Exhibit 99.1
Actuate Reports Third Quarter Financial Results
Record Non-GAAP Operating Margin of 18.4%
License Revenues Up 32% Year-over-Year
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Oct. 25,
2006--Actuate Corporation (NASDAQ:ACTU), the world leader in
Enterprise Reporting and Performance Management Applications that
empower 100% of users to achieve breakthrough corporate performance,
today announced its financial results for its fiscal third quarter
ended September 30, 2006.
Revenues for the third quarter of 2006 were $32.1 million, a 20%
increase compared with the third quarter of 2005. License revenues for
the third quarter of 2006 were $11.8 million, a 32% increase from the
year-ago quarter. Services revenues for the third quarter of 2006 were
$20.3 million, a 13% increase compared with the third quarter of 2005.
Net income for the third quarter of 2006, as reported in
accordance with U.S. generally accepted accounting principles (GAAP),
was $2.7 million, or $0.04 per diluted share, compared with net income
of $3.7 million or $0.06 per diluted share in the third quarter of
2005. Third quarter 2006 results included a $1.7 million charge
related to FAS 123R, which requires that stock-based compensation
expense be included in GAAP results.
Non-GAAP operating margin for the third quarter of 2006 was a
record 18.4% compared with a non-GAAP operating margin of 17.6% for
the third quarter of 2005. Non-GAAP net income for the third quarter
of 2006 was $4.6 million, or $0.07 per diluted share, compared with
non-GAAP net income of $3.6 million, or $0.06 per diluted share in the
third quarter of 2005.
For the first nine months of 2006, revenues totaled $93.6 million,
an increase of 21% compared with the first nine months of 2005.
Non-GAAP diluted net income per share for the first nine months of
2006 totaled $0.15, an increase of $0.03 compared with the same period
in 2005. Cash flow from operations for the nine months ended September
30, 2006 aggregated $9.6 million.
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) stock-based compensation expense; c) in-process R&D
charges resulting from the company's acquisition transactions; d)
legal costs related to our litigation with MicroStrategy, Inc., which
has since been resolved; e) restructuring charges; f) an asset
impairment charge and g) an adjustment to the income tax provision.
All of these expenses are included in Actuate's GAAP results. The
income tax rate used to compute the third quarter 2006 and third
quarter 2005 non-GAAP net income was 30%.
Cash, cash equivalents and short-term investments at September 30,
2006 totaled $47.5 million, an increase of $2.4 million from June 30,
2006. This amount is net of a $1.5 million cash outlay in furtherance
of Actuate's ongoing open-market share repurchase program.
"The third quarter continued Actuate's growth in total revenues,
license revenues and profitability," said Pete Cittadini, Actuate's
president and CEO. "Our innovations continue to extend our leadership
in the Enterprise Reporting and Performance Management Applications
markets."
"Actuate shipped two major new products during the third quarter.
Actuate 9, which shipped to customers at the end of September,
includes the first set of value-added products based on the open
source Eclipse BIRT project as well as the breakthrough SmartSheets
Security option that securely produces mass customized, data-driven
spreadsheets for millions of users. We also began shipping Actuate
Performancesoft Track during the quarter. This product first became
available at the end of July and is the first application to truly
empower executives, management teams and all individuals with the
control, insight and collaborative tools they need to manage the
activities that drive organizational performance forward."
Third Quarter Financial Highlights
-- Grew license revenues by 32% compared with Q3 2005;
-- Grew total revenues by 20% compared with Q3 2005;
-- Increased non-GAAP operating income by 25%;
-- Achieved a record 18.4% non-GAAP operating margin;
-- Generated $2.3 million in cash flow from operations;
-- Increased deferred revenue by $9.0 million, or 33%, to $36.4
million from Q3 2005;
-- Repurchased approximately 393,000 shares at a total cost of
approximately $1.5 million.
Third Quarter Customer Highlights
During the third quarter, Actuate received significant new and
repeat business from, among others, ABN Amro North America, Al-Sayer
Group, BearingPoint, Bear Stearns, City of Cape Coral, Cholet Dupont,
Countrywide Financial, Dubai Municipality, Florida Surplus Lines
Service Office, IBM Australia, Lloyds TSB Financial Markets, Medco
Health Solutions, Metropolitan Sewer District of Greater Cincinnati,
Misys Healthcare Systems, MRO Software, Murex, New York State
Department of Taxation and Finance, Nomura International, OLM Systems,
S1 Corporation, Siebel Systems, Societe Generale/PAEN, Sprint Nextel,
UBS AG, United States Navy, Universal Health Services of Delaware,
Winona Health and XLsoft Corporation.
Third Quarter Business Highlights
-- Shipped GA version of Actuate 9 at the end of September;
-- Exceeded 190,000 downloads of BIRT and Actuate BIRT during Q3
2006;
-- Honored Citigroup, HSBC, and Tufts Health Plan for
industry-leading innovations and return on investment
resulting from their use of the Actuate platform at the
Actuate International Users Conference in Boston;
-- Shipped Actuate Performancesoft Track, a breakthrough Activity
Management solution that can support the monitoring and
management of virtually any type of initiative, program, plan
or activity;
-- Introduced Actuate 9 e.Spreadsheet SmartSheet Security Option
that continues Actuate's industry leadership in spreadsheet
automation and reporting by creating the first solution to
cost-effectively secure and distribute analysis-ready,
customized spreadsheets which can be delivered to millions of
users both inside and outside the enterprise;
-- Signed a technology and marketing collaboration agreement to
join HyperRoll's patented data aggregation technology with
Actuate's complete suite of business intelligence reporting
tools;
-- Announced deployment of Performancesoft Views at Florida
Department of Juvenile Justice (DJJ), St. Regis Paper and
Metropolitan Sewer District of Greater Cincinnati.
Conference Call Information
Actuate will be holding a conference call at 2:00 p.m. Pacific
Time, today, October 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 November 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, which we refer to as
non-GAAP net income. We further consider various components of
non-GAAP net income such as non-GAAP gross margin and non-GAAP
operating expense. Non-GAAP net income 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 consists of net income
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). Management does not consider these
unusual expenses associated with a financial transaction to be part of
core operating performance. For purposes of comparability across other
periods and against other companies in our industry, non-GAAP net
income 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.
Non-GAAP net income 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 because we consider it an important supplemental measure of our
performance.
Management excludes from non-GAAP net income 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) stock-based compensation expense; c) in-process R&D
charges resulting from the company's acquisition transactions; d)
legal costs related to our litigation with MicroStrategy, Inc., which
has since been resolved; e) restructuring charges; f) an asset
impairment charge and g) an adjustment to the income tax provision.
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 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 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 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 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
Reports on Form 10-Q filed on May 10, 2006 and August 9, 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)
September 30, December 31,
2006 2005
--------------------------
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 47,497 $ 54,397
Accounts receivable, net 28,137 26,798
Other current assets 4,369 2,911
--------------------------
Total current assets 80,003 84,106
Property and equipment, net 4,612 4,716
Goodwill and other intangibles, net 37,187 22,129
Other assets 839 630
--------------------------
$ 122,641 $ 111,581
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,540 $ 2,101
Current portion of restructuring
liabilities 2,887 2,948
Accrued compensation 4,275 5,306
Other accrued liabilities 3,678 3,108
Income taxes payable 256 279
Deferred revenue 34,972 31,475
--------------------------
Total current liabilities 47,608 45,217
--------------------------
Long term liabilities:
Deferred rent 68 198
Deferred revenue 1,465 913
Deferred tax liability 34 -
Restructuring liabilities 8,494 9,885
--------------------------
Total long term liabilities 10,061 10,996
--------------------------
Stockholders' equity 64,972 55,368
--------------------------
$ 122,641 $ 111,581
==========================
ACTUATE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------
Revenues:
License fees $11,777 $ 8,894 $32,948 $26,647
Services 20,344 17,951 60,689 50,593
--------- -------- -------- --------
Total revenues 32,121 26,845 93,637 77,240
--------- -------- -------- --------
Costs and expenses:
Cost of license fees 465 489 1,431 1,804
Cost of services 6,788 5,702 21,387 17,271
Sales and marketing 11,879 9,411 35,586 26,564
Research and development 5,166 4,011 15,776 12,370
General and administrative 3,758 2,622 12,021 9,933
Amortization of other intangibles 237 17 711 487
In-process R&D - - 900 -
Restructuring charges 16 4 16 751
--------- -------- -------- --------
Total costs and expenses 28,309 22,256 87,828 69,180
--------- -------- -------- --------
Income from operations 3,812 4,589 5,809 8,060
Interest and other income, net 636 376 1,314 909
--------- -------- -------- --------
Income before income taxes 4,448 4,965 7,123 8,969
Provision for income taxes 1,745 1,225 3,303 1,507
--------- -------- -------- --------
Net income $ 2,703 $ 3,740 $ 3,820 $ 7,462
========= ======== ======== ========
Basic net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.12
========= ======== ======== ========
Shares used in basic per share
calculation 60,317 60,513 60,280 61,351
========= ======== ======== ========
Diluted net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.12
========= ======== ======== ========
Shares used in diluted per share
calculation 66,157 62,313 66,191 63,366
========= ======== ======== ========
ACTUATE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Three Months Nine Months
Ended Ended
September 30, (a) September 30, (a)
--------------- ----- --------------- -----
2006 2005 Notes 2006 2005 Notes
------- ------- ----- ------- ------- -----
GAAP income before income
taxes 4,448 4,965 7,123 8,969
Non-GAAP adjustments:
Amortization of purchased
technology 164 115 (b) 492 799 (b)
Amortization of other
intangibles 237 17 (c) 711 487 (c)
Stock compensation expense
under FAS123R 1,690 - (d) 4,798 - (d)
In-process R&D - - 900 -
Legal costs related to the
litigation with
Microstrategy, Inc - - - 186
Restructuring charges 16 4 (e) 16 751 (e)
Asset impairment - 17 (f) - 301 (f)
------- ------- ------- -------
Non-GAAP income before
income taxes 6,555 5,118 14,040 11,493
Non-GAAP tax provision 1,967 1,535 (g) 4,212 3,926 (g)
------- ------- ------- -------
Non-GAAP net income 4,588 3,583 9,828 7,567
======= ======= ======= =======
Basic Non-GAAP net income
per share $0.08 $0.06 $0.16 $0.12
======= ======= ======= =======
Shares used in basic per
share calculation 60,317 60,513 (h) 60,280 61,351 (h)
======= ======= ======= =======
Diluted Non-GAAP net income
per share $0.07 $0.06 $0.15 $0.12
======= ======= ======= =======
Shares used in diluted per
share calculation 66,841 62,313 (h) 67,068 63,366 (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 September 30, 2006, stock-based expense included approximately
$221, $588, $316, and $565, related to cost of services revenues,
sales and marketing expense, research and development expense and
general and administrative expense, respectively.
(e) Restructuring charges. 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 re-
evaluated 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 totaling $199,000, approximately $180,000 was
recovered in the fourth quarter of fiscal year 2005. The remaining
balance was collected in October 2006.
(g) Income tax expense 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.
(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)
Nine Months Ended
September 30,
2006 2005
-------------------
Operating activities
Net income $ 3,820 $ 7,462
Adjustments to reconcile net income to net cash
from operating activities:
Stock compensation expense 4,798 -
Amortization of other intangibles 1,479 1,286
Depreciation 1,264 1,538
Tax benefit from exercise of stock options - 1,513
Purchased in-process research & development 900 -
Restructuring charges 16 751
Net operating loss utilizations associated
with prior acquisitions 464 -
Unrealized investment loss - 301
Accounts receivable (343) 4,210
Other current assets 1,463 (495)
Accounts payable (3,360) (153)
Accrued compensation (1,550) (1,244)
Other accrued liabilities (99) (2,024)
Deferred tax assets 4 -
Income taxes payable (32) (211)
Deferred tax liabilities 20 -
Deferred rent liabilities (130) (90)
Restructuring liabilities (1,468) (3,018)
Deferred revenue 2,392 (1,278)
-------------------
Net cash provided by operating activities 9,638 8,548
-------------------
Investing activities
Purchases of property and equipment (699) (136)
Proceeds from maturity of short-term
investments 57,352 60,099
Purchases of short-term investments (47,524) (58,764)
Purchases of minority shares of Actuate
Japan (354) -
Acquisition of performancesoft, inc, net of
cash acquired (15,504) -
Net change in other assets (965) (130)
-------------------
Net cash (used in) provided by investing
activities (7,694) 1,069
-------------------
Financing activities
Tax benefit from exercise of stock options 1,898 -
Proceeds from issuance of common stock 2,061 1,667
Stock repurchases (3,487) (6,202)
-------------------
Net cash provided by (used in) financing
activities 472 (4,535)
-------------------
Net increase in cash and cash equivalents 2,416 5,082
Effect of exchange rate on cash 434 (157)
Cash and cash equivalents at the beginning of the
period 12,490 7,341
-------------------
Cash and cash equivalents at the end of the
period $ 15,340 $ 12,266
===================
CONTACT: Actuate Corporation
Keren Ackerman, 650-837-4545
kackerman@actuate.com