Exhibit 99.1
Plumtree Software Announces Record Fourth Quarter,
Full Year 2004 Revenues; Plumtree Reports 18% Year
over Year Revenue Growth, Adds $3.6 Million in Cash
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 27, 2005--Plumtree Software
(Nasdaq:PLUM) today announced results for its fourth quarter ended
December 31, 2004. Revenue for the fourth quarter of 2004 was $24.5
million, compared to $22.5 million in revenue for the third quarter of
2004 and $18.8 million for the comparable quarter last year,
representing a 30% revenue increase over the fourth quarter of 2003,
and an 8% revenue growth over the third quarter of 2004. Revenue for
fiscal year 2004 was $84.1 million, representing 18% year over year
revenue growth over fiscal 2003. Net income for the fourth quarter of
2004 calculated in accordance with generally accepted accounting
principles (GAAP) was $140,000, or $0.00 per share, compared to a net
loss of $2.7 million, or ($0.08) per share, for the third quarter of
2004. Non-GAAP net income for the fourth quarter of 2004 was
approximately $416,000, or $0.01 per share, compared to non-GAAP net
loss of $2.1 million or ($0.06) per share, for the third quarter of
2004.
Non-GAAP net income excludes charges for amortization of
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 December 31, 2004, Plumtree's cash, cash equivalents and
short-term investments were $65 million, an increase of $3.6 million
from $61.4 million in the previous quarter in 2004. Plumtree has no
long-term debt.
"We are very pleased to have achieved our third sequential quarter
of revenue growth," said John Kunze, CEO and President of Plumtree
Software. "With 18% year over year revenue growth and record quarterly
and fiscal revenues, we closed a strong 2004 on a very successful
note."
Mr. Kunze continued, "Over the past three quarters, we achieved
numerous operational objectives and finalized the expansion of our
senior executive management team. We also met our stated goal of
returning to net cash positive, and have completed significant
infrastructure investments in the business. We look to leverage the
benefits of our investments in 2005."
Fourth Quarter Highlights
2004 fourth quarter highlights include:
Customer Success: Plumtree signed 97 transactions this quarter,
adding 38 new customers, including Department of Homeland Security, K.
Hovnanian Companies, LLC, Discount Tire Company, Stiefel Laboratories,
Inc., Exhibitgroup/Giltspur, DRI, Tepco Systems Corporation, Urban
Science, RINA, Sericol, Mars Hill Church and more.
Integrated Activity Management (IAM) Messaging: According to
Gartner and Meta Group, the portal market is evolving into a composite
application framework, a direction supported by Plumtree's corporate
strategy. In October 2004, Plumtree announced an expanded company
charter aimed at delivering a new breed of composite applications
called Integrated Activity Management applications. In this quarter,
Plumtree saw a rise in the number of its customers successfully
building and deploying these sophisticated applications. Syncrude
Canada, the world's largest producer of crude oil from oil sands,
developed an IAM application to track information and complex
decision-making in and out of the field. In creating the application,
many separate back-end systems, mostly for monitoring costs and plant
production information, were integrated. As a result, 80 percent of
Syncrude's mission-critical applications are now available within one
click in the portal. Additionally, different groups within Syncrude
can make collaborative decisions about field operations. Mazda North
American Operations used the Plumtree portal platform to create a
dashboard application for regional managers to analyze consolidated
data regarding sales and customer support performance and to track
sales figures for nation-wide dealerships. With its deployment, the
time it takes for Mazda's regional managers to prepare for dealership
visits and reviews decreased by over 50 percent.
Major Product Updates: Plumtree shipped Collaboration Server 4.0
and Content Server 6.0. In addition, Plumtree released Web Services
based Application Programming Interfaces, or APIs, for both the
Content and Collaboration Server products. Content Server 6.0,
Collaboration Server 4.0, and the APIs released for use with these
products are key elements of Plumtree's platform for delivering
composite applications that integrate human-managed activities across
systems, audiences and business processes.
Industry Recognition: Plumtree was named a leader for its third
consecutive year in Meta Group's METAspectrum report on Enterprise
Portal Frameworks. The report recognized the Plumtree Corporate Portal
5.0 for its best of breed technology that can work across the widest
array of applications and third party infrastructure, and its
compatibility with native Java and .NET. In addition, Plumtree is a
recipient of InfoWorld's 2005 Technology of the Year award. The
Plumtree Enterprise Web Suite was honored with "Best Enterprise
Portal" for its outstanding application deployment and was selected
over IBM and Microsoft by InfoWorld for its ease of integrating with
applications. Each year, InfoWorld recognizes significant technologies
and products that promise to make the greatest impact on enterprise IT
strategies.
New Executive Hires: In continuing to strengthen Plumtree's sales
and marketing teams, Plumtree hired several software industry
veterans, including:
-- Vice president of marketing, Sharon Thompson. Ms. Thompson has
nearly 20 years experience in the marketing arena and has held
various management positions at IBM, Intel, and Informix. Ms.
Thompson will lead the strategy and direction of Plumtree's
communications groups worldwide.
-- Vice president of sales, EMEA, Shak Akhtar. An industry
veteran, Mr. Akhtar has 20 years experience in sales and
operations and held numerous executive and management
positions at QRS Corporation , i2 Technologies, SAP (UK) and
J.D. Edwards (UK). Mr. Akhtar is responsible for driving sales
in the EMEA region.
Q1 2005 Financial Outlook
Plumtree Software currently anticipates first quarter 2005 revenue
to be between $23.0 million and $24.0 million. On a non-GAAP basis,
the company projects first quarter 2005 net income / (loss) between
($0.02) and $0.00 per share. Non-GAAP net loss per share in Plumtree's
first quarter outlook excludes amortization of deferred stock-based
compensation estimated to be $40,000, and assumes an effective tax
rate of 30% on net income, if any. Giving effect to these exclusions,
first quarter 2005 GAAP net loss is currently expected to be between
($0.03) and ($0.01) 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 fourth quarter on Thursday,
January 27, 2005 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 888-655-9181
domestically or 773-756-0108 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 first quarter 2005 financial
results. An audio replay of the call will also be available until
February 11, 2005. The dial-in number for the audio replay is
800-489-7539 domestically and 402-344-6830 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 first quarter of 2005; our expected revenue and sales growth;
anticipated positive trends in our business; our expectation of
leveraging prior investments in the business; expected success of our
new product offerings; anticipated benefits from our management
additions, recent sales and channel executive hirings; completion of
the senior executive management team; the anticipated growth of our
recently announced composite Integrated Activity Management (IAM)
applications; and the increase in the number of customers successfully
building and deploying 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 ability to compete with
our larger competitors that may have longer operating histories, more
established product offerings and greater resources; 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months
Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- -------- --------
(unaudited) (unaudited)
Revenue:
Licenses $10,373 $8,838 $35,727 $34,044
Services and maintenance 14,100 9,934 48,421 37,408
----------- ----------- -------- --------
Total revenue 24,473 18,772 84,148 71,452
Cost of revenue:
Licenses 288 (263) 1,369 625
Services and maintenance 5,405 3,438 19,036 11,331
Amortization of stock-
based compensation &
acquired technology 312 462 1,592 1,823
----------- ----------- -------- --------
Total cost of revenue 6,005 3,637 21,997 13,779
----------- ----------- -------- --------
Gross margin 18,468 15,135 62,151 57,673
Operating expenses:
Research and development 6,432 5,283 24,495 20,667
Sales and marketing 9,669 8,168 36,416 30,637
General and administrative 2,943 2,015 10,889 6,845
Restructuring charges - - 307 475
Amortization of stock-
based compensation 37 265 372 1,117
----------- ----------- -------- --------
Total operating expenses 19,081 15,731 72,479 59,741
----------- ----------- -------- --------
Income (loss) from
operations (613) (596) (10,328) (2,068)
Interest and other income,
net 858 254 1,283 1,425
----------- ----------- -------- --------
Income (loss) before
income taxes 245 (342) (9,045) (643)
Provision for income taxes 105 210 581 824
----------- ----------- -------- --------
Net income (loss) $140 $(552) $(9,626) $(1,467)
=========== =========== ======== ========
Net income (loss) per share:
Basic $0.00 $(0.02) $(0.30) $(0.05)
=========== =========== ======== ========
Diluted $0.00 $(0.02) $(0.30) $(0.05)
=========== =========== ======== ========
Shares used to compute net
income (loss) per share:
Basic 32,302 31,204 32,039 30,640
=========== =========== ======== ========
Diluted 34,216 31,204 32,039 30,640
=========== =========== ======== ========
PLUMTREE SOFTWARE, INC.
NON GAAP(a) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
/--------------- Non GAAP ---------------/
Three Months
Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- -------- --------
Revenue: (unaudited) (unaudited)
Licenses $10,373 $8,838 $35,727 $34,044
Services and maintenance 14,100 9,934 48,421 37,408
----------- ----------- -------- --------
Total revenue 24,473 18,772 84,148 71,452
Cost of revenue:
Licenses 288 (263) 1,369 625
Services and maintenance 5,405 3,438 19,036 11,331
----------- ----------- -------- --------
Total cost of revenue 5,693 3,175 20,405 11,956
----------- ----------- -------- --------
Gross margin 18,780 15,597 63,743 59,496
Operating expenses:
Research and development 6,432 5,283 24,495 20,667
Sales and marketing 9,669 8,168 36,416 30,637
General and administrative 2,943 2,015 10,889 6,845
----------- ----------- -------- --------
Total operating expenses 19,044 15,466 71,800 58,149
----------- ----------- -------- --------
Non GAAP income (loss)
from operations (264) 131 (8,057) 1,347
Interest and other income,
net 858 254 1,284 1,425
----------- ----------- -------- --------
Non GAAP income (loss)
before income taxes 594 385 (6,773) 2,772
Non GAAP income taxes(b) 178 115 - 832
----------- ----------- -------- --------
Non GAAP net income (loss) $416 $270 $(6,773) $1,940
=========== =========== ======== ========
Non GAAP net income (loss)
per share:
Basic $0.01 $0.01 $(0.21) $0.06
=========== =========== ======== ========
Diluted $0.01 $0.01 $(0.21) $0.06
=========== =========== ======== ========
Shares used to compute net
income (loss) per share:
Basic 32,302 31,204 32,039 30,640
=========== =========== ======== ========
Diluted 34,216 34,296 32,039 33,279
=========== =========== ======== ========
(a) Non GAAP Statements of Operations excludes $48, $332, $480 and
$1,364 of amortization of stock based compensation,
respectively and $301, $394, $1,484 and $1,577, of
amortization of acquired technology, respectively. In
addition, the Non GAAP Statement of Operations for the year
ended December 31, 2004 and 2003 excludes $307 and $475
respectively of restructuring costs.
(b) Assumes an annualized effective tax rate of 30% on net income,
if any.
PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
As of As of
December 31, December 31,
2004 2003
------------ ------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $65,034 $67,689
Accounts receivables, net of allowances 20,552 17,171
Other current assets 2,313 2,079
------------ ------------
Total current assets 87,899 86,939
Property and equipment, net 2,532 1,798
Other long-term assets 380 2,025
------------ ------------
$90,811 $90,762
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,841 $1,312
Accrued and other current liabilities 14,944 12,084
Deferred revenues 20,804 18,366
------------ ------------
Total current liabilities 37,589 31,762
Long-term liabilities 2,216 1,109
------------ ------------
Total Liabilities 39,805 32,871
Total Stockholders' Equity 51,006 57,891
------------ ------------
------------ ------------
$90,811 $90,762
============ ============
CONTACT: Plumtree Software
JoAnn Horne, 415-445-3234 (Investors)
JoAnn@MarketStreetPartners.com
Marissa Lee, 415-399-7109 (Press)
Marissa.Lee@Plumtree.com