EXHIBIT 99.1
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
SECOND QUARTER FINANCIAL RESULTS
SAN MATEO, CALIF. -- JULY 22, 2004 -- Persistence(R) Software (NASDAQ: PRSW), a
technology leader for data access and caching, today announced financial results
for the second quarter of fiscal 2004 ended June 30, 2004.
For the quarter, revenues were $2.3 million compared with $2.1 million for the
first quarter of 2004, and $2.9 million for the second quarter of 2003. The
Company reported its third consecutive quarter of profitability, earning
$129,000, or $0.05 per share, fully diluted, compared with net income of
$56,000, or $0.02 per share, fully diluted in the first quarter of 2004, and a
net loss of $624,000, or $(0.26) per share, fully diluted, in the second quarter
of 2003.
Christopher Keene, chief executive officer of Persistence, commented, "We have
just completed our third consecutive quarter of profitability, have grown
revenue more than 12 percent compared to last quarter, and have increased our
cash balance by over $100,000 during this quarter as well. While the
fundamentals of our industry continue to be difficult, the operating results for
the quarter reflect our on-going dedication to improving revenue growth while
carefully managing expenses in a manner that is consistent with the fundamentals
of the business".
The Company will discuss these results in a conference call scheduled for 4:15
p.m. Eastern July 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 www.persistence.com/company/investors.html. A replay of the call will
be available at (800) 642-1687 (domestic) or (706) 645-9291 (international),
access number 8772039, for 3 days following the call; and the webcast can be
accessed at www.persistence.com/company/investors.html 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 REPORT ON FORM 10-QSB FOR THE QUARTER ENDED MARCH 31, 2004
AND 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 SIX MONTHS ENDED
JUN. 30, JUN. 30, JUN. 30, JUN. 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues:
Licenses $ 1,139 $ 1,656 $ 1,982 $ 2,950
Service 1,182 1,220 2,396 2,449
------------ ------------ ------------ ------------
Total revenues 2,321 2,876 4,378 5,399
------------ ------------ ------------ ------------
Cost of revenues:
Licenses 23 22 42 61
Service 317 459 583 936
------------ ------------ ------------ ------------
Total cost of revenues 340 481 625 997
------------ ------------ ------------ ------------
Gross profit 1,981 2,395 3,753 4,402
------------ ------------ ------------ ------------
Operating expenses:
Sales and marketing 755 1,545 1,537 3,076
Research and development 622 803 1,193 1,652
General and administrative 470 657 944 1,300
Purchased intangibles -- -- (110) --
------------ ------------ ------------ ------------
Total operating expenses 1,847 3,005 3,564 6,028
------------ ------------ ------------ ------------
Income / (Loss) from operations 134 (610) 189 (1,626)
Interest and other income, net 4 5 6 13
Income taxes (9) (19) (9) (19)
------------ ------------ ------------ ------------
Net income / (loss) $ 129 $ (624) $ 186 $ (1,632)
------------ ------------ ------------ ------------
Basic net profit / (loss) per share $ 0.05 $ (0.26) $ 0.07 $ (0.68)
------------ ------------ ------------ ------------
Diluted net profit / (loss) per share $ 0.05 $ (0.26) $ 0.07 $ (0.68)
------------ ------------ ------------ ------------
Shares used in calculating basic
net profit / (loss) per share 2,716 2,406 2,715 2,404
------------ ------------ ------------ ------------
Shares used in calculating diluted
net profit / (loss) per share 2,743 2,406 2,741 2,404
------------ ------------ ------------ ------------
PERSISTENCE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
( Unaudited )
( In thousands )
AS OF
JUN. 30, DEC. 31,
2004 2003
------------ ------------
Assets:
Current assets:
Cash, cash equivalents $ 4,987 $ 5,680
Accounts receivable, net 1,044 1,498
Prepaids and other current assets 390 258
------------ ------------
Total current assets 6,421 7,436
Property and equipment, net 105 95
Purchased intangibles, net 41 59
Other assets 37 37
------------ ------------
Total assets $ 6,604 $ 7,627
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Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $ 353 $ 329
Accrued liabilities 1,004 1,262
Deferred revenues (net of long term portion) 2,002 2,565
Current portion of long-term obligations 5 334
------------ ------------
Total current liabilities 3,364 4,490
Long-term liabilities
Long-term portion of deferred revenues -- 84
Long-term obligations 10 18
------------ ------------
Total long-term liabilities 10 102
------------ ------------
Total liabilities 3,374 4,592
------------ ------------
Stockholders' equity:
Common stock, net 67,129 67,112
Accumulated deficit (63,891) (64,076)
Other (8) (1)
------------ ------------
Total stockholders' equity 3,230 3,035
------------ ------------
Total liabilities and stockholders' equity $ 6,604 $ 7,627
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