SAN FRANCISCO – Micromuse Inc. (Nasdaq: MUSE), the leading provider of business and service assurance software, reported financial results today for the fiscal quarter ended June 30, 2003. Total revenue for fiscal Q3 was $33.0 million. Pro forma net income for the quarter – which specifically excludes the amortization of intangible assets and other charges – was $2.8 million or $0.04 per share. Net income on a GAAP basis for fiscal Q3 was $429 thousand or $0.01 per share. For a detailed comparison of pro forma and GAAP results, please refer to the reconciliation statement at the bottom of this press release.
Cash, cash equivalents and investments increased by $7.8 million from $204.4 million to $212.3 million between March 31, 2003 and June 30, 2003.
“Fiscal Q3 marked our third consecutive quarter of revenue growth, improved profitability, and increasing cash and cash equivalents. This steady improvement in our fundamentals reflects a careful balance between disciplined financial management and selective investment in long-term growth engines,” said Mike Luetkemeyer, Micromuse Interim CEO and Chief Financial Officer. “Key demand drivers in the quarter included strong uptake for products derived from the RiverSoft and Lumos acquisitions, increasing demand for our unique realtime business intelligence applications such as Netcool/Impact and Netcool/SLA Manager, and customer requirements to manage emerging technologies such as 3G wireless, DSL, and Voice over IP.”
Fiscal Q3 Highlights
> Micromuse announced that the search committee of the Board of Directors has identified an external candidate for the CEO position; the company expects to be in a position to provide further information as early as next week.
> Total revenue was $33 million, at the high end of the company’s posted guidance range.
> Pro forma earnings per share were $0.04.
> GAAP earnings per share were $0.01, marking two consecutive quarters of profitability on a GAAP basis.
> Cash, cash equivalents, and investments increased by $7.8 million over the preceding quarter.
> Cash flow from operations was positive.
> 45 new customers were added in the quarter.
> Maintenance renewals were greater than 90%.
> 10 major products, product enhancements, and solutions were released in the quarter.
Fiscal Q4 Outlook
Micromuse establishes the following guidance for the quarter ending September 30, 2003, based on information available as of July 23, 2003:
> The company anticipates that fiscal Q4 revenue will be in the range of $32 to $34 million.
> The company anticipates that earnings per share on a pro forma basis will be in the range of $0.03 to $0.05.
> The company anticipates that earnings per share on a GAAP basis will be in the range of $0.00 to $0.02.
For a detailed comparison of pro forma and GAAP guidance, please refer to the reconciliation statement at the bottom of this press release.
Q3 2003 Conference Call, Webcast, and Replay Information
Micromuse will host a conference call and simultaneous webcast on Wednesday, July 23, 2003 at 2:00 PM PT, 5:00 PM ET to announce pro forma and GAAP results for the third quarter of fiscal year 2003. The live call will be available to the general public by dialing 888-276-9998 (domestic) or 612-3326-1011 (international). A live webcast of the conference call will be available at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=MUSE&script=2100 or via a link from the Micromuse web site at http://www.micromuse.com/. From the web site home page, select the “Our Company” link and then select “Investor Relations” to access the live webcast.
A replay of this conference call will be available by dialing 800-475-6701 (domestic) or 320-365-3844 (international) and entering access code 690554. The replay will be available from Wednesday, July 23rd at 10:15 PM ET until Wednesday, July 30 at 11:59 PM ET. The replay will also be available as an archived audio file at http://www.micromuse.com/. From the web site home page, select the “Our Company” link, the “Investor Relations” link, and the “Audio Archives” link to access the web-based replay.
About Micromuse
Micromuse Inc. (Nasdaq: MUSE) is the leading provider of service and business assurance software solutions. The Netcool® software suite provides organization with the assurance that their IT systems are supporting and driving profits 24 hours a day. Unlike traditional infrastructure management systems, Netcool solutions provide realtime end-to-end visibility and accurate troubleshooting from a business perspective. Such business intelligence allows organizations to respond to problems quickly, streamline workflow processes and improve business uptime. Micromuse customers include AT&T, BT, Cable & Wireless, Charles Schwab, Deutsche Telekom, Digex, EarthLink, GE Appliances, ITC^DeltaCom, J.P. Morgan Chase, T-Mobile and Verizon. Headquarters are located at 139 Townsend Street, San Francisco, Calif. 94107; (415) 538-9090. The Web site is at www.micromuse.com.
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Micromuse and Netcool are registered trademarks of Micromuse Ltd. All other trademarks and registered trademarks in this document are the properties of their respective owners. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.
The factors that could cause actual future results to differ materially from the forward-looking statements include the following: fluctuations in customer demand, the Company’s ability to manage its growth (including the ability to hire sufficient sales and technical personnel), the risks associated with the expansion of the Company’s distribution channels, the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company’s markets, the risks associated with competition, the risks associated with international sales as the Company expands its markets, and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company’s Securities and Exchange Commission Filings, including but not limited to those appearing under the caption "Risk Factors" in the Company's most recent Quarterly Reports on Form 10-Q and on Form 10-K on file with the Securities and Exchange Commission and available on the Company's Web site.