Exhibit 99.1
Plumtree Software Announces Third Quarter 2004 Operating Results;
Posts a 15% Sequential Increase in Revenues
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 20, 2004--Plumtree Software
(Nasdaq:PLUM) today announced results for its third quarter ended
September 30, 2004. Revenue for the third quarter of 2004 was $22.5
million, compared to $19.5 million in revenue for the second quarter
of 2004 and $18.5 million for the comparable quarter last year. Net
loss for the third quarter of 2004 calculated in accordance with
generally accepted accounting principles (GAAP) was $2.7 million, or
$0.08 per share, compared to a net loss of $3.7 million, or $0.12 per
share, for the second quarter of 2004, and net loss of $373,000, or
$0.01 per share, for the comparable quarter last year. Non-GAAP net
loss for the third quarter of 2004 was approximately $2.1 million, or
$0.06 per share, compared to non-GAAP net loss of $2.7 million or
$0.09 per share, for the second quarter of 2004 and non-GAAP net
income of $603,000, or $0.02 per share, for the comparable quarter
last year.
Non-GAAP net income or loss excludes charges for amortization of
deferred stock-based compensation, amortization of acquired
technology, charges related to restructuring, and assumes an effective
tax rate of 30% on net income, if any. A reconciliation of these
non-GAAP results to GAAP results is included in the financial tables
below.
As of September 30, 2004, Plumtree's cash, cash equivalents and
short-term investments were $61.4 million, down from $62.8 million in
the previous quarter in 2004. Plumtree has no long-term debt.
"We are very pleased that we posted our second consecutive quarter
of sequential revenue growth, which we believe is the result of a
number of positive trends in our business," said John Kunze, CEO and
President of Plumtree Software. "First, we began shipping our new Java
release this quarter, and closed a number of significant transactions.
We also benefited from a strong government year-end close. Finally, we
believe the market is starting to understand the value of integrating
business activities, which include the ability to use information from
various systems with workflow, content, collaboration and identity
management to automate processes that have historically been manual."
Mr. Kunze continued, "The new management team put in place over
the past few months was a key factor in our growth this quarter, and
we look for their efforts to maintain this positive momentum for the
balance of the year."
Third Quarter Highlights
Third quarter 2004 highlights include:
Customer Success: Plumtree completed 69 transactions this quarter,
adding 26 new customers including Southern California Edison, a
Fortune 500 bank, one of the world's largest mobile phone operators
and a leading global clinical trials research and management provider.
Plumtree saw significant add-on purchases from the Defense Finance and
Accounting Service, Enbridge Gas Distribution, the Agency for
Healthcare Research and Quality, an operating division of the U.S.
Department of Health and Human Services, and one of the world's
largest integrated oil companies.
Expanded Company Charter: At Plumtree's highly successful user
conference last week, Plumtree announced an expanded company charter
aimed at delivering a new breed of composite applications named
Integrated Activity Management (IAM) applications. These applications
are designed to coordinate the collaborative activities and
human-driven processes that fall between the gaps of traditional
packaged applications, empowering customers to be more agile in
responding to business challenges and opportunities. Over 700
customers, partners and analysts converged at the event to discuss the
business improvements customers have achieved via Plumtree-powered
applications.
Java and .NET Platform Parity: Plumtree released its much
anticipated Java portal suite, the Plumtree Corporate Portal 5.0J,
late in the third quarter of 2004. Thanks in great part to this
release, Plumtree closed three deals exceeding $1 million in the third
quarter. According to Gene Phifer, Distinguished Analyst and Vice
President at Gartner Inc., "It is very rare for portal software
vendors to support both native Java and .NET versions of their
platform simultaneously. In heterogeneous environments, this gives
customers an added level of flexibility."
Major Product Upgrades and New Developer Tools: At Odyssey 2004,
Plumtree announced new versions of its Collaboration and Content
Management products, adding integration with desktop and personal
productivity tools, as well as developer tools that let customers
quickly assemble new applications using the Plumtree platform. Earlier
in the quarter, Plumtree introduced a new Developer Support Program
that expands developer assistance with a comprehensive package of
programming services and dedicated phone and onsite support from
Plumtree experts.
Q4 2004 Financial Outlook
Plumtree Software currently anticipates fourth quarter 2004
revenue to be between $22.5 million and $23.5 million. On a non-GAAP
basis, the company projects a fourth quarter 2004 net loss between
$0.04 and $0.06 per share. Non-GAAP net loss per share in Plumtree's
fourth quarter outlook excludes amortization of deferred stock-based
compensation estimated to be $50,000, amortization of acquired
technology of approximately $300,000, and assumes an effective tax
rate of 30% on net income, if any. Giving effect to these exclusions,
fourth quarter 2004 GAAP net loss is currently expected to be between
$.06 and $.08 per share. For a discussion of factors that could cause
actual results to differ materially from these targets, see "Safe
Harbor Statement and Caution" below.
Conference Call
Interested parties can hear the conference call concerning
Plumtree's financial results for the third quarter on Wednesday,
October 20, 2004 at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time)
via live Webcast by visiting www.plumtree.com/ir, or alternatively,
they may listen to a teleconference by calling 800-857-3793
domestically or 630-395-0019 Internationally. The passcode for the
teleconference is Plumtree. The Webcast replay of the call will be
available at www.plumtree.com/ir from the conclusion of the initial
Webcast until the release of Plumtree's fourth quarter 2004 financial
results. An audio replay of the call will also be available until
November 6, 2004. The dial-in number for the audio replay is
800-925-2063 domestically and 402-998-0601 internationally. The
passcode for the audio replay is Plumtree.
About Plumtree Software
Plumtree Software is a global pioneer in creating advanced
software environments where information resources work together with
human ingenuity. Well established as the portal thought leader,
Plumtree enables a full, rich suite of applications that coordinate
human-managed activities across systems, processes and business
boundaries. With its flexible and open portal system, Plumtree
delivers smart solutions throughout the enterprise and beyond.
Progressive enterprises large and small, like Airbus, Mazda, Pratt &
Whitney and the U.S. Navy depend on Plumtree to help them rapidly
harness untapped potential in their organizations. For more
information, visit www.plumtree.com.
Plumtree is a registered trademark of Plumtree Software, Inc.
and/or its subsidiaries in the U.S. and/or other countries. All other
registered and unregistered trademarks in this document are the sole
property of their respective owners.
Safe Harbor Statement and Caution
This press release contains forward-looking statements within the
meaning of the Federal Securities laws. These forward-looking
statements include: statements regarding our current financial outlook
for the fourth quarter of 2004; increased market awareness of the
value of integrating business activities to automate processes that
have historically been manual; our expected revenue and sales growth;
anticipated positive trends in our business; expected success of our
new product offerings; anticipated benefits from our key senior
management additions and recent sales and channel executive hirings;
and the anticipated benefits of our recently announced composite
Integrated Activity Management (IAM) applications. These forward
looking statements are subject to numerous risks and uncertainties and
actual results may vary materially. We may not achieve anticipated
future operating results or the benefits expected from our new product
developments and our new management and sales personnel. Our success
depends on, among other factors, continued customer demand and
interest in our current and new products; our success in building
product pipeline, improving sales execution and achieving growth
through our solutions sales model, through our recent sales
realignment, management additions and otherwise; and the success of
our channel initiatives and developer program. Other risks and
uncertainties include risks associated with an uncertain general
economic environment; adverse conditions in worldwide IT spending
trends; failure to expand our customer base; the impact of increasing
competition; the length and complexity of Plumtree's sales cycle; the
success of major version releases, new platforms, applications and
tools; the ability of our customers to deploy our products
successfully and their willingness to act as references; changes in
the needs and priorities of existing and potential customers; failure
to manage technological change; our ability to expand into and within
global markets; our ability to manage costs; our ability to provide a
return on investment to our customers; the impact of geopolitical
conflicts and events; and those other risks and uncertainties
contained in the Company's most recent Annual Report filed with the
Securities and Exchange Commission ("SEC") on Form 10-K, and all
subsequent SEC filings. Copies of filings made with the SEC are
available through the SEC's electronic data gathering analysis
retrieval system (EDGAR) at www.sec.gov. We undertake no obligation
following the date of this release to update or revise our
forward-looking statements or to update the reasons actual results
could differ materially from those anticipated in forward-looking
statements. We caution you not to place undue reliance upon any such
forward-looking statements, which speak only as of the date such
statements are made. Past performance is not indicative of future
results. We cannot guarantee any future operating results, activity,
performance or achievement.
Each third party opinion or survey results noted in this release
contains only one subjective evaluation of a technology market,
representing marketplace characteristics at a given time and are
subject to change without notice. These results and opinions should
not be deemed to be an endorsement of Plumtree or any company or
product. Any analyst opinion or survey represents only one of many
information sources available and decision-makers should not rely
solely on any one evaluation. Industry surveys and published analyst
opinions are not an indication of future results. We caution you not
to place undue reliance upon any survey or analyst report.
Use of GAAP and Non-GAAP Results
Plumtree's management believes that a presentation of operating
costs and expenses excluding amortization of deferred stock-based
compensation, amortization of acquired technology and charges related
to restructuring, and assuming a fixed effective tax rate, provides a
meaningful basis for evaluating our underlying cost and expense
levels. Presentation of non-GAAP net income and earnings per share
information provides greater comparability of Plumtree's financial
results against historical results as well as those of other
enterprise software companies and financial models of securities
analysts. A reconciliation of non-GAAP results to GAAP results is
provided in the financial tables below.
PLUMTREE SOFTWARE, INC.
PRO FORMA(a) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
/--------- Pro Forma-------------/
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- -----------------
2004 2003 2004 2003
-------- ------- -------- --------
Revenue:
Licenses $10,572 $9,064 $25,354 $25,206
Services and maintenance 11,912 9,416 34,321 27,474
-------- ------- -------- --------
Total revenue 22,484 18,480 59,675 52,680
Cost of revenue:
Licenses 230 259 1,080 887
Services and maintenance 4,876 2,903 13,632 7,893
-------- ------- -------- --------
Total cost of revenue 5,106 3,162 14,712 8,780
-------- ------- -------- --------
Gross margin 17,378 15,318 44,963 43,900
Operating expenses:
Research and development 6,668 5,293 18,063 15,384
Sales and marketing 10,112 8,136 26,747 22,469
General and administrative 2,806 1,660 7,945 4,830
-------- ------- -------- --------
Total operating expenses 19,586 15,089 52,755 42,683
-------- ------- -------- --------
Pro forma income (loss) from
operations (2,208) 229 (7,792) 1,217
Interest and other income, net 136 633 425 1,170
-------- ------- -------- --------
Pro forma income (loss) before
income taxes (2,072) 862 (7,367) 2,387
Pro forma income taxes (b) - 259 - 716
-------- ------- -------- --------
Pro forma net income (loss) $(2,072) $603 $(7,367) $1,671
======== ======= ======== ========
Pro forma net income (loss) per
share:
Basic $(0.06) $.02 $(0.23) $0.05
======== ======= ======== ========
Diluted $(0.06) $.02 $(0.23) $0.05
======== ======= ======== ========
Shares used to compute net income
(loss) per share:
Basic 32,492 30,962 31,951 30,452
======== ======= ======== ========
Diluted 32,492 33,338 31,951 32,940
======== ======= ======== ========
(a) Pro forma statements of operations excludes $62, $129, $432 and
$1,031 of amortization of stock based compensation, respectively
and $394, $394, $1,183 and $1,183, of amortization of acquired
technology, respectively. In addition, the Pro Forma Statement of
Operations for the nine months ended September 30, 2004 and 2003
excludes $307 and $495 respectively of restructuring costs.
(b) Assumes an annualized effective tax rate of 30% on net income, if
any.
PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- -----------------
2004 2003 2004 2003
-------- ------- -------- --------
Revenue:
Licenses $10,572 $9,064 $25,354 $25,206
Services and maintenance 11,912 9,416 34,321 27,474
-------- ------- -------- --------
Total revenue 22,484 18,480 59,675 52,680
Cost of revenue:
Licenses 230 259 1,080 887
Services and maintenance 4,876 2,903 13,632 7,893
Amortization of stock-based
compensation & acquired
technology 408 416 1,280 1,361
-------- ------- -------- --------
Total cost of revenue 5,514 3,578 15,992 10,141
-------- ------- -------- --------
Gross margin 16,970 14,902 43,683 42,539
Operating expenses:
Research and development 6,668 5,293 18,063 15,384
Sales and marketing 10,112 8,136 26,747 22,469
General and administrative 2,806 1,660 7,945 4,830
Restructuring charges - 475 307 475
Amortization of stock-based
compensation 48 107 335 853
-------- ------- -------- --------
Total operating expenses 19,634 15,671 53,397 44,011
-------- ------- -------- --------
Income (loss) from operations (2,664) (769) (9,714) (1,472)
Interest and other income, net 136 633 425 1,170
-------- ------- -------- --------
Income (loss) before income
taxes (2,528) (136) (9,289) (302)
Provision for income taxes 175 237 476 613
-------- ------- -------- --------
Net income (loss) $(2,703) $(373) $(9,765) $(915)
======== ======= ======== ========
Net income (loss) per share:
Basic $(0.08) $(0.01) $(0.31) $(0.03)
======== ======= ======== ========
Diluted $(0.08) $(0.01) $(0.31) $(0.03)
======== ======= ======== ========
Shares used to compute net income
(loss) per share:
Basic 32,492 30,962 31,951 30,452
======== ======= ======== ========
Diluted 32,492 30,962 31,951 30,452
======== ======= ======== ========
PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
September 30, December 31,
------------- -------------
2004 2003
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $61,388 $67,689
Accounts receivables, net of allowances 21,621 17,171
Other current assets 3,551 2,079
------------- -------------
Total current assets 86,560 86,939
Property and equipment, net 1,999 1,798
Other long-term assets 773 2,025
------------- -------------
$89,332 $90,762
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,991 $1,312
Accrued and other current liabilities 15,268 12,084
Deferred revenues 19,152 18,366
------------- -------------
Total current liabilities 36,411 31,762
Long-term liabilities 2,219 1,109
------------- -------------
Total Liabilities 38,630 32,871
Total Stockholders' Equity 50,702 57,891
------------- -------------
$89,332 $90,762
============= =============
CONTACT: Plumtree Software
Carilu Dietrich, 415-399-7047 (Press Contact)
Carilu.Dietrich@plumtree.com
or
Market Street Partners
JoAnn Horne, 415-445-3233 (Investor Contact)
Joann@marketstreetpartners.com