Callidus Software Reports Record Fourth Quarter 2003 / Results Q4 Revenues Up 176%, Year over Year
Bracknell, Berkshire, UK (ots) - Callidus Software Inc. (Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM) software systems, announced on January 22 financial results for the fourth quarter and fiscal year ended December 31, 2003.
Total fourth quarter revenues grew 176% to $22.3 million compared to $8.1 million in the fourth quarter of 2002 and increased 13% sequentially from the preceding third quarter. This represents Callidus Software's eighth consecutive quarter of revenue growth. Fourth quarter net income was $0.7 million, or $0.03 per share, compared to a net loss of $4.9 million, or $3.50 per share, for the fourth quarter of 2002 and break-even in the third quarter of 2003.
Non-GAAP net income for the fourth quarter was $2.0 million, or $0.08 per share, as compared to a non-GAAP net loss of $4.8 million in the fourth quarter of 2002 and non-GAAP net income of $0.9 million in the third quarter of 2003. A reconciliation between GAAP and non-GAAP information, which excludes stock-based compensation and applies an effective tax rate of 26%, is contained in the attached tables.
For 2003, total revenues were $71.7 million, an increase of 170% over total revenues of $26.6 million in 2002. Net income was $0.8 million, or $0.04 per share, compared to a net loss of $19.1 million, or $13.98 per share, in 2002. Excluding stock-based compensation and applying an effective tax rate of 26%, non-GAAP net income was $4.2 million, or $0.20 per share, for 2003 compared to a non-GAAP net loss of $18.7 million, or $13.67 per share, in 2002.
"Callidus achieved record revenues in 2003, finishing the year with a strong fourth quarter," said Reed Taussig, president and CEO of Callidus Software. "Our products are helping customers turn incentive compensation into a competitive advantage by truly influencing employee and channel partner behaviors. We continued to demonstrate our market leadership position in the fourth quarter by selling to top quality customers across a number of vertical markets, including America Online, Auto Club Insurance Association, BMC Software, SBC Communications and Wachovia Securities."
Q4 Financial Highlights
- License revenues were a record $10.9 million, a growth rate of 261% year-over-year and 9% sequentially.
- Callidus Software sold 5,750,000 shares of common stock in an initial public offering priced at $14.00 per share in November 2003. Net proceeds to the company totaled approximately $72.2 million.
- Net cash provided by operating activities for the fiscal year was $0.9 million. Cash and investments totaled $80.3 million at December 31, 2003 and includes the net proceeds from the company's initial public offering.
- Days Sales Outstanding (DSO) in accounts receivable at the end of the fourth quarter of 2003 was 51 days, compared to 51 days at the end of the third quarter of 2003.
Q4 Business Highlights
- IBM and Callidus Software formed a global strategic alliance to deliver comprehensive incentive compensation management solutions.
- Callidus' TruePerformance(r) product won the prestigious industry award "HR Product of The Year," as featured in the December 2003 issue of Human Resource Executive magazine.
- Callidus exercised its option to purchase a perpetual license to the TruePerformance software code originally developed by Cézanne Software. Callidus will no longer pay royalties to Cézanne and will own and control future development of the award winning TruePerformance product.
- John R. Eickhoff, Executive Vice President and Chief Financial Officer of Ceridian Corporation, joined Callidus' Board of Directors in November 2003.
Guidance
- Calendar year 2004 total revenues are projected to be between $95 million and $100 million.
- Calendar year 2004 earnings per share is projected to be between $0.08 and $0.16 on a GAAP basis and non-GAAP earnings per share is projected to be between $0.22 and $0.28. Diluted weighted average shares outstanding for 2004 is estimated to be 29.3 million shares.
- First quarter 2004 total revenues are projected to be between $20 million and $22 million.
- First quarter 2004 earnings per share, on a GAAP basis, is projected to be between a loss of ($0.05) and ($0.02) and non-GAAP earnings per share, excluding stock-based compensation charges, but giving effect to an effective tax rate of 26%, is projected to be between $0.01 and $0.03. Diluted weighted average shares outstanding for the first quarter of 2004 is estimated to be 28.9 million shares.
Conference Call
Callidus Software's fourth quarter 2003 conference call is scheduled for 1:30 p.m. Pacific Standard Time (PST), Thursday, January 22, 2004. The conference call is available via webcast and can be accessed live, and for one week after the call, 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 is 800-299-9086 (international 617-786-2903), passcode 42034077. A replay of the conference call can be accessed after 4:00 p.m. PST, by calling 888-286-8010 (international 617-801-6888), passcode 59785976.
About Callidus Software
Founded in 1996, Callidus Software (http://www.callidussoftware.com) is the leading provider of enterprise incentive management (EIM) systems to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage competitive incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp GridT architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include Airborne Express, Inc., Allstate, Apple Computer, AOL Time Warner Corporation, AT&T Wireless, BMC Software, Citizens Bank, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, Intuit, JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems.
Non-GAAP Financial Measures
The non-GAAP information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with generally accepted accounting principles (GAAP) in the United States. The non-GAAP financial results exclude stock-based compensation expense and apply an estimated effective tax rate of 26% in order to provide what we believe is an additional tool for investors to use in understanding our operational results and trends. These non-GAAP financial results are used internally by management to evaluate our operations, plan and forecast for future periods and to allocate resources within the organization. A reconciliation between GAAP and non-GAAP financial measures is included in the accompanying tables.
Note on Forward-Looking Statements
The forward looking statements included in this press release, including guidance for the first quarter of 2004 and the 2004 fiscal year, 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 material fluctuations in financial results and future growth rates, risk associated with development and market acceptance of new products and product enhancements, decreases in customer spending, increased competition or new entrants in the marketplace and other risks detailed in the company's SEC reports, including its registration statement on Form S-1, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or 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.
(c) 1998-2004 by Callidus Software Inc. Callidus Software, the Callidus Software logo, TrueComp, and TruePerformance are registered trademarks and TrueAnalytics, TrueComp Grid, TrueComp Manager, TrueComp Viewer, TrueDiagnostics, TrueInformation, TrueIntegration, TruePortal, TrueReferral, TrueResolution, TrueService, TrueSuccess, TrueSupport, Solutions for the Strategic Enterprise and Everyone Profits are trademarks of Callidus Software Inc. in the United States and other countries. Other trademarks are the property of their respective holders.
Callidus Software
Investor Relations Contact:
Jon Pexton
408-808-6577