WESTWOOD, MA. – July 23, 2002 -- Precise Software Solutions (Nasdaq: PRSE), the leader in optimizing business through Application Performance Management, today reported its financial results for the second quarter ended June 30, 2002.
Revenues for the second quarter of 2002 grew 43 percent to $18.2 million compared with $12.7 million for the second quarter of 2001. The Company reported a pro forma operating income of $856,000, or $0.03 per share, for the second quarter of 2002, compared with a pro forma operating loss of ($432,000), or ($0.02) per share, for the same period last year1. The Company reported pro forma net income of $1.8 million for the second quarter of 2002, or $0.06 per share, compared with pro forma net income of $1.3 million, or $0.04 per share, for the same period last year2. The Company reported net income of $830,000 for the second quarter of 2002, or $0.03 per share, compared with net income of $210,000, or $0.01 per share, in the same period last year.
“Q2 was our best quarter ever, with healthy growth across all areas of our business. Precise achieved these results because of the strong market demand for our solutions, our 5,500 loyal customers, our unique technology, and the dedication of our employees,” said Shimon Alon, Chief Executive Officer of Precise Software Solutions. “Precise i3™ delivers a solution to address customers’ demand for optimal performance from their business-critical enterprise applications, which is the reason why Precise i3 has increasingly been adopted as the standard by many leading companies worldwide. Precise i3 was the driving force behind the record number of large deals this quarter. With the growing acceptance of Precise i3 as the Application Performance Management solution of choice, we believe this trend will continue throughout the second half of the year and beyond.”
Customer Highlights
Precise continued to generate strong repeat sales and expand its installed base of customers, which grew to over 5,500 in the second quarter. Among the nearly 400 new customers this quarter, who span a diverse group of leading corporations and industries worldwide were Black & Decker, Burger King, Canadian National Railway, De Beers, Frito Lay, GTECH Corporation, Ingersoll-Rand, New York Mercantile Exchange, Starwood Hotels & Resorts, Teradyne, and Watkins Motor Lines.
The Company’s repeat business reached 55 percent of non-OEM license revenue in the second quarter. Among the customers who invested in additional Precise solutions during the quarter were AT&T Broadband, BMW, Bose Corporation, Chevron, Convergys, Federal Reserve Bank, Mutual of Omaha, Nextel, Northrop Grumman, Pitney Bowes, Schlumberger, Sony, T-Mobile, Toshiba, Unisys, United Parcel Service, World Bank, and Zurich Financial Services.
“With more and more web-based applications being deployed into production, we are seeing strong demand from companies for our ‘out-of-the-box’ Java solutions. Unlike the stovepipe products available in the market, Precise i3 for J2EE correlates the transaction flow “from URL to SQL and beyond™” to accurately manage and predict service levels, and deliver the fastest automated detection to correction of the definitive root causes of service degradation,” said Alon.
Product Highlights
During the second quarter, Precise launched three new products including Precise/Indepth™ for SQL Server, Precise/Lightpoint™ for Hitachi Data Systems, and Precise/Indepth for Transactions.
“All these products extend and enhance Precise i3, and have generated revenues in Q2,” commented Alon. “Precise/Indepth for SQL Server, jointly engineered with Microsoft, marks our third undertaking with Microsoft, and serves to further strengthen our strategic relationship with them. With the launch of Precise/Lightpoint for Hitachi Data Systems we now support the industry’s three leading storage vendors – EMC, HP and Hitachi. Precise/Indepth for Transactions extends the reach of Precise i3 for web-based applications, tracing business transactions the last mile, to the actual end-user's desktop.”
In Q3, Precise expects to release an all new version of Precise i3 , which will spearhead the next generation of Application Performance Management solutions.
“At the forefront of innovation, Precise i3 will introduce several unique technologies, including SmarTune™ which will be integrated into all Precise i3 components. SmarTune automatically identifies any application performance problems and instantly provides guidance to problem resolution. This newest version of Precise i3 will help customers achieve even faster return on their investment, and will strengthen Precise’s competitive advantage and enable us to accelerate market growth. With Precise i3 we are building the foundation that will continue to drive the company into business performance management,” concluded Alon.
Second Quarter Conference Call
Precise Software Solutions will conduct its quarterly conference call for investors today at 5:00 p.m. (ET). The call will address the Company’s recent financial performance and business outlook. Investors who want to hear the call via the Webcast should log onto www.precise.com/ir at least 15 minutes prior to the broadcast.
About Precise Software Solutions -- "Performance is Our BusinessTM":
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.
5,500 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.
Voor meer informatie kunt u contact opnemen met:
Marianne van Barneveld
+31-(0)35-582 27 30 / +31-(0)6 53372153
marianne@marcommit.nl
This press release 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; Precise’s limited experience with certain of its strategic partners and customers; 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; retention and training of personnel with necessary expertise; the development, expansion and training of Precise’s direct sales force; risks associated with management of growth; risks associated with existing and future strategic relationships; 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 undertakes no obligation to update or revise the information contained in this announcement whether as a result of new information, future events or circumstances or otherwise.
Precise i3, Precise/Indepth, SmarTune, Performance is Our Business, “from URL to SQL and Beyond” are trademarks of Precise Software Solutions Ltd. All other trademarks and registered trademarks in this document are the properties of their respective owners.
The Consolidated Statements of Operations and Consolidated Balance Sheets follow.
1 These pro forma calculations exclude deferred stock compensation and intangible asset amortization.
2 These pro forma calculations exclude deferred stock compensation and intangible asset amortization.
Precise Software Solutions Reports a 43% Increase In Second Quarter Revenues - Page 3