SAN MATEO, Calif. - April 18, 2002 - E.piphany, Inc. (Nasdaq: EPNY - news) today announced results for the quarter ended March 31, 2002.
For the quarter ended March 31, 2002, the company reported revenues of $22.1 million, compared to revenues of $39.3 million in the first quarter of 2001. First quarter license revenues were $10.9 million and service revenues were $11.2 million, representing 49% and 51% of total revenues, respectively. Excluding the amortization of purchased intangibles, stock-based compensation and restructuring charges, net loss for the quarter was $13.5 million, or $(0.19) per share, compared to a net loss of $24.7 million, or $(0.37) per share during the first quarter of 2001. Including the amortization of purchased intangibles, stock-based compensation and restructuring charges, net loss for the quarter was $17.0 million, or $(0.24) per share.
Pursuant to a Financial Accounting Standards Board staff announcement (Topic No. D-103), reimbursable expenses have been reclassified into revenues, with a corresponding increase in cost of revenues. The impact of the reclassification was to increase revenues by 2% and 3% in the first quarter of fiscal 2002 and 2001, respectively.
Roger Siboni, CEO of E.piphany, said, "During the quarter E.piphany released E.6, the only end-to-end J2EE CRM solution that takes advantage of our leadership in marketing and analytics to deliver Smart CRM. We also continued to add blue chip customers to our roster by signing new transactions with ING North America, Miller Brewing, the National Football League, RealNetworks, SBC Communications, SWISS, Ticketmaster and Yamaha. Repeat business also was strong this quarter as existing customers keep extending their investments in E.piphany`s products. While the first quarter presented many challenges and we do not expect a fast economic recovery, we are very pleased that in these tough times, we are gaining mindshare among the Global 2000 and constantly improving our market position so that we are well-positioned to benefit when IT spending picks up."
Kevin Yeaman, chief financial officer, added, "Our balance sheet remains solid with approximately $309 million in cash and DSO of 67 days. In a tough quarter, we kept service margins at a healthy level and reduced total operating costs without sacrificing our ability to execute our strategy."
E.piphany provides Smart CRM™ solutions for the largest global enterprises. The company`s integrated CRM suite, E.piphany E.6™, is driven by real-time intelligence to enable global businesses to better understand their customers and take the optimal action to improve customer satisfaction, increase revenue and reduce costs. E.piphany`s Smart CRM system is built on the industry`s most advanced, Web-based, CRM platform, resulting in fast and easy deployment and adoption. Leading companies, including more than 35% of the Fortune 100, use E.piphany products to enhance their customers` experience, enable organizational effectiveness and drive value. With worldwide headquarters in San Mateo, California, E.piphany has regional operations and offices throughout North America, Asia Pacific, Europe, Japan and Latin America.
This press release contains forward-looking statements relating to future economic recovery, mindshare gain and market position. Actual results could differ materially from such forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include customers` individual purchasing decisions, delays in the development and release of new US and international versions of E.piphany`s products, increases in the length of E.piphany`s sales cycles, intense competition including the introduction of new products and services by competitors, our ability to hire and retain qualified personnel, and worsening general economic conditions. These factors and others are described in more detail in the company`s public reports filed with the Securities and Exchange Commission, such as those discussed in the "Risk Factors" section included in the company`s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in the company`s prior press releases. E.piphany assumes no duty to update any statements made in this press release.
E.piphany, E.6, Smart CRM and the E.piphany logo are trademarks of E.piphany, Inc.
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