Exhibit 99.1
Actuate Reports Second Quarter Financial Results
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--July 25,
2006--Actuate Corporation (NASDAQ:ACTU):
-- Year-over-year Quarterly License Revenue Growth of 27%
-- Year-over-year Quarterly Total Revenue Growth of 23%
-- Year-over-year Quarterly Non-GAAP Net Income Growth of 15%
Actuate Corporation (NASDAQ:ACTU), the world leader in Enterprise
Reporting and Performance Management Applications, today announced its
financial results for its fiscal second quarter ended June 30, 2006.
Revenues for the second quarter of 2006 were $31.7 million, a 23%
increase compared with the second quarter of 2005. License revenues
for the second quarter of 2006 were $11.2 million, a 27% increase from
the year-ago quarter. Services revenues for the second quarter of 2006
were $20.5 million, a 21% increase compared with the second quarter of
2005.
Net income for the second quarter of 2006, as reported in
accordance with U.S. generally accepted accounting principles (GAAP),
was $1.6 million, or $0.02 per diluted share, compared with net income
of $3.5 million or $0.06 per diluted share in the second quarter of
2005. Second quarter 2006 results included a $1.6 million, non-tax
deductible charge related to FAS 123R, which requires that stock-based
compensation expense be included in GAAP results.
Non-GAAP operating margin for the second quarter of 2006 was 14%
compared with a non-GAAP operating margin of 16% for the second
quarter of 2005. Non-GAAP net income for the second quarter of 2006
was $3.3 million, or $0.05 per diluted share, compared with non-GAAP
net income of $2.8 million, or $0.04 per diluted share in the second
quarter of 2005.
For the first six months of 2006, revenues totaled $61.5 million,
an increase of 22% compared with the first six months of 2005.
Non-GAAP diluted net income per share for the first half of 2006
totaled $0.08, an increase of $0.02 or 33% compared with the same
period in 2005.
Non-GAAP financial measures discussed in this release exclude the
following items: a) amortization charges for purchased technology and
other intangible assets resulting from the company's acquisition
transactions; b) in-process R&D charges resulting from the company's
acquisition transactions; c) restructuring charges; d) legal costs
related to our litigation with MicroStrategy, Inc., which has since
been resolved; e) adjustment to the income tax provision; f)
stock-based compensation expense; and g) an asset impairment charge.
All of these expenses are included in Actuate's GAAP results. The
income tax rate used to compute the second quarter 2006 non-GAAP net
income was 30%. The income tax rate used to compute non-GAAP net
income for the second quarter 2005 was 37.5%.
Cash, cash equivalents and short-term investments at June 30, 2006
totaled $45.1 million, an increase of $2.9 million from March 31,
2006. This amount is net of a $1.0 million cash outlay in furtherance
of Actuate's ongoing open-market share repurchase program.
"Actuate's accelerating license revenues are a direct result of
our leadership position in the market for high-performance enterprise
reporting applications," said Pete Cittadini, Actuate's president and
CEO. "Our Customer Interaction solutions enable our customers to
rapidly build and deploy applications that drive customer
satisfaction, retention and loyalty, while our Financial Management
and Performance Management solutions improve decision-making, enhance
transparency and drive strategy enterprise-wide.
"As the market leader in enterprise reporting, we uniquely
understand our customers' need for efficient and flexible Business
Intelligence processes that allow users and IT to more closely
collaborate during the report development process. This functionality,
available for the first time in the upcoming release of Actuate 9, has
been lauded by a number of industry analysts for applying an
innovative open source strategy to Business Intelligence processes
within the enterprise. As always, we are excited to be able to offer
our customers leading-edge technology and services to help meet their
most significant business process challenges.
Second Quarter Financial Highlights
-- Grew license revenues by 27% compared with Q2 2005;
-- Grew total revenues by 23% compared with Q2 2005;
-- Generated $2.6 million in cash flow from operations;
-- Increased deferred revenue by 26% from Q2 2005 to $35.2
million;
-- Repurchased 249,000 shares at a total cost of approximately
$1.0 million.
Second Quarter Customer Highlights
During the second quarter, Actuate received significant new and
repeat business from, among others, British Telecom, Capital Group,
Citigroup, Computer Associates, Florida A&M University, Lincoln
Financial Group, MetLife, NASA, Nationwide, Odyssey Investment
Management, Powersolv, Questra, Scottish & Southern Energy, Sensata,
Starwood Hotels & Resorts, T-Systems, Tufts Health Plan, Unilever,
U.S. Department of the Army, U.S. Department of the Navy and U.S.
Department of the Treasury.
Second Quarter Business Highlights
-- Released the beta version of Actuate 9, an Enterprise
Reporting Application platform based on the world's first
Collaborative Reporting Architecture that allows organizations
to apply both the technology and principles of open source to
Business Intelligence processes;
-- Joined IBM's "ISV Advantage for Industries" Initiative, a
program designed to provide independent software vendors
(ISVs) with technical and marketing support to help meet the
specific needs of the financial services industry;
-- Exceeded 115,000 downloads of BIRT and Actuate BIRT during Q2
2006;
-- Shipped Eclipse BIRT 2.1 as part of the Eclipse Callisto
release that included 10 projects, one of the largest
multi-project releases undertaken by an open source community;
-- Announced that Actuate now offers training classes in
Hyderabad, India and training at customers' and partners'
sites all over India and a new online, self-paced education
offering entitled "e-Report Designer Fundamentals";
-- Announced deployment of Performancesoft Views at Eckerd Youth
Alternatives, Tenet Healthcare Corporation and Dubai
Municipality as well as an alliance with PPM 2000, a leading
developer of Incident, Investigation and Case Management
software.
Conference Call Information
Actuate will be holding a conference call at 2:00 p.m. Pacific
Time, today, July 25, 2006 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 August 8, 2006.
Discussion of Non-GAAP Financial Measures
This press release contains financial measures that are not
calculated in accordance with U.S. generally accepted accounting
principles (GAAP). Actuate management evaluates and makes operating
decisions using various performance measures. In addition to our GAAP
results, we also consider adjusted net income (loss), which we refer
to as non-GAAP net income (loss). We further consider various
components of non-GAAP net income (loss) such as non-GAAP gross margin
and non-GAAP operating expense. Non-GAAP net income (loss) is
generally based on the revenues of our product, maintenance and
services business operations and the costs of those operations, such
as cost of revenue, research and development, sales and marketing and
general and administrative expenses, that management considers in
evaluating our ongoing core operating performance. Non-GAAP net income
(loss) consists of net income (loss) excluding amortization of
intangible assets, merger and acquisition charges, restructuring
charges, equity plan-related compensation expenses and charges and
gains which management does not consider reflective of our core
operating business. Intangible assets consist primarily of purchased
technology, trade names, customer relationships, employment agreements
and other intangible assets issued in connection with acquisitions.
Merger and acquisition charges represent in-process research and
development charges related to products in development that had not
reached technological feasibility at the time of acquisition.
Restructuring charges consist of severance and benefits, excess
facilities and asset-related charges, and also include strategic
reallocations or reductions of personnel resources. Equity
plan-related compensation expenses represent the fair value of all
share-based payments to employees, including grants of employee stock
options, as required under SFAS No. 123 (revised 2004), "Share-Based
Payment" (SFAS 123R). For purposes of comparability across other
periods and against other companies in our industry, non-GAAP net
income (loss) is adjusted by the amount of additional taxes or tax
benefit that the company would accrue using a normalized effective tax
rate applied to the non-GAAP results. Management does not consider
these unusual expenses associated with a financial transaction to be
part of core operating performance.
Non-GAAP net income (loss) is a supplemental measure of our
performance that is not required by, nor presented in accordance with,
GAAP. Moreover, it should not be considered as an alternative to net
income, operating income, or any other performance measure derived in
accordance with GAAP, or as an alternative to cash flow from operating
activities or as a measure of our liquidity. We present non-GAAP net
income (loss) because we consider it an important supplemental measure
of our performance.
Management excludes from its non-GAAP net income (loss) certain
recurring items to facilitate its review of the comparability of the
company's core operating performance on a period to period basis
because such items are not related to the company's ongoing core
operating performance as viewed by management. Management uses this
view of its operating performance for purposes of comparison with its
business plan and individual operating budgets and allocations of
resources. Additionally, when evaluating potential acquisitions,
management excludes the items described above from its consideration
of target performance and valuation. More specifically, management
adjusts for the excluded items for the following reasons:
a) amortization charges for purchased technology and other
intangible assets resulting from the company's acquisition
transactions; b) in-process R&D charges resulting from the company's
acquisition transactions; c) restructuring charges; d) legal costs
related to our litigation with MicroStrategy, Inc., which has since
been resolved; e) adjustment to the income tax provision; f)
stock-based compensation expense and g) an asset impairment charge.
The Company believes that, in general, these items possess one or
more of the following characteristics: their magnitude and timing is
largely outside of the Company's control; they are unrelated to the
ongoing operation of the business in the ordinary course; they are
unusual and the Company does not expect them to occur in the ordinary
course of business; or they are non-operational, or non-cash expenses
involving stock option grants.
The Company believes that the presentation of these non-GAAP
financial measures is warranted for several reasons:
1) Such non-GAAP financial measures provide an additional
analytical tool for understanding the Company's financial performance
by excluding the impact of items which may obscure trends in the core
operating performance of the business;
2) Since the Company has historically reported non-GAAP results to
the investment community, the Company believes the inclusion of
non-GAAP numbers provides consistency and enhances investors' ability
to compare the Company's performance across financial reporting
periods;
3) These non-GAAP financial measures are employed by the Company's
management in its own evaluation of performance and are utilized in
financial and operational decision making processes, such as budget
planning and forecasting;
4) These non-GAAP financial measures facilitate comparisons to the
operating results of other companies in our industry, which use
similar financial measures to supplement their GAAP results, thus
enhancing the perspective of investors who wish to utilize such
comparisons in their analysis of the Company's performance.
Set forth below are additional reasons why specific items are
excluded from the Company's non-GAAP financial measures:
a) Amortization charges for purchased technology and other
intangible assets are excluded because they are inconsistent in amount
and frequency and are significantly impacted by the timing and
magnitude of the Company's acquisition transactions. We analyze and
measure our operating results without these charges when evaluating
our core performance. Generally, the impact of these charges to the
Company's net income (loss) tends to diminish over time following an
acquisition;
b) Merger and acquisition charges are in-process R&D charges which
are excluded because they often vary significantly in size and amount,
and are disregarded when acquisition decisions are made;
c) Restructuring charges are primarily related to severance costs
and/or the disposition of excess facilities driven by modifications of
business strategy. These costs are excluded because they are
inherently variable in size, and are not specifically included in the
company's annual operating plan and related budget due to the rapidly
changing facts and circumstances typically associated with such
modifications of business strategy;
d) Certain legal costs were incurred in the successful defense of
the Company from trade secret litigation brought by a competitor,
MicroStrategy, Inc. These costs are excluded because the origin of
this litigation was outside the Company's control, the litigation was
outside the normal course and scope of the Company's ongoing legal
operations and the size and timing of the legal costs were dependent
on the particular stage of litigation at any given time.
e) Income tax expense (benefit) is adjusted by the amount of
additional expense or benefit that we would accrue if we used non-GAAP
results instead of GAAP results in the calculation of our tax
liability, taking into consideration the company's long-term tax
structure. Prior to the quarter ended September 30, 2005, the Company
used a normalized effective tax rate of 37.5%. Starting in the quarter
ended September 30, 2005, the company began to use a normalized
effective tax rate of 30%. This item is excluded because the rate
remains subject to change based on several factors, including
variations over time in the geographic business mix and statutory tax
rates.
f) While stock-based compensation calculated in accordance with
SFAS 123R constitutes an ongoing and recurring expense of the Company,
it is not an expense that typically requires or will require cash
settlement by the company. We therefore exclude these charges for
purposes of evaluating our core performance as well as with respect to
evaluating any potential acquisition.
g) Asset impairment costs are excluded because they inherently
vary in size and are not specifically included in the Company's annual
operating plan. Furthermore, asset impairment charges do not typically
require any cash outlay and the timing of such impairments is largely
outside of the Company's control.
In the future, the Company expects to continue reporting non-GAAP
financial measures excluding items described above and the Company
expects to continue to incur expenses similar to the non-GAAP
adjustments described above. Accordingly, exclusion of these and other
similar items in our non-GAAP presentation should not be construed as
an inference that these costs are unusual, infrequent or
non-recurring.
As stated above, the Company presents non-GAAP financial measures
because it considers them to be important supplemental measures of
performance. However, non-GAAP financial measures have limitations as
an analytical tool and should not be considered in isolation or as a
substitute for the Company's GAAP results. In the future, the Company
expects to incur expenses similar to the non-GAAP adjustments
described above and expects to continue reporting non-GAAP financial
measures excluding such items. Some of the limitations in relying on
non-GAAP financial measures are:
-- Amortization of intangibles, though not directly affecting our
current cash position, represent the loss in value as the
technology in our industry evolves, is advanced or is replaced
over time. The expense associated with this loss in value is
not included in the non-GAAP net income (loss) presentation
and therefore does not reflect the full economic effect of the
ongoing cost of maintaining our current technological position
in our competitive industry which is addressed through our
research and development program.
-- The company may engage in acquisition transactions in the
future. Merger and acquisition related charges may therefore
continue to be incurred and should not be viewed as
non-recurring.
-- The Company's stock option and stock purchase plans are
important components of our incentive compensation
arrangements and will be reflected as expenses in our GAAP
results for the foreseeable future under SFAS 123R.
-- The company's income tax expense (benefit) will be ultimately
based on its GAAP taxable income and actual tax rates in
effect, which may differ significantly from the 30% rate
assumed in our non-GAAP presentation.
-- Other companies, including other companies in our industry,
may calculate non-GAAP financial measures differently than we
do, limiting their usefulness as a comparative measure.
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 is also available in the
investor relations section of the Company's web site at
www.actuate.com. Investors are advised to carefully review and
consider this information strictly as a supplement to the GAAP results
that are contained in this press release and in the Company's SEC
filings.
About Actuate Corporation
Actuate Corporation is the world leader in Enterprise Reporting
and Performance Management Applications that empower 100% of users to
achieve breakthrough corporate performance. Actuate provides the most
scalable, reliable, flexible and high-performing reporting
capabilities for every application in the enterprise. Customers use
Actuate to deliver information in context to users inside and outside
the firewall as Performance Management and Customer Self-Service
applications, managed spreadsheet applications and Java reporting
applications.
Actuate has over 3,500 customers globally in a range of industries
including banking, insurance, manufacturing, communications, and
government. Founded in 1993, Actuate has headquarters in South San
Francisco, Calif., with 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 press release that are not purely
historical are forward looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. These include
statements regarding Actuate's expectations, beliefs, hopes,
intentions or strategies regarding the future. All such
forward-looking statements 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 (including the
performancesoft, Inc. acquisition) on the company's financial and/or
operating condition, the ability to increase revenues through our
indirect distribution channels, general economic and geopolitical
uncertainties and other risk factors that are discussed in Actuate's
Securities and Exchange Commission filings, specifically Actuate's
2005 Annual Report on Form 10-K filed on March 13, 2006 and Quarterly
Report on Form 10-Q filed on May 10, 2006.
Copyright(C) 2006 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)
June 30, December 31,
2006 2005
--------------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 45,118 $ 54,397
Accounts receivable, net 24,993 26,798
Other current assets 4,897 2,911
--------------------
Total current assets 75,008 84,106
Property and equipment, net 4,852 4,716
Goodwill and other intangibles, net 37,529 22,129
Other assets 878 630
--------------------
$118,267 $111,581
====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,163 $ 2,101
Current portion of restructuring liabilities 2,907 2,948
Accrued compensation 4,178 5,306
Other accrued liabilities 4,323 3,108
Income taxes payable 149 279
Deferred revenue 34,211 31,475
--------------------
Total current liabilities 47,931 45,217
--------------------
Long term liabilities:
Deferred rent 114 198
Deferred revenue 978 913
Deferred tax liability 100 -
Restructuring liabilities 8,962 9,885
--------------------
Total long term liabilities 10,154 10,996
--------------------
Stockholders' equity 60,182 55,368
--------------------
$118,267 $111,581
====================
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
---------------- ----------------
2006 2005 2006 2005
------- ------- ------- -------
Revenues:
License fees $11,184 $ 8,805 $21,171 $17,753
Services 20,488 16,965 40,345 32,642
------- ------- ------- -------
Total revenues 31,672 25,770 61,516 50,395
------- ------- ------- -------
Costs and expenses:
Cost of license fees 472 578 966 1,315
Cost of services 6,925 5,735 14,599 11,569
Sales and marketing 12,150 8,735 23,707 17,153
Research and development 5,327 4,131 10,610 8,359
General and administrative 4,208 2,802 8,263 7,311
Amortization of other intangibles 237 194 474 470
In-Process R&D - - 900 -
Restructuring charges - 178 - 747
------- ------- ------- -------
Total costs and expenses 29,319 22,353 59,519 46,924
------- ------- ------- -------
Income from operations 2,353 3,417 1,997 3,471
Interest and other income, net 343 149 678 533
------- ------- ------- -------
Income before income taxes 2,696 3,566 2,675 4,004
Provision for income taxes 1,109 89 1,558 282
------- ------- ------- -------
Net income $ 1,587 $ 3,477 $ 1,117 $ 3,722
======= ======= ======= =======
Basic net income per share $ 0.03 $ 0.06 $ 0.02 $ 0.06
======= ======= ======= =======
Shares used in basic per share
calculation 60,339 61,467 60,261 61,778
======= ======= ======= =======
Diluted net income per share $ 0.02 $ 0.06 $ 0.02 $ 0.06
======= ======= ======= =======
Shares used in diluted per share
calculation 66,858 63,027 66,214 63,806
======= ======= ======= =======
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Ended Six Months Ended
June 30 (a) June 30 (a)
------------------ ----- ----------------- -----
2006 2005 Notes 2006 2005 Notes
------- ------- ----- ------- ------- -----
GAAP income
before income
taxes 2,696 3,566 2,675 4,004
Non-GAAP
adjustments:
Amortization of
purchased
technology 164 301 (b) 329 684 (b)
Amortization of
other intangibles 237 194 (c) 474 470 (c)
Stock compensation
expense under
SFAS123R 1,555 - (d) 3,108 - (d)
In-Process R&D - - 900
Legal costs
related to the
litigation with
Microstrategy,
Inc. - - 186
Restructuring
charges - 178 (e) - 747 (e)
Asset impairment - 284 (f) - 284 (f)
------- ------- ------- -------
Non-GAAP income
before income
taxes 4,652 4,523 7,486 6,375
Non-GAAP tax
provision 1,396 1,696 (g) 2,246 2,391 (g)
------- ------- ------- -------
Non-GAAP net
income 3,256 2,827 5,240 3,984
======= ======= ======= =======
Basic Non-GAAP
net income per
share $ 0.05 $ 0.05 $ 0.09 $ 0.06
======= ======= ======= =======
Shares used in
basic per share
calculation 60,339 61,467 (h) 60,261 61,778 (h)
======= ======= ======= =======
Diluted Non-GAAP
net income per
share $ 0.05 $ 0.04 $ 0.08 $ 0.06
======= ======= ======= =======
Shares used in
diluted per
share
calculation 67,660 63,027 (h) 67,176 63,806 (h)
======= ======= ======= =======
(a) This table contains financial measures that are not calculated in
accordance with U.S. generally accepted accounting principles (GAAP).
Such measures are intended to serve as a supplement to the GAAP
results presented elsewhere in this press release, and should not be
considered in isolation or as a substitute for such GAAP results. See
the section entitled Discussion of Non-GAAP Financial Measures in this
press release for additional information regarding: the manner in
which management uses these non-GAAP financial measures; the economic
substance behind management's decision to use such measures; the
material limitations associated with use of these non-GAAP financial
measures as compared to the use of the most directly comparable GAAP
financial measure; the manner in which management compensates for
these limitations when using these non- GAAP financial measures; and
the substantive reasons why management believes these non-GAAP
financial measures provide useful information to investors.
(b) Amortization of purchased technology acquired in the
Performancesoft, Nimble and Tidestone acquisition transactions on
January of fiscal year 2006, July of fiscal year 2003 and May of
fiscal year 2001, respectively. Purchased technology is amortized over
the estimated life of the underlying asset.
(c) Amortization of other intangibles includes identifiable intangible
assets including trade names, employment agreements and customer
relationships acquired through various acquisition transactions. Other
identified intangibles are amortized over the estimated remaining life
of the underlying intangibles.
(d) Prior to January 1, 2006, Actuate accounted for stock compensation
under Accounting Principles Board, Opinion No. 25, "Accounting for
Stock Issued to Employees" ("APB 25"). In accordance with APB 25,
Actuate historically used the intrinsic value method to account for
stock compensation expense. As of January 1, 2006 Actuate accounts for
stock compensation expense under the fair value method. As Actuate
adopted the modified prospective transition method, results for prior
periods have not been restated under the fair value method for GAAP
purposes. Actuate is presenting a non-GAAP adjusted net income per
diluted share financial measure which excludes stock based
compensation expense for all periods presented. For the three months
ended June 30, 2006, stock-based expense included approximately $1,
$183, $563, $299, and $509, related to cost of license revenues, cost
of services revenues, research and development expense, sales and
marketing expense and general and administrative expense,
respectively.
(e) Restructuring charges for the three and six month period ended
June 30, 2005. These costs were directly related to our restructuring
plan which we had initiated in the fourth quarter of fiscal year 2004
and primarily consisted of charges related to employee matters and
estimated settlement costs stemming from employee litigation,
partially offset by an early termination of the facility lease.
(f) Loss associated with a $500,000 investment in a privately held
company in December, of fiscal year 2000. This investment was
reevaluated in the third quarter of fiscal year 2005 and an additional
loss of $17,000 was recorded in the third quarter of fiscal 2005. Of
the remaining balance totalling $199,000, approximately $180,000 was
recovered in the fourth quarter of fiscal year 2005. We anticipate to
recover the remaining balance during fiscal year 2006.
(g) 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 30% and 37.5% for fiscal years 2006 and 2005,
respectively. We use this normalized effective tax rate of 30% because
it reflects our best estimate of an average long-term tax rate
assuming a certain forecasted geographic business mix. This rate is
subject to change as the geographic business mix and statutory tax
rates and their effect on the estimated tax rate differ over time.
(h) Shares used in calculating basic and diluted earnings per share
have been adjusted to reflect what the share amounts would have been
if they were calculated using non-GAAP results.
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
2006 2005
--------------------
Operating activities
Net income $ 1,117 $ 3,722
Adjustments to reconcile net income to
net cash from operating activities:
Stock compensation expense 3,108 -
Amortization of other intangibles 969 1,153
Depreciation 711 831
Purchased in-process research & development 900 -
Net operating loss utilizations associated
with prior acquisitions 445 -
Unrealized investment loss - 284
Changes in operating assets and liabilities: - -
Accounts receivable 2,801 3,179
Other current assets 924 478
Accounts payable (2,604) 543
Accrued compensation (1,648) (1,492)
Other accrued liabilities 546 (1,277)
Income taxes payable (138) 155
Deferred tax liabilities 86 -
Deferred rent liabilities (84) (58)
Restructuring liabilities (964) (1,512)
Deferred revenue 1,145 (935)
--------------------
Net cash provided by operating activities 7,314 5,071
--------------------
Investing activities
Purchases of property and equipment (520) 123
Proceeds from maturity of short-term
investments 34,670 48,659
Purchases of short-term investments (22,917) (50,012)
Purchases of minority shares of
Actuate Japan (354) -
Acquisition of performancesoft, inc,
net of cash acquired (15,320) -
Net change in other assets (989) (38)
--------------------
Net cash used in investing activities (5,430) (1,268)
--------------------
Financing activities
Tax benefit from exercise of stock options 754 -
Proceeds from issuance of common stock 1,449 1,161
Stock repurchases (1,988) (4,216)
--------------------
Net cash provided by (used in) financing
activities 215 (3,055)
--------------------
Net increase in cash and cash equivalents 2,099 748
Effect of exchange rate on cash 342 (33)
Cash and cash equivalents at the beginning of
the period 12,490 7,341
--------------------
Cash and cash equivalents at the end of the
period $ 14,931 $ 8,056
====================
CONTACT: Actuate Corporation
Keren Ackerman, 650-837-4545
kackerman@actuate.com