Exhibit 99.1
Actuate Reports First Quarter 2003 Financial Results
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--April 29,
2003--Actuate(R) Corporation (NASDAQ:ACTU), the world leader in
empowering enterprise users with Information Applications, today
announced its financial results for the first quarter of fiscal year
2003. Revenues for the first quarter ended March 31, 2003 were $25.5
million, compared with $28.8 million reported for the first quarter of
2002 and $27.3 million reported for the fourth quarter of 2002.
On a GAAP basis, Actuate's net loss was $622,000 or $0.01 per
share for the first quarter of 2003 compared with a net loss of
$249,000 or $0.00 per share reported for the first quarter of 2002 and
net income of $712,000 or $0.01 per diluted share reported for the
fourth quarter of 2002. On a non-GAAP basis, excluding the
amortization of intangibles and legal costs primarily related to the
litigation with MicroStrategy Incorporated, Actuate's net income in
the first quarter of 2003 was $982,000 or $0.02 per diluted share
compared with net income of $1.1 million or $0.02 per diluted share
reported for the first quarter of 2002 and $2.2 million or $0.04 per
diluted share reported for the fourth quarter of 2002.
"Our U.S. revenues in Q1 2003 increased 3% compared with the first
quarter of 2002, despite the continued slump in IT spending," said
Pete Cittadini, Actuate's president and chief executive officer.
"Outside the US, we have made significant progress with respect to new
management and sales hiring with new leadership now in place in
Europe, Japan and Asia Pacific. We believe we will see the benefits of
these operational changes in the form of increased revenue in the
second half of 2003."
"This week we are shipping Actuate 7 to address the need of Global
9000 companies for a cost-effective platform to quickly build and
manage highly customized Information Applications that empower their
entire user community," continued Cittadini. "The Actuate 7
Information Application platform is centered around our high
performance iServer that can support multiple Information Applications
and scale to serve millions of users. Actuate 7's robust Information
Application development environment enable IT professionals to build a
wide variety of applications including information portals,
performance management dashboards, business analytic applications and
interactive reporting applications. The new platform also introduces
the industry's first ad-hoc query and spreadsheet report creation
tools that require virtually no training. Overall, Actuate 7 fulfills
the vision of empowering 100% of users without sacrificing IT
control."
Significant Q1 accomplishments for Actuate included the following:
-- Added 71 new customers, 15 of which are corporations with
revenues greater than $1 billion;
-- Received 47 repeat orders greater than $100,000;
-- Recorded one transaction greater than $1.0 million;
-- Increased cash, cash equivalents and short-term investments by
$4.0 million during Q1;
-- Increased services gross margin to 59% from 58% in Q4 2002;
-- Reduced days sales outstanding to 77 days, down 4 days from
12/31/02.
During the first quarter, Actuate closed 71 new customers within
its sales channels, continuing an expansion of the company's installed
base across a wide variety of industry segments, particularly
financial services, pharmaceuticals, high-tech, utilities and health
care. New direct customers added in the first quarter included Alza
Corporation, Applied Biosystems, Avnet, Coach, Inc., CSX Corporation,
Employers Reinsurance, Fidelity Investments, KDS France, Liberty
Mutual, Lincoln Financial Group, Macaw Computing, Quest Diagnostics,
SchlumbergerSema, UBS Global Asset Management and Waitrose, among
other companies.
In the first quarter, Actuate received significant repeat orders
from Siebel Systems, BMC Software and Quixtar as well as other repeat
business from American Express, Baxter International, Carlson
Companies, Deutsche Bank, U.S. Treasury, Johnson & Johnson, IBM Global
Services, The McGraw-Hill Company, Ortho-McNeil Pharmaceuticals and
PNC Bank, among others.
Conference Call Information
Actuate will be holding a conference call at 2 p.m. Pacific Time,
today, April 29, 2003 to discuss first quarter 2003 results. The
dial-in number for the call is 973-528-0008. The conference call will
be simultaneously broadcast live on the Investor Relations portion of
Actuate's web site at www.actuate.com and will be available as an
archived replay at the same location until approximately May 13, 2003.
About Actuate Corporation
Actuate Corporation is the world leader in empowering enterprise
users with Information Applications. Actuate's Information Application
Platform is the foundation on which Global 9000 organizations
(companies with annual revenues greater than $1 billion) and packaged
application software vendors create Business Performance Management
(BPM) dashboards, Information Portals as well as business analytic,
enterprise reporting and spreadsheet reporting applications.
Information Applications built with Actuate can empower 100 percent of
an organization's user community inside and outside the firewall, and
thereby allow companies to increase their business agility, improve
customer and partner relationships, adhere to corporate governance
policies, and increase revenues while leveraging existing technology
assets. When tested against other alternatives, Actuate's Information
Application Platform has been proven to offer the best performance,
highest scale and lowest Total Cost of Ownership. Actuate has over
2,000 direct customers and 300 OEM partners in the financial services,
pharmaceutical, insurance, logistics and government industries among
other sectors.
Founded in 1993, Actuate has headquarters in South San Francisco,
Calif., and has offices worldwide. For more information on Actuate,
visit the company's Web site at www.actuate.com.
Actuate is a registered trademark of Actuate Corporation. All
other products and corporate names referenced are trademarks of their
respective companies.
The statements contained in this release that are not purely
historical are forward looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, including
statements regarding Actuate's expectations, beliefs, hopes,
intentions or strategies regarding the future. All forward-looking
statements in this release are based upon information available to
Actuate as of the date hereof, and Actuate assumes no obligation to
update any such forward-looking statements. Actual results could
differ materially from Actuate's current expectations. Factors that
could cause or contribute to such differences include, but are not
limited to, the general spending environment for information
technology products and services in general and Information
Application software in particular, quarterly fluctuations in our
revenues and other operating results, our ability to expand our
international operations, our ability to successfully compete against
current and future competitors, the outcome of our litigation with
MicroStrategy Incorporated, the impact of future acquisitions on the
company's financial and/or operating condition, the ability to
increase revenues through our indirect channels, general economic and
geopolitical uncertainties and other risk factors that are discussed
in Actuate's Securities and Exchange Commission filings, specifically
Actuate's 2002 Annual Report on Form 10-K filed on March 28, 2003.
Certain financial measures contained in this press release have
not been calculated in accordance with Generally Accepted Accounting
Principles (GAAP). The Company believes that such non-GAAP financial
measures are useful to investors in evaluating the Company's financial
performance because they exclude certain non-cash and non-recurring
expenses that the Company believes are not indicative of its ongoing
operations. However, a detailed reconciliation between the Company's
GAAP and non-GAAP financial results is provided in this press release
and investors are encouraged to carefully review and consider this
information as well as the GAAP financial results that are disclosed
in the Company's SEC filings.
ACTUATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, Dec. 31,
2003 2002
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $25,160 $23,595
Short-term investments 23,657 21,272
Accounts receivable, net 21,853 23,979
Other current assets 2,991 3,659
--------- ---------
Total current assets 73,661 72,505
Property and equipment, net 5,840 6,204
Goodwill and other intangibles, net 25,150 26,146
Deferred income taxes 2,140 2,140
Other assets 1,628 1,441
--------- ---------
$108,419 $108,436
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,372 $3,071
Current portion of restructuring liabilities 2,925 3,481
Accrued compensation 3,921 4,947
Other accrued liabilities 7,565 6,909
Income taxes payable 465 950
Deferred revenue 23,287 23,273
--------- ---------
Total current liabilities 42,535 42,631
--------- ---------
Restructuring liabilities, net of current portion 16,752 17,382
Stockholders' equity 49,132 48,423
--------- ---------
$108,419 $108,436
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ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2003 2002
-------- --------
Revenues:
License fees $11,190 $16,906
Services 14,324 11,895
-------- --------
Total revenues 25,514 28,801
-------- --------
Costs and expenses:
Cost of license fees 385 557
Cost of services 5,903 6,252
Sales and marketing 11,188 13,321
Research and development 4,569 4,847
General and administrative 3,742 3,321
Amortization of other intangibles 996 1,091
-------- --------
Total costs and expenses 26,783 29,389
-------- --------
Loss from operations (1,269) (588)
Interest and other income, net 159 189
-------- --------
Loss before income taxes (1,110) (399)
Benefit for income taxes 488 150
-------- --------
Net loss $(622) $(249)
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Basic and diluted net loss per share $(0.01) $0.00
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Shares used in basic and diluted per share
calculation 60,227 60,315
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ACTUATE CORPORATION
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2003 2002
------- -------
Supplemental information:
Net loss $(622) $(249)
Add back charges:
Certain legal costs (1) 1,685 125
Idle facility expense - 935
Amortization of other intangibles 996 1,091
------- -------
Total add back charges 2,681 2,151
------- -------
Provision for income taxes (2) (1,077) (807)
------- -------
Non-GAAP net income $982 $1,095
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Non-GAAP basic net income per share $0.02 $0.02
======= =======
Shares used in basic per share calculation 60,227 60,315
======= =======
Non-GAAP diluted net income per share $0.02 $0.02
======= =======
Shares used in diluted per share calculation 60,998 63,614
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(1) Legal costs related to the litigation with MicroStrategy
Incorporated.
(2) The provision for income taxes used in arriving at the
non-GAAP net income for the three months ended March 31, 2003 and
2002, was computed using an income tax rate of 37.5%. The computation
of the provision for income taxes used in arriving at the non-GAAP net
income for the periods above has taken into account the effect of
these add back charges described above. The amount of provision for
income taxes used in arriving at the non-GAAP net income does not
reflect the actual or future expected provision for income taxes.
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
2003 2002
-------- --------
Operating activities
Net loss $(622) $(249)
Adjustments to reconcile net loss to net cash from
operating activities:
Amortization of deferred compensation 26 82
Amortization of other intangibles 996 1,091
Depreciation 843 1,121
Changes in operating assets and liabilities:
Accounts receivable 2,126 625
Other current assets 668 188
Accounts payable 1,301 1,842
Accrued compensation (1,026) (817)
Other accrued liabilities 656 (922)
Income taxes payable (485) (47)
Restructuring liabilities (1,186) -
Deferred revenue 14 (51)
-------- --------
Net cash provided by operating activities 3,311 2,863
-------- --------
Investing activities
Purchases of property and equipment (479) (117)
Proceeds from maturity of short-term investments 12,028 4,050
Purchases of short-term investments (14,421) (19,928)
Final purchase price payment in connection with
Open Software Technology acquisition - (2,033)
Net change in other assets (187) (112)
-------- --------
Net cash used in investing activities (3,059) (18,140)
-------- --------
Financing activities
Proceeds from issuance of common stock 1,344 2,514
-------- --------
Net cash provided by financing activities 1,344 2,514
-------- --------
Net increase (decrease) in cash and cash equivalents 1,596 (12,763)
Effect of exchange rate on cash (31) (252)
Cash and cash equivalents at the beginning of the
period 23,595 34,660
-------- --------
Cash and cash equivalents at the end of the period $25,160 $21,645
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CONTACT: Actuate Corporation
Keren Ackerman, 650/837-4545
kackerman@actuate.com