2009-10-29 21:09:01 -
SAN JOSE, CA -- (Marketwire) -- 10/29/09 -- Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced financial results for the third quarter ended September 30, 2009.
Total third quarter revenues were $17.4 million, down 38%, compared to the same quarter last year, reflecting the expected declines in both services and license revenues resulting from the company's shift to a recurring revenue business. Recurring revenues, which include subscription and support, were $11.2 million, an increase of 3% compared to Q3 2008.
Recurring revenues, while lagging total ACV as customers come online, now account for approximately 64% of total revenues.
The net new Annual Contract Value (ACV) of on-demand and term license bookings in the third quarter was $3.6 million, up from $1.3 million booked in the third quarter of 2008, bringing the cumulative ACV to $28.6 million.
Third quarter services revenues were $5.3 million, down 50%, while third quarter license revenues were $0.9 million, down 87%, in each case, compared to the third quarter of 2008. The decline in services revenues reflects primarily the planned shift to the on-demand business, but also reflects some revenue deferrals and delays in implementations. With this shift to our on-demand business, we expect services revenues to continue to decline because on-demand implementations cost significantly less than on-premise software implementations, benefitting our customers through reduced costs, shorter implementation times, and greater value.
Third quarter GAAP net loss was $6.7 million or ($0.22) per share, which included $2.0 million of restructuring expense, $1.0 million of stock-based compensation expense and $0.1 million of amortization of acquired intangible assets. This compares to GAAP net loss of $1.4 million, or ($0.05) per share, for the third quarter of 2008, which included $2.0 million of stock-based compensation expense and $0.5 million of amortization of acquired intangible assets. Third quarter non-GAAP net loss was $3.6 million, or ($0.12) per share, compared to a non-GAAP net income of $1.1 million, or $0.04 per share, for the same period last year.
Non-GAAP net loss excludes stock-based compensation expense, restructuring expense and amortization of acquired intangible assets. Non-GAAP operating expenses for Q3 of $10.2 million are down $3.3 million, or approximately 24%, from Q3 2008.
Cash and investments totaled $36.8 million at September 30, 2009, a decrease of $3.2 million from June 30, 2009.
"With significant competitive wins, we had a strong ACV performance in Q3 as we closed a number of deals in both our on-demand business as well as our term on-premises business. This success validates our move to recurring revenues. Our Monaco suite has real momentum and the transactions we closed in Q3 demonstrate that this product release together with our move to the recurring revenue model is meeting with success. We also signed several key partnerships in the quarter," said Leslie Stretch, president and CEO at Callidus Software. "Further, over the course of the last year we have significantly reduced our fixed costs and right-sized the Company to fit our new recurring revenue business model.
This has resulted in Q3 non-GAAP operating expenses which are down approximately 24% from the prior year period."
"Our product offerings continue to expand across all business lines, including our growing Force.com :
solution suite, which offers sales performance solutions for businesses of all sizes. We continue to add world-class companies to our list of partners to further expand our global reach and customer base. Our subscription and support recurring revenues are now the primary contributor to our total revenue and margin performance, and we are driving to achieve profitability in the second half of 2010," continued Stretch.
Recent Business Highlights
-- New Products: Callidus launched Commissions Manager, a 100% native
Force.com solution that enables sales professionals to manage commissions
as part of the salesforce CRM solution. This self-service solution enables
sales professionals to project their target earnings in-line with their
opportunities, initiate claims for credit and payment approval, and track
the status and amounts of paid and pending commissions, all as part of
their day-to-day opportunity management.
-- Partners: Callidus expanded its geographic reach by signing a reseller
agreement with HAND Enterprise Solutions in China and SevenSeas
Technologies in Africa.
-- Industry Recognition: Callidus Software was named a winner of Customer
Interaction Solutions' 10th Annual CRM Excellence Awards; Callidus was
named a leader in CRM Magazine's 2009 CRM Market Awards; for the fifth
consecutive year, Callidus Software was included into Software Magazine's
Software 500, a ranking of the world's largest software and service
providers.
Financial Outlook
-- Total revenues for the fourth quarter of 2009 are expected to be
between $16 million and $17.5 million, reflecting increased recurring
revenues offset by further decline in services revenues as the shift to the
on-demand business continues and our customers experience even shorter
implementation times.
-- GAAP operating expenses, including stock-based compensation of
approximately $1.1 million, are expected to be between $10.6 million and
$11.6 million in the fourth quarter of 2009.
Conference Call
A conference call to discuss the third quarter 2009 results and outlook is scheduled for 1:30 p.m. Pacific Time (PT) today. The conference call will be available via live webcast :
at the Investor Relations section of Callidus Software's website at
phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=146 .. :
. To participate in the call via telephone, the dial-in number will be 800-299-0148 (international: +1 617-801-9711), passcode 68498415.
A webcast replay of the conference call will be available after 3:30 p.m.
PDT today through November 5, 2009. The webcast replay will be available at the Investor Relations section of Callidus Software's website under Calendar of Events.
About Callidus Software®
Callidus Software ( www.callidussoftware.com :
) (NASDAQ: CALD) is the market and technology leader in Sales Performance Management (SPM) :
. Callidus' customers gain a competitive advantage by maximizing sales cost efficiencies and driving improvements in sales execution. Our award-winning Software-as-a-Service (SaaS) :
applications set the standard for performance management :
across the sales force. Over 2 million employees and channel partners have their performance managed by Callidus Software.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including statements regarding our business strategy and on-demand business, estimates of profitability in the second half of 2010 and fourth quarter 2009 total revenues, services revenues, recurring revenues, operating expenses and stock-based compensation expense, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, uncertainty regarding SPM market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, potential disruptions to our business due to restructuring activities and management changes, uncertainty regarding the demand for and profitability of our on-demand services, increased competition or new entrants in the marketplace, litigation and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K for 2008 and its Form 10-Q for the second quarter ended June 30, 2009, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or from the Investor Relations section of Callidus Software's website ( www.callidussoftware.com :
). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
Non-GAAP Financial Measures
Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP net income and earnings per share. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense, restructuring expense and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
© 1998-2009 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueComp, TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation, TrueInformation, TruePerformance, TruePerformance Index, TruePerformance Indicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral, TrueResolution, TrueTarget and TrueService+ are trademarks, servicemarks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
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Investor Relations Contact:
Ron Fior
408-808-6518
ir@callidussoftware.com :
Press Contact:
Jock Breitwieser
408-975-6683
pr@callidussoftware.com :
