Science & Technology
Science and Technology
Science and Technology
Wed, January 28, 2009
Tue, January 27, 2009 Callidus Software Inc.: Callidus Software Announces Fourth Quarter and Full Year 2008 Results
SAN JOSE, CA--(Marketwire - January 27, 2009) - Callidus Software Inc. (
"Against the backdrop of a very uncertain economy, I am pleased with our growth in total revenues and our significant increase in recurring revenues," said Leslie Stretch, president and CEO at Callidus Software. "Being able to grow our business during depressed times illustrates the mission criticality and rich value proposition of our sales performance management solutions. I am excited about the progress we've made transforming to a recurring revenues business. We entered 2008 with just over 20% of total revenues being of a recurring nature, and we exited the year with almost 40% of total revenues coming from the recurring category. I am also proud of the effort we made to streamline the business and bring operating expenses in line with our profitability goals. We reduced non-GAAP operating expenses by approximately $4.3 million, or 8%, in 2008 as compared to 2007."
Total fourth quarter revenues were up 10% to $27.3 million, compared to the same quarter last year. Recurring revenues, which include subscription and support, for the fourth quarter were $11.3 million, an increase of 74% over the fourth quarter of 2007. The net new Annual Contract Value (ACV) of on-demand bookings in the fourth quarter was $1.2 million, bringing the cumulative ACV to $26.0 million.
Fourth quarter services revenues were down 1% to $11.5 million, and fourth quarter license revenues were down 34% to $4.5 million, in each case, compared to the fourth quarter of 2007.
Fourth quarter GAAP net loss was $4.8 million or ($0.16) per share, which included $1.8 million of stock-based compensation expense, $1.2 million of restructuring expense and $500,000 of amortization of acquired intangible assets. This compares to GAAP net loss of $3.0 million, or ($0.10) per share, for the fourth quarter of 2007, which included $1.0 million of stock-based compensation expense, $1.5 million of restructuring expense and a benefit for income taxes of $0.5 million.
Fourth quarter non-GAAP net loss was $1.6 million, compared to a non-GAAP net loss of $1.0 million for the same period last year. Non-GAAP net loss excludes stock-based compensation expense, restructuring expense, amortization of acquired intangible assets, and provision (benefit) for income taxes.
In 2008, Callidus generated $6.1 million of cash from operations as compared to the prior year when the company used $3.1 million of cash in operations. The cash generated from operations was offset by $9.4 million of cash used to acquire Compensation Technologies and $7.9 million of cash used to buy back the Company's stock. Cash and investments totaled $41.2 million at December 31, 2008, a decrease of $9.5 million from December 31, 2007.
For the full fiscal year 2008, total revenues were up 6% from $101.1 million in 2007 to $107.2 million. Recurring revenues for 2008 were $40.5 million, up 70% over 2007. 2008 services revenues were up 1% to $49.5 million, and 2008 license revenues were down 39% to $17.1 million.
Full year GAAP net loss was $14 million or ($0.47) per share, which included $7.7 million of stock-based compensation expense, $1.6 million restructuring expense and $1.9 million of amortization of acquired intangible assets. This compares to GAAP net loss of $13.1 million, or ($0.45) per share, for the full year of 2007, which included $5.0 million of stock-based compensation expense, $1.5 million of restructuring expense and a benefit for income taxes of $0.3 million.
The Company's non-GAAP net loss in 2008 was $2.6 million, compared to a non-GAAP net loss of $7.1 million for 2007. Non-GAAP net loss excludes stock-based compensation expense, restructuring expense, amortization of acquired intangible assets, and provision (benefit) for income taxes.
Recent Business Highlights
New Products: Callidus expanded its product offerings with the Pervasive Performance Suite, a 100% multi-tenant SaaS solution that enhances its Sales Performance Management capabilities and extends its reach to bonus and quota management. New Services: Callidus broadened its services offerings with the Sales Operations Center of Excellence, which enhances the customer experience through augmented compensation plan effectiveness, sales performance analytics, and quota and territory strategic services. Market Coverage: Callidus bolstered its mid-market team with the hiring of Jimmy Duan, a seasoned SaaS executive, as Senior Vice President of Mid- Market Business. New Channels: Callidus expanded the channels for selling its products by joining salesforce.com's Force.com Checkout program, which enables companies to buy Callidus Plan Communicator directly from salesforce.com's AppExchange online marketplace. Industry Recognition: Callidus received a "Positive" rating from Gartner in its North American MarketScope for Insurance Incentive Compensation Management Applications, making it the only company to be ranked "Positive" in both the Horizontal and the Insurance Incentive Compensation Management MarketScope reports.
Financial Outlook
Total revenue for the first quarter of 2009 is expected to be between $24.0 million and $25.5 million. GAAP Operating expenses, including stock-based compensation of approximately $2.0 million, are expected to be between $14.0 million and $15.0 million in the first quarter of 2009. 2009 full year recurring revenues are expected to be in excess of $50 million.
Conference Call
A conference call to discuss the fourth quarter and full year 2008 results and outlook is scheduled for 1:30 p.m. Pacific Standard Time (PST) today. The conference call will be available via live webcast at the Investor Relations section of Callidus Software's website at [ www.callidussoftware.com ]. To participate in the call via telephone, the dial-in number will be 800-638-4930 (international: +1 617-614-3944), passcode 30236574.
A webcast replay and telephone playback of the conference call will be available after 3:30 p.m. PST today through February 3, 2009. The webcast replay will be available at the Investor Relations section of Callidus Software's website under Calendar of Events. The telephone replay will be available by calling 888-286-8010 (International: +1 617-801-6888) passcode 23706224.
About Callidus Software®
Callidus Software ([ www.callidussoftware.com ]) (
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including estimates of first quarter 2009 total revenues, operating expenses and stock-based compensation expense, and full year 2009 recurring revenues, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, uncertainty regarding SPM market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, uncertainty regarding the demand for and profitability of our on-demand services, increased competition or new entrants in the marketplace, litigation and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K for 2007 and its Form 10-Q for the third quarter ended September 30, 2008, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or from the Investor Relations section of Callidus Software's website ([ www.callidussoftware.com ]). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
Non-GAAP Financial Measures
Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net income. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense pursuant to SFAS 123(R) and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
© 1998-2009 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral, TrueResolution, TrueTarget and TrueService+ are trademarks, servicemarks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) Three months ended Year ended December 31, December 31, -------------------- -------------------- 2008 2007 2008 2007 --------- --------- --------- --------- Revenues: Recurring $ 11,338 $ 6,501 $ 40,546 $ 23,907 Services 11,543 11,648 49,535 49,125 License 4,462 6,756 17,100 28,025 --------- --------- --------- --------- Total revenues 27,343 24,905 107,181 101,057 Cost of revenues: Recurring (1) 5,016 2,850 16,111 11,043 Services (1) (2) 11,000 10,274 45,093 43,555 License 192 238 897 884 --------- --------- --------- --------- Total cost of revenues 16,208 13,362 62,101 55,482 --------- --------- --------- --------- Gross profit 11,135 11,543 45,080 45,575 Operating expenses: Sales and marketing (1) 6,994 7,650 28,977 30,806 Research and development (1) 3,639 3,782 14,597 15,563 General and administrative (1) 4,147 2,619 14,408 13,991 Restructuring 1,244 1,458 1,641 1,458 --------- --------- --------- --------- Total operating expenses 16,024 15,509 59,623 61,818 --------- --------- --------- --------- Operating loss (4,889) (3,966) (14,543) (16,243) Interest and other income, net (222) 533 692 2,772 --------- --------- --------- --------- Income (loss) before provision for income taxes (5,111) (3,433) (13,851) (13,471) Provision (benefit) for income taxes (282) (474) 125 (330) --------- --------- --------- --------- Net Income (loss) $ (4,829) $ (2,959) $ (13,976) $ (13,141) ========= ========= ========= ========= Basic net income (loss) per share $ (0.16) $ (0.10) $ (0.47) $ (0.45) ========= ========= ========= ========= Diluted net income (loss) per share $ (0.16) $ (0.10) $ (0.47) $ (0.45) ========= ========= ========= ========= Shares used in basic per share computation 29,841 29,573 29,913 29,068 ========= ========= ========= ========= Shares used in diluted per share computation 29,841 29,573 29,913 29,068 ========= ========= ========= ========= (1) Stock-based compensation included in amounts above by category: Recurring 195 73 692 250 Services 293 206 1,263 838 Sales and marketing 374 288 1,861 1,162 Research and development 254 258 1,169 995 General and administrative 690 180 2,711 1,709 --------- --------- --------- --------- Total stock-based compensation $ 1,806 $ 1,005 $ 7,696 $ 4,954 ========= ========= ========= ========= (2) Acquisition related asset amortization $ 500 $ - $ 1,917 $ - CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) December 31, December 31, Assets 2008 2007 -------------- -------------- Current assets: Cash and cash equivalents $ 35,390 $ 21,813 Short-term investments 1,455 28,824 Accounts receivable, net 22,752 23,575 Deferred income taxes 423 423 Prepaid and other current assets 3,998 4,038 -------------- -------------- Total current assets 64,018 78,673 Long-term investments 4,320 - Property and equipment, net 4,890 4,438 Goodwill 5,655 - Intangible assets, net 3,208 2,333 Deferred income taxes, noncurrent 74 90 Deposits and other assets 1,006 1,913 -------------- -------------- Total assets $ 83,171 $ 87,447 ============== ============== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,447 $ 2,901 Accrued payroll and related expenses 7,128 7,326 Accrued expenses 4,917 4,225 Deferred revenue 21,923 15,831 -------------- -------------- Total current liabilities 36,415 30,283 Long-term deferred revenue 1,202 2,326 Other liabilities 1,525 1,089 -------------- -------------- Total liabilities 39,142 33,698 -------------- -------------- Stockholders' equity Common stock 29 30 Additional paid-in capital 207,700 203,110 Accumulated other comprehensive income 123 456 Accumulated deficit (163,823) (149,847) -------------- -------------- Total stockholders' equity 44,029 53,749 -------------- -------------- Total liabilities and stockholders' equity $ 83,171 $ 87,447 ============== ============== CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Year Ended December 31, ------------------------ 2008 2007 ----------- ----------- Cash flows from operating activities: Net loss $ (13,976) $ (13,141) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation expense 2,511 1,915 Amortization of intangible assets 2,886 485 Provision for doubtful accounts and sales returns 818 114 Stock-based compensation 7,696 4,954 Loss on disposal of property 25 2 Deferred income taxes 16 (513) Net accretion on investments (162) (596) Put option gain (492) - Other than temporary impairment of investments 771 - Loss on contract 1,583 - Changes in operating assets and liabilities: Accounts receivable 2,301 (573) Prepaid and other current assets (1,309) 254 Other assets 910 82 Accounts payable (687) 666 Accrued payroll and related expenses (99) 681 Accrued expenses (2,862) (283) Deferred revenue 6,174 2,826 ----------- ----------- Net cash (used in) provided by operating activities 6,104 (3,127) ----------- ----------- Cash flows from investing activities: Purchases of investments (13,919) (46,730) Proceeds from maturities and sale of investments 36,820 59,438 Purchases of property and equipment (2,491) (2,664) Purchases of intangible assets (361) (1,942) Acquisition, net of cash acquired (9,386) - Change in restricted cash - 136 ----------- ----------- Net cash provided by (used in) investing activities 10,663 8,238 ----------- ----------- Cash flows from financing activities: Net proceeds from issuance of common stock and warrants 4,805 4,658 Purchases of treasury stock (7,920) - ----------- ----------- Net cash provided by financing activities (3,115) 4,658 ----------- ----------- Effect of exchange rates on cash and cash equivalents (75) (38) ----------- ----------- Net increase (decrease) in cash and cash equivalents 13,577 9,731 Cash and cash equivalents at beginning of year 21,813 12,082 ----------- ----------- Cash and cash equivalents at end of year $ 35,390 $ 21,813 =========== =========== Supplemental disclosures of cash flow information: Cash paid for income taxes $ 14 $ 12 =========== =========== Non-cash investing and financing activities: Purchases of property and equipment not paid as of year-end $ 405 $ 454 =========== =========== Purchases of intangible assets not paid as of year-end $ - $ 500 =========== =========== Acquisition, net of cash acquired not paid as of year-end $ 14 $ - =========== ===========
