Extensity Inc. Reports Record Revenues for First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Extensity Inc.

    EMERYVILLE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Extensity Inc. (Nasdaq:   EXTN), a leading provider of Internet-based
 applications for employee relationship management (ERM), today announced
 financial results for their first quarter ended March 31, 2001.
     Revenues for the first quarter were a record $9.8 million, a 163 percent
 increase over revenue for the same period of 2000 and a 12 percent increase
 over the fourth quarter of fiscal 2000. Net loss for the quarter, excluding
 stock-based compensation and non-recurring items, was $6.8 million, or
 $0.29 per share, compared to $7.8 million or $0.37 per share for the
 comparable period of the previous year and $7.2 million, or $0.31 per share
 for the fourth quarter of 2000.
     "We are pleased to have completed another quarter of solid performance and
 growth. Extensity has achieved tremendous market recognition and has the
 components in place for continued success: a strong Global 2000 customer base,
 broad product suite, global presence and an experienced management team," said
 Bob Spinner, CEO of Extensity. "CFOs are telling us that we deliver
 'must-have' applications, which is particularly critical in the current
 business environment. We agree the time is right for cost-cutting applications
 and feel that the opportunity to win in this space belongs to us."
 
     Customer Wins
     This quarter Extensity added more than 50 new accounts and closed
 significant additional business from existing customers. The company expanded
 its customer network to include more than 875,000 licensed seats in over
 350 companies worldwide. Q1 was Extensity's strongest quarter to date for
 direct sales. Four new Fortune 500 customers were added to Extensity's
 steadily growing base of large global enterprise customers. Competitive wins
 for the quarter include Kimberly-Clark, Providian Financial, TJX, Fluor
 Signature Services, Deutsche Bank, Terayon, General Bandwidth and Siemens
 Australia.
     Several existing customers, including Ogilvy & Mather and Chase/JP Morgan,
 purchased new applications, and other existing customers, including Covalent,
 Extreme Networks, Macromedia, Marconi and Ove Arup, purchased additional seat
 licenses for applications they had previously licensed.
 
     Business Milestones
     Building on its commitment to reach and serve customers worldwide,
 Extensity reached a number of major milestones in the first quarter,
 including:
 
     -- Signing a strategic distribution partnership with Elite Information
        Systems, a practice management and financial software provider for the
        legal market. The company will market Extensity's suite of applications
        to more than 700 worldwide customers;
     -- Opening a new office in Sydney, Australia. Within eight weeks of being
        opened, this office won a significant new customer, Siemens Australia.
 
     Product Highlights
     During the first quarter of 2001, Extensity continued to build out its
 product suite to address customer needs. Notable accomplishments in this area
 include:
 
     -- Release of the latest version of the Extensity Connect(TM) suite which
        includes enhancements to the procurement application and international
        functionality across the suite;
     -- General availability of an additional deployment option, the wireless
        application protocol (WAP) for anywhere, anytime access using the
        Phone.com platform worldwide as well as the Nokia platform in Europe.
 
     Earnings Call
     Extensity Inc. will broadcast a conference call discussing the company's
 Q1 financial results and other trends and developments on Tuesday, April 24,
 starting at 2:00 p.m. Pacific time. The public is invited to attend the call
 by dialing:  913-981-4902. For those unable to listen to the live broadcast,
 dial:  402-220-1014 to hear a replay of the call or visit the company's
 website at www.extensity.com.
 
     About Extensity
     Extensity is a leading provider of Internet-based applications for
 employee relationship management (ERM). The Extensity Connect(TM) family of
 ERM applications automates travel and expense reporting, project time capture
 and procurement to drive productivity, reduce costs, enhance control and
 promote competitive advantage. Extensity has licensed more than 875,000 seats
 worldwide to over 350 customers, including A.T. Kearney, Aventis, Cisco
 Systems, Fluor, Office Depot, Providian Financial and Sony. More information
 about Extensity is available on its Web site located at
 http://www.extensity.com .
 
     Note on Forward-Looking Statements:  Statements in this release that are
 forward-looking involve risks and uncertainties, which may cause the Company's
 actual results in future periods to be materially different from any future
 performance that may be suggested in this release. Such factors may include,
 but are not limited to, demand for and market acceptance of our products and
 services, expansion into international markets, introductions of products and
 services or enhancements by us and our competitors, competitive factors that
 affect our pricing, the timing of customer installations, the mix of products
 and services we sell, the timing and magnitude of capital expenditures
 (including costs relating to the expansion of operations), the size of
 customer orders, the hiring and retention of key personnel, conditions
 specific to the software industry and other general economic factors, and new
 government legislation or regulation. These and other risk factors are listed
 from time to time in the Company's SEC reports, including but not limited to
 the report on form 10-K for the year ended December 31, 2000 as filed with the
 Securities and Exchange Commission.
 
     NOTE:  Extensity is a registered trademark of Extensity, Inc.
 
                                  EXTENSITY, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
                                                           (unaudited)
     Revenues:
     Licenses                                        $6,022            $2,225
     Services and maintenance                         3,780             1,498
       Total revenues                                 9,802             3,723
 
     Cost of revenues:
     Licenses                                           445                84
     Services and maintenance                         4,024             2,850
       Total cost of revenues                         4,469             2,934
 
       Gross profit                                   5,333               789
 
     Operating expenses:
     Sales and marketing                              7,820             5,625
     Research and development                         3,735             2,822
     General and administrative                       1,680             1,171
     Non-recurring M & A charges                        377                --
     Amortization of non-cash stock based
        compensation                                    293             1,494
       Total operating expenses                      13,905            11,112
 
     Loss from operations                            (8,572)          (10,323)
 
     Interest income, net                             1,073               986
 
     Net loss                                       $(7,499)          $(9,337)
 
     Pro forma basic and diluted net loss
      per share*                                     $(0.32)           $(0.45)
     Shares used in computing pro forma
      basic and diluted net loss per
      share*                                         23,389            20,937
 
     Excluding amortization of non-cash
      stock based compensation and non-
      recurring M & A charges:
     Net loss                                       $(6,829)          $(7,843)
     Pro forma basic and diluted net loss
      per share*                                     $(0.29)           $(0.37)
 
     *Q1 2000 amounts assume the conversion of all outstanding shares of
     preferred stock to common stock.
 
                                  EXTENSITY, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In thousands)
 
                                                   March 31,       December 31,
                                                     2001              2000
                                                  (unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                    $50,037           $40,695
       Short-term investments                        21,922            38,925
       Restricted short-term investment               1,397             1,436
       Accounts receivable, net                       9,722             8,527
       Prepaids and other current assets              3,499             3,443
           Total current assets                      86,577            93,026
     Property and equipment, net                      6,304             6,279
     Other assets                                       523               457
           Total assets                             $93,404           $99,762
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      (DEFICIT)
     Current liabilities:
       Accounts payable                              $7,778            $6,434
       Accrued liabilities                            4,842             5,125
       Deferred revenue                              16,050            16,041
       Other current liabilities                        920             1,269
           Total current liabilities                 29,590            28,869
     Other liabilities                                  609               647
           Total liabilities                         30,199           29, 516
 
     Stockholders' equity (deficit):
       Common stock                                      24                24
       Additional paid-in capital                   147,135           147,475
       Deferred stock compensation                   (1,880)           (2,679)
       Notes receivable from stockholders              (380)             (380)
       Accumulated deficit                          (81,694)          (74,194)
           Total stockholders' equity                63,205            70,246
         Total liabilities and
           stockholders' equity                     $93,404           $99,762
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X82247330
 
 

SOURCE Extensity Inc.
    EMERYVILLE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Extensity Inc. (Nasdaq:   EXTN), a leading provider of Internet-based
 applications for employee relationship management (ERM), today announced
 financial results for their first quarter ended March 31, 2001.
     Revenues for the first quarter were a record $9.8 million, a 163 percent
 increase over revenue for the same period of 2000 and a 12 percent increase
 over the fourth quarter of fiscal 2000. Net loss for the quarter, excluding
 stock-based compensation and non-recurring items, was $6.8 million, or
 $0.29 per share, compared to $7.8 million or $0.37 per share for the
 comparable period of the previous year and $7.2 million, or $0.31 per share
 for the fourth quarter of 2000.
     "We are pleased to have completed another quarter of solid performance and
 growth. Extensity has achieved tremendous market recognition and has the
 components in place for continued success: a strong Global 2000 customer base,
 broad product suite, global presence and an experienced management team," said
 Bob Spinner, CEO of Extensity. "CFOs are telling us that we deliver
 'must-have' applications, which is particularly critical in the current
 business environment. We agree the time is right for cost-cutting applications
 and feel that the opportunity to win in this space belongs to us."
 
     Customer Wins
     This quarter Extensity added more than 50 new accounts and closed
 significant additional business from existing customers. The company expanded
 its customer network to include more than 875,000 licensed seats in over
 350 companies worldwide. Q1 was Extensity's strongest quarter to date for
 direct sales. Four new Fortune 500 customers were added to Extensity's
 steadily growing base of large global enterprise customers. Competitive wins
 for the quarter include Kimberly-Clark, Providian Financial, TJX, Fluor
 Signature Services, Deutsche Bank, Terayon, General Bandwidth and Siemens
 Australia.
     Several existing customers, including Ogilvy & Mather and Chase/JP Morgan,
 purchased new applications, and other existing customers, including Covalent,
 Extreme Networks, Macromedia, Marconi and Ove Arup, purchased additional seat
 licenses for applications they had previously licensed.
 
     Business Milestones
     Building on its commitment to reach and serve customers worldwide,
 Extensity reached a number of major milestones in the first quarter,
 including:
 
     -- Signing a strategic distribution partnership with Elite Information
        Systems, a practice management and financial software provider for the
        legal market. The company will market Extensity's suite of applications
        to more than 700 worldwide customers;
     -- Opening a new office in Sydney, Australia. Within eight weeks of being
        opened, this office won a significant new customer, Siemens Australia.
 
     Product Highlights
     During the first quarter of 2001, Extensity continued to build out its
 product suite to address customer needs. Notable accomplishments in this area
 include:
 
     -- Release of the latest version of the Extensity Connect(TM) suite which
        includes enhancements to the procurement application and international
        functionality across the suite;
     -- General availability of an additional deployment option, the wireless
        application protocol (WAP) for anywhere, anytime access using the
        Phone.com platform worldwide as well as the Nokia platform in Europe.
 
     Earnings Call
     Extensity Inc. will broadcast a conference call discussing the company's
 Q1 financial results and other trends and developments on Tuesday, April 24,
 starting at 2:00 p.m. Pacific time. The public is invited to attend the call
 by dialing:  913-981-4902. For those unable to listen to the live broadcast,
 dial:  402-220-1014 to hear a replay of the call or visit the company's
 website at www.extensity.com.
 
     About Extensity
     Extensity is a leading provider of Internet-based applications for
 employee relationship management (ERM). The Extensity Connect(TM) family of
 ERM applications automates travel and expense reporting, project time capture
 and procurement to drive productivity, reduce costs, enhance control and
 promote competitive advantage. Extensity has licensed more than 875,000 seats
 worldwide to over 350 customers, including A.T. Kearney, Aventis, Cisco
 Systems, Fluor, Office Depot, Providian Financial and Sony. More information
 about Extensity is available on its Web site located at
 http://www.extensity.com .
 
     Note on Forward-Looking Statements:  Statements in this release that are
 forward-looking involve risks and uncertainties, which may cause the Company's
 actual results in future periods to be materially different from any future
 performance that may be suggested in this release. Such factors may include,
 but are not limited to, demand for and market acceptance of our products and
 services, expansion into international markets, introductions of products and
 services or enhancements by us and our competitors, competitive factors that
 affect our pricing, the timing of customer installations, the mix of products
 and services we sell, the timing and magnitude of capital expenditures
 (including costs relating to the expansion of operations), the size of
 customer orders, the hiring and retention of key personnel, conditions
 specific to the software industry and other general economic factors, and new
 government legislation or regulation. These and other risk factors are listed
 from time to time in the Company's SEC reports, including but not limited to
 the report on form 10-K for the year ended December 31, 2000 as filed with the
 Securities and Exchange Commission.
 
     NOTE:  Extensity is a registered trademark of Extensity, Inc.
 
                                  EXTENSITY, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
 
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
                                                           (unaudited)
     Revenues:
     Licenses                                        $6,022            $2,225
     Services and maintenance                         3,780             1,498
       Total revenues                                 9,802             3,723
 
     Cost of revenues:
     Licenses                                           445                84
     Services and maintenance                         4,024             2,850
       Total cost of revenues                         4,469             2,934
 
       Gross profit                                   5,333               789
 
     Operating expenses:
     Sales and marketing                              7,820             5,625
     Research and development                         3,735             2,822
     General and administrative                       1,680             1,171
     Non-recurring M & A charges                        377                --
     Amortization of non-cash stock based
        compensation                                    293             1,494
       Total operating expenses                      13,905            11,112
 
     Loss from operations                            (8,572)          (10,323)
 
     Interest income, net                             1,073               986
 
     Net loss                                       $(7,499)          $(9,337)
 
     Pro forma basic and diluted net loss
      per share*                                     $(0.32)           $(0.45)
     Shares used in computing pro forma
      basic and diluted net loss per
      share*                                         23,389            20,937
 
     Excluding amortization of non-cash
      stock based compensation and non-
      recurring M & A charges:
     Net loss                                       $(6,829)          $(7,843)
     Pro forma basic and diluted net loss
      per share*                                     $(0.29)           $(0.37)
 
     *Q1 2000 amounts assume the conversion of all outstanding shares of
     preferred stock to common stock.
 
                                  EXTENSITY, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In thousands)
 
                                                   March 31,       December 31,
                                                     2001              2000
                                                  (unaudited)
     ASSETS
     Current assets:
       Cash and cash equivalents                    $50,037           $40,695
       Short-term investments                        21,922            38,925
       Restricted short-term investment               1,397             1,436
       Accounts receivable, net                       9,722             8,527
       Prepaids and other current assets              3,499             3,443
           Total current assets                      86,577            93,026
     Property and equipment, net                      6,304             6,279
     Other assets                                       523               457
           Total assets                             $93,404           $99,762
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      (DEFICIT)
     Current liabilities:
       Accounts payable                              $7,778            $6,434
       Accrued liabilities                            4,842             5,125
       Deferred revenue                              16,050            16,041
       Other current liabilities                        920             1,269
           Total current liabilities                 29,590            28,869
     Other liabilities                                  609               647
           Total liabilities                         30,199           29, 516
 
     Stockholders' equity (deficit):
       Common stock                                      24                24
       Additional paid-in capital                   147,135           147,475
       Deferred stock compensation                   (1,880)           (2,679)
       Notes receivable from stockholders              (380)             (380)
       Accumulated deficit                          (81,694)          (74,194)
           Total stockholders' equity                63,205            70,246
         Total liabilities and
           stockholders' equity                     $93,404           $99,762
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X82247330
 
 SOURCE  Extensity Inc.