Exhibit 99.1
I-many Releases Fourth-Quarter 2003 Results and Outlines 2004
Strategic Plan; New Products, ECMF Platform to Drive Performance
EDISON, N.J.--Feb. 3, 2004--I-many, Inc. (NASDAQ:IMNY), the leader
in enterprise contract management solutions, reported financial
results for the fourth quarter and full-year 2003.
Net revenues for the fourth quarter totaled $10.8 million, an
increase of 48.2% versus the $7.3 million reported in the third
quarter of 2003 and a decrease of 7.6% versus the $11.7 million
reported in the fourth quarter of 2002. License revenue increased
249.7% from $1.2 million in the third quarter of 2003 and decreased
32.5% from $6.4 million in the fourth quarter of 2002. Service revenue
of $6.5 million represented an increase of 7.4% versus $6.1 million in
the third quarter and an increase of 22.1% from $5.3 million in the
fourth quarter of 2002.
Net revenues for the full year 2003 totaled $39.4 million versus
$54.7 million for the full year 2002. Of this total, license revenue
decreased 53.6% to $14.3 million, and services revenue increased 5.0%
to $25.1 million, from the full year 2002.
GAAP loss for the fourth quarter was $(0.11) per share versus
$(0.46) in the fourth quarter 2002. On a pro forma basis, the loss for
the fourth quarter 2003 was $(0.02) per share versus $(0.07) in fourth
quarter 2002. GAAP loss for 2003 was $(0.98) per share versus $(0.69)
in 2002. On a pro forma basis, the 2003 loss was $(0.31) per share
versus $(0.12) in 2002. Pro forma net loss per share differs from GAAP
loss per share as it excludes impairment of goodwill and acquired
intangible assets, non-cash charges for amortization of acquired
intangibles, depreciation expense, non-cash option and warrant
charges, restructuring and other charges, terminated deal transaction
costs and in-process research and development. A more detailed
reconciliation of the differences between pro forma and GAAP results
is included in the financial tables in this press release.
Total deferred revenue at quarter-end was $11 million versus $7.6
million at December 31, 2002 and $10.4 million at September 30, 2003.
Year-end cash including restricted cash and short-term investments
stood at $25.1 million as of December 31, 2003 versus $37.1 million as
of December 31, 2002.
Significant achievements in the quarter include:
-- 5 new customers including: a top 20 pharmaceutical
manufacturer; and Rona, Canada's leading home improvement
products retailer and one of that country's largest retailers
-- Broadened product sales to 7 existing customers
-- Strengthened Silicon Valley product development team
-- New versions of Contract Manager, Compliance Manager,
Collections Manager, CARS and I-many Enterprise Contract
Management Foundation
I-many CEO and president A. Leigh Powell commented, "I am very
excited about our performance and overall achievements in the fourth
quarter. We delivered revenue at the high end of our guidance range;
further reduced our cost structure; landed significant new customers,
bringing us to 18 of the top 20 largest pharmaceutical companies in
the world; and supported a substantial number of successful customer
"go-lives." Additionally, we significantly strengthened our Silicon
Valley based development center team, released generation 2.0 of
I-many Enterprise Contract Management Platform (ECMF), a true
Enterprise Class Contract Management platform, and made meaningful
inroads into new vertical market segments."
Mr. Powell continued, "I-many is leading the development of an
emerging market that is gaining traction with corporations across
industries. Our first-mover advantage put us far ahead of the contract
management development curve, and we are committed to extending this
lead with greater breadth of product, functionality, ease of use and
service. 2004 will be a year in which we focus on leveraging our
development investment to new verticals against the backdrop of a
leaner, stronger operating base. We are very excited about the
potential ahead and about the strength of our leadership position as
this market continues to fully develop."
2004 Strategic Plan
In 2004, I-many will launch an aggressive product introduction
plan that leverages a focused 2-plus year next generation R&D
development process and 14 years of experience as a Contract
Management pioneer with the next generation of ContractSphere and its
accompanying I-many ECMF platform. Elements of this plan include:
-- Product - Release the next-generation enterprise platform,
ECMF 3.0, an enhanced backbone supporting a wider variety of
modular products; Launch industry-agnostic modular products to
create a new suite designed to expand the breath and
functionality of current generation ContractSphere; Extend
core product capabilities via the ECMF platform to mirror
industry specific needs and requirements.
-- Sales and Service - Managed adoption and/or migration of
existing and new customers onto ECMF 3.0; Cross-sell
additional modules and seed new customers and new verticals
with strong reference accounts.
2004 Guidance
Financial Goals
-- Revenues of $20-22 million for the first half of 2004, with
the Life Science segment sales planned flat and Non-Life
Science revenue planned up;
-- Total GAAP operating expenses including cost of revenue of
$24.5 to $25.8 million for the first half of 2004 versus $49.9
million for the first half of 2003;
-- Total pro forma cash operating expenses of $20.5 to $21.5
million for the first half of 2004 versus $28.2 million for
the first half of 2003 (pro forma cash operating expenses
differ from GAAP operating expenses as it excludes impairment
of goodwill and acquired intangible assets, non-cash charges
for amortization of acquired intangibles, depreciation
expense, non-cash option and warrant charges, restructuring
and other charges, terminated deal transaction costs and
in-process research and development estimated to be $4.0 to
$4.3 million in the first half of 2004);
-- Cash and short term investments by the end of the first half
of $21-$24 million
Mr. Powell concluded, "I-many's next-gen ContractSphere suite is
designed to build on our existing product leadership to deliver broad
based, full contract life-cycle management capabilities across a wide
variety of industries and contract types, while offering the
flexibility to deploy industry specific capabilities in a common
infrastructure. In preparation, over the past 9 months we have
realigned and revitalized our selling staff, with new, highly capable
leadership. Our sales team is energized, and is aggressively
emphasizing to customers ContractSphere's competitive advantages of
expansive functionality, applicability for all contract types on
either the buy or the sell side of the enterprise, strong technology
and unparalleled value proposition. We believe we have the right
people who are committed to building solid and profitable reference
accounts in new verticals while driving repeat sales at existing
customers. We are already seeing stronger cohesiveness and a solid
pipeline of developing customer relationships."
I-many will hold a conference call tomorrow, Wednesday, February
4, 2004, at 10:00 a.m. Eastern Time. The call-in number is (617)
786-2905, passcode #49037753. The call is also being webcast and there
will be an accompanying slide presentation, which can be accessed at
I-many's web site at www.imany.com.
Use of Non-GAAP Financial Information
To supplement our GAAP financial statements, the Company uses
non-GAAP, or pro forma measures of operating results. This non-GAAP
financial information is provided as additional information for
investors and is not in accordance with or an alternative to GAAP.
These adjusted results exclude certain costs, expenses, gains and
losses, and we believe their exclusion can enhance an overall
understanding of our past financial performance and also our prospects
for the future. These adjustments to our GAAP results are made with
the intent of providing both management and investors a more complete
understanding of the operating performance of the Company as opposed
to GAAP results, which may include non-recurring, infrequent or other
non-cash charges associated with restructuring, amortization of
purchased intangibles or impairment losses that are not material to
the ongoing performance of the Company's business. Company management
uses these non-GAAP results as a basis for planning and forecasting
core business activity in future periods. The presentation of this
additional information is not meant to be considered in isolation or
as a substitute for net earnings or diluted earnings per share
prepared in accordance with generally accepted accounting principles
in the United States.
About I-many
I-many (NASDAQ:IMNY) is the leading provider of enterprise
contract management solutions. The company's solutions automate
contracting processes, ensure contract compliance and track contract
performance resulting in higher contract revenues and reduced
operating costs. More than 250 life science, consumer goods, food
service and manufacturing companies use I-many solutions. For more
information, visit the company at http://www.imany.com.
This news release contains forward-looking statements, and actual
results may vary from those expressed or implied herein. Factors that
could affect these results include: the risk of unforeseen technical
or practical impediments to planned software development, which could
affect the Company's product release timetable; the possibility that
current economic conditions will not improve as anticipated; the risk
that the length of the sales cycle for the Company's products will
make the market for the Company's products more unpredictable; the
risk that the Company's historical dependence on the healthcare market
will continue; the risk that the Company will not be successful in
opening new markets for its products; and other risk factors set forth
from time to time in the Company's filings with the Securities and
Exchange Commission.
(tables follow)
I-MANY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three months Year ended
ended December 31, December 31,
2003 2002 2003 2002
-------- --------- -------- ---------
Net Revenues:
Product $4,291 $6,359 $14,287 $30,811
Services 6,501 5,323 25,125 23,935
-------- --------- -------- ---------
Total net revenues 10,792 11,682 39,412 54,746
Cost of revenues 4,103 3,277 15,860 14,425
-------- --------- -------- ---------
Gross profit 6,689 8,405 23,552 40,321
Operating expenses:
Sales and marketing 3,398 5,091 16,087 21,275
Research and development 3,903 4,500 16,743 17,217
General and administrative 1,359 2,016 5,892 6,837
Depreciation 438 618 1,846 2,408
Amortization of acquired
intangible assets 332 1,320 1,988 5,043
In-process research and
development 0 0 0 1,000
Impairment of intangibles 0 13,305 16,786 13,305
Terminated deal transaction
costs 1,121 0 1,121 0
Restructuring and other
charges 625 0 2,813 780
-------- --------- -------- ---------
Total operating expenses 11,176 26,850 63,276 67,865
-------- --------- -------- ---------
Loss from operations (4,487) (18,445) (39,724) (27,544)
Other income, net 31 66 233 251
-------- --------- -------- ---------
Net loss ($4,456)($18,379) ($39,491)($27,293)
======== ========= ======== =========
Basic and diluted net loss per
common share ($0.11) ($0.46) ($0.98) ($0.69)
======== ========= ======== =========
Weighted average shares
outstanding 40,508 40,356 40,445 39,751
======== ========= ======== =========
I-MANY, INC.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2003 2002
------------ ------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $21,864 $35,979
Restricted cash 871 772
Short-term investment 2,019 -
Accounts receivable 10,057 12,557
Other current assets 819 1,052
------------ ------------
Total current assets 35,630 50,360
Property and equipment, net 1,879 3,438
Restricted cash 377 348
Other assets 330 292
Acquired intangible assets, net 2,822 6,828
Goodwill 8,531 23,298
------------ ------------
Total assets $49,569 $84,564
============ ============
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable and accrued expenses $7,472 $9,915
Current portion of deferred revenue 7,940 7,550
Current portion of capital lease
obligations 709 433
------------ ------------
Total current liabilities 16,121 17,898
Deferred revenue, net of current portion 3,056
Capital Lease Obligations, net of current
portion 128 375
Other long-term liabilities 1,109 75
Redeemable Convertible Preferred Stock - -
Stockholders' Equity 29,155 66,216
------------ ------------
Total liabilities and stockholders'
equity $49,569 $84,564
============ ============
I-MANY, INC. AND SUBSIDIARIES
Reconciliation of GAAP Loss to Pro Forma Loss
(in thousands, except per share amounts)
(unaudited)
Three months Year ended
ended December 31, December 31,
2003 2002 2003 2002
--------- --------- --------- ---------
GAAP net loss ($4,456) ($18,379) ($39,491) ($27,293)
Acquisition-related and other
non-cash GAAP charges:
Impairment of goodwill and
acquired intangible assets 0 13,305 16,786 13,305
Amortization of acquired
intangible assets 332 1,320 1,988 5,043
Depreciation expense 438 618 1,846 2,408
Non-cash option and warrant
charges 1,017 142 2,301 142
Restructuring and other
charges 625 0 2,813 780
Terminated deal transaction
costs 1,121 0 1,121 0
In-process research and
development 0 0 0 1,000
--------- --------- --------- ---------
Pro forma net loss ($923) ($2,994) ($12,636) ($4,615)
========= ========= ========= =========
Proforma net loss per common
share ($0.02) ($0.07) ($0.31) ($0.12)
========= ========= ========= =========
Weighted average common shares
outstanding 40,508 40,356 40,445 39,751
========= ========= ========= =========
CONTACT: I-many, Inc.
Kevin Harris, 732/452-1515
Kharris@imany.com
or
Lippert/Heilshorn & Associates
(Investor Relations)
Carolyn Capaccio/David K. Waldman, 212/838-3777
Ccapaccio@lhai.com