Callidus Software Reports First Quarter 2007 Results
Record Q1 Revenues $24.8 million; Up 46% Year over Year
On-Demand Bookings Surpass $10 million in First Year
SAN JOSE, Calif., April 26 /PRNewswire-FirstCall/ -- Callidus Software
Inc. (Nasdaq: CALD), a leading provider of Sales Performance Management (SPM)
software and services, today announced financial results for the first quarter
ended March 31, 2007.
Total first quarter revenues were the highest in the Company's history at
$24.8 million, an increase of 46% compared to the first quarter 2006. First
quarter license revenues were $8.3 million, an increase of 20% compared to the
first quarter of 2006. First quarter maintenance and service revenues were $16.5
million, an increase of 65% compared to the first quarter of 2006. In addition,
hosted on-demand bookings were $2.6 million in the first quarter compared to
zero in the first quarter of 2006.
First quarter expenses were higher than guidance as a result of additional
investments in the Company's sales organization and sales channels as well as
its services business, including 'on-demand' services, along with some seasonal
and unanticipated charges for Sarbanes-Oxley compliance costs and severance
payments.
First quarter net loss was $3.4 million, or ($0.12) per share, and included
$1.2 million of stock-based compensation expense. This compares to a net loss of
$3.1 million, or ($0.11) per share, for the first quarter of 2006, which
included $1.2 million of stock-based compensation expense.
Cash and investments totaled $58.9 million at March 31, 2007, an increase of
$6.0 million from December 31, 2006.
"In addition to our strong year-over-year revenue growth, we are
particularly pleased with the progress of our hosted on-demand business. Over
the past four quarters, our hosted on-demand bookings have exceeded $10 million,
with a combined annual contract value of $4.6 million. Starting from zero a year
ago, we now have over 8,500 payees signed-up for this on-demand service," said
Robert Youngjohns, president and CEO. "Going forward, we will continue our focus
on revenue growth but will work to reduce costs where appropriate. We continue
to believe there is substantial opportunity for growth in the SPM space. We
believe we are the only vendor that can deliver proven SPM solutions in whatever
deployment method our customers desire, whether it is on-premise, on-demand or
as a managed service," Mr. Youngjohns concluded.
Recent Business Highlights
-- Some of the customers purchasing Callidus solutions in the first quarter
included, Belgacom Belgium, Covad Communications, Impac Companies,
Merck, and Vodafone Egypt.
-- Callidus released the beta version of its new TrueProducer(TM) product.
TrueProducer is a web-based application being developed for insurance
carriers with large independent distribution channels or a large number
of captive agents. It provides a 360 degree view of the details of every
producer in an organization including demographics, licenses,
appointments, contracts, and payment schedules. It is a stand-alone
application that seamlessly integrates with the Callidus SPM suite of
applications. The product is expected to officially be launched during
the ACORD LOMA conference on May 21, 2007.
-- Callidus and SAP continue to jointly sell Callidus' TrueComp(R) and
TrueInformation(R) products in North America. Joint selling activities
made good progress in the first quarter with SAP being involved in two
significant enterprise transactions that closed in the quarter. The
agreement between Callidus and SAP was signed in September 2006.
-- Callidus established, for the first time, a sales team dedicated to
selling its hosted on-demand offering during the first quarter. Callidus
also realigned its sales team to emphasize a vertical focus, leveraging
the significant domain expertise it has developed over the years serving
some of the largest companies across a variety of industries.
-- Callidus continues to expand its global alliances ecosystem by adding
complementary partners such as Princeton Softech, Sircon, Cognizant
Technology Solutions, HighPoint-Solutions, Raintree Productions in South
Africa, and CIS Mexico-Consultores de Integracion (CIS). CIS will
promote and resell Callidus software products throughout Mexico and
Latin America.
-- Callidus named Michael Graves as senior vice president of engineering.
Mr. Graves brings with him more than a decade of developing
market-leading enterprise applications. Prior to joining Callidus
Software, Mr. Graves held various leadership positions at Oracle, most
recently as vice president of development in Oracle's Applications
Division. Mr. Graves replaces Robert Warfield, Callidus' Chief
Technology Officer, who will be leaving Callidus after a transition
period.
Q2 2007 Financial Outlook
-- Total revenues for the second quarter 2007 are expected to be between
$21.0 million and $23.0 million. This would represent a 19% to 30%
increase compared to second quarter 2006 total revenues of $17.7
million.
-- Operating expenses, including stock-based compensation of approximately
$1.0 million, are expected to be between $14.5 million and $15.5 million
as compared to $16.4 million in Q1 of 2007.
Conference Call
A conference call to discuss the first quarter results is scheduled for
today at 1:30 p.m. Pacific Daylight Time (PDT). The conference call will be
available via live-webcast at the Investor Relations section of Callidus'
website at http://www.callidussoftware.com. To participate in the call by
telephone, the dial-in number is 888-396-2356 (international +1-617-847-8709),
passcode 30363435.
A webcast replay and telephone playback of the conference call will be
available after 3:30 p.m. PDT today through May 10, 2007. The webcast replay
will be available at the Investor Relations section of Callidus' website under
Calendar of Events. The telephone replay will be available by calling
888-286-8010 (international: +1-617-801-6888), passcode 71512045.
About Callidus Software
Callidus Software (http://www.callidussoftware.com, Nasdaq: CALD) is a
leading provider of on-premise and on-demand Sales Performance Management (SPM)
solutions to global companies across multiple industries. Callidus' products
allow enterprises to strategically manage incentive compensation, establish
quota targets, and align territories, resulting in improved sales and
distribution performance. Customers/Partners include 7-Eleven, Accenture, CUNA
Mutual, HP, IBM, Philips Medical Systems, Sun Microsystems and Wachovia.
Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release are a
supplement to, and not a substitute for, our financial results presented in
accordance with generally accepted accounting principles (GAAP) in the United
States. The non-GAAP financial measures reflect our bookings of hosted on-demand
services. Total contract values of booked contracts represent the fees payable
over the non-cancellable terms of the contracts, generally 1 to 5 years, and
exclude implementation costs sold on a time and materials basis. The non-GAAP
financial measures provide what we believe is an additional tool for investors
to use in understanding our operational results and trends and is used
internally by management to evaluate our operations.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including the
substantial market opportunity for the Company in sales of SPM, the recurring
revenues expected to be derived from the Company's hosted on-demand contracts,
continued expansion of its global alliances, and estimates of second quarter
2007 total revenues, operating expenses and stock-based compensation expense,
reflect management's best judgment based on factors currently known and involve
risks and uncertainties. These risks and uncertainties include, but are not
limited to, timing and size of software license orders, potential material
fluctuations in financial results and future growth rates, decreases in customer
spending, customer cancellation or non-renewal of software maintenance contracts
or on-demand services, uncertainty regarding the demand for our hosted on-demand
offering, increased competition or new entrants in the marketplace, litigation
and other risks detailed in Callidus' reports filed with the Securities and
Exchange Commission (SEC), including its Form 10-K for the year ended December
31, 2006, copies of which may be obtained by contacting Callidus Software's
Investor Relations department at 408-808-6577, or from the Investor Relations
section of Callidus Software's website (http://www.callidussoftware.com). Actual
results may differ materially from those presently reported. We assume no
obligation to update the information contained in this release.
(C) 2007 Callidus Software Inc. All rights reserved. Callidus Software, the
Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid,
TrueComp Manager, TrueInformation, TrueResolution, TrueQuota, TrueConnection,
TrueProducer, and TrueFoundation are trademarks, servicemarks, or registered
trademarks or servicemarks of Callidus Software Inc. in the United States and
other countries. All other brand, service or product names are trademarks or
registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended
March 31,
2007 2006
Revenues:
License revenues $8,358 $6,958
Maintenance and service revenues 16,483 9,999
Total revenues 24,841 16,957
Cost of revenues:
License revenues 221 136
Maintenance and service revenues (1) 12,380 7,780
Total cost of revenues 12,601 7,916
Gross profit 12,240 9,041
Operating expenses:
Sales and marketing (1) 8,255 6,190
Research and development (1) 4,198 3,570
General and administrative (1) 3,902 3,087
Total operating expenses 16,355 12,847
Operating loss (4,115) (3,806)
Interest and other income, net 769 568
Income (loss) before provision for income taxes (3,346) (3,238)
Provision (benefit) for income taxes 5 --
Income (loss) before cummulative effect of a
change in accounting principle (3,351) (3,238)
Cummulative effect of a change in
accounting principle -- 128
Net Income (loss) $(3,351) $(3,110)
Basic net income (loss) per share $(0.12) $(0.11)
Diluted net income (loss) per share $(0.12) $(0.11)
Shares used in basic per share computation 28,610 27,116
Shares used in diluted per share computation 28,610 27,116
(1) Stock-based compensation included in amounts above by category:
Cost of maintenance and service revenues $261 $264
Sales and marketing 267 266
Research and development 325 247
General and administrative 375 432
Total stock-based compensation $1,228 $1,209
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, December 31,
Assets 2007 2006
Current assets:
Cash and cash equivalents $21,049 $12,082
Short-term investments 37,872 40,857
Accounts receivable, net 20,089 23,064
Prepaid and other current assets 3,652 3,939
Total current assets 82,662 79,942
Property and equipment, net 3,722 4,086
Deposits and other assets 1,136 1,166
Total assets $87,520 $85,194
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $2,054 $899
Accrued payroll and related expenses 5,768 6,647
Accrued expenses 5,933 3,721
Deferred revenue 14,537 13,726
Total current liabilities 28,292 24,993
Other liabilities 1,124 1,243
Long-term deferred revenue 1,318 1,578
Total liabilities 30,734 27,814
Stockholders' equity
Common stock 29 28
Additional paid-in capital 196,385 193,499
Deferred stock-based compensation -- --
Accumulated other comprehensive income 445 408
Accumulated deficit (140,073) (136,555)
Total stockholders' equity 56,786 57,380
Total liabilities and stockholders' equity $87,520 $85,194
SOURCE Callidus Software Inc. 04/26/2007
/CONTACT: Investor Relations, Jon Pexton, +1-408-808-6577,
ir@callidussoftware.com, or Press, Jock Breitwieser, +1-408-975-6683,
pr@callidussoftware.com /
/Web site: http://www.callidussoftware.com /