Revenues Increase for 3rd Consecutive Quarter; Operating Loss Declines
FREMONT, Calif.--Oct. 24, 2001--Accrue(TM) Software, Inc. (NASDAQ: ACRU), said today that its fiscal second quarter results were marked by the company`s third consecutive quarterly revenue increase, a reduced operating loss, and wins for its new next-generation Internet analytics platform.
For the second quarter ended September 29, 2001, Accrue reported net revenues of $3.8 million, a 5.5 percent increase over $3.6 million in revenue reported in the previous quarter ended June 30, 2001, compared to $10.0 million for the same quarter last fiscal year. Product license revenue was $1.4 million, a 25% increase over $1.1 million reported in the prior quarter, compared to $6.7 million for the same quarter last fiscal year. The pro forma net loss for the second fiscal quarter was $2.7 million, or ($0.09) per share, compared to a pro forma net loss of $3.4 million, or ($0.11) per share reported in the prior quarter, and a pro forma net gain of $1.8 million, or $0.06 per share, reported for the same quarter last fiscal year. The pro forma results exclude non-cash charges for amortization of intangibles, in process research and development and stock-based compensation.
The company indicated that through September 30 it had repurchased 150,000 of its shares on the open market under a stock buyback plan that had been announced in May.
Jeffrey Walker, Accrue Software`s President and CEO, said, "Our results for the quarter demonstrate gradual but continuing progress toward our three-pointed strategic plan to build our financial resources, continue an upward revenue trend while introducing our new major analytics platform, and measurably improve customer satisfaction and delivery.
"In addition to increasing revenues for the third consecutive quarter, our maintenance renewal rates more than doubled from the first quarter and bookings were substantially higher than the first quarter, with a book-to-bill ratio that indicates we are restoring our pipeline," he said. He added that 8 customers have already committed to the company`s new G2 second-generation platform--Citicorp, Lycos Europe, Dow Jones, Kodak, Lands End, Bridges, Knight Ridder and the Canadian Imperial Bank of Commerce.
Outlook
"As I said last quarter, we remain enthusiastic about Accrue`s near and long-term market opportunities. Management`s plan is working and the turnaround is clearly underway. Despite the current economic environment and the limited visibility that results, our goal for the next quarter is slight revenue growth followed by a return to a quarterly growth rate of 5 to 10%.
"We expect to further reduce our cash expenses to $5.8 to $6.0 million in the third quarter. That reduction, coupled with our anticipated improvement in quarterly revenues and our $6.5 million cash position, should provide us with cash sufficient to achieve profitability," Walker said.
Amendment of Quarterly Report
In the course of reviewing the financial statements to be included in its quarterly report on Form 10-Q for the period ended September 30, 2001, Accrue Software determined there had been an overstatement of amortization of intangible assets recorded in the quarter ended June 30, 2001. Accordingly, on October 24, 2001, Accrue Software filed with the Securities and Exchange Commission an amendment to its quarterly report on Form 10-Q for the period ended June 30, 2001.
Investor Conference Call
As previously announced, Accrue Software will be holding a conference call today, October 24, 2001 at 2:00 p.m. PT. To participate in the call, please dial (646) 862-1042 approximately 10 minutes prior to the start of the call. A replay of the call will be available from approximately 4:00 p.m. PT today until 4:00 p.m. PT November 7, 2001. To access the replay, please dial (800) 633-8284. The confirmation code for the call is 19804099. The call can also be accessed through the investor relations section of Accrue`s Web site at www.accrue.com. To listen to the call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, the event will be archived and available beginning approximately two hours following the live Web cast.
About Accrue Software
Accrue Software is a leading provider of enterprise-level analytic solutions that help companies understand, predict, and respond to Internet customer behavior. Accrue`s solutions enable highly targeted campaigns to improve the profitability of customer interactions across multiple touch points. Accrue has more than 500 customers, including industry leaders such as FedEx, Gateway, Dow Jones, Eastman Kodak Company, MTV, Macy*s, and Deutsche Telekom.
Accrue Software was founded in 1996 and is headquartered in Fremont, Calif., with regional sales offices throughout the U.S. and international headquarters in Cologne, Germany. Accrue has strategic partnerships with leading business vendors, including Art Technology Group, BEA, BroadVision, DoubleClick, IBM, Oracle, Sun Microsystems and Vignette. Accrue Software can be reached at 1-888-4ACCRUE or 510-580-4500, and at www.accrue.com.
Accrue is a trademark of Accrue Software, Inc. All other trademarks are the sole property of their respective owners.
Except for the historical information contained herein, the matters discussed in the news release, including projections of future revenues, earnings and financial results, are forward-looking statements that involve risks and uncertainties that could cause actual results, future revenues or earnings to differ materially from those in such forward-looking statements. These forward-looking statements are made only as of the date of this press release, and Accrue undertakes no obligation to update or revise the projections of revenue and earnings, or the other forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on these projections of future revenue and earnings, and other forward-looking statements. Potential risks and uncertainties include, without limitation, the company`s limited operating history, history of losses, fluctuations in operating results, ability to cut expenses, competition in the e-business analysis market, reliance on sales from a limited number of products for its revenue, customer adoption of new products (particularly the company`s new G2 second-generation platform), reliance on expanding sales operations and distribution channels and potential difficulties associated with the integration of the personnel, operations and products of Marketwave and Pilot with Accrue`s personnel, operations and products. These and other risk factors are described in detail in the Company`s Registration Statement on Form S-1, and in the Company`s other filings, which are on file with the Securities and Exchange Commission.
-0-
Back...
