Exhibit 99.1
Actuate Reports First Quarter 2005 Financial Results;
Revenues of $24.6 Million;
Non-GAAP EPS of $0.02;
$2.8 Million in Cash Flow from Operations
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--April 28,
2005--Actuate Corporation (NASDAQ:ACTU), the world leader in
Enterprise Reporting Applications, today announced its financial
results for the quarter ended March 31, 2005.
Total revenues for the first quarter of 2005 were $24.6 million,
compared with $25.7 million in the same period a year ago. License
revenues for the quarter were $8.9 million, compared with $11.5
million in the same period a year ago. Services revenues totaled $15.7
million for the first quarter of 2005, an increase of 10% compared
with the $14.2 million reported in the same period a year ago. First
quarter 2005 GAAP net income was $245,000, or $0.00 per diluted share,
compared with a net loss of $377,000 or $0.01 per share in the
year-ago quarter.
Non-GAAP operating margin for the first quarter of 2005 was 6.0%
compared with a non-GAAP operating margin of 3.0% for the same period
a year ago. First quarter 2005 GAAP and non-GAAP operating expenses
included $1.2 million (4.9% of revenues) of external auditing and
consulting fees related to Sarbanes-Oxley Section 404 compliance. On a
non-GAAP basis, net income in the first quarter of 2005 was $1.2
million, or $0.02 per diluted share, compared with non-GAAP net income
of $581,000, or $0.01 per diluted share in the year-ago quarter. These
non-GAAP financial measures exclude the amortization of intangibles
and purchased technology, amortization of deferred compensation,
restructuring costs, certain legal fees and an adjustment to the tax
provision. All of these expenses are included in Actuate's GAAP
results.
Cash, cash equivalents and short-term investments as of March 31,
2005 totaled $49.7 million, an increase of $2.4 million compared with
December 31, 2004. Deferred revenue at March 31, 2005 was $26.2
million, a 3% increase compared with $25.6 million at March 31, 2004.
"Actuate continued to make solid progress with solutions targeted
at specific business processes," said Pete Cittadini, Actuate's
president and CEO. "These are mission critical Enterprise Reporting
Applications designed and developed by application development
professionals, often with help from our e.Services organization, that
deliver informational value to everyone using that application. In the
first quarter, our focus on solutions resulted in larger orders and a
growing pipeline of opportunities, particularly for Financial
Performance Management and Customer Self Service applications. We will
continue to focus on Enterprise Reporting Applications, adopted by
100% of large user populations, that access diverse data sources
delivering breakthrough corporate performance to fuel growth in 2005."
"We also made significant progress with the Open Source Business
Intelligence and Reporting Tools (BIRT) project within the Eclipse
community," continued Cittadini. "The availability of the preview
versions of the technology has resulted in over 5,000 downloads to
date and some early adoption of the technology by Java developers."
First Quarter Financial Highlights
-- Non-GAAP EPS doubled to $0.02, compared with $0.01 in Q1 2004;
-- Repurchased 566,000 shares at a total cost of $1.5 million;
-- Cash flow from operations totaled $2.8 million compared with
$230,000 in Q1 2004;
-- Secured one transaction over $1 million;
-- Received orders greater than $100,000 from 40 customers;
-- Average deal size of orders greater than $100,000 totaled
$339,000, a 15% increase compared with the average of $294,000
in Q1 2004;
-- Non-GAAP operating income increased 93% compared with Q1 2004;
-- Non-GAAP operating margin was 6.0%, compared with 3.0% in Q1
2004;
-- Achieved 63% services margin (combined margin of maintenance
support and consulting services) for the second quarter in a
row, compared with 57% in the year-ago quarter.
First Quarter Customer Highlights
During first quarter 2005, Actuate received significant new and
repeat business from, among others, AARP, Academy for Educational
Development, AT&T, Bank of America, Caremark Rx, Citigroup,
Educational Testing Service, HSBC Bank (USA), JP Morgan Chase, Societe
Generale and Wachovia.
First Quarter Business Highlights
-- Appointed Dave Armstrong as VP of North American Operations,
John Maxwell as VP of International Operations and Philip
Strauss as VP of Corporate Development and General Counsel;
-- Launched Actuate Financial Performance Management (FPM)
solution, the first technology solution to directly integrate
data from disparate Financial, Human Resource, Revenue and
Budgeting & Forecasting systems and present on-demand reports
to every employee with financial accountability. This unique
ability provides companies with the capability to distribute
fiscal responsibility throughout the enterprise, help drive
financial performance, and assist in compliance with federal
regulations, such as the Sarbanes-Oxley Act;
-- Made available, on www.eclipse.org/birt, all of the modules
currently under development for the Business Intelligence and
Reporting Tools (BIRT) project including Report Object Model
(ROM), Eclipse Report Designer, Eclipse Report Engine and
Eclipse Charting Engine;
-- Named KeyCorp Enterprise Technology Development "Technology
Vendor of the Year" award for the second year in a row.
Use of Non-GAAP Financial Measures
The non-GAAP financial measures discussed in the text of this
press release and accompanying non-GAAP supplemental information
represent financial measures used by Actuate's management to evaluate
the operating performance of the Company and to conduct its business
operations. Non-GAAP financial measures discussed in this press
release exclude the amortization of intangibles and other costs
arising from acquisitions, amortization of deferred compensation,
restructuring charges, certain legal and accounting fees and an
adjustment to the tax provision. It is management's belief that these
items are not indicative of ongoing operations and as a result,
non-GAAP financial measures that exclude such items provide additional
insight for investors in evaluating the Company's financial and
operational performance. However, these non-GAAP financial measures
are not intended to be an alternative to financial measures prepared
in accordance with GAAP. Pursuant to the requirements of SEC
Regulation G, a detailed reconciliation between the Company's GAAP and
non-GAAP financial results is provided in this press release and
investors are advised to carefully review and consider this
information as well as the GAAP financial results that are disclosed
in the Company's SEC filings. Additionally, the non-GAAP
reconciliation will be available in the investor relations section of
Actuate's website at www.actuate.com.
Conference Call Information
Actuate will be holding a conference call at 2:00 p.m. Pacific
Time, today, April 28, 2005 to further discuss these results. The
dial-in number for the call is 973-528-0008. The conference call will
be simultaneously broadcast live in the Investor Relations section of
Actuate's web site at
http://phx.corporate-ir.net/phoenix.zhtml?c=64401&p=irol-irhome and
will be available as an archived replay at the same location until
approximately May 12, 2005.
About Actuate Corporation
Actuate Corporation is the world leader in Enterprise Reporting
Applications that ensure 100% adoption by users. Actuate's Enterprise
Reporting Application Platform is the foundation on which Global 9000
organizations (companies with annual revenues greater than $1 billion)
and packaged application software vendors develop intuitive, Web
portal-like reporting and analytic applications that empower 100% of
users with decision-making information. These applications are
deployed inside and outside the firewall to improve corporate
performance across a range of business functions including financial
management, sales, human resource management, and customer
self-service. When tested against other business intelligence
products, Actuate's Enterprise Reporting Application Platform has been
proven to offer industry-leading scalability and the lowest Total Cost
of Ownership. Actuate has over 3,000 customers globally in a range of
industries including financial services, pharmaceuticals, insurance,
and distribution services, as well as the government sector.
Founded in 1993, Actuate has headquarters in South San Francisco,
Calif., and has offices worldwide. Actuate is listed on the NASDAQ
exchange under the symbol ACTU. For more information on Actuate, visit
the company's Web site at www.actuate.com.
Cautionary Note Regarding Forward Looking Statements: 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 disclaims any obligation to update or revise any such
forward-looking statements based on changes in expectations or the
circumstances or conditions on which such expectations may be based.
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 Enterprise Reporting 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
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 2004 Annual Report
on Form 10-K filed on March 16, 2005.
Copyright(C) 2005 Actuate Corporation. All rights reserved.
Actuate and the Actuate logo are registered trademarks of Actuate
Corporation and/or its affiliates in the U.S. and certain other
countries. All other brands, names or trademarks mentioned may be
trademarks of their respective owners.
ACTUATE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, Dec. 31,
2005 2004
--------- ----------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $49,673 $47,273
Accounts receivable, net 18,023 24,776
Other current assets 2,078 2,498
--------- ----------
Total current assets 69,774 74,547
Property and equipment, net 5,606 6,158
Goodwill and other intangibles, net 23,224 23,883
Other assets 892 867
--------- ----------
$99,496 $105,455
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,668 $2,414
Current portion of restructuring liabilities 3,395 3,669
Accrued compensation 3,676 5,244
Other accrued liabilities 3,938 4,996
Income taxes payable 667 539
Deferred revenue 25,525 28,153
--------- ----------
Total current liabilities 39,869 45,015
--------- ----------
Long term liabilities
Deferred revenue 718 610
Restructuring liabilities and other 12,186 12,885
--------- ----------
12,904 13,495
--------- ----------
Stockholders' equity 46,723 46,945
--------- ----------
$99,496 $105,455
========= ==========
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months
Ended
March 31,
---------------
2005 2004
------- -------
Revenues:
License fees $8,948 $11,477
Services 15,677 14,191
------- -------
Total revenues 24,625 25,668
------- -------
Costs and expenses:
Cost of license fees 737 1,100
Cost of services 5,834 6,089
Sales and marketing 8,418 10,294
Research and development 4,228 5,191
General and administrative 4,509 2,673
Amortization of other intangibles 276 282
Restructuring charges 569 586
------- -------
Total costs and expenses 24,571 26,215
------- -------
Income (loss) from operations 54 (547)
Interest and other income, net 384 170
------- -------
Income (loss) before income taxes 438 (377)
Provision for income taxes 193 --
------- -------
Net income (loss) $ 245 $ (377)
======= =======
Basic net income (loss) per share $ 0.00 $(0.01)
======= =======
Shares used in basic per share calculation. 62,092 61,358
======= =======
Diluted net income (loss) per share $ 0.00 $(0.01)
======= =======
Shares used in diluted per share calculation 64,628 61,358
======= =======
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Ended Three Months Ended
March 31, 2005 March 31, 2004
------------------------ ------------------------
Adjust- Adjust-
GAAP ments Non- GAAP ments Non-
GAAP GAAP
------- ------ --------------- ------ -------
Revenues:
License fees $8,948 $8,948 $11,477 $11,477
Services 15,677 15,677 14,191 14,191
------- ------- ------- -------
Total revenues 24,625 24,625 25,668 25,668
------- ------- ------- -------
Costs and expenses:
Cost of license
fees 737 (383)(a) 354 1,100 (383)(a) 717
Cost of services 5,834 5,834 6,089 6,089
Sales and marketing 8,418 8,418 10,294 10,294
Research and
development 4,228 4,228 5,191 (55)(b) 5,136
General and
administrative 4,509 (186)(c) 4,323 2,673 2,673
Amortization of
other intangibles 276 (276) - 282 (282) -
Restructuring
charges 569 (569) - 586 (586) -
------- ------- ------- -------
Total costs and
expenses 24,571 23,157 26,215 24,909
------- ------- ------- -------
Income (loss) from
operations 54 1,468 (547) 759
Interest and other
income, net 384 384 170 170
------- ------- ------- -------
Income (loss) before
income taxes 438 1,852 (377) 929
Provision for income
taxes 193 502 (d) 695 -- 348 (d) 348
------- ------- ------- -------
Net income (loss) $ 245 $1,157 $(377) $581
======= ======= ======= =======
Basic net income
(loss) per share $0.00 $0.02 $(0.01) $0.01
======= ======= ======= =======
Shares used in basic
per share
calculation 62,092 62,092 61,358 61,358
======= ======= ======= =======
Diluted net income
(loss) per share $0.00 $0.02 $(0.01) $0.01
======= ======= ======= =======
Shares used in
diluted per share
calculation. 64,628 64,628 61,358 65,164
======= ======= ======= =======
(a) Amortization of purchased technology.
(b) Amortization of deferred compensation.
(c) Legal costs related to the litigation with MicroStrategy,
Incorporated.
(d) The provision for income taxes used in arriving at the non- GAAP
net income for all of the periods presented was computed using an
income tax rate of 37.5%. 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,
2005 2004
----------------
Operating activities
Net Income (loss) $245 $(377)
Adjustments to reconcile net loss to net cash from
operating activities:
Amortization of other intangibles 659 665
Depreciation 468 574
Changes in operating assets and liabilities:
Accounts receivable 6,753 620
Other current assets 420 (59)
Accounts payable 254 (625)
Accrued compensation (1,567) (115)
Other accrued liabilities (1,058) 45
Income taxes payable 128 (13)
Deferred rent liabilities (26) --
Restructuring liabilities (947) (251)
Deferred revenue (2,520) (234)
----------------
Net cash provided by operating activities 2,809 230
----------------
Investing activities
Purchases of property and equipment 84 (451)
Proceeds from maturity of short-term investments 18,584 29,388
Purchases of short-term investments (16,662)(13,499)
Net change in other assets (26) 343
----------------
Net cash provided by investing activities 1,980 15,781
----------------
Financing activities
Proceeds from issuance of common stock 1,105 426
Stock repurchases (1,491) --
----------------
Net cash (used) provided in financing activities (386) 426
----------------
Net increase in cash and cash equivalents 4,403 16,437
Effect of exchange rate on cash (43) (119)
Cash and cash equivalents at the beginning of the
period 7,341 8,950
----------------
Cash and cash equivalents at the end of the period $11,701 $25,268
================
CONTACT: Actuate Corporation
Keren Ackerman, 650-837-4545
kackerman@actuate.com