Blue Martini Software Announces Third Quarter 2002 Results
Quarterly Pro Forma Net Loss Reduced 18% Sequentially,Cash Per Share of $0.97
SAN MATEO, Calif. , (10/22/2002)--Blue Martini Software, Inc., (NASDAQ: BLUE) today reported financial results for the third quarter ended September 30, 2002. Total revenues were $8.5 million for the third quarter of 2002, in line with guidance. These results compared to total revenues of $8.5 million for the second quarter of 2002 and $11.7 million for the third quarter of 2001.
As of September 30, 2002, Blue Martini had cash, cash equivalents and short-term investments totaling $71.3 million or $0.97 per outstanding share.
Blue Martini Software reported pro forma net loss of $7.7 million, or $0.11 per share, for the third quarter of 2002 compared to pro forma net loss of $9.4 million, or $0.13 per share, for the second quarter of 2002 and $8.5 million, or $0.13 per share, for the third quarter of 2001. The third quarter 2002 pro forma net loss and pro forma net loss per share are narrower than guidance. Pro forma net loss excludes amortization of intangible assets, stock compensation and warrants, restructuring charges, write-offs of long-lived assets, and acquisition-related in-process research and development.
Net loss in accordance with GAAP, including the above items, was $28.0 million, or $0.39 per share for the third quarter of 2002, compared to net loss of $13.1 million, or $0.18 per share, for the second quarter of 2002 and $15.0 million, or $0.23 per share, for the third quarter of 2001. In accordance with Financial Accounting Standards Statement Nos. 144 and 142, which became effective and were adopted by the Company in January 2002, the Company conducted an impairment review and write-down of long-lived assets following the recent decline in the Company`s stock price during the third quarter of 2002. The write-down of long-lived assets recorded during the quarter includes goodwill, intangible assets, property and equipment, and other long-lived assets totaling $16.8 million.
For the nine months ended September 30, 2002, Blue Martini Software reported total revenues of $25.6 million, pro forma net loss of $24.5 million or $0.35 per share and net loss in accordance with GAAP of $48.4 million or $0.69 per share. These results compare with total revenues of $49.5 million, pro forma net loss of $39.5 million or $0.62 per share and net loss in accordance with GAAP of $60.4 million or $0.95 per share for the nine months ended September 30, 2001.
For additional information on Blue Martini Software`s reported results, see the accompanying financial tables.
"The entire enterprise software segment faces a very challenging sales environment, and we see this trend continuing for some time. Blue Martini continues to be conservative with its cash conservation and expense controls while maintaining its commitment to customer service and product innovation," said Monte Zweben, Chairman and CEO, Blue Martini Software. "We are in the process of reorganizing the company around vertical business units and completing a related reduction-in-force of approximately 20%. We are confident in our vertical strategy, and are maintaining traction in industrial and consumer segments with our rapidly deployed, high value solutions."
Third Quarter Highlights:
Blue Martini secured new customers, including Menards, one of the largest home improvement retail chains in North America; Vivendi Universal`s music distribution division Le Club Dial; and Singapore`s well-known Changi Airport. Customers deploying Blue Martini during the quarter included leading chemical manufacturer Rhodia (formerly Rhone-Poulenc); Lanier, the world`s largest provider of document management solutions and services; Wavin, a top plastic pipe manufacturer; Legato, a major storage management systems provider; and DuPont, a leading US chemical manufacturer.
During the quarter, the company shipped Blue Martini 5 for Manufacturers, which manages the complete set of selling processes typical to manufacturers: marketing, lead management, needs assessment, configuration, quoting, order management, and service capabilities. The company also announced the availability of support for IBM`s DB2 database software.
The company today announced the resignation of President and COO Mike Borman, effective November 1, 2002, and the retirement of board of directors member Edward Vick, effective October 18, 2002. The responsibilities formerly held by Borman will be shared by Chairman and CEO Monte Zweben and CFO Robert Cell. During the quarter, Dennis Carey, a former executive vice president at The Home Depot, AT&T and General Electric, joined Blue Martini`s board of directors.
"Mike Borman has made substantial contributions over the past year as our President and COO. As part of our re-organization, Mike will be transitioning out of Blue Martini. Our new organizational structure requires local leadership for this role, and family commitments prevent Mike from relocating at this time. I`d also like to thank Ed Vick for contributing his creativity and expertise over the past few years," said Zweben.
Blue Martini Software`s third quarter-financial results will be discussed Tuesday, October 22, 2002 at 4:30 pm ET/1:30 pm PT and available by calling (703) 871-3627 at least 5 minutes prior to the start time, or by logging in to the investor relations section at www.bluemartini.com. A replay of the webcast will be available through November 5, 2002 at the Company`s website or by dialing 703-925-2435, passcode # 6243857.
About Blue Martini Software:
Blue Martini Software provides customer relationship management (CRM) applications that build loyalty, increase sales and reduce the costs to serve across every channel. Its customer-facing applications enable companies to act upon business intelligence in real-time through direct marketing and customer interactions on the web, in the store or via the telephone. Industry-leading companies worldwide deploy Blue Martini solutions in as little as 30 days to power their marketing, e-commerce, interactive selling, channel management and self-service operations. With worldwide headquarters in San Mateo, Calif., Blue Martini Software can be reached at 650-356-4000 or www.bluemartini.com.
Note to editors: "Blue Martini" and "Blue Martini Software" are trademarks of Blue Martini Software, 2600 Campus Drive, San Mateo, CA 94403. Other product and company names may be the trademarks of their respective owners.
This news release regarding Blue Martini Software includes forward-looking statements, based on current expectations, that involve risks and uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to: risks associated with the development and licensing of software generally, including potential delays in the software development or release and technical difficulties in software deployment or use; competition and technological changes and developments; risks associated with acquisitions; Blue Martini Software`s need to maintain and enhance business relationships with systems integrators and other parties; and general economic and market conditions. Details on these and other risks are set forth in Blue Martini Software`s Form 10-Ks and 10-Qs filed with the Securities and Exchange Commission ("SEC"). These filings are available on a website maintained by the SEC at http://www.sec.gov. These forward-looking statements are generally identified by words such as "expect," "anticipate," "will," "intend," "believe," "hope," "assume," "estimate," "plan," "should," "designed to" and other similar words and expressions. Blue Martini Software assumes no obligation to update forward-looking statements.
Contacts for Media and Analysts:
Andrew Hoerner
Blue Martini Software
650-356-4395
ahoerner@bluemartini.com
Contacts for Investor Relations:
Tracy Vernali
Blue Martini Software
650-356- 7860
tracyv@bluemartini.com
Back...
