORTS ON FORM 10Q FOR THE QUARTERS ENDED MARCH 31, 2003,
JUNE 30, 2003 AND SEPTEMBER 30, 2003 IN OUR OTHER FILINGS WITH THE SECURITIES
AND EXCHANGE COMMISSION.
-Financial tables follow-
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
( Unaudited )
( In thousands, except per share amounts )
THREE MONTHS ENDED TWELVE MONTHS ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 31,
2003 2002 2003 2002
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Revenues:
Licenses $ 888 $ 1,299 $ 4,560 $ 9,061
Service 1,205 1,252 4,738 5,525
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Total revenues 2,093 2,551 9,298 14,586
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Cost of revenues:
Licenses 4 109 90 286
Service 294 522 1,625 2,740
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Total cost of revenues 298 631 1,715 3,026
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Gross profit 1,795 1,920 7,583 11,560
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Operating expenses:
Sales and marketing 820 1,807 5,124 8,676
Research and development 575 912 2,959 4,108
General and administrative 488 815 2,419 3,459
Purchased intangibles (225) 289 (225) 768
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Total operating expenses 1,658 3,823 10,277 17,011
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Income / (Loss) from operations 137 (1,903) (2,694) (5,451)
Interest and other income/ (expense), net (4) 22 5 45
Income taxes 6 (16) (17) (34)
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Net income / (loss) $ 139 $ (1,897) $ (2,706) $ (5,440)
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Basic net profit / (loss) per share $ 0.06 $ (0.88) $ (1.11) $ (2.65)
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Diluted net profit / (loss) per share $ 0.05 $ (0.88) $ (1.11) $ (2.65)
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Shares used in calculating basic
net profit / (loss) per share 2,507 2,168 2,432 2,053
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Shares used in calculating diluted
net profit / (loss) per share 2,533 2,168 2,432 2,053
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PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
( Unaudited )
( In thousands )
AS OF
DEC. 31, DEC. 31,
2003 2002
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Assets:
Current assets:
Cash, cash equivalents $ 5,680 $ 8,903
Accounts receivable, net 1,498 1,252
Prepaids and other current assets 258 392
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Total current assets 7,436 10,547
Property and equipment, net 95 375
Purchased intangibles, net 59 123
Other assets 37 55
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Total assets $ 7,627 $ 11,100
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Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 329 $ 325
Accrued liabilities 1,262 1,910
Deferred revenues (net of long term portion) 2,565 2,529
Current portion of long-term obligations 334 841
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Total current liabilities 4,490 5,605
Long-term liabilities
Long-term portion of deferred revenues 84 691
Long-term obligations 18 93
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Total long-term liabilities 102 784
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Total liabilities 4,592 6,389
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Stockholders' equity:
Common stock, net 67,112 66,072
Accumulated deficit (64,076) (61,370)
Other (1) 9
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Total stockholders' equity 3,035 4,711
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Total liabilities and stockholders' equity $ 7,627 $ 11,100
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