Records 160% Revenue Growth Year-over-Year; Begins Enterprise
Implementations at Barclaycard and Royal Bank of Scotland
Chordiant Software, Inc. (Nasdaq:CHRD), a leading developer of unified
customer relationship management (CRM) solutions for companies with
extreme customer demands, today announced its financial results for the
first quarter ended March 31, 2001.
Total net revenues for the first quarter of 2001 were $13.0 million, up
160% from the $5.0 million reported for the first quarter of 2000.
First-quarter license revenues were $6.8 million, up 218% from $2.1
million year-over-year. Service revenues were $6.3 million, up 118%
from $2.9 million a year earlier. First-quarter gross margin was 59
percent, compared with 32 percent year-over-year.
First-quarter net loss on operations was $6.4 million, or a loss of
$0.13 per share on a pro forma basis, compared with a net loss of $7.2
million, or a loss of $0.20 per share pro forma, for the same quarter of
2000. Net loss on operations excludes the effect of non-cash charges
for the amortisation of deferred stock-based compensation and purchased
in-process research and development, the amortisation of acquired
intangible assets and integration-related costs associated with the
acquisition of Prime Response, Inc., and currency translation gains and
losses related to foreign subsidiaries.
"In the first quarter, our acquisition of PrimeResponse made Chordiant a
significantly larger and more competitive player in the global CRM
market," said Sam Spadafora, chairman and chief executive officer of
Chordiant. "We're pleased with the aggressive pace of the integration
and the response of customers in the financial services, communications
and consumer segments to our enhanced enterprise CRM platform and
services. Also during the first quarter, we began six customer
engagements, including enterprise implementations at Barclaycard and The
Royal Bank of Scotland Group."
Spadafora continued, "Through the past four quarters, we consistently
exceeded our objectives for organic revenue growth, expense control,
cash management, and progress toward profitability. Now, having
broadened the base of the business through acquisition, we look forward
to capitalising on our momentum as a leading provider of enterprise
customer life cycle management solutions."
"We are pleased with the continued strength of our balance sheet," added
Steve Vogel, senior vice president and chief financial officer. "Cash,
cash equivalents and short-term investments totalled $78.7 million at
March 31. Total deferred revenue was $31.0 million, up from $10.8
million a year earlier and $30.0 million at December 31, 2000. Our
balance sheet provides a measure of security in the current economic
environment and supports our long-term growth prospects."
Chordiant completed the acquisition of PrimeResponse, Inc. (Nasdaq:PRME)
on March 27, 2001. In accordance with the purchase method of
accounting, the two companies' first-quarter results of operations are
consolidated for March 28-31, 2001.
RECENT BUSINESS HIGHLIGHTS
· Completed the acquisition of PrimeResponse and combined the two
companies' worldwide operations and customer bases into a single entity
with more than 430 employees and 100 Global 1000 accounts;
· Began the integration of PrimeResponse marketing automation solutions
with Chordiant's Intelligent Customer Interaction Management (ICIM)
platform and Intelligent Business Services-including e-marketing,
e-service, e-selling, and e-fulfilment-for enterprise-wide management of
the entire customer life cycle;
· Began a multi-million-dollar enterprise implementation at Barclaycard,
the leading credit card issuer in Europe, for the execution of its new
· Also began an enterprise implementation at The Royal Bank of Scotland
Group, one of the largest banks in Europe and the first PrimeResponse
customer to adopt the Chordiant Unified CRM solution;
· Commenced six engagements with customers, including General American
Life Insurance, MetLife and Tesco Personal Finance;
· Released Chordiant Unified CRM Solution v3.0 with Chordiant Unified
Rules for consistent business policy management and real-time decision
support across multiple channels and business units;
· Signed a co-marketing agreement with Verbind, Inc. for the joint
marketing of its real-time behavioural targeting system with the
Chordiant Unified CRM Solution;
· Strengthened its senior management team with the appointments of Steve
Vogel as senior vice president and chief financial officer, Gary Daniels
as senior vice president of worldwide engineering and Allen Swann as
president of Chordiant International.
ABOUT CHORDIANT SOFTWARE, INC.
Chordiant Software (www.chordiant.com) delivers a Unified CRM Solution
that provides an Intelligent Customer Interaction Management (ICIM)
platform for enterprise-wide integration with existing systems and
Intelligent Business Services including e-marketing, e-service,
e-selling, and e-fulfilment, which embrace the customer's existing
applications. Chordiant's solution is designed to meet the extreme
customer demands of complex businesses serving millions of individuals
in real time and across multiple lines of business, with the objectives
of customer satisfaction, retention, growth, and lifetime value.
Whether communicating via branch locations, Web, e-mail, telephone, or
wireless access, the Chordiant Unified CRM Solution provides a
real-time, single view of each customer and a consistent, personalised
message for every interaction. It includes a comprehensive business
process engine, which allows companies to implement best business
practices across multiple touchpoints. Marketers and sales
professionals can maximise their marketing investment through the
creation, execution and refinement of sophisticated direct marketing
initiatives that span both traditional and online channels. Chordiant
empowers intelligent, high-value contacts designed to retain customers,
grow revenues and drive profits during every customer interaction.
Headquartered in Cupertino, California, Chordiant maintains regional
offices in Boston; Chicago; Dallas; Denver; Manchester, New Hampshire;
New York; Amsterdam; London; Frankfurt; Munich; Paris; and Melbourne.
This news release includes "forward-looking statements" that are subject
to risks, uncertainties and other factors that could cause actual
results or outcomes to differ materially from those contemplated by the
forward-looking statements. For this purpose, any statements contained
in this news release that are not statements of historical fact may be
deemed to be forward-looking statements. Words such as "believes,"
"anticipates," "plans," "expects," "will," "would," and similar
expressions are intended to identify forward-looking statements. There
are a number of important factors that could cause the results of
Chordiant, PrimeResponse or the combined company to differ materially
from those indicated by these forward-looking statements, including,
among others, potential difficulties in the assimilation of operations,
strategies, technologies, methodologies, and products of the acquired
company; the risk of loss of key personnel of the acquired company;
diversion of management attention from other business concerns; and
business risks including the risk of variations in quarterly operating
results, significant current and expected additional competition, and
the need to continue to expand product distribution and service
offerings. Further information on potential factors that could affect
the financial results of Chordiant, PrimeResponse or the combined
company are included in risks detailed from time to time in Chordiant's
and PrimeResponse's Securities and Exchange Commission filings,
including Chordiant's Annual Report on Form 10-K filed on March 27,
2001; the joint proxy statement/prospectus filed by both Chordiant and
PrimeResponse on February 28, 2001; Amendment No. 1 to the Form S-4
filed by Chordiant on February 26, 2001; PrimeResponse's final
prospectus for its initial public offering filed on March 3, 2000; and
Chordiant's final prospectus for its initial public offering filed on
February 15, 2000. Also, statements in this news release related to the
expected benefits of the transaction are subject to risks related to the
timing and successful completion of technology and product development
efforts; integration of the technologies and businesses of Chordiant and
PrimeResponse; unanticipated expenditures; changing relationships with
customers, suppliers and strategic partners; and other factors described
in both the Securities and Exchange Commission filings listed above and
other periodic reports filed by Chordiant with the Securities and
Chordiant and the Chordiant logo are registered trademarks and Chordiant
Unified CRM for Extreme Demands is a trademark of Chordiant Software,
Inc. All other trademarks and registered trademarks are the properties
of their respective owners.
PLEASE CONTACT BRODEUR WORLDWIDE FOR FINANCIAL STATEMENTS.
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