Click Commerce Announces First Quarter Financial Results

Revenues More than Double Over Prior Year



Apr 25, 2001, 01:00 ET from Click Commerce, Inc.

    CHICAGO, April 25 /PRNewswire/ -- Click Commerce, Inc. (Nasdaq:   CKCM), the
 leading provider of Channel Management software and services, today announced
 its financial results for the first quarter, which were slightly better than
 the preliminary results released on April 4, 2001.  Revenue was approximately
 $11.6 million, more than double the $5.1 million reported during the same
 period in 2000.  Pro forma net loss per share, excluding amortization of
 stock-based compensation, was $0.07, compared to $0.00 per share, excluding
 amortization of stock-based compensation and accretion related to preferred
 stock, during the first quarter of 2000.
     "Despite the challenging economic environment which has affected the
 results of many companies in our industry, we are encouraged as we continue to
 build on our strengths as the leader in Channel Management," stated Michael W.
 Ferro, Jr., Chairman and CEO.  "In this market environment, companies are
 increasingly seeking competitive advantage through high ROI solutions that
 will reduce costs and strengthen their business.  The high value ROI that our
 products deliver provides us with optimism about the opportunity within our
 market."
 
     Financial Results
     For the first quarter, revenue was up over 125% compared to the prior year
 quarter.  The pro forma net loss for the quarter, excluding non-cash charges
 for amortization of stock-based compensation, was $2.8 million or
 $0.07 per share.   For the 2000 corresponding period, net loss, excluding
 amortization of stock-based compensation and accretion related to preferred
 stock, was $0.1 million or $0.00 per share.
     Including amortization of stock-based compensation and accretion related
 to preferred stock, Click Commerce's net loss for the current quarter was
 $3.2 million or $0.08 per share, compared with a net loss of $4.4 million or
 $0.12 per share in the prior year quarter.
 
     Quarterly Highlights
     During the quarter, Click Commerce extended its application solution with
 incremental sales to existing clients while also adding several new customers
 in key verticals such as discrete manufacturing, industrial equipment and
 consumer electronics.
     Click Commerce continues to experience significant progress in pipeline
 activity through both the direct and partner channels.  The company
 experienced an extension in the length of the sales cycle with several
 customers in the first quarter relative to previous quarters, and activity
 with those clients is ongoing.
     During the quarter, Click Commerce signed two significant agreements that
 will extend the company's customer reach and product breadth.  First, the
 company signed an agreement with PricewaterhouseCoopers (PwC), which will
 provide a new sales channel for future growth and access to PwC's system
 integration capabilities.  Second, the company signed a technology partnership
 with Visual Insights, which will extend Click's product leadership in the
 channel management arena with an advanced solution for business analytics.
     One of the most highly publicized events during the quarter was Click
 Commerce's participation in Microsoft's announcement of the "Hailstorm" .NET
 initiative.  Click Commerce was chosen as one of only five companies to be
 showcased during the press and analyst demonstration of Microsoft's .Net
 technologies from over 400 other business partners. This technology, which
 acts as a set of building-block services, will extend the Click Commerce
 Channel Management solution by enabling Click Commerce's customers to further
 enhance existing partner and customer relationships, attract new customers
 through more relevant and personalized offerings, and seamlessly integrate
 with their partners' business systems.
     Finally, earlier this month Randy A. Gray assumed the role of COO and
 Managing Director for Click Commerce.  Mr. Gray, formerly the Executive Vice
 President of Business Development and Strategy, will be responsible for the
 day-to-day management of all aspects of Click's business.  With over 25 years
 of leadership experience managing divisions of global corporations with
 complex channels through various economic cycles, his skills will be
 invaluable as Click continues its path to profitable growth.
 
     Guidance
     Despite the continued challenging marketplace, Click Commerce has a
 relatively strong pipeline and expects a sequential revenue increase in the
 second quarter.  The company is comfortable with the current analyst consensus
 revenue estimate of $13 million, and consensus pro forma loss per share
 estimate of $0.06 for the second quarter.  Based on the company's expectations
 of some improvement in IT spending in the second half of the year, it expects
 to be profitable on a cash basis in the fourth quarter.
 
     Conference Call Information
     Click Commerce will host a conference call to discuss these results at
 5:00 p.m. EDT today, and the call is available via webcast at
 www.clickcommerce.com .
 
       About Click Commerce, Inc. Click Commerce (Nasdaq:   CKCM) is the leading
 provider of Channel Management software and services that enable large global
 corporations to collaborate with their trading partners via the Internet in a
 private marketplace. A sampling of leading companies using Click Commerce
 solutions to manage their complex distribution channels include American
 Standard, Black & Decker,  Delphi, Emerson Electric, Equistar, Kawasaki,
 Lubrizol, Mitsubishi, Motorola, Otis Elevator and Volvo.  With its integrated
 e-business platform and proven application portfolio, Click Commerce enables
 global enterprises to significantly increase brand loyalty, customer
 satisfaction and financial performance. Visit Click Commerce at
 www.clickcommerce.com .
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995 within the meaning of Section 21E of the Securities Exchange Act of
 1934, as amended: Statements in this press release that are not historical
 facts and refer to the company's future prospects are ``forward looking
 statements'' under the Private Securities Litigation Reform Act of 1995. These
 forward-looking statements are generally identified by words such as "expect,"
 "anticipate," "intend," "believe," "hope," "assume," "estimate" and other
 similar words and expressions. The statements are subject to risks and
 uncertainties and actual results may differ materially from those indicated by
 these forward-looking statements as a result of various factors, including but
 not limited to, the ability of Click Commerce to execute on its plan to enter
 into strategic alliances with system integrators and business consultants, the
 extent of customer acceptance and utilization of Click Commerce's Channel
 Management solutions, the impact of competitive products and services, the
 company's ability to manage growth and to develop new and enhanced versions of
 its products and services, the effect of economic and business conditions, the
 volume and timing of customer contracts, the company's ability to expand
 overseas, changes in technology, deployment delays or errors associated with
 the company's products and the company's ability to protect its intellectual
 property rights. For a discussion of these and other risk factors that could
 affect Click Commerce's business, see "Risk Factors" in Click Commerce's
 annual report on Form 10-K for the year ended December 31, 2000, which is on
 file with the Securities and Exchange Commission.
 
     Click Commerce is a registered trademark of Click Commerce, Inc. All other
 company and product names mentioned herein may be trademarks and/or registered
 trademarks of their respective companies.
 
 
 
 
 
                               Click Commerce, Inc.
                       Consolidated Statements of Operations
                  (in thousands, except share and per share data)
 
 
                                                         Three Months Ended
                                                             March 31,
                                                       2001              2000
 
     Revenues
        Product License                              $6,406              $-
        Service                                       5,163             5,124
           Total revenues                            11,569             5,124
 
     Cost of revenues
        Product License                                 171               -
        Service                                       2,952             1,555
           Total cost of revenues                     3,123             1,555
 
     Gross profit                                     8,446             3,569
 
     Operating expenses
        Sales and marketing                           8,108             1,649
        Research and development                      2,603               896
        General and administrative                    2,810             1,246
        Amortization of stock-based
         compensation                                   615               270
           Total operating expenses                  14,136             4,061
 
           Operating loss                            (5,690)             (492)
 
     Other income                                       660                17
 
     Loss before income taxes                        (5,030)             (475)
     Income tax expense benefit                      (1,840)             (141)
 
     Net loss                                        (3,190)             (334)
     Accretion related to redeemable
      preferred stock                                   -              (4,114)
     Net loss available to common
      shareholders                                  $(3,190)          $(4,448)
 
     Net loss per weighted average
        common share outstanding -
           Basic and diluted                         $(0.08)           $(0.20)
 
     Weighted average common shares
      outstanding -
           Basic and diluted                     38,357,079        22,431,995
 
     Pro forma loss per share:
 
     Basic and diluted loss per share                $(0.08)           $(0.12)
 
     Pro forma shares used in calculating
        basic and diluted loss per share (a)     38,357,079        37,752,160
 
     Pro forma loss excluding stock-based
        compensation and accretion related
        to redeemable preferred stock:
 
     Pro forma loss                                 $(2,756)             $(64)
 
     Basic and diluted pro forma loss per
      share                                          $(0.07)           $(0.00)
 
     Pro forma shares used in calculating
        basic and diluted pro forma loss per
         share (a)                               38,357,079        37,752,160
 
 
     (a) Pro forma weighted average shares outstanding assume completion of the
         Company's initial public offering on January 1, 1999 and the
         conversion of convertible preferred stock as of its original issue
         date.
 
 
                               Click Commerce, Inc.
                           Consolidated Balance Sheets
                                  (in thousands)
 
 
                                    March 31, 2001         December 31, 2000
 
 
                    ASSETS
 
     Current Assets:
       Cash and cash equivalents           $47,773                   $51,318
       Trade accounts receivable, net        6,783                     9,276
       Revenue earned on contracts in
        progress in excess of billings       1,093                     1,534
       Other current assets                  2,289                     1,908
       Deferred income taxes                   205                       110
           Total current assets             58,143                    64,146
 
     Property and equipment, net             2,647                     1,931
     Deferred income taxes                   6,563                     3,611
     Other assets                              165                        68
           Total assets                    $67,518                   $69,756
 
 
                LIABILITIES AND
             SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                     $1,325                    $2,096
       Billings in excess of revenues
        earned on contracts in progress        718                     1,027
       Deferred revenue                      2,184                     1,531
       Accrued compensation                  3,067                     3,949
       Accrued expenses and other current
        liabilities                          3,012                     3,805
       Current portion of capital lease
        obligations                            406                       298
           Total current liabilities        10,712                    12,706
 
     Capital lease obligations, less
      current portion                          893                       397
     Other liabilities                         -                          37
           Total liabilities                11,605                    13,140
 
     Shareholders' equity:
       Preferred Stock                         -                         -
       Common Stock                             38                        38
       Additional paid-in capital           85,613                    83,960
       Accumulated other comprehensive
        income                                  39                       119
       Deferred compensation                (5,913)                   (6,827)
       Accumulated deficit                 (23,864)                  (20,674)
           Total Shareholders' Equity       55,913                    56,616
 
           Total Liabilities &
            Shareholders' Equity           $67,518                   $69,756
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X95625151
 
 

SOURCE Click Commerce, Inc.
    CHICAGO, April 25 /PRNewswire/ -- Click Commerce, Inc. (Nasdaq:   CKCM), the
 leading provider of Channel Management software and services, today announced
 its financial results for the first quarter, which were slightly better than
 the preliminary results released on April 4, 2001.  Revenue was approximately
 $11.6 million, more than double the $5.1 million reported during the same
 period in 2000.  Pro forma net loss per share, excluding amortization of
 stock-based compensation, was $0.07, compared to $0.00 per share, excluding
 amortization of stock-based compensation and accretion related to preferred
 stock, during the first quarter of 2000.
     "Despite the challenging economic environment which has affected the
 results of many companies in our industry, we are encouraged as we continue to
 build on our strengths as the leader in Channel Management," stated Michael W.
 Ferro, Jr., Chairman and CEO.  "In this market environment, companies are
 increasingly seeking competitive advantage through high ROI solutions that
 will reduce costs and strengthen their business.  The high value ROI that our
 products deliver provides us with optimism about the opportunity within our
 market."
 
     Financial Results
     For the first quarter, revenue was up over 125% compared to the prior year
 quarter.  The pro forma net loss for the quarter, excluding non-cash charges
 for amortization of stock-based compensation, was $2.8 million or
 $0.07 per share.   For the 2000 corresponding period, net loss, excluding
 amortization of stock-based compensation and accretion related to preferred
 stock, was $0.1 million or $0.00 per share.
     Including amortization of stock-based compensation and accretion related
 to preferred stock, Click Commerce's net loss for the current quarter was
 $3.2 million or $0.08 per share, compared with a net loss of $4.4 million or
 $0.12 per share in the prior year quarter.
 
     Quarterly Highlights
     During the quarter, Click Commerce extended its application solution with
 incremental sales to existing clients while also adding several new customers
 in key verticals such as discrete manufacturing, industrial equipment and
 consumer electronics.
     Click Commerce continues to experience significant progress in pipeline
 activity through both the direct and partner channels.  The company
 experienced an extension in the length of the sales cycle with several
 customers in the first quarter relative to previous quarters, and activity
 with those clients is ongoing.
     During the quarter, Click Commerce signed two significant agreements that
 will extend the company's customer reach and product breadth.  First, the
 company signed an agreement with PricewaterhouseCoopers (PwC), which will
 provide a new sales channel for future growth and access to PwC's system
 integration capabilities.  Second, the company signed a technology partnership
 with Visual Insights, which will extend Click's product leadership in the
 channel management arena with an advanced solution for business analytics.
     One of the most highly publicized events during the quarter was Click
 Commerce's participation in Microsoft's announcement of the "Hailstorm" .NET
 initiative.  Click Commerce was chosen as one of only five companies to be
 showcased during the press and analyst demonstration of Microsoft's .Net
 technologies from over 400 other business partners. This technology, which
 acts as a set of building-block services, will extend the Click Commerce
 Channel Management solution by enabling Click Commerce's customers to further
 enhance existing partner and customer relationships, attract new customers
 through more relevant and personalized offerings, and seamlessly integrate
 with their partners' business systems.
     Finally, earlier this month Randy A. Gray assumed the role of COO and
 Managing Director for Click Commerce.  Mr. Gray, formerly the Executive Vice
 President of Business Development and Strategy, will be responsible for the
 day-to-day management of all aspects of Click's business.  With over 25 years
 of leadership experience managing divisions of global corporations with
 complex channels through various economic cycles, his skills will be
 invaluable as Click continues its path to profitable growth.
 
     Guidance
     Despite the continued challenging marketplace, Click Commerce has a
 relatively strong pipeline and expects a sequential revenue increase in the
 second quarter.  The company is comfortable with the current analyst consensus
 revenue estimate of $13 million, and consensus pro forma loss per share
 estimate of $0.06 for the second quarter.  Based on the company's expectations
 of some improvement in IT spending in the second half of the year, it expects
 to be profitable on a cash basis in the fourth quarter.
 
     Conference Call Information
     Click Commerce will host a conference call to discuss these results at
 5:00 p.m. EDT today, and the call is available via webcast at
 www.clickcommerce.com .
 
       About Click Commerce, Inc. Click Commerce (Nasdaq:   CKCM) is the leading
 provider of Channel Management software and services that enable large global
 corporations to collaborate with their trading partners via the Internet in a
 private marketplace. A sampling of leading companies using Click Commerce
 solutions to manage their complex distribution channels include American
 Standard, Black & Decker,  Delphi, Emerson Electric, Equistar, Kawasaki,
 Lubrizol, Mitsubishi, Motorola, Otis Elevator and Volvo.  With its integrated
 e-business platform and proven application portfolio, Click Commerce enables
 global enterprises to significantly increase brand loyalty, customer
 satisfaction and financial performance. Visit Click Commerce at
 www.clickcommerce.com .
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995 within the meaning of Section 21E of the Securities Exchange Act of
 1934, as amended: Statements in this press release that are not historical
 facts and refer to the company's future prospects are ``forward looking
 statements'' under the Private Securities Litigation Reform Act of 1995. These
 forward-looking statements are generally identified by words such as "expect,"
 "anticipate," "intend," "believe," "hope," "assume," "estimate" and other
 similar words and expressions. The statements are subject to risks and
 uncertainties and actual results may differ materially from those indicated by
 these forward-looking statements as a result of various factors, including but
 not limited to, the ability of Click Commerce to execute on its plan to enter
 into strategic alliances with system integrators and business consultants, the
 extent of customer acceptance and utilization of Click Commerce's Channel
 Management solutions, the impact of competitive products and services, the
 company's ability to manage growth and to develop new and enhanced versions of
 its products and services, the effect of economic and business conditions, the
 volume and timing of customer contracts, the company's ability to expand
 overseas, changes in technology, deployment delays or errors associated with
 the company's products and the company's ability to protect its intellectual
 property rights. For a discussion of these and other risk factors that could
 affect Click Commerce's business, see "Risk Factors" in Click Commerce's
 annual report on Form 10-K for the year ended December 31, 2000, which is on
 file with the Securities and Exchange Commission.
 
     Click Commerce is a registered trademark of Click Commerce, Inc. All other
 company and product names mentioned herein may be trademarks and/or registered
 trademarks of their respective companies.
 
 
 
 
 
                               Click Commerce, Inc.
                       Consolidated Statements of Operations
                  (in thousands, except share and per share data)
 
 
                                                         Three Months Ended
                                                             March 31,
                                                       2001              2000
 
     Revenues
        Product License                              $6,406              $-
        Service                                       5,163             5,124
           Total revenues                            11,569             5,124
 
     Cost of revenues
        Product License                                 171               -
        Service                                       2,952             1,555
           Total cost of revenues                     3,123             1,555
 
     Gross profit                                     8,446             3,569
 
     Operating expenses
        Sales and marketing                           8,108             1,649
        Research and development                      2,603               896
        General and administrative                    2,810             1,246
        Amortization of stock-based
         compensation                                   615               270
           Total operating expenses                  14,136             4,061
 
           Operating loss                            (5,690)             (492)
 
     Other income                                       660                17
 
     Loss before income taxes                        (5,030)             (475)
     Income tax expense benefit                      (1,840)             (141)
 
     Net loss                                        (3,190)             (334)
     Accretion related to redeemable
      preferred stock                                   -              (4,114)
     Net loss available to common
      shareholders                                  $(3,190)          $(4,448)
 
     Net loss per weighted average
        common share outstanding -
           Basic and diluted                         $(0.08)           $(0.20)
 
     Weighted average common shares
      outstanding -
           Basic and diluted                     38,357,079        22,431,995
 
     Pro forma loss per share:
 
     Basic and diluted loss per share                $(0.08)           $(0.12)
 
     Pro forma shares used in calculating
        basic and diluted loss per share (a)     38,357,079        37,752,160
 
     Pro forma loss excluding stock-based
        compensation and accretion related
        to redeemable preferred stock:
 
     Pro forma loss                                 $(2,756)             $(64)
 
     Basic and diluted pro forma loss per
      share                                          $(0.07)           $(0.00)
 
     Pro forma shares used in calculating
        basic and diluted pro forma loss per
         share (a)                               38,357,079        37,752,160
 
 
     (a) Pro forma weighted average shares outstanding assume completion of the
         Company's initial public offering on January 1, 1999 and the
         conversion of convertible preferred stock as of its original issue
         date.
 
 
                               Click Commerce, Inc.
                           Consolidated Balance Sheets
                                  (in thousands)
 
 
                                    March 31, 2001         December 31, 2000
 
 
                    ASSETS
 
     Current Assets:
       Cash and cash equivalents           $47,773                   $51,318
       Trade accounts receivable, net        6,783                     9,276
       Revenue earned on contracts in
        progress in excess of billings       1,093                     1,534
       Other current assets                  2,289                     1,908
       Deferred income taxes                   205                       110
           Total current assets             58,143                    64,146
 
     Property and equipment, net             2,647                     1,931
     Deferred income taxes                   6,563                     3,611
     Other assets                              165                        68
           Total assets                    $67,518                   $69,756
 
 
                LIABILITIES AND
             SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                     $1,325                    $2,096
       Billings in excess of revenues
        earned on contracts in progress        718                     1,027
       Deferred revenue                      2,184                     1,531
       Accrued compensation                  3,067                     3,949
       Accrued expenses and other current
        liabilities                          3,012                     3,805
       Current portion of capital lease
        obligations                            406                       298
           Total current liabilities        10,712                    12,706
 
     Capital lease obligations, less
      current portion                          893                       397
     Other liabilities                         -                          37
           Total liabilities                11,605                    13,140
 
     Shareholders' equity:
       Preferred Stock                         -                         -
       Common Stock                             38                        38
       Additional paid-in capital           85,613                    83,960
       Accumulated other comprehensive
        income                                  39                       119
       Deferred compensation                (5,913)                   (6,827)
       Accumulated deficit                 (23,864)                  (20,674)
           Total Shareholders' Equity       55,913                    56,616
 
           Total Liabilities &
            Shareholders' Equity           $67,518                   $69,756
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X95625151
 
 SOURCE  Click Commerce, Inc.