Exhibit 99.1
Plumtree Software Announces Record Quarterly Revenue and Increased
Profitability; Plumtree Records Fourth Consecutive Quarter of
Revenue Growth, Adds $2.1 Million in Cash
SAN FRANCISCO--(BUSINESS WIRE)--April 26, 2005--Plumtree Software
(Nasdaq:PLUM) today announced results for its first quarter ended
March 31, 2005. Revenue for the first quarter of 2005 was $24.6
million, compared to $24.5 million in revenue for the fourth quarter
of 2004 and $17.7 million for the comparable quarter last year,
representing a 39.0% revenue increase over the first quarter of 2004,
and a 0.4% revenue growth over the fourth quarter of 2004. Net income
for the first quarter of 2005 calculated in accordance with generally
accepted accounting principles (GAAP) was $259,000, or $0.01 per
share, compared to net income of $140,000, or $0.00 per share, for the
fourth quarter of 2004 and a net loss of $3.4 million, or $0.11 per
share, for the first quarter of 2004. Non-GAAP net income for the
first quarter of 2005 was $307,000, or $0.01 per share, compared to
non-GAAP net income of $416,000, or $0.01 per share, for the fourth
quarter of 2004 and non-GAAP net loss of $2.6 million, or $0.08 per
share, for the first quarter of 2004.
Non-GAAP net income (loss) 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 March 31, 2005, Plumtree's cash, cash equivalents and
short-term investments were $67.2 million, an increase of
approximately $2.1 million from $65.0 million in the fourth quarter in
2004. Plumtree has no long-term debt.
"We are very pleased with the results of the first quarter,
achieving record revenues and our fourth consecutive quarter of
sequential revenue growth," said John Kunze, CEO and president of
Plumtree Software. "We attribute our results to successful management
and structural changes implemented over the past few quarters, along
with enterprises' demand for software solutions that allow them to
develop composite applications with a significant return on
investment.
"Looking toward Q2, we expect to maintain our revenue momentum and
at the same time accelerate product development to leverage customer
demand for new packaged applications targeted to an industry specific
business process solution."
First Quarter Highlights
2005 first quarter highlights include:
Customer Success: Plumtree signed 60 transactions this quarter,
adding 16 new customers, including Americo Financial Life and Annuity
Insurance, American Osteopathic Information Association, Camico Mutual
Insurance, Consortium Health Plans, Defense Contract Management
Agency, Motive, Inc. and University of Waikato.
Integrated Activity Management
Industry analysts continue to view Plumtree's portal platform as a
natural framework to deploy innovative composite applications and as
the first step in building a service-oriented architecture platform.
Defined as Integrated Activity Management (IAM), these applications
connect disparate people, systems and business processes across the
enterprise. In the first quarter of 2005, Plumtree saw a rise in
customers deploying IAM applications using Plumtree's portal platform.
In the public sector, government applications are helping customers
expand public access to information and services, improve internal
information management and day-to-day efficiency, and collaborate
effectively with private sector partners or other government
organizations. In addition, Plumtree's financial services sector
experienced significant growth as demand for financial applications in
investments and financial planning, customer banking, insurance and
mortgages increased. Finally, the business for external-facing portals
has grown significantly, representing 36 percent of Plumtree's
customers across many vertical markets, such as automotive,
government, financial services, manufacturing and retail.
One such customer is International Aero Engines (IAE), a
multinational aero engine consortium whose shareholders comprise of
Pratt & Whitney, Rolls-Royce, the Japanese Aero Engines Corporation
and MTU Aero Engines. More than 5,000 V2500-powered aircraft have been
delivered with a total order book of over $35 billion since the
company's inception in 1983.
One of the main challenges faced by IAE was sharing information
with its worldwide support representatives and international customer
base. To meet this challenge, IAE deployed an external-facing portal
on the Plumtree platform to provide employees, partners, suppliers,
and customers across 122 companies with up to date, customized
information regarding the V2500 product-in-service. By giving
customers access to relevant and timely data and sharing applications,
IAE has been able to remain highly competitive and significantly
improve its quality of service.
Corporate Update
As a part of ongoing efforts to provide customers with an open
portal platform to build integrated activity-based composite
applications, Plumtree launched an expanded, global channel program
called Synergy Alliance. Plumtree is the only portal vendor that
supports both J2EE and .NET, helping to provide Synergy Alliance
partners with the ability to quickly and easily develop applications
and portal solutions designed to meet customers' needs, while not
limiting their development to a single platform.
Major Product Updates
Plumtree announced Analytics Server, a new product that delivers
real-time reporting on portal activity and content usage. By tracking
the use of portal applications and information across the enterprise,
Plumtree customers can increase portal return on investment (ROI),
reduce infrastructure costs and improve employee, customer and partner
satisfaction.
Industry Recognition
Plumtree was named as one of KMWorld's "100 Companies that Matter
in Knowledge Management 2005." Each year, the publication honors
organizations that are leading the way in the knowledge economy.
Additionally, MassHousing, an affordable housing bank of the
Commonwealth of Massachusetts, was honored by the Computerworld Honors
Program for its innovative use of Plumtree's portal technology. The
Web-based portal solution provided by Plumtree helps MassHousing
automate mortgage loans that serve low- and moderate-income people.
Established in 1988, the Computerworld Honors Program is dedicated to
identifying the men and women, organizations and institutions who are
leading the global information technology revolution and recording the
impact of their achievements on society.
Q2 2005 Financial Outlook
Plumtree Software currently anticipates second quarter 2005
revenue to be between $24.5 million and $25.5 million. Second quarter
2005 GAAP net (loss) / income is currently expected to be between
($0.01) and $0.01 per share, excluding amortization of deferred
stock-based compensation estimated to be $40,000, and assuming an
effective tax rate of 30% on net income, if any. Giving effect to
these exclusions, on a non-GAAP basis, the company projects second
quarter 2005 net (loss) / income between ($0.01) 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 first quarter on Tuesday, April
26, 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 888-455-9641 domestically or
210-234-0002 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 second quarter 2005 financial results. An
audio replay of the call will also be available until May 11, 2005.
The dial-in number for the audio replay is 800-860-4708 domestically
and 402-280-9972 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 Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements include: statements
regarding our current financial outlook for the second quarter of
2005; our expected revenue and net income and our ability to maintain
revenue momentum; anticipated positive trends in our business; our
expectation of leveraging prior investments in the business; and our
ability to accelerate product development to leverage customer demand
for new packaged applications targeted to a variety of industries;
anticipated product benefits and customer ROI from our products; and
continued growth in our markets, including the markets for Integrated
Activity Management applications and external-facing portals. 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 industry developments or our new product offerings. The markets
for our products may not continue to grow. 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, in an increasingly competitive and consolidating industry
environment, that may have longer operating histories, more
established product offerings and greater resources; and our success
in building product pipeline, improving sales execution and achieving
growth. 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)
(unaudited)
Three Months
Ended
March 31,
2005 2004
Revenue:
License 9,990 6,871
Service and maintenance 14,588 10,852
--------- --------
Total revenue 24,578 17,723
Cost of revenue:
License 169 429
Service and maintenance 5,567 4,119
Amortization of stock-based compensation &
acquired technology 1 446
--------- --------
Total cost of revenue 5,737 4,994
--------- --------
Gross margin 18,841 12,729
Operating expenses:
Research and development 6,588 5,509
Sales and marketing 9,310 8,011
General and administrative 2,706 2,387
Amortization of stock-based compensation 2 184
--------- --------
Total operating expenses 18,606 16,091
--------- --------
Income (loss) from operations 235 (3,362)
Interest and other income, net 201 149
--------- --------
Income (loss) before income taxes 436 (3,213)
Provision for income taxes 177 162
--------- --------
Net income (loss) 259 (3,375)
========= ========
Net income (loss) per share:
Basic 0.01 (0.11)
========= ========
Diluted 0.01 (0.11)
========= ========
Shares used to compute net income (loss) per share:
Basic 32,774 31,478
========= ========
Diluted 35,905 31,478
========= ========
PLUMTREE SOFTWARE, INC.
NON GAAP(1) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
/--------------- Non GAAP ---------------/
(unaudited)
Three Months
Ended
March 31,
2005 2004
Revenue:
License 9,990 6,871
Service and maintenance 14,588 10,852
--------- --------
Total revenue 24,578 17,723
Cost of revenue:
License 169 429
Service and maintenance 5,567 4,119
--------- --------
Total cost of revenue 5,736 4,548
--------- --------
Gross margin 18,842 13,175
Operating expenses:
Research and development 6,588 5,509
Sales and marketing 9,310 8,011
General and administrative 2,706 2,387
--------- --------
Total operating expenses 18,604 15,907
--------- --------
Non GAAP income (loss) from operations 238 (2,732)
Interest and other income, net 201 149
--------- --------
Non GAAP income (loss) before income taxes 439 (2,583)
Non GAAP income taxes(2) 132 0
--------- --------
Non GAAP net income (loss) 307 (2,583)
========= ========
Non GAAP net income (loss) per share:
Basic 0.01 (0.08)
========= ========
Diluted 0.01 (0.08)
========= ========
Shares used to compute net income (loss) per share:
Basic 32,774 31,478
========= ========
Diluted 35,905 31,478
========= ========
(1) Non GAAP Statements of Operations excludes $3, $236 of
amortization of stock based compensation, respectively and $0
and $394 of amortization of acquired technology, respectively.
(2) Assumes an annualized effective tax rate of 30% on net income,
if any.
PLUMTREE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
As of As of
March 31, December
2005 31, 2004
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $67,182 $65,034
Accounts receivables, net of allowances 19,020 20,552
Other current assets 2,780 2,313
----------- ----------
Total current assets 88,982 87,899
Property and equipment, net 2,520 2,532
Other long-term assets 338 380
----------- ----------
$91,840 $90,811
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,947 $1,841
Accrued and other current liabilities 13,492 14,944
Current Portion of deferred revenues 21,456 20,804
----------- ----------
Total current liabilities 36,895 37,589
Long-term liabilities 2,258 2,216
----------- ----------
Total Liabilities 39,153 39,805
Total Stockholders' Equity 52,687 51,006
----------- ----------
----------- ----------
$91,840 $90,811
=========== ==========
CONTACT: Plumtree Software
Marissa Lee, 415-399-7109 (Press)
Marissa.Lee@plumtree.com
or
Market Street Partners
JoAnn Horne, 415-445-3234 (Investors)
joann@marketstreetpartners.com
Rob Walker, 415-445-3234 (Investors)
rwalker@marketstreetpartners.com