WESTWOOD, MA — October 22, 2002 — Precise Software Solutions (Nasdaq: PRSE), the leader in optimizing customers’ business through Application Performance Management, today reported its financial results for the third quarter ended September 30, 2002, reflecting the Company’s twentieth consecutive quarter of revenue growth and continued strong market demand for Precise’s solutions.
Revenues for the third quarter of 2002 grew 35 percent to a record $19.4 million, compared with $14.3 million for the third quarter of 2001. Third quarter revenues increased 6 percent sequentially from the $18.2 million posted for the second quarter of 2002.
The Company reported a pro forma operating income of $1.1 million for the third quarter of 2002, compared with a pro forma operating income of $68,000 for the same period last year. The Company reported a pro forma net income of $2.1 million for the third quarter of 2002, or $0.07 per share, compared with pro forma net income of $1.7 million, or $0.06 per share, for the same period last year. The Company reported net income of $1.1 million for the third quarter of 2002, or $0.04 per share, compared with net income of $452,000, or $0.02 per share, in the same period last year.
“We are now marking our fifth year of continuous revenue growth,” said Shimon Alon, Precise’s chief executive officer. “While this achievement would be strong in any economy, in this business cycle it is especially compelling. There is no question that Precise is gaining market share and mind share. Precise continues to be a company of high growth, thanks to our technology leadership, a large addressable market with critical customer needs, and strong execution by our organization in closing both new and repeat business,” added Alon.
During the third quarter, Precise’s repeat business reached a record 64 percent of non-OEM license revenue and the company added nearly 400 customers, bringing its total customer base to nearly 6,000.
“Our solutions enable customers to deploy, utilize and upgrade their business-critical applications in every vertical market and in every geography,” said Alon. “We are the only company to deliver the unique ability to automatically detect and correct performance problems across heterogeneous application environments.”
About Precise Software Solutions — “Performance Is Our Business™”
Precise Software Solutions (Nasdaq: PRSE) headquartered in Westwood, MA, delivers Precise i3 , a comprehensive solution for Application Performance Management that focuses directly on the end-user experience and delivers a rapid return on technology investments. By continuously monitoring and analyzing all vital components of the application infrastructure, “from URL to SQL and Beyond™”, Precise i3 proactively detects and corrects the root causes of performance degradation before they affect response times. Precise i3 identifies trends and deviations from the norm, delivering the right balance of performance optimization and strategic business planning.
Nearly 6,000 leading enterprises worldwide, including 80% of the Fortune 100, are using Precise’s solutions to help maximize their technology investments and meet their business goals. Precise has offices throughout North America, Europe, the Middle East, Far East and Pacific Rim, as well as a global network of resellers and distributors. More information on Precise is available at www.precise.com.
Safe Harbor
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Precise’s current intent, belief and expectations. These statements are not guarantees of future performance and are subject to certain risks and uncertainties that are difficult to predict. Actual results may differ materially from these forward-looking statements because of: the size of Precise’s market; the timing and acceptance of Precise’s products; changes in the relationships between Precise and its strategic partners; the future growth and acceptance of Precise’s products in the market place; Precise’s ability to predict and respond to market developments; the development, expansion, retention and training of personnel with necessary expertise; risks associated with management of growth; risks associated with existing and future strategic relationships and customers; risks of Precise being held liable for defects or errors in its products; political, economic and business fluctuations in Israel and Precise’s international markets, as well as risks of downturns in economic conditions generally, and in the information technology and software industries specifically; risks associated with competition and competitive pricing pressures; and the other risks that may be described in Precise’s filings with the Securities and Exchange Commission. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today’s date.
Precise i3, TotalCorrelation, SmarTune, Precise/Indepth, Precise/Sharkpoint, “Performance is Our Business,” and “from URL to SQL and Beyond” are trademarks of Precise Software Solutions Ltd. All other trademarks and registered trademarks used herein are the property of their respective owners.