BackWeb Reports Q1 Revenue, Earnings in Line With Preliminary Results Signs OEM and Reseller Partnership With IBM

Apr 23, 2001, 01:00 ET from BackWeb Technologies LTD

    SAN JOSE, Calif., April 23 /PRNewswire Interactive News Release/ --
 BackWeb Technologies (Nasdaq:   BWEB), a leading provider of push communications
 infrastructure for e-business, today announced results for its first quarter
 ended March 31, 2001.
     Revenues for the first quarter of 2001 were $7.2 million compared to
 $8.9 for the same period last year and $7.1 million reported in the
 fourth quarter of 2000.  Net loss for the first quarter of 2001 was
 $7.0 million, or a loss of $0.18 per diluted share.  This compares with a net
 loss of $1.7 million, or a loss of $0.05 per diluted share in the same period
 last year and a loss of $4.7 million, or a loss of $0.12 per diluted share, in
 the fourth quarter of 2000 (excluding amortization charges related to previous
 acquisition(s) and deferred stock compensation).  Including these special
 charges, net loss for the first quarter of 2001 was $7.9 million, or a loss of
 $0.21 per diluted share, compared with a net loss of $2.2 million, or a loss
 of $0.06 in the same period last year and $5.8 million, or a loss of $0.15 per
 share in the fourth quarter of 2000.
     The company continued to strengthen relationships with its partners and
 existing customer base throughout the quarter.  The company signed a strategic
 OEM and reseller partnership with IBM, a major Internet Infrastructure
 industry leader.  BackWeb's technology will be offered as a stand-alone module
 as well as a component of an integrated IBM WebSphere bundle.  Using
 BackWeb(R) technology, Websphere developers would be able to enhance their
 e-business environments with proactive subscriptions that increase the
 interaction and delivery with personalized content.  BackWeb's relationship
 with SAP remains strong, with SAP embedding BackWeb's upgraded infrastructure
 in its next major product release in the Mobile Sales CRM suite, 3.0, which is
 expected to ship later this year.  BackWeb continued to grow its presence in
 the Global 2000 market with major customer wins such as Hewlett Packard,
 Nationwide, BMW, MGM and City of Ottawa among others.  On the product front,
 the company unveiled its innovative BackWeb Shadow(TM) solution this quarter.
 BackWeb Shadow technology converts Enterprise Portals from passive
 destinations to always-present desktop Portals.
     "Increased weakness in technology spending impacted our sales this
 quarter; however, we remain confident of the strategic value that our
 technology brings to customers and partners," said Eli Barkat, chairman and
 CEO of BackWeb Technologies.  "We will continue to focus our efforts on
 providing tangible return on investment to customers and helping them leverage
 their current technologies, and at the same time, we will align our expenses
 to our revenues and preserve our strong cash position throughout the market
 uncertainty," he said.
 
     Conference Call
     BackWeb Technologies has scheduled a conference call for 2 p.m. Pacific
 Time today to discuss the first quarter results.  To access the conference
 call, please dial 712-257-3647 by 1:40 p.m. Pacific Time on April. 23.  You
 will need to reference the passcode "BackWeb."  A live webcast of the
 conference call will also be available via the company's website at
 www.backweb.com.  A replay of the call will be available starting one hour
 after the completion of the call until April 30, 2001.  To access the replay,
 please dial 402-220-3767.
 
     About BackWeb Technologies
     BackWeb Technologies is a leading provider of push communications
 infrastructure for e-business that enable companies to proactively communicate
 time-sensitive, business-critical information throughout Internet and Wireless
 networks to customers, partners and employees.  Corporations such as Cisco,
 Compaq, Hewlett-Packard, and Schlumberger Dowell have deployed BackWeb's
 Polite(R) push communications infrastructure for managing critical changes for
 key e-business and customer service applications.  BackWeb Technologies is
 headquartered in San Jose, California, and Ramat Gan, Israel.  For more
 information, visit its web site at www.backweb.com.
     Statements in this news release which are not purely historical are
 forward-looking statements within the meaning of the U.S. Federal Securities
 laws, including, any statements regarding beliefs, plans, expectations or
 intentions regarding the future.  Actual results could differ materially from
 those in such forward-looking statements.  Factors that could cause actual
 results to differ materially include changes in the competitive landscape,
 including, new competitors and/or the impact of competitive pricing and
 products, dependence upon a limited number of key resellers and customers,
 timely availability and customer acceptance of new and existing products, the
 ability to demonstrate tangible returns, the strength of partnerships, the
 ability to expand our customer base, rapid changes in market conditions due to
 changing technological standards, fluctuations in quarterly results, the
 amount of our cash flow and cash reserve, the company's ability to contain
 costs and expenses, BackWeb's dependence upon and ability to attract and
 retain qualified employees, BackWeb's ability to integrate technology acquired
 through acquisitions with its existing technology, and the risks and
 uncertainties detailed from time to time in BackWeb's publicly filed reports
 with the U.S. Securities and Exchange Commission.  BackWeb undertakes no
 obligation to publicly update or revise any forward-looking statements.
 
 
                              BACKWEB TECHNOLOGIES LTD
                            Consolidated Balance Sheets
                                   (in thousands)
                                                    UNAUDITED
 
                                                    March 31,     December 31,
                                                       2001           2000
 
     ASSETS
 
     Current assets:
 
       Cash and cash equivalents                      $30,623        $21,076
       Short term investments                          28,987         43,658
       Accounts receivable, net                         5,594          8,400
       Other current assets                             1,972          2,370
         Total current assets                          67,176         75,504
 
     Property and equipment, net                        3,928          4,025
     Goodwill and other purchased intangibles, net      5,679          6,462
     Long term Investments                              3,000          3,000
     Other long-term assets                             1,379          1,383
                                                      $81,162        $90,374
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
 
       Accounts payable and accrued liabilities        $6,195         $7,260
       Deferred revenue                                 2,810          3,957
       Current portion of shareholders' loans              --            371
         Total current liabilities                      9,005         11,588
 
     Long-term liabilities:
       Long-term deferred revenue                          85            113
       Accrued severance pay, net                         256            243
 
     Total Shareholders' equity                        71,816         78,430
                                                      $81,162        $90,374
 
 
                              BACKWEB TECHNOLOGIES LTD
                       Consolidated Statements of Operations
                  (in thousands, except share and per share data)
                                     UNAUDITED
 
                                                        Three Months Ended
                                                    March 31,       March 31,
                                                       2001           2000
 
     Revenues:
       License                                         $5,187         $6,883
       Service                                          2,034          2,020
         Total revenues                                 7,221          8,903
     Cost of revenues:
       License                                             98             32
       Service                                          1,750          1,329
         Total cost of revenues                         1,848          1,361
 
     Gross profit                                       5,373          7,542
 
     Operating expenses:
       Research and development                         2,560          1,843
       Sales and marketing                              7,326          6,936
       General and administrative                       3,185          1,596
       Amortization of goodwill, other intangibles,
        and deferred stock compensation                   952            447
         Total operating expenses                      14,023         10,822
 
     Loss from operations                             (8,650)        (3,280)
 
     Other income, net                                    714          1,128
 
     Loss before taxes                                (7,936)        (2,152)
 
     Provision for taxes                                   --             --
 
     Net loss                                        $(7,936)       $(2,152)
 
     Basic and diluted net loss per share
      (including amort.)                              $(0.21)        $(0.06)
 
     Basic and diluted net loss
      per share (excluding amort.)                    $(0.18)        $(0.05)
 
     Shares used in computing basic and
      diluted net loss per share                       37,992         35,985
 
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SOURCE BackWeb Technologies LTD
    SAN JOSE, Calif., April 23 /PRNewswire Interactive News Release/ --
 BackWeb Technologies (Nasdaq:   BWEB), a leading provider of push communications
 infrastructure for e-business, today announced results for its first quarter
 ended March 31, 2001.
     Revenues for the first quarter of 2001 were $7.2 million compared to
 $8.9 for the same period last year and $7.1 million reported in the
 fourth quarter of 2000.  Net loss for the first quarter of 2001 was
 $7.0 million, or a loss of $0.18 per diluted share.  This compares with a net
 loss of $1.7 million, or a loss of $0.05 per diluted share in the same period
 last year and a loss of $4.7 million, or a loss of $0.12 per diluted share, in
 the fourth quarter of 2000 (excluding amortization charges related to previous
 acquisition(s) and deferred stock compensation).  Including these special
 charges, net loss for the first quarter of 2001 was $7.9 million, or a loss of
 $0.21 per diluted share, compared with a net loss of $2.2 million, or a loss
 of $0.06 in the same period last year and $5.8 million, or a loss of $0.15 per
 share in the fourth quarter of 2000.
     The company continued to strengthen relationships with its partners and
 existing customer base throughout the quarter.  The company signed a strategic
 OEM and reseller partnership with IBM, a major Internet Infrastructure
 industry leader.  BackWeb's technology will be offered as a stand-alone module
 as well as a component of an integrated IBM WebSphere bundle.  Using
 BackWeb(R) technology, Websphere developers would be able to enhance their
 e-business environments with proactive subscriptions that increase the
 interaction and delivery with personalized content.  BackWeb's relationship
 with SAP remains strong, with SAP embedding BackWeb's upgraded infrastructure
 in its next major product release in the Mobile Sales CRM suite, 3.0, which is
 expected to ship later this year.  BackWeb continued to grow its presence in
 the Global 2000 market with major customer wins such as Hewlett Packard,
 Nationwide, BMW, MGM and City of Ottawa among others.  On the product front,
 the company unveiled its innovative BackWeb Shadow(TM) solution this quarter.
 BackWeb Shadow technology converts Enterprise Portals from passive
 destinations to always-present desktop Portals.
     "Increased weakness in technology spending impacted our sales this
 quarter; however, we remain confident of the strategic value that our
 technology brings to customers and partners," said Eli Barkat, chairman and
 CEO of BackWeb Technologies.  "We will continue to focus our efforts on
 providing tangible return on investment to customers and helping them leverage
 their current technologies, and at the same time, we will align our expenses
 to our revenues and preserve our strong cash position throughout the market
 uncertainty," he said.
 
     Conference Call
     BackWeb Technologies has scheduled a conference call for 2 p.m. Pacific
 Time today to discuss the first quarter results.  To access the conference
 call, please dial 712-257-3647 by 1:40 p.m. Pacific Time on April. 23.  You
 will need to reference the passcode "BackWeb."  A live webcast of the
 conference call will also be available via the company's website at
 www.backweb.com.  A replay of the call will be available starting one hour
 after the completion of the call until April 30, 2001.  To access the replay,
 please dial 402-220-3767.
 
     About BackWeb Technologies
     BackWeb Technologies is a leading provider of push communications
 infrastructure for e-business that enable companies to proactively communicate
 time-sensitive, business-critical information throughout Internet and Wireless
 networks to customers, partners and employees.  Corporations such as Cisco,
 Compaq, Hewlett-Packard, and Schlumberger Dowell have deployed BackWeb's
 Polite(R) push communications infrastructure for managing critical changes for
 key e-business and customer service applications.  BackWeb Technologies is
 headquartered in San Jose, California, and Ramat Gan, Israel.  For more
 information, visit its web site at www.backweb.com.
     Statements in this news release which are not purely historical are
 forward-looking statements within the meaning of the U.S. Federal Securities
 laws, including, any statements regarding beliefs, plans, expectations or
 intentions regarding the future.  Actual results could differ materially from
 those in such forward-looking statements.  Factors that could cause actual
 results to differ materially include changes in the competitive landscape,
 including, new competitors and/or the impact of competitive pricing and
 products, dependence upon a limited number of key resellers and customers,
 timely availability and customer acceptance of new and existing products, the
 ability to demonstrate tangible returns, the strength of partnerships, the
 ability to expand our customer base, rapid changes in market conditions due to
 changing technological standards, fluctuations in quarterly results, the
 amount of our cash flow and cash reserve, the company's ability to contain
 costs and expenses, BackWeb's dependence upon and ability to attract and
 retain qualified employees, BackWeb's ability to integrate technology acquired
 through acquisitions with its existing technology, and the risks and
 uncertainties detailed from time to time in BackWeb's publicly filed reports
 with the U.S. Securities and Exchange Commission.  BackWeb undertakes no
 obligation to publicly update or revise any forward-looking statements.
 
 
                              BACKWEB TECHNOLOGIES LTD
                            Consolidated Balance Sheets
                                   (in thousands)
                                                    UNAUDITED
 
                                                    March 31,     December 31,
                                                       2001           2000
 
     ASSETS
 
     Current assets:
 
       Cash and cash equivalents                      $30,623        $21,076
       Short term investments                          28,987         43,658
       Accounts receivable, net                         5,594          8,400
       Other current assets                             1,972          2,370
         Total current assets                          67,176         75,504
 
     Property and equipment, net                        3,928          4,025
     Goodwill and other purchased intangibles, net      5,679          6,462
     Long term Investments                              3,000          3,000
     Other long-term assets                             1,379          1,383
                                                      $81,162        $90,374
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
 
       Accounts payable and accrued liabilities        $6,195         $7,260
       Deferred revenue                                 2,810          3,957
       Current portion of shareholders' loans              --            371
         Total current liabilities                      9,005         11,588
 
     Long-term liabilities:
       Long-term deferred revenue                          85            113
       Accrued severance pay, net                         256            243
 
     Total Shareholders' equity                        71,816         78,430
                                                      $81,162        $90,374
 
 
                              BACKWEB TECHNOLOGIES LTD
                       Consolidated Statements of Operations
                  (in thousands, except share and per share data)
                                     UNAUDITED
 
                                                        Three Months Ended
                                                    March 31,       March 31,
                                                       2001           2000
 
     Revenues:
       License                                         $5,187         $6,883
       Service                                          2,034          2,020
         Total revenues                                 7,221          8,903
     Cost of revenues:
       License                                             98             32
       Service                                          1,750          1,329
         Total cost of revenues                         1,848          1,361
 
     Gross profit                                       5,373          7,542
 
     Operating expenses:
       Research and development                         2,560          1,843
       Sales and marketing                              7,326          6,936
       General and administrative                       3,185          1,596
       Amortization of goodwill, other intangibles,
        and deferred stock compensation                   952            447
         Total operating expenses                      14,023         10,822
 
     Loss from operations                             (8,650)        (3,280)
 
     Other income, net                                    714          1,128
 
     Loss before taxes                                (7,936)        (2,152)
 
     Provision for taxes                                   --             --
 
     Net loss                                        $(7,936)       $(2,152)
 
     Basic and diluted net loss per share
      (including amort.)                              $(0.21)        $(0.06)
 
     Basic and diluted net loss
      per share (excluding amort.)                    $(0.18)        $(0.05)
 
     Shares used in computing basic and
      diluted net loss per share                       37,992         35,985
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X35268683
 
 SOURCE  BackWeb Technologies LTD