Exhibit 99.1
Plumtree Software Announces Second Quarter 2005 Results
SAN FRANCISCO--(BUSINESS WIRE)--Aug. 8, 2005--Plumtree Software
(Nasdaq:PLUM) today announced results for its second quarter ended
June 30, 2005. Revenue for the second quarter of 2005 calculated in
accordance with Generally Accepted Accounting Principles (GAAP) was
$20.9 million and non-GAAP revenue for the second quarter of 2005 was
$22.5 million. This compared to $24.6 million for GAAP and non-GAAP
revenue for the first quarter of 2005 and $19.5 million for GAAP and
non-GAAP revenue for the comparable quarter last year, representing an
8.6% revenue decrease from the first quarter of 2005, and a 15.4%
increase over the second quarter of 2004. Net loss for the second
quarter of 2005 calculated in accordance with GAAP was $2.2 million,
or $0.07 per share, compared to net income of $259,000, or $0.01 per
share, for the first quarter of 2005 and a net loss of $3.7 million,
or $0.12 per share, for the second quarter of 2004. Non-GAAP net loss
for the second quarter of 2005 was $378,000, or $0.01 per share,
compared to non-GAAP net income of $307,000, or $0.01 per share, for
the first quarter of 2005 and non-GAAP net loss of $2.7 million, or
$0.09 per share, for the second quarter of 2004.
Non-GAAP revenue excludes the effect of the contingent contract
reserve of $1.5 million recorded in the three months ended June 30,
2005 related to issues with the "Price Reductions" clause in our U.S.
General Services Administration (GSA) contract.
Non-GAAP net income (loss) excludes charges for contingent
contract reserve, amortization of stock-based compensation,
amortization of acquired technology, charges related to restructuring,
and assumes an effective tax rate of 30% on net income (loss), if any.
A reconciliation of these non-GAAP results to GAAP results is included
in the financial tables below.
As of June 30, 2005, Plumtree's cash, cash equivalents and
short-term investments were $68.0 million, an increase of
approximately $800,000 from $67.2 million on March 30, 2005. Plumtree
has no long-term debt.
"Our second quarter performance is the direct result of our
inability to close a handful of deals by the end of the quarter. While
we are disappointed with the short term impact on our results, we
anticipate that a number of these deals will close shortly, including
one which has closed since June 30," said John Kunze, CEO of Plumtree.
"Demand for our Integrated Activity Management collaborative
applications remains strong."
Second Quarter Highlights
2005 second quarter highlights include:
Customer Success: Plumtree signed 66 total license deals this
quarter, adding 20 new customers, including Osiptel, Tyco Electronics
Corporation, Organismo Supervisor de la Inversion en Energia,
Conservation International, Defense Advanced Research Products Agency
(DARPA), NHS 24 Scotland, State of Wisconsin, King & Spalding LLP,
Columbia University, FBL Financial Group, TEPPCO GP, Inc., Independent
Electricity System Operator, Integro Ltd., Cast Iron Systems Inc.,
Pennsylvania Department of Education, National Arts Council, Palacios
& Asociados Consorcio Logistico, Changhong Zarva Information
Technology Products Co. Ltd., Shanghai Video Group and Elior Data.
Integrated Activity Management (IAM)
In Plumtree's annual analysis on the state of the corporate portal
market, the June report revealed that CIOs at large enterprises rank
portal projects among their highest spending priorities for 2005. It
also substantiated an emerging industry consensus that portal
technology is the delivery vehicle for a new generation of composite
applications in a marketplace driven by the promise of
service-oriented architectures (SOA).
In the second quarter of 2005, Plumtree saw a continued rise in
this trend with new customers creating and deploying IAM applications
using the portal platform.
Australia-based Dome Coffees selected Plumtree's portal framework
and development environment to build new IAM applications that will
help ease franchise owners' administration burdens, streamline
business processes and underpin a strategy designed to grow franchise
numbers by over 1,000 percent.
In the past, Dome Coffees distributed franchise procedures and
processes in paper manuals that were continuously updated by fax and
stored in three-ring binders. However, with major expansion in the
company's sights, Dome Coffees required a more sophisticated
technology system to make a compelling proposition for potential
franchisees. As a result, they deployed Plumtree's portal platform to
automate business processes and consolidate information for their
central support centre. Manual procedures, including customer
feedback, site selection, field audits of cafe standards, inventory
management and staff training, are now automated via Plumtree portal
applications.
Corporate Update
In May, Plumtree opened EMEA Odyssey 2005 in the U.K., its first
annual user conference for the region. The event provided an arena for
Plumtree's customers, prospects and partners to exchange ideas on
furthering innovation in portal technology. At the event, Plumtree
customers shared how they earned significant return on investment
(ROI) on their advanced portal deployments as the role of portals
expand from the assembly of enterprise content and information to a
framework for building composite applications. Additionally, David
Meyer, vice president of product management at Plumtree, participated
in an industry panel discussion at the JavaOne Conference in San
Francisco, where he debated portal best practices and market
approaches alongside competing vendors.
Synergy Alliance Update
Plumtree announced a strategic partnership with Fuego(R), a
leading provider of agile business process management (BPM) solutions.
Plumtree will be an original equipment manufacturer (OEM) of the
software suite, FuegoBPM(TM). With the addition of robust BPM
functionality in Plumtree's portal platform, customers will be able to
deploy composite applications designed to help automate and streamline
processes, improve productivity and reduce IT and operational costs.
Also, in this quarter, Plumtree partnered with Kapow Technologies, a
Web integration company, for accelerating portlet creation and
publishing in the portal framework. Additionally, Plumtree teamed with
Theoris, a business intelligence software company, to bring business
intelligence capabilities to Plumtree's corporate portal customers.
Major Product Updates
Plumtree announced its Enterprise Web Development Kit (EDK)
extensions for integrating systems of records such as PeopleSoft, SAP
and Siebel. This kit consists of code samples and templates to enable
developers to rapidly create integration portlet services with the
user interface of their choice. In turn, these portlets form
service-oriented building blocks for creating composite applications
which can be delivered through the Plumtree Corporate Portal.
Industry Recognition
Plumtree was positioned in the leaders quadrant in the "2005
Horizontal Portal Products Magic Quadrant" report conducted by
Gartner, Inc. "Leaders" are vendors who are performing well today,
have a clear vision of market direction, and are actively building
competencies to sustain their leadership position in the market. The
positioning in the leader quadrant by Gartner is a testament to
Plumtree's continued innovation and success in creating portal
solutions that effectively address the evolving needs of enterprises.
Q3 2005 Financial Outlook
Plumtree Software currently anticipates third quarter 2005
non-GAAP revenue to be between $24.5 million and $25.5 million. Third
quarter 2005 non-GAAP net loss is currently expected to be between
$0.01 and $0.04 per share, excluding amortization of deferred
stock-based compensation estimated to be $35,000, and assuming an
effective tax rate of 30% on net income, if any. 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 second quarter on Monday, August
8, 2005 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) via live
Webcast by visiting www.plumtree.com/ir, or alternatively, they may
listen to a teleconference by calling 800-857-9600 domestically or
210-234-0000 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 third quarter 2005 financial results. An
audio replay of the call will also be available until August 18, 2005.
The dial-in number for the audio replay is 866-432-8780. The passcode
for the audio replay is Plumtree.
About Plumtree Software
Plumtree Software is a technology leader, providing enterprise
solutions to bridge disparate work groups, IT systems and business
processes with its cross-platform portal. Plumtree Software continues
to innovate, offering rich service-oriented environments to deliver
composite applications that give customers the freedom and flexibility
to support advanced user needs and business processes. Plumtree
Software's solutions provide significant business value to more than
21 million users worldwide. Customers include Airbus, Mazda, Pratt &
Whitney and U.S. Navy. 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 third quarter of 2005;
our expected revenue and net loss; anticipated positive trends in our
business; our ability to close certain deals that were not completed
in the second quarter of 2005; and continued growth and demand in our
markets, including the markets for Integrated Activity Management
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 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
the ongoing GSA review process, and our internal investigation into
the "Price Reductions" clause of the GSA contract, 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 of its products
or any other 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 revenues
excluding the effect of contingent contract reserves and 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 revenue and underlying cost and
expense levels. Presentation of non-GAAP net income (loss) 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 Six Months
Ended Ended
June 30, June 30,
2005 2004 2005 2004
------- ------- ------- -------
Revenue:
License 7,396 7,911 17,387 14,782
Service and maintenance 15,075 11,557 29,661 22,408
Contingent contract reserve (1,543) - (1,543) -
------- ------- ------- -------
Total revenue 20,928 19,468 45,505 37,190
Cost of revenue:
License 114 422 283 850
Service and maintenance 5,771 4,638 11,337 8,756
Amortization of stock-based
compensation & acquired technology 5 425 6 872
------- ------- ------- -------
Total cost of revenue 5,890 5,485 11,626 10,478
------- ------- ------- -------
Gross margin 15,038 13,983 33,879 26,712
Operating expenses:
Research and development 6,344 5,886 12,933 11,395
Sales and marketing 8,166 8,623 17,476 16,635
General and administrative 2,842 2,752 5,548 5,139
Restructuring charges - 307 - 307
Amortization of stock-based
compensation 17 103 19 287
------- ------- ------- -------
Total operating expenses 17,369 17,671 35,976 33,763
------- ------- ------- -------
Loss from operations (2,331) (3,688) (2,097) (7,051)
Interest and other income, net 388 140 590 289
------- ------- ------- -------
Loss before income taxes (1,943) (3,548) (1,507) (6,762)
Provision for income taxes 259 139 437 301
------- ------- ------- -------
Net loss (2,202) (3,687) (1,944) (7,063)
======= ======= ======= =======
Net loss per share:
Basic and diluted (0.07) (0.12) (0.06) (0.22)
======= ======= ======= =======
Shares used to compute net loss per
share:
Basic and diluted 33,103 31,882 32,938 31,680
======= ======= ======= =======
PLUMTREE SOFTWARE, INC.
NON GAAP(a) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
/--------------- Non GAAP ---------------/
Three Months Six Months
Ended Ended
June 30, June 30,
(unaudited) (unaudited)
2005 2004 2005 2004
------- ------- ------- -------
Revenue:
License 7,396 7,911 17,387 14,782
Service and maintenance 15,075 11,557 29,661 22,408
------- ------- ------- -------
Total revenue 22,471 19,468 47,048 37,190
Cost of revenue:
License 114 422 283 850
Service and maintenance 5,771 4,638 11,337 8,756
------- ------- ------- -------
Total cost of revenue 5,885 5,060 11,620 9,606
------- ------- ------- -------
Gross margin 16,586 14,408 35,428 27,584
Operating expenses:
Research and development 6,344 5,886 12,933 11,395
Sales and marketing 8,166 8,623 17,476 16,635
General and administrative 2,842 2,752 5,548 5,139
------- ------- ------- -------
Total operating expenses 17,352 17,261 35,957 33,169
------- ------- ------- -------
Non GAAP loss from operations (766) (2,853) (529) (5,585)
Interest and other income, net 388 140 590 289
------- ------- ------- -------
Non GAAP income (loss) before
income taxes (378) (2,713) 61 (5,296)
Non GAAP income taxes(b) - - 18 -
------- ------- ------- -------
Non GAAP net income (loss) (378) (2,713) 43 (5,296)
======= ======= ======= =======
Non GAAP net income (loss) per share:
Basic (0.01) (0.09) 0.00 (0.17)
======= ======= ======= =======
Diluted (0.01) (0.09) 0.00 (0.17)
======= ======= ======= =======
Shares used to compute net income
(loss) per share:
Basic 33,103 31,882 32,938 31,680
======= ======= ======= =======
Diluted 33,103 31,882 35,849 31,680
======= ======= ======= =======
(a) Non GAAP Statements of Operations excludes $1,543, $0, $1,543 and
$0 of contingent contract reserve, respectively, $22, $134, $25
and $371 of amortization of stock based compensation, respectively
and $0, $394, $0 and $788 of amortization of acquired technology,
respectively. In addition, the Non GAAP Statement of Operations
for the three months and the six months ended June 30, 2004
excludes $307 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)
(unaudited)
As of As of
June December
30, 31,
2005 2004
-------- --------
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $67,966 $65,034
Accounts receivables, net of allowances 17,591 20,552
Other current assets 3,054 2,313
-------- --------
Total current assets 88,611 87,899
Property and equipment, net 2,453 2,532
Other long-term assets 312 380
-------- --------
$91,376 $90,811
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $2,291 $1,841
Accrued and other current liabilities 14,920 14,944
Deferred revenues 20,631 20,804
-------- --------
Total current liabilities 37,842 37,589
Long-term liabilities 2,171 2,216
-------- --------
Total Liabilities 40,013 39,805
Total Stockholders' Equity 51,363 51,006
-------- --------
-------- --------
$91,376 $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