RightNow Technologies Reports Fourth Quarter and Full Year 2005 Financial Results
BOZEMAN, Mont., Jan 30, 2006 -- RightNow(R) Technologies, Inc. (Nasdaq: RNOW) today announced results for the fourth quarter and fiscal year ended December 31, 2005. RightNow reported consolidated revenue of $24.6 million for the fourth quarter of 2005, an increase of 39 percent compared to the fourth quarter of 2004.
Fourth quarter 2005 net income was $3.0 million, or $0.09 per diluted share, compared to net income of $1.3 million, or $0.04 per diluted share, in the fourth quarter of 2004.
Revenue for the year ended December 31, 2005 was $87.1 million, an increase of 41 percent from $61.8 million for the year ended December 31, 2004. Net income for the year ended December 31, 2005 was $7.7 million, or $0.23 per diluted share, compared to net income of $3.4 million, or $0.12 per diluted share, for the year ended December 31, 2004.
At December 31, 2005 deferred revenue totaled $67.9 million, or 38% percent more than one year earlier. Cash from operations for the year ended December 31, 2005 was $14.9 million as compared to $6.7 million for the similar period of 2004.
"The fourth quarter culminated an outstanding year for RightNow," Greg Gianforte, founder and CEO said. "Our willingness to be accountable for our customers` success is the driver behind our 90+ percent customer retention and high level of repeat business. In 2005, RightNow formed the backbone for more than 740 million customer interactions with 99.98 percent uptime during the year, including record volumes in the holiday season that highlights our enterprise-class scalability and mission critical nature. As we look forward to 2006, we believe RightNow`s leadership in the global 2000 will continue to set the standard for enterprise-class on demand CRM solutions."
Susan Carstensen, CFO, added, "Total bookings grew 40% over 2004 and exceeded $100 million for the first time. Importantly, more than half our revenue came from companies with greater than $1 billion in revenue and government organizations. On the strength of this performance we are reiterating our guidance for bookings growth of 40 to 50 percent in 2006."
Guidance
* For the first quarter of 2006, total revenue is expected to be in the
range of $24 to $25 million. GAAP diluted EPS, which includes the
effect of newly adopted stock-based compensation accounting standard
and related taxes, is expected to be in the range of $(0.02) to $0.00
cents. Excluding the effect of stock-based compensation, non GAAP
diluted EPS is expected to be in the range of $0.01 to $0.03 cents.
* For the full year 2006, revenue is expected to be in the range of $115
to $120 million, and GAAP diluted EPS in the range of $0.06 to $0.11
cents. Excluding the effect of stock-based compensation, non GAAP
diluted EPS for the year is expected to be in the range of $0.20 to
$0.25 cents.
Quarterly Conference Call
RightNow Technologies will discuss its quarterly results via teleconference at 4:30 p.m. (ET)/2:30 p.m. (MT) today, January 30, 2006. To access the call, please dial (800) 810-0924 at least five minutes prior to the start time. An audio webcast of the call will also be available at www.shareholder.com/rnow/medialist.cfm. A replay of today`s conference call will be available by calling (719) 457-0820, or (888) 203-1112, or on the company Web site at www.rightnow.com, under the Investor Webcasts menu, by 5:30 p.m. (MT) on January 30, 2006. The replay will be available through Monday, February 13, 2006.
Historical Financial and Supplementary Information
Current quarter consolidated financial statements and a reconciliation of GAAP 2006 earnings guidance to non GAAP earnings are included with this press release. To view the company`s historical quarterly consolidated financial statements and supplementary data, including stock-based compensation disclosures pursuant to SFAS 123, please visit www.rightnow.com.
About RightNow Technologies, Inc.
RightNow (Nasdaq: RNOW) provides organizations with industry-leading on demand CRM solutions to build customer-focused businesses. RightNow`s acclaimed technology, comprehensive services and commitment to customer success deliver high returns on investment for its customers. More than 1,400 organizations worldwide use RightNow solutions including British Airways, British Telecom, Cisco Systems, Continental Tire North America, John Deere, Nikon and the Social Security Administration. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For further information, please visit www.rightnow.com.
RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management`s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding projected results of operations and management`s future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, risks associated with our business model; our ability to develop or acquire, and gain market acceptance for new products, including our new sales and marketing and voice automation products, in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand operations; fluctuations in our operating results due to changes in our mix of revenues, and our rate of growth; fluctuations in our earnings as a result of the impact of stock-based compensation expense; interruptions or delays in our hosting operations, breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing the intellectual property rights of third parties; and our ability to expand, retain and motivate our employees and manage our growth. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. The forward- looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
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