Chordiant continues strong momentum with 126 per cent revenue growth for 2001
Announcement posted by Chordiant Software 08 Feb 2002
Reaffirms revenue guidance of $100 to $107 million for 2002
Chordiant Software, Inc. today announced that total revenues for 2001 grew by 126 per cent over 2000 to a record $76 million for the year ended December 31, 2001.
Chordiants record revenue results of $23.8 million for the fourth quarter and $76 million for the year exceeded the companys previously issued guidance of $22 to $23 million and $74 to $75 million, respectively, in spite of a tough global economy. During 2001, Chordiant added 50 engagements with new and existing customers. Chordiant now has approximately 165 customers and partners worldwide, the majority of who are listed among the Global 1000.
Chordiants fourth quarter results brought a strong year to an excellent conclusion, said Ricky Kapur, general manager of Chordiant, Asia Pacific. Chordiant continues its strong momentum with eight consecutive quarters of revenue growth as a public company and triple-digit growth for the year, making Chordiant one of the fastest-growing software companies.
Fourth quarter 2001 revenues were $23.8 million more than double the $11.6 million reported for the fourth quarter of 2000. Fourth-quarter license revenues were $12.8 million, up from $6.2 million year over year. Service revenues were $11.1 million, up from $5.4 million a year earlier. Fourth-quarter gross margin was 62 percent, up from 53 percent a year ago.
Fourth quarter 2001 pro forma net loss which excludes in-process research and development, stock-based compensation and amortisation of acquired intangible assets, was 9 cents per share, improved from a pro forma net loss of 14 cents per share for the year-ago quarter.
For the twelve months ended December 31, 2001, total revenues were $76 million, up 126 percent from $33.7 million for the same period of the prior year. 2001 license revenues were $39.7 million, up 135 percent from $16.9 million a year ago. Service revenues for 2001 were $36.3 million, up 116 percent from $16.8 million year over year.
Despite the tough market environment during the fourth quarter, we are seeing the benefits of consistently delivering high return on investment for enterprise CRM customers. Chordiants customers are experiencing greatly reduced operating expenses and increased top line improvements - specifically, increased retention rates, up-selling and cross-selling, said Kapur. Chordiant is the only company delivering dynamically driven CRM applications developed on an end-to-end J2EE platform. Chordiant has a passion for innovation and we will continue to enhance our technology and engage with new customers in major CRM projects that deliver demonstrable ROI in our mainstream verticals such as financial services, telecommunications and consumer direct, Kapur stated.
On a GAAP (Generally Accepted Accounting Principles) basis, fourth quarter 2001 net loss was $9.4 million, or 18 cents per share, compared with a reported net loss of $6.3 million, or 17 cents per share, for the year-ago quarter. For the year ended December 31, 2001, net loss was $42.3 million, or 86 cents per share, compared with a reported net loss of $35.4 million, or $1.05 per share, for the year ended December 31, 2000.
At December 31, 2001, Chordiants cash, cash equivalents and short-term investments were $51.1 million. Cash usage for the fourth quarter was $5.2 million, in line with prior expectations of $5 to $7 million and down from $6.2 million in the third quarter of 2001.
For the year 2002, we continue to anticipate revenues to be in the range of $100 to $107 million and we expect to achieve operating and cash flow break even in the first half of 2002, said Steve Vogel, chief financial officer. For the first quarter of 2002, we expect revenues to be in the range of $22 to $23 million and we anticipate cash usage of $4 million to $6 million.
Fourth quarter business highlights
Customers
Added key customers in financial services, telecommunications and consumer direct vertical market segments including CIBC, Littlewoods plc, TeleDanmark, Farmacias Ahumada, ING Postbank and Haufe Media.
Products
Announced in early January 2002 Chordiant Insurance Industry Initiative to serve the insurance industry directly.
Announced the availability of Chordiant Marketing Director for use with data warehousing platforms.
Corporate
Announced the promotion of Stephen Kelly from president and chief operating officer to chief executive officer. Sam Spadafora, formerly CEO, continues in his role as chairman.
Boosted management team with senior appointments: Jeremy Coote, formerly general manager of Siebel North America and president of SAP North America, joined as president of Chordiant's Americas operations; Paul Burrin, formerly senior vice president of corporate marketing at Oracle Corporation, joined as senior vice president for worldwide marketing. Robert Mullen, senior vice president and general manager, was appointed head of the Chordiant Insurance Industry Initiative; promoted Ian Bowles as managing director international and Craig Probert as managing director UK/Ireland.
2001 Business highlights
Customers
Commenced 50 engagements with new and existing customers in 2001 including: Hutchinson Whampoa (H3G); Signal Iduna, Optus, Banco Bilbao de Viscayay Argentaria, General American Life Insurance; MetLife; AXA, British Sky Broadcasting, the Financial Services Authority in the UK; Bank of Ireland; AEON Credit; BPN--Banca Popolare di Novara, Tesco Personal Finance, ING and RAC Motoring Services.
Partnerships
Forged a strategic alliance with Accenture to jointly develop multi-channel customer relationship management (CRM) solutions for financial services organisations.
Mergers and Acquisitions
Integrated PrimeResponse marketing automation solutions with Chordiant's Intelligent Customer Interaction Management (ICIM) platform and Intelligent Business Services, combining the two companies worldwide operations and customer bases.
Acquired Java server technology, development resources and customers from ActionPoint, Inc.
Acquired certain intellectual property assets and technology of the AoNet Java 2 Enterprise Edition (J2EE) Workflow Server from ASP Outfitters, Inc.
Products
Expanded Chordiants suite of enterprise-class products, including Marketing, Interactive Selling, Customer Service and ICIM platform solutions.
Increased its selection of product offerings from 5 products available in the first quarter of 2000 to 15 products available today in the Chordiant 5 solution suite, providing the most modern architecture in CRM and the software industrys first end-to-end J2EE-standard solution delivering a real-time, adaptive CRM platform.
Chordiant Continues Strong Momentum with 126 Percent Revenue Growth for 2001
Corporate
Appointed George Reyes, former vice president, corporate controller and treasurer of Sun Microsystems, to the companys Board of Directors.
Strengthened the management team with the addition of Allen Swann as president of Chordiant International, Gary Daniels as senior vice president of WW engineering,
Albert Caravelli as vice president of sales for Chordiants East Coast operations and Steve Vogel as senior vice president and chief financial officer.
About Chordiant Software, Inc.
Chordiant Software, Inc. (www.chordiant.com) is a worldwide leader in developing and delivering Dynamically Driven CRM solutions for global B2C enterprises.
The Chordiant solution enables enterprises to gain a sustained competitive advantage through more efficient and effective marketing, selling and customer service. Only Chordiant delivers real-time, process-centric solutions that provide multidimensional customer interactions. The unique Chordiant JX Architecture leverages existing investments inside the enterprise and beyond, resulting in a more relevant and consistent customer experience.
Headquartered in Cupertino, California, Chordiant maintains offices in Boston; Chicago; Manchester, N.H.; New York; London; Paris; Amsterdam, Netherlands; Frankfurt and Munich, Germany; Johannesburg, South Africa; Sydney and Melbourne, Australia.
Safe Harbor
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. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," guidance and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening of economic conditions on customers' and prospective customers' spending on Chordiant software and services; quarterly fluctuations in Chordiant's revenues or other operating results; failure by Chordiant to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks related to market acceptance of Chordiant's products; customization and deployment delays or errors associated with Chordiant products; impact of long sales and implementation cycles for certain Chordiant products; reliance by Chordiant on a limited number of customers for a majority of its revenues; Chordiant's need to retain and enhance business relationships with systems integrators and other parties; Chordiant's use in its products of third-party software; activities by Chordiant and others regarding protection of intellectual property; and competitors' release of competitive products and other actions. Further information on potential factors that could affect the financial results of Chordiant are included in risks detailed from time to time in Chordiant's Securities and Exchange Commission filings, including without limitation Chordiant's report on Form 10-Q for the quarterly period ended September 30, 2001, and the Annual Report on Form 10-K filed on March 27, 2001. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release.
Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. JX Architecture and Dynamically Driven CRM are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.
Chordiants record revenue results of $23.8 million for the fourth quarter and $76 million for the year exceeded the companys previously issued guidance of $22 to $23 million and $74 to $75 million, respectively, in spite of a tough global economy. During 2001, Chordiant added 50 engagements with new and existing customers. Chordiant now has approximately 165 customers and partners worldwide, the majority of who are listed among the Global 1000.
Chordiants fourth quarter results brought a strong year to an excellent conclusion, said Ricky Kapur, general manager of Chordiant, Asia Pacific. Chordiant continues its strong momentum with eight consecutive quarters of revenue growth as a public company and triple-digit growth for the year, making Chordiant one of the fastest-growing software companies.
Fourth quarter 2001 revenues were $23.8 million more than double the $11.6 million reported for the fourth quarter of 2000. Fourth-quarter license revenues were $12.8 million, up from $6.2 million year over year. Service revenues were $11.1 million, up from $5.4 million a year earlier. Fourth-quarter gross margin was 62 percent, up from 53 percent a year ago.
Fourth quarter 2001 pro forma net loss which excludes in-process research and development, stock-based compensation and amortisation of acquired intangible assets, was 9 cents per share, improved from a pro forma net loss of 14 cents per share for the year-ago quarter.
For the twelve months ended December 31, 2001, total revenues were $76 million, up 126 percent from $33.7 million for the same period of the prior year. 2001 license revenues were $39.7 million, up 135 percent from $16.9 million a year ago. Service revenues for 2001 were $36.3 million, up 116 percent from $16.8 million year over year.
Despite the tough market environment during the fourth quarter, we are seeing the benefits of consistently delivering high return on investment for enterprise CRM customers. Chordiants customers are experiencing greatly reduced operating expenses and increased top line improvements - specifically, increased retention rates, up-selling and cross-selling, said Kapur. Chordiant is the only company delivering dynamically driven CRM applications developed on an end-to-end J2EE platform. Chordiant has a passion for innovation and we will continue to enhance our technology and engage with new customers in major CRM projects that deliver demonstrable ROI in our mainstream verticals such as financial services, telecommunications and consumer direct, Kapur stated.
On a GAAP (Generally Accepted Accounting Principles) basis, fourth quarter 2001 net loss was $9.4 million, or 18 cents per share, compared with a reported net loss of $6.3 million, or 17 cents per share, for the year-ago quarter. For the year ended December 31, 2001, net loss was $42.3 million, or 86 cents per share, compared with a reported net loss of $35.4 million, or $1.05 per share, for the year ended December 31, 2000.
At December 31, 2001, Chordiants cash, cash equivalents and short-term investments were $51.1 million. Cash usage for the fourth quarter was $5.2 million, in line with prior expectations of $5 to $7 million and down from $6.2 million in the third quarter of 2001.
For the year 2002, we continue to anticipate revenues to be in the range of $100 to $107 million and we expect to achieve operating and cash flow break even in the first half of 2002, said Steve Vogel, chief financial officer. For the first quarter of 2002, we expect revenues to be in the range of $22 to $23 million and we anticipate cash usage of $4 million to $6 million.
Fourth quarter business highlights
Customers
Added key customers in financial services, telecommunications and consumer direct vertical market segments including CIBC, Littlewoods plc, TeleDanmark, Farmacias Ahumada, ING Postbank and Haufe Media.
Products
Announced in early January 2002 Chordiant Insurance Industry Initiative to serve the insurance industry directly.
Announced the availability of Chordiant Marketing Director for use with data warehousing platforms.
Corporate
Announced the promotion of Stephen Kelly from president and chief operating officer to chief executive officer. Sam Spadafora, formerly CEO, continues in his role as chairman.
Boosted management team with senior appointments: Jeremy Coote, formerly general manager of Siebel North America and president of SAP North America, joined as president of Chordiant's Americas operations; Paul Burrin, formerly senior vice president of corporate marketing at Oracle Corporation, joined as senior vice president for worldwide marketing. Robert Mullen, senior vice president and general manager, was appointed head of the Chordiant Insurance Industry Initiative; promoted Ian Bowles as managing director international and Craig Probert as managing director UK/Ireland.
2001 Business highlights
Customers
Commenced 50 engagements with new and existing customers in 2001 including: Hutchinson Whampoa (H3G); Signal Iduna, Optus, Banco Bilbao de Viscayay Argentaria, General American Life Insurance; MetLife; AXA, British Sky Broadcasting, the Financial Services Authority in the UK; Bank of Ireland; AEON Credit; BPN--Banca Popolare di Novara, Tesco Personal Finance, ING and RAC Motoring Services.
Partnerships
Forged a strategic alliance with Accenture to jointly develop multi-channel customer relationship management (CRM) solutions for financial services organisations.
Mergers and Acquisitions
Integrated PrimeResponse marketing automation solutions with Chordiant's Intelligent Customer Interaction Management (ICIM) platform and Intelligent Business Services, combining the two companies worldwide operations and customer bases.
Acquired Java server technology, development resources and customers from ActionPoint, Inc.
Acquired certain intellectual property assets and technology of the AoNet Java 2 Enterprise Edition (J2EE) Workflow Server from ASP Outfitters, Inc.
Products
Expanded Chordiants suite of enterprise-class products, including Marketing, Interactive Selling, Customer Service and ICIM platform solutions.
Increased its selection of product offerings from 5 products available in the first quarter of 2000 to 15 products available today in the Chordiant 5 solution suite, providing the most modern architecture in CRM and the software industrys first end-to-end J2EE-standard solution delivering a real-time, adaptive CRM platform.
Chordiant Continues Strong Momentum with 126 Percent Revenue Growth for 2001
Corporate
Appointed George Reyes, former vice president, corporate controller and treasurer of Sun Microsystems, to the companys Board of Directors.
Strengthened the management team with the addition of Allen Swann as president of Chordiant International, Gary Daniels as senior vice president of WW engineering,
Albert Caravelli as vice president of sales for Chordiants East Coast operations and Steve Vogel as senior vice president and chief financial officer.
About Chordiant Software, Inc.
Chordiant Software, Inc. (www.chordiant.com) is a worldwide leader in developing and delivering Dynamically Driven CRM solutions for global B2C enterprises.
The Chordiant solution enables enterprises to gain a sustained competitive advantage through more efficient and effective marketing, selling and customer service. Only Chordiant delivers real-time, process-centric solutions that provide multidimensional customer interactions. The unique Chordiant JX Architecture leverages existing investments inside the enterprise and beyond, resulting in a more relevant and consistent customer experience.
Headquartered in Cupertino, California, Chordiant maintains offices in Boston; Chicago; Manchester, N.H.; New York; London; Paris; Amsterdam, Netherlands; Frankfurt and Munich, Germany; Johannesburg, South Africa; Sydney and Melbourne, Australia.
Safe Harbor
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. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," guidance and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements, including, among others, potential difficulties in the assimilation of operations, strategies, technologies, personnel and products of acquired companies and technologies, the impact of perceived or actual weakening of economic conditions on customers' and prospective customers' spending on Chordiant software and services; quarterly fluctuations in Chordiant's revenues or other operating results; failure by Chordiant to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks related to market acceptance of Chordiant's products; customization and deployment delays or errors associated with Chordiant products; impact of long sales and implementation cycles for certain Chordiant products; reliance by Chordiant on a limited number of customers for a majority of its revenues; Chordiant's need to retain and enhance business relationships with systems integrators and other parties; Chordiant's use in its products of third-party software; activities by Chordiant and others regarding protection of intellectual property; and competitors' release of competitive products and other actions. Further information on potential factors that could affect the financial results of Chordiant are included in risks detailed from time to time in Chordiant's Securities and Exchange Commission filings, including without limitation Chordiant's report on Form 10-Q for the quarterly period ended September 30, 2001, and the Annual Report on Form 10-K filed on March 27, 2001. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release.
Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. JX Architecture and Dynamically Driven CRM are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.