Blue Martini Software Reports First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Blue Martini Software, Inc.

    SAN MATEO, Calif., April 24 /PRNewswire Interactive News Release/ -- Blue
 Martini Software, Inc., (Nasdaq:   BLUE) a provider of next generation customer
 relationship management (eCRM) applications that help companies to understand,
 target and interact with their customers and business partners, today reported
 its financial results for the first quarter of 2001.  Blue Martini Software
 reported total revenues of $20.5 million for the first quarter, an increase of
 92 percent as compared to revenues of $10.7 million reported for the same
 period last year.  On a pro forma basis, excluding restructuring charges and
 the impact of amortization of deferred stock compensation, stock warrants and
 intangible assets, Blue Martini Software reported for the quarter a pro forma
 net loss of $15.2 million, or $0.24 per share as compared to a pro forma net
 loss of $5.8 million, or $0.12 per share for the first quarter of 2000.
     For the first quarter, net loss, including a $2.1 million restructuring
 charge and amortization of deferred stock compensation, stock warrants and
 intangible assets, was $25.7 million, or $0.41 per share, as compared to
 a net loss of $11.6 million, or $0.46 per share, for the first quarter of
 2000.  The impact of restructuring charges and amortization of deferred stock
 compensation, warrants and intangible assets on pro forma results is
 summarized on page 5 of this release.  For additional information on the
 company's reported results, see the accompanying financial tables.
     "Despite the uncertain economic climate, we continue to believe in the
 strength of our products, as demonstrated this quarter by the many awards we
 won, the customers we brought live, and the new customers and partners we
 signed," said Monte Zweben, president and CEO of Blue Martini Software.  "We
 remain enthusiastic about the long-term opportunity for Blue Martini Software
 in the eCRM market.  Our management and employees are committed to building
 the next great software company."
 
     About Blue Martini Software
     Blue Martini Software provides eCRM applications that help companies
 understand, target and interact with their customers and business partners
 across multiple touch points.  The Blue Martini 4 application suite includes
 four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini
 Channels and Blue Martini Service.  Each application can be used individually
 or as a complete integrated business suite for managing catalogs, content,
 transactions, campaigns, analysis and personalization.  Blue Martini Software
 applications drive revenues and build lifetime value of customers by providing
 compelling personalized interactions, maximizing the effectiveness of
 marketing programs, enabling businesses to sell more effectively directly and
 through channel partners or marketplaces, and providing multi-channel customer
 service.  Blue Martini Software's customers include Canadian Tire Corporation,
 Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oce Technologies,
 Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and
 Saks Fifth Avenue.  Blue Martini Software can be reached at 650-356-4000 or
 www.bluemartini.com .
     Blue Martini Software's first quarter financial results will be discussed
 Tuesday, April 24, 2001 at 5 PM EDT/2 PM PDT and available by calling
 800-297-9150 or 703-871-3025, at least 5 minutes prior to the start time, or
 by logging in to the investor relations section at www.bluemartini.com .
 A replay also will be available at the website for a limited time.
     Note to editors: "Blue Martini" and "Blue Martini Software" are trademarks
 of Blue Martini Software, Inc. 2600 Campus Drive, San Mateo, CA 94403.  Other
 product and company names may be the trademarks of their respective owners.
 
     This news release regarding first quarter condensed consolidated financial
 results includes forward-looking statements that are subject to risks,
 uncertainties and other factors that could cause actual results to differ
 materially from those referred to in the forward-looking statements.  Such
 factors may include, but are not limited to, the impact of weakening global
 economic conditions or perceived weakening conditions on customers' and
 prospective customers' level of spending on Blue Martini Software's
 applications and services; financial and other impacts of staffing reductions
 and other cost control measures; quarterly fluctuations in Blue Martini
 Software's revenues or other operating results; failure by Blue Martini
 Software to meet financial expectations of analysts and investors, including
 failure resulting from significant reductions in demand from earlier
 anticipated levels; risk related to market acceptance of Blue Martini
 Software's products; customization and deployment delays or errors associated
 with Blue Martini Software's products; impact of long and lengthening sales
 and implementation cycles for Blue Martini Software's products; satisfaction
 levels of customers regarding the implementation and performance of Blue
 Martini Software's products; reliance by Blue Martini Software on a limited
 number of customers for a majority of revenue; Blue Martini Software's need to
 maintain and enhance business relationships with systems integrators and other
 parties; Blue Martini Software's ability to attract and maintain qualified
 executives and other personnel and to motivate employees; Blue Martini
 Software's use in its products of third-party software; activities by Blue
 Martini Software and others regarding protection of intellectual property; and
 release of competitive products and other actions by competitors. Further
 details on these risks are set forth in Blue Martini Software's filings with
 the Securities and Exchange Commission, including its filing on Form 10-K for
 the year ended December 31, 2000.  These filings are available on a website
 maintained by the Securities and Exchange Commission at http://www.sec.gov .
 Forward-looking statements in this release are generally identified by words
 such as  "remain," "will," "continue," "believe," "plan," and other similar
 words and expressions. Blue Martini Software does not undertake an obligation
 to update forward-looking or other statements in this release.
 
 
                            BLUE MARTINI SOFTWARE, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
                                    (Unaudited)
 
                                                         Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Revenues:
       License                                         $8,023         $6,070
       Service                                         12,506          4,611
        Total revenues                                 20,529         10,681
     Cost of revenues:
       License                                          1,179            561
       Service                                         13,892          6,237
        Total cost of revenues                         15,071          6,798
        Gross profit                                    5,458          3,883
     Operating expenses:
       Sales and marketing                             16,887          8,580
       Research and development                         7,391          4,402
       General and administrative                       6,985          2,528
       Restructuring charges                            2,107              -
        Total operating expenses                       33,370         15,510
        Loss from operations                          (27,912)       (11,627)
     Interest income and other, net                     2,207             60
        Net loss                                     $(25,705)      $(11,567)
 
     Basic and diluted net loss per common share      $(0.41)        $(0.46)
 
     Shares used in computing basic and diluted
      net loss per common share                        62,110         25,108
 
 
                            BLUE MARTINI SOFTWARE, INC.
             PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                IMPACT OF PRO FORMA ADJUSTMENTS ON REPORTED NET LOSS
                       (In thousands, except per share data)
                                    (Unaudited)
 
                       For the Three Months Ended  For the Three Months Ended
                             March 31, 2001               March 31, 2000
                         As                *As        As                *As
                      Reported           Adjusted  Reported         Adjusted
                               Adjustments                 Adjustments
 
     Revenues:
       License         $8,023         $-  $8,023   $6,070       $ -   $6,070
       Service         12,506          -  12,506    4,611         -    4,611
        Total revenues 20,529          -  20,529   10,681         -   10,681
 
     Cost of revenues:
       License          1,179       (500)    679      561         -      561
       Service         13,892     (1,642) 12,250    6,237    (1,103)   5,134
        Total cost of
         revenues      15,071     (2,142) 12,929    6,798    (1,103)   5,695
        Gross profit    5,458      2,142   7,600    3,883     1,103    4,986
 
     Operating expenses:
       Sales and
        marketing      16,887     (2,234) 14,653    8,580    (1,392)   7,188
       Research and
        development     7,391     (1,188)  6,203    4,402    (2,167)   2,235
 
       General and
        administrative  6,985     (2,838)  4,147    2,528    (1,099)   1,429
       Restructuring
        charges         2,107     (2,107)      -        -         -        -
        Total operating
         expenses      33,370     (8,367) 25,003   15,510    (4,658)  10,852
 
        Loss from
         operations   (27,912)    10,509 (17,403) (11,627)    5,761   (5,866)
 
     Interest income
      and other, net    2,207          -   2,207       60         -       60
       Net loss      $(25,705)  $10,509 $(15,196)  $(11,567) $5,761   $(5,806)
 
     Net loss per
      share            $(0.41)            $(0.24)  $(0.46)            $(0.12)
     Pro forma
      shares
      outstanding**    62,110             62,110   25,108             48,400
 
     * The adjustments represent the reversals of restructuring charges and
        the amortization of deferred stock compensation, common stock warrants
        and acquired intangible assets.
     **Adjusted at March 31, 2000 to include the impact of shares of
         convertible preferred stock on an "as-if-converted" basis as of the
         beginning of the period presented.
 
 
                            BLUE MARTINI SOFTWARE, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
 
                             ASSETS                  March 31,   December 31,
                                                       2001           2000
                                                    (Unaudited)
 
     Current assets:
       Cash and cash equivalents                      $31,047        $40,101
       Short-term investments                          42,266         62,183
       Accounts receivable, net                        10,093         12,584
       Prepaid expenses and other current assets        7,602          6,942
        Total current assets                           91,008        121,810
 
     Property and equipment, net                        9,804          8,713
     Long-term investments                             57,041         51,402
     Intangible assets and other, net                   5,982          6,373
        Total assets                                $ 163,835       $188,298
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                                $2,830         $4,434
       Accrued employee compensation                    9,015          9,411
       Other current liabilities                       10,782         14,233
       Deferred revenues                               10,520         15,249
       Current portion of long-term obligations           179            209
        Total current liabilities                      33,326         43,536
     Long-term obligations, less current portion          106            117
        Total liabilities                              33,432         43,653
     Stockholders' equity:
       Common stock                                        69             69
       Additional paid-in-capital                     262,835        260,943
 
       Deferred stock compensation                    (33,026)       (42,106)
       Accumulated other comprehensive loss               773            282
       Accumulated deficit                           (100,248)       (74,543)
        Total stockholders' equity                    130,403        144,645
        Total liabilities and stockholders'
         equity                                     $ 163,835       $188,298
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65962642
 
 

SOURCE Blue Martini Software, Inc.
    SAN MATEO, Calif., April 24 /PRNewswire Interactive News Release/ -- Blue
 Martini Software, Inc., (Nasdaq:   BLUE) a provider of next generation customer
 relationship management (eCRM) applications that help companies to understand,
 target and interact with their customers and business partners, today reported
 its financial results for the first quarter of 2001.  Blue Martini Software
 reported total revenues of $20.5 million for the first quarter, an increase of
 92 percent as compared to revenues of $10.7 million reported for the same
 period last year.  On a pro forma basis, excluding restructuring charges and
 the impact of amortization of deferred stock compensation, stock warrants and
 intangible assets, Blue Martini Software reported for the quarter a pro forma
 net loss of $15.2 million, or $0.24 per share as compared to a pro forma net
 loss of $5.8 million, or $0.12 per share for the first quarter of 2000.
     For the first quarter, net loss, including a $2.1 million restructuring
 charge and amortization of deferred stock compensation, stock warrants and
 intangible assets, was $25.7 million, or $0.41 per share, as compared to
 a net loss of $11.6 million, or $0.46 per share, for the first quarter of
 2000.  The impact of restructuring charges and amortization of deferred stock
 compensation, warrants and intangible assets on pro forma results is
 summarized on page 5 of this release.  For additional information on the
 company's reported results, see the accompanying financial tables.
     "Despite the uncertain economic climate, we continue to believe in the
 strength of our products, as demonstrated this quarter by the many awards we
 won, the customers we brought live, and the new customers and partners we
 signed," said Monte Zweben, president and CEO of Blue Martini Software.  "We
 remain enthusiastic about the long-term opportunity for Blue Martini Software
 in the eCRM market.  Our management and employees are committed to building
 the next great software company."
 
     About Blue Martini Software
     Blue Martini Software provides eCRM applications that help companies
 understand, target and interact with their customers and business partners
 across multiple touch points.  The Blue Martini 4 application suite includes
 four applications: Blue Martini Marketing, Blue Martini Commerce, Blue Martini
 Channels and Blue Martini Service.  Each application can be used individually
 or as a complete integrated business suite for managing catalogs, content,
 transactions, campaigns, analysis and personalization.  Blue Martini Software
 applications drive revenues and build lifetime value of customers by providing
 compelling personalized interactions, maximizing the effectiveness of
 marketing programs, enabling businesses to sell more effectively directly and
 through channel partners or marketplaces, and providing multi-channel customer
 service.  Blue Martini Software's customers include Canadian Tire Corporation,
 Harley-Davidson, Iomega Corporation, Levi Strauss & Co., Oce Technologies,
 Oncology Therapeutics Network (OTN), Polaroid Corporation, PublixDirect and
 Saks Fifth Avenue.  Blue Martini Software can be reached at 650-356-4000 or
 www.bluemartini.com .
     Blue Martini Software's first quarter financial results will be discussed
 Tuesday, April 24, 2001 at 5 PM EDT/2 PM PDT and available by calling
 800-297-9150 or 703-871-3025, at least 5 minutes prior to the start time, or
 by logging in to the investor relations section at www.bluemartini.com .
 A replay also will be available at the website for a limited time.
     Note to editors: "Blue Martini" and "Blue Martini Software" are trademarks
 of Blue Martini Software, Inc. 2600 Campus Drive, San Mateo, CA 94403.  Other
 product and company names may be the trademarks of their respective owners.
 
     This news release regarding first quarter condensed consolidated financial
 results includes forward-looking statements that are subject to risks,
 uncertainties and other factors that could cause actual results to differ
 materially from those referred to in the forward-looking statements.  Such
 factors may include, but are not limited to, the impact of weakening global
 economic conditions or perceived weakening conditions on customers' and
 prospective customers' level of spending on Blue Martini Software's
 applications and services; financial and other impacts of staffing reductions
 and other cost control measures; quarterly fluctuations in Blue Martini
 Software's revenues or other operating results; failure by Blue Martini
 Software to meet financial expectations of analysts and investors, including
 failure resulting from significant reductions in demand from earlier
 anticipated levels; risk related to market acceptance of Blue Martini
 Software's products; customization and deployment delays or errors associated
 with Blue Martini Software's products; impact of long and lengthening sales
 and implementation cycles for Blue Martini Software's products; satisfaction
 levels of customers regarding the implementation and performance of Blue
 Martini Software's products; reliance by Blue Martini Software on a limited
 number of customers for a majority of revenue; Blue Martini Software's need to
 maintain and enhance business relationships with systems integrators and other
 parties; Blue Martini Software's ability to attract and maintain qualified
 executives and other personnel and to motivate employees; Blue Martini
 Software's use in its products of third-party software; activities by Blue
 Martini Software and others regarding protection of intellectual property; and
 release of competitive products and other actions by competitors. Further
 details on these risks are set forth in Blue Martini Software's filings with
 the Securities and Exchange Commission, including its filing on Form 10-K for
 the year ended December 31, 2000.  These filings are available on a website
 maintained by the Securities and Exchange Commission at http://www.sec.gov .
 Forward-looking statements in this release are generally identified by words
 such as  "remain," "will," "continue," "believe," "plan," and other similar
 words and expressions. Blue Martini Software does not undertake an obligation
 to update forward-looking or other statements in this release.
 
 
                            BLUE MARTINI SOFTWARE, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
                                    (Unaudited)
 
                                                         Three Months Ended
                                                             March 31,
                                                       2001            2000
 
     Revenues:
       License                                         $8,023         $6,070
       Service                                         12,506          4,611
        Total revenues                                 20,529         10,681
     Cost of revenues:
       License                                          1,179            561
       Service                                         13,892          6,237
        Total cost of revenues                         15,071          6,798
        Gross profit                                    5,458          3,883
     Operating expenses:
       Sales and marketing                             16,887          8,580
       Research and development                         7,391          4,402
       General and administrative                       6,985          2,528
       Restructuring charges                            2,107              -
        Total operating expenses                       33,370         15,510
        Loss from operations                          (27,912)       (11,627)
     Interest income and other, net                     2,207             60
        Net loss                                     $(25,705)      $(11,567)
 
     Basic and diluted net loss per common share      $(0.41)        $(0.46)
 
     Shares used in computing basic and diluted
      net loss per common share                        62,110         25,108
 
 
                            BLUE MARTINI SOFTWARE, INC.
             PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                IMPACT OF PRO FORMA ADJUSTMENTS ON REPORTED NET LOSS
                       (In thousands, except per share data)
                                    (Unaudited)
 
                       For the Three Months Ended  For the Three Months Ended
                             March 31, 2001               March 31, 2000
                         As                *As        As                *As
                      Reported           Adjusted  Reported         Adjusted
                               Adjustments                 Adjustments
 
     Revenues:
       License         $8,023         $-  $8,023   $6,070       $ -   $6,070
       Service         12,506          -  12,506    4,611         -    4,611
        Total revenues 20,529          -  20,529   10,681         -   10,681
 
     Cost of revenues:
       License          1,179       (500)    679      561         -      561
       Service         13,892     (1,642) 12,250    6,237    (1,103)   5,134
        Total cost of
         revenues      15,071     (2,142) 12,929    6,798    (1,103)   5,695
        Gross profit    5,458      2,142   7,600    3,883     1,103    4,986
 
     Operating expenses:
       Sales and
        marketing      16,887     (2,234) 14,653    8,580    (1,392)   7,188
       Research and
        development     7,391     (1,188)  6,203    4,402    (2,167)   2,235
 
       General and
        administrative  6,985     (2,838)  4,147    2,528    (1,099)   1,429
       Restructuring
        charges         2,107     (2,107)      -        -         -        -
        Total operating
         expenses      33,370     (8,367) 25,003   15,510    (4,658)  10,852
 
        Loss from
         operations   (27,912)    10,509 (17,403) (11,627)    5,761   (5,866)
 
     Interest income
      and other, net    2,207          -   2,207       60         -       60
       Net loss      $(25,705)  $10,509 $(15,196)  $(11,567) $5,761   $(5,806)
 
     Net loss per
      share            $(0.41)            $(0.24)  $(0.46)            $(0.12)
     Pro forma
      shares
      outstanding**    62,110             62,110   25,108             48,400
 
     * The adjustments represent the reversals of restructuring charges and
        the amortization of deferred stock compensation, common stock warrants
        and acquired intangible assets.
     **Adjusted at March 31, 2000 to include the impact of shares of
         convertible preferred stock on an "as-if-converted" basis as of the
         beginning of the period presented.
 
 
                            BLUE MARTINI SOFTWARE, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
 
                             ASSETS                  March 31,   December 31,
                                                       2001           2000
                                                    (Unaudited)
 
     Current assets:
       Cash and cash equivalents                      $31,047        $40,101
       Short-term investments                          42,266         62,183
       Accounts receivable, net                        10,093         12,584
       Prepaid expenses and other current assets        7,602          6,942
        Total current assets                           91,008        121,810
 
     Property and equipment, net                        9,804          8,713
     Long-term investments                             57,041         51,402
     Intangible assets and other, net                   5,982          6,373
        Total assets                                $ 163,835       $188,298
 
             LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                                $2,830         $4,434
       Accrued employee compensation                    9,015          9,411
       Other current liabilities                       10,782         14,233
       Deferred revenues                               10,520         15,249
       Current portion of long-term obligations           179            209
        Total current liabilities                      33,326         43,536
     Long-term obligations, less current portion          106            117
        Total liabilities                              33,432         43,653
     Stockholders' equity:
       Common stock                                        69             69
       Additional paid-in-capital                     262,835        260,943
 
       Deferred stock compensation                    (33,026)       (42,106)
       Accumulated other comprehensive loss               773            282
       Accumulated deficit                           (100,248)       (74,543)
        Total stockholders' equity                    130,403        144,645
        Total liabilities and stockholders'
         equity                                     $ 163,835       $188,298
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65962642
 
 SOURCE  Blue Martini Software, Inc.