Strong Sequential Quarterly Growth in Revenue and Profitability; $19.5 million in Revenue; EPS of $0.08 Pro Forma, $0.06 GAAP
SAN FRANCISCO, Calif., January 16, 2003 —Enterprise Web technology leader Plumtree Software, Inc. (Nasdaq: PLUM) today announced results for its fourth fiscal quarter and full fiscal year 2002 ended December 31, 2002. Revenue for the fourth quarter 2002 was $19.5 million, compared to $17.7 million in Q3 and $22.8 million for the comparable quarter last year. Pro forma net income for the fourth quarter 2002 was approximately $2.3 million or $0.08 per share, compared to pro forma net income of $562,000 or $0.02 per share in Q3 and $685,000 or $0.03 for the comparable quarter last year. Net income for the fourth quarter 2002 calculated in accordance with generally accepted accounting principles (GAAP) was $1.9 million, or $0.06 per share, compared to a loss of $888,000, or $0.03 per share in Q3, and a loss of $787,000 or $0.11 per share for the comparable quarter last year. Pro forma net income for the quarter and year ended December 31, 2002 excludes charges for deferred stock-based compensation, restructuring charges, amortization of acquired technology, and assumes an effective tax rate of 30%.
As of December 31, 2002, Plumtree's cash, cash equivalents, and short-term investments totaled approximately $65.3 million, up sequentially from $63.8 million in the previous quarter. Plumtree has no long-term debt.
Full Year 2002 Results
For all of 2002, revenue was $82.9 million compared to $81.5 million in 2001. Pro forma net income for the year was $6.4 million or $0.21 per share, compared to a loss of $38,000, or $0.01 per share in 2001. Net income for the year calculated in accordance with generally accepted accounting principles (GAAP) was $2.4 million, or $0.08 per share, compared to a loss of $7.8 million or $1.21 per share in 2001.
"We believe our results reflect Plumtree's focus on profitability. While the IT spending recession of 2002 moderated revenue growth year over year, we consistently delivered on the bottom line," Plumtree CEO John Kunze said. "Additionally, we are pleased that our business continued to be operating cash flow positive and that we strengthened our balance sheet during the period." "Last quarter, Plumtree launched the culmination of three acquisitions and two major product releases, the Enterprise Web," said Mr. Kunze. "The Enterprise Web combines application integration, content management, collaboration, search and portal in the industry's first cohesive enterprise-wide work environment. Collectively, these technologies provide a foundation for building new Web applications at lower cost. This strategy helped Plumtree to compete better against platform vendors, appeal to new customers and deliver more value to existing customers." "The environment remains challenging but we intend to build on customer success while maintaining our financial discipline to meet market opportunities in 2003."
Fourth Quarter Highlights
Fourth quarter 2002 highlights include:
Plumtree conducted a record number of transactions in the fourth quarter, adding 43 new customers and selling new products or additional portal licenses to 46 existing customers. Plumtree now supports more than 450 total customers, and 29 companies in the Fortune 100.
Plumtree released Plumtree Content Server 4.0, a content management system based on the acquisition of technology from Hablador, and Plumtree Collaboration Server 2.0. New customers such as Unilever and Team Health and existing customers such as Airbus, Fannie Mae Foundation, Halliburton and Starcom Media Group purchased licenses, validating demand for an Enterprise Web solution broader than what was previously available in the traditional portal market.
Plumtree launched its Enterprise Web strategy at its annual user conference in October, attended by over 600 representatives from customers and partners. After attending the conference, AMR Research stated: "Plumtree's enterprise portal customers are the most innovative we've seen...Plumtree has the highest percentage of full-fledged portals in production."
In keynote presentations, customers Pratt & Whitney and Halliburton described new, composite applications built on the portal that automate processes and integrate content across multiple systems for employees, customers and partners.
META Group published a new portal market report that ranked Plumtree the number one vendor overall, recognizing the strength of Plumtree's technology and customer references.
Eleven customers, including Applebee's International, bought the Plumtree Portal Package (P3), the mid-market offering introduced by Plumtree in the third quarter of 2002.
Plumtree gained momentum in the Asia-Pacific region, winning new customers including Tokyo Electric in Japan and LG Fire and Marine Life in Korea. Plumtree also won its first customer in Latin America.
Customers including Weyerhaeuser completed deployments of the Plumtree Corporate Portal. Cadbury Schweppes, SwissRe and TELUS upgraded their deployments to version 4.5WS, the version of the Plumtree portal platform based entirely on Web services.
Interested parties can hear Plumtree's fourth quarter and fiscal year 2002 financial results conference call on Thursday, January 16, 2003 at 2:00 p.m. (PDT) via live Webcast by visiting www.plumtree.com/ir, or can listen to a teleconference by calling 888-405-9176 for U.S. participants and 630-395-0420 for participants outside of the U.S. The passcode for the teleconference is PLUMTREE. A recording of the conference call will be available beginning January 16, 2003 at 5:00 p.m. (PDT). The Webcast replay of the call will be available at www.plumtree.com/ir until Thursday, February 13, 2003 at 5:00 p.m." (PDT). An audio replay of the call will also be available until Thursday, January 23, 2003 at 5:00 (PDT). The dial-in number for the audio replay is 800-685-9501 for U.S. callers and 402-220-0290 for callers outside of the U.S.
About Plumtree Software
Plumtree Software is the Enterprise Web technology leader. Plumtree's mission is to create a comprehensive Web environment for employees, customers and partners across the enterprise to interact with different systems and work together. Plumtree's Enterprise Web solution consists of integration products for bringing resources from traditional systems together on the Web, foundation services such as collaboration, content management and search for building new Web applications, and a portal platform for delivering these Web applications to broad audiences. Plumtree's independence and its Web Services Architecture allow this solution to span rival platforms and systems, maximizing customers' return on their existing investments. With offices in more than a dozen countries, Plumtree has over 450 customers, including Boeing, Ford Motor Company, Procter & Gamble and the U.S. Navy.
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