Persistence Software, Inc.
1720 South Amphlett Boulevard [PERSISTENCE LOGO]
San Mateo, California 94402
650 372 3600 * 650 341 8432 Fax
www.persistence.com
FOR IMMEDIATE RELEASE PRESS RELEASE
Contact: Professional Investment Community and Media
- -------- -------------------------------------------
Brian Tobin Joe Diaz or Joe Dorame
Corporate Controller RCG Capital Markets Group, Inc.
Persistence Software, Inc. 480.675.0400
650.372.3647
btobin@persistence.com
PERSISTENCE SOFTWARE ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
SAN MATEO, CALIF. -- APRIL 22, 2004 -- Persistence(R) Software (NASDAQ: PRSW), a
technology leader for data access and caching, today announced financial results
for the first quarter of fiscal 2003 ended March 31, 2004.
For the quarter, revenues were $2.1 million compared with $2.5 million for the
first quarter of 2003. The Company reported net income for the quarter of
$56,000, or $0.02 per share, fully diluted, compared with a net loss of $1.0
million, or $(0.42) per share, fully diluted, in the comparable quarter last
year. The Company recorded an expense reversal of $110,000 in the current
quarter for the successful renegotiation of an obligation for third party
software that the Company fully expensed in prior periods. Persistence completed
the quarter with cash balances of $4.9 million and no long-tern debt.
Christopher Keene, chief executive officer of Persistence, commented, "We are
pleased to report our second consecutive profitable quarter. We were
particularly excited to win new customer projects at transportation and banking
companies during the quarter with our new EdgeXtend products."
The Company will discuss these results in a conference call scheduled for 4:15
p.m. Eastern April 22, 2004. Interested parties can access the call by dialing
(877) 858-9308 (domestic) or (706) 643-0580 (international) or by accessing the
webcast at http://www.persistence.com/company/ir.php. A replay of the call will
be available at (800) 642-1687 (domestic) or (706) 645-9291 (international),
access number 6599781, 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 is a technology leader for data access and caching
infrastructure. Persistence provides infrastructure software specifically
designed to eliminate data access bottlenecks - such as redundant database
queries - that cause poor application performance. For mission-critical
applications, Persistence Data Services products simplify and optimize access to
enterprise data by providing tightly integrated object-to-relational mapping,
intelligent caching and guaranteed cache synchronization. Patented Persistence
products have helped over 100 Global 2000 companies achieve breakthrough
performance, scalability, availability and developer productivity. Find
Persistence on the web at www.persistence.com
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, THE POSSIBILITY THAT WE MAY NOT ACHIEVE OUR SALES
TARGETS, 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,
RISKS ASSOCIATED WITH OUR DECLINING SALES, OUR DEPENDENCE ON OUR NEWEST
EDGEXTEND PRODUCT, 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,
2003, 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. EDGEXTEND, POWERTIER AND DIRECTALERT ARE REGISTERED
TRADEMARKS OF PERSISTENCE SOFTWARE, INC. ALL OTHER PRODUCT, TRADEMARK, COMPANY,
OR SERVICE NAMES MENTIONED HEREIN ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS.
-FINANCIAL TABLES FOLLOW-
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
THREE MONTHS ENDED
MAR. 31, MAR. 31,
2004 2003
------------ ------------
Revenues:
Licenses $ 842 $ 1,294
Service 1,214 1,229
------------ ------------
Total revenues 2,056 2,523
------------ ------------
Cost of revenues:
Licenses 20 39
Service 266 477
------------ ------------
Total cost of revenues 286 516
------------ ------------
Gross profit 1,770 2,007
------------ ------------
Operating expenses:
Sales and marketing 782 1,531
Research and development 570 849
General and administrative 474 643
Purchased intangibles (110) --
------------ ------------
Total operating expenses 1,716 3,023
------------ ------------
Income / (Loss) from operations 54 (1,016)
Interest and other income, net 2 8
Income taxes -- --
------------ ------------
Net income / (loss) $ 56 $ (1,008)
============ ============
Basic net profit / (loss) per share $ 0.02 $ (0.42)
============ ============
Diluted net profit / (loss) per share $ 0.02 $ (0.42)
============ ============
Shares used in calculating basic
net profit / (loss) per share 2,713 2,403
============ ============
Shares used in calculating diluted
net profit / (loss) per share 2,734 2,403
============ ============
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
AS OF
MAR. 31, DEC. 31,
2004 2003
------------ ------------
Assets:
Current assets:
Cash, cash equivalents $ 4,875 $ 5,680
Accounts receivable, net 1,736 1,498
Prepaids and other current assets 214 258
------------ ------------
Total current assets 6,825 7,436
Property and equipment, net 106 95
Purchased intangibles, net 50 59
Other assets 37 37
------------ ------------
Total assets $ 7,018 $ 7,627
============ ============
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 278 $ 329
Accrued liabilities 1,047 1,262
Deferred revenues (net of long term portion) 2,504 2,565
Current portion of long-term obligations 39 334
------------ ------------
Total current liabilities 3,868 4,490
Long-term liabilities
Long-term portion of deferred revenues 32 84
Long-term obligations 14 18
------------ ------------
Total long-term liabilities 46 102
------------ ------------
Total liabilities 3,914 4,592
------------ ------------
Stockholders' equity:
Common stock, net 67,132 67,112
Accumulated deficit (64,020) (64,076)
Other (8) (1)
------------ ------------
Total stockholders' equity 3,104 3,035
------------ ------------
Total liabilities and stockholders' equity $ 7,018 $ 7,627
============ ============
###