Hummingbird Announces Second Quarter Fiscal 2001 Financial Results

Apr 25, 2001, 01:00 ET from Hummingbird Ltd.

    TORONTO, April 25 /PRNewswire/ - Hummingbird Ltd. (NASDAQ:   HUMC) and
 (TSE: HUM), a world-leading enterprise software solutions company, today
 reported its unaudited consolidated results for the second quarter ended March
 31, 2001. The financial figures in this release are reported in U.S. dollars
 in accordance with U.S. generally accepted accounting principles, except where
 noted.
 
     -------------------------------------------------------------------------
     SUMMARY OF FINANCIAL RESULTS                                   U.S. GAAP
     (millions of U.S dollars except share data)
 
                                             Three Months         Six Months
                                                 Ended               Ended
                                               March 31            March 31
                                            2001      2000      2001      2000
                                            ----      ----      ----      ----
 
     Sales                                  50.6      57.1     110.9     111.6
 
     Adjusted Net Income (Note)              3.6       8.6      11.2      15.0
 
     Adjusted Earnings per Share (Note)     0.19      0.47      0.60      0.88
 
     Net Income (Loss)                      (1.9)      1.7       0.2       0.2
 
     Diluted Earnings (Loss)  per Share    (0.11)     0.09      0.01      0.01
 
     Diluted Number of Shares (millions)    18.8      18.4      18.8      17.0
 
     Note: Adjusted Net Income comprises Net Income (Loss) excluding
           amortization of intangibles, net of tax.
 
     -------------------------------------------------------------------------
 
     Sales for the quarter ended March 31, 2001 were $50.6 million,
 representing a decrease of 11% compared to the quarter ended March 31, 2000.
 The decrease in sales compared to 2000 is attributed to current economic
 weakness and uncertainty being experienced, particularly in North America,
 which the Company believes has led to deferred purchasing decisions by its
 customers.
     Adjusted net income was $3.6 million for the quarter ended March 31, 2001
 compared to $8.6 million for the quarter ended March 31, 2000. Adjusted net
 income for both quarters exclude the amortization of intangibles, net of
 taxes.
     Adjusted diluted earnings per share (based on adjusted net income) were
 $0.19 for the quarter ended March 31, 2001, compared to $0.47 in the quarter
 ended March 31, 2000. The current period earnings per share is based on a
 diluted weighted average number of shares of 18.8 million, compared to 18.4
 million for the same period last year.
     Expenses for the quarter were $40.7 million, compared to $37.4 million
 for the quarter ended March 31, 2000, excluding amortization of the
 intangibles. The increase principally relates to higher sales and marketing
 costs as the Company increased its sales force and marketing efforts to grow
 its EIP business.
     After amortization of intangibles, net of tax, the Company reported a net
 loss of $1.9 million and diluted loss per share of $0.11 for the quarter ended
 March 31, 2001, compared to net income of $1.7 million and diluted earnings
 per share of $0.09 for the quarter March 31, 2000.
     Sales for the six months ended March 31, 2001 were $110.9 million,
 representing a 1% decrease compared to the six months ended March 31, 2000.
 Adjusted net income for the six months was $11.2 million compared to $15.0
 million for the six months ended March 31, 2000. Adjusted diluted earnings per
 share, based on adjusted net income, was $0.60 compared to $0.88 for the
 similar period in the previous year.
     Total assets as at March 31, 2001 were $373 million, compared to $369
 million at March 31, 2000. The Company's cash position remains very strong at
 $99 million as at March 31, 2001, up from $95 million as at December 31, 2000
 and $66 million as at March 31, 2000.
     In accordance with Canadian generally accepted accounting principles, the
 Company reported a net loss of $2.7 million and fully diluted loss per share
 of $0.15 for the quarter ended March 31, 2001, compared to a net loss of $1.5
 million and fully diluted loss per share of $0.09 in the second quarter of
 2000. For the six months ended March 31, 2001, the Company reported net income
 of $4.5 million and fully diluted earnings per share of $0.24, compared to a
 net loss of $6.5 million and fully diluted loss per share of $0.40 for the
 comparable period of 2000.
     "The start of calendar 2001 has been a difficult period for the
 enterprise software industry, and Hummingbird's experience has been no
 exception," said Fred Sorkin, Chairman and Chief Executive Officer. "I do not
 believe the decline in our revenues and earnings per share adequately reflects
 the state of our business at this time. As we have previously disclosed, the
 largest contributor to our revenue shortfall is our legacy Host Access and
 Network Connectivity business. This has been a mature business for some time,
 and although very profitable, has not been seen as strategically contributing
 to the Company's growth. The loss of revenue was not as significant in the EIP
 solutions business, which is our growth vehicle.
     "It is important to note that Hummingbird remains profitable (excluding
 amortization of intangibles) with a positive cash flow that has resulted in an
 increased cash position. While the EIP solutions business was hit by the same
 economic conditions that affected so many other companies, we remain confident
 that the business, and our strategy, remain sound. The market for enterprise
 portals continues to evolve rapidly. For most customers, it is not a matter of
 whether they should deploy a portal, but rather when."
     Important product innovations released during the quarter included
 version 4.6 of Genio Suite(TM), featuring enhanced support for a wider array
 of databases; e-Toolkit(TM) and e-Gateway(TM), which together allow mainframe
 applications to be rejuvenated and accessed as web-based portal applications;
 and, Exceed onDemand(TM), which allows users to access their UNIX applications
 over 100 times faster over dial-up and slow network connections.
     In addition to these products, the Company announced the ability to
 access documents from its document management solutions through wireless
 devices such as mobile phones, personal digital assistants (PDAs) and handheld
 computers. Hummingbird expects to release additional portal enabled wireless
 innovations in the near future.
     Summarizing, Mr. Sorkin stated, "Despite the impact that this challenging
 economic environment has had on our financial results this quarter, we
 continue to see important signs of progress in our business. We believe that
 our ongoing commitment to our customers and product innovation will be
 reflected in improved financial performance at such time as the economy begins
 to rebound. While current economic conditions make it difficult for us to
 provide precise guidance of revenue, we remain confident that Hummingbird will
 be cash flow positive and profitable (excluding amortization of intangibles)
 for the next two quarters."
 
     About Hummingbird
     Hummingbird (NASDAQ:   HUMC; TSE: HUM) develops enterprise software
 solutions that provide the ability to access and act upon all business-
 critical information and resources, aggregated and categorized through a
 single user interface. Hummingbird offers these global enterprise solutions
 through the desktop and the Web with Hummingbird EIP(TM) (Hummingbird
 Enterprise Information Portal), the cornerstone product of the firm's e-
 Business solutions. Integrated within Hummingbird EIP(TM) are the firm's
 proven technologies for Host Access and Network Connectivity, data integration
 and business intelligence, analytical applications as well as document and
 content management. The company offers its solutions, along with related
 consulting, education, and support services, in more than 50 countries around
 the world. For more information, please visit: http://www.hummingbird.com
 
     Forward-looking statements in this press release are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. This news release may contain forward-looking statements concerning the
 future prospects of the Company's products and its positioning in the
 enterprise software solutions marketplace. Investors are cautioned that these
 forward-looking statements are subject to risks and uncertainties that may
 cause future results to differ materially from those expected. Such risks
 include, but are not limited to: the Company's ability to maintain revenue
 growth at current levels or anticipate a decline in revenue from any of its
 products; the Company's ability to successfully execute its strategy of
 becoming a solution provider; the Company's ability to hire, train, and retain
 highly qualified personnel in a growth environment; the introduction of new
 products in a timely manner and the Company's ability to generate demand for,
 and gain market acceptance of, those products in an intensely competitive
 marketplace; and other risks detailed in the company's various securities
 filings.
 
 
     HUMMINGBIRD LTD.                                               U.S. GAAP
     CONSOLIDATED STATEMENTS OF INCOME
     (Thousands of U.S.$, except share data, unaudited)
 
                                     Three Months Ended     Six Months Ended
                                           March 31              March 31
                                       2001       2000       2001       2000
                                       ----       ----       ----       ----
 
     SALES                         $  50,565  $  57,076  $ 110,939  $ 111,575
     COST OF SALES                     4,854      5,133     10,379     10,450
     -------------------------------------------------------------------------
     GROSS PROFIT                     45,711     51,943    100,560    101,125
     -------------------------------------------------------------------------
 
     EXPENSES
       Sales and marketing            25,087     22,432     52,023     44,661
       Research and development       10,022      9,529     20,003     18,566
       General and administration      5,579      5,402     11,267     10,850
       Amortization of intangibles     7,196      7,623     14,392     15,006
     -------------------------------------------------------------------------
     TOTAL EXPENSES                   47,884     44,986     97,685     89,083
     -------------------------------------------------------------------------
 
     (LOSS) INCOME BEFORE THE
      UNDERNOTED                      (2,173)     6,957      2,875     12,042
     OTHER INCOME (EXPENSE), NET         902        654      2,019       (796)
     -------------------------------------------------------------------------
     (LOSS) INCOME BEFORE INCOME
      TAXES                           (1,271)     7,611      4,894     11,246
     INCOME TAX EXPENSE                  670      5,885      4,696     11,063
     -------------------------------------------------------------------------
     NET (LOSS) INCOME             $  (1,941) $   1,726  $     198  $     183
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC (LOSS) EARNINGS PER
      SHARE                        $   (0.11) $    0.10  $    0.01  $    0.01
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     DILUTED (LOSS) EARNINGS PER
      SHARE                        $   (0.11) $    0.09  $    0.01  $    0.01
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands)                      18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     DILUTED WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands)                      18,843     18,369     18,791     17,008
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     RECONCILIATION TO CANADIAN
      GAAP NET (LOSS) INCOME,
      U.S. GAAP                    $  (1,941) $   1,726  $     198  $     183
     Amortization of Intangibles      (1,517)    (1,625)    (3,034)    (3,655)
     Income taxes                        741     (1,639)     7,288     (3,038)
     -------------------------------------------------------------------------
     NET (LOSS) INCOME, Canadian
      GAAP                         $  (2,717) $  (1,538) $   4,452  $  (6,510)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC (LOSS) EARNINGS PER
      SHARE, Canadian GAAP         $   (0.15) $   (0.09) $    0.24  $   (0.40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     FULLY DILUTED (LOSS) EARNINGS
      PER SHARE, Canadian GAAP     $   (0.15) $   (0.09) $    0.24  $   (0.40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands), Canadian GAAP       18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     FULLY DILUTED WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands), Canadian GAAP       18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     HUMMINGBIRD  LTD.                                               U.S. GAAP
     CONSOLIDATED STATEMENTS OF CASH FLOWS
     (Thousands of U.S.$, unaudited)
 
                                     Three Months Ended     Six Months Ended
                                           March 31              March 31
                                       2001       2000       2001       2000
                                       ----       ----       ----       ----
 
     CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES
       Net (loss) income           $  (1,941) $   1,726  $     198  $     183
       Add (deduct) items not
        affecting cash:
         Amortization of
          intangibles                  7,196      7,623     14,392     15,006
         Deferred income taxes        (1,485)     1,537     (2,542)     7,459
         Depreciation                  1,496      1,981      3,062      3,900
       Changes in operating assets
        and liabilities:
         Accounts receivable           6,845       (686)    11,536      2,115
         Unbilled receivables            (68)       163       (866)     1,434
         Income taxes recoverable     (4,159)     2,650     (2,784)    (1,284)
         Inventory                       (12)       219         44        142
         Prepaid expenses and
          other assets                  (420)    (1,226)       366      1,294
         Other receivables               237       (797)       449     (1,512)
         Accounts payable             (2,647)     3,605     (2,952)     5,776
         Accrued liabilities            (689)      (626)    (2,219)   (21,972)
         Deferred revenue             (1,279)       268        243         10
     -------------------------------------------------------------------------
                                       3,074     16,437     18,927     12,551
     -------------------------------------------------------------------------
     INVESTING ACTIVITIES
     Business acquisition                  -     (2,401)         -     (2,401)
     Proceeds on sale of investment
      in subsidiary                        -          -          -     30,000
     Additions to fixed assets          (766)      (768)    (1,795)    (2,164)
     -------------------------------------------------------------------------
                                        (766)    (3,169)    (1,795)    25,435
     -------------------------------------------------------------------------
     FINANCING ACTIVITIES
       Long-term debt repaid               -    (34,479)         -    (66,040)
       Repayment of other long-term
        liabilities                     (524)    (1,080)    (1,185)    (1,829)
       Issuance of shares              1,838     77,054      3,709     77,933
     -------------------------------------------------------------------------
                                       1,314     41,495      2,524     10,064
     -------------------------------------------------------------------------
 
     INCREASE IN CASH                  3,622     54,763     19,656     48,050
     CASH AND CASH EQUIVALENTS,
      BEGINNING OF PERIOD             95,044     11,434     79,010     18,147
     -------------------------------------------------------------------------
     CASH AND CASH EQUIVALENTS,
      END OF PERIOD                $  98,666  $  66,197  $  98,666  $  66,197
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     SUPPLEMENTARY CASH FLOW
      INFORMATION
       Interest paid               $       5  $     291  $      21  $   1,197
       Income taxes paid               6,350      1,509     10,070      4,700
       Interest received               1,446        471      2,563        581
 
 
 
 
     HUMMINGBIRD LTD.                                               U.S. GAAP
     CONSOLIDATED BALANCE SHEETS
     AS AT MARCH 31
     (Thousands of U.S.$, unaudited)
 
                                                             2001       2000
                                                             ----       ----
 
     ASSETS
     CURRENT ASSETS
       Cash                                              $  98,666  $  66,197
       Accounts receivable                                  66,581     58,159
       Unbilled receivables                                  2,132        582
       Income taxes recoverable                             11,392     10,417
       Inventory                                               682        552
       Prepaid expenses                                      6,727     10,290
       Other receivables                                     2,381      3,117
     -------------------------------------------------------------------------
                                                           188,561    149,314
     OTHER ASSETS                                              264      2,172
     FIXED ASSETS                                           13,289     17,241
     INTANGIBLES                                           170,894    199,865
     -------------------------------------------------------------------------
                                                         $ 373,008  $ 368,592
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     LIABILITIES
     CURRENT LIABILITIES
       Accounts payable                                  $   6,537  $  12,560
       Accrued liabilities                                  22,926     33,503
       Current portion of other long-term liabilities          256      2,011
       Deferred revenue                                     35,673     29,838
     -------------------------------------------------------------------------
                                                            65,392     77,912
     DEFERRED INCOME TAXES                                  31,535     32,271
     OTHER LONG-TERM LIABILITIES                               650      1,332
     -------------------------------------------------------------------------
                                                            97,577    111,515
     -------------------------------------------------------------------------
 
     SHAREHOLDERS' EQUITY
     SHARE CAPITAL
       Authorized : unlimited
       Issued and outstanding: 18,501,860 in 2001 and
        18,178,753 in 2000                                 172,786    164,724
     ADDITIONAL PAID IN CAPITAL                              3,510      3,510
     RETAINED EARNINGS                                     100,065     89,773
     ACCUMULATED OTHER COMPREHENSIVE LOSS                     (930)      (930)
     -------------------------------------------------------------------------
                                                           275,431    257,077
     -------------------------------------------------------------------------
                                                         $ 373,008  $ 368,592
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
 

SOURCE Hummingbird Ltd.
    TORONTO, April 25 /PRNewswire/ - Hummingbird Ltd. (NASDAQ:   HUMC) and
 (TSE: HUM), a world-leading enterprise software solutions company, today
 reported its unaudited consolidated results for the second quarter ended March
 31, 2001. The financial figures in this release are reported in U.S. dollars
 in accordance with U.S. generally accepted accounting principles, except where
 noted.
 
     -------------------------------------------------------------------------
     SUMMARY OF FINANCIAL RESULTS                                   U.S. GAAP
     (millions of U.S dollars except share data)
 
                                             Three Months         Six Months
                                                 Ended               Ended
                                               March 31            March 31
                                            2001      2000      2001      2000
                                            ----      ----      ----      ----
 
     Sales                                  50.6      57.1     110.9     111.6
 
     Adjusted Net Income (Note)              3.6       8.6      11.2      15.0
 
     Adjusted Earnings per Share (Note)     0.19      0.47      0.60      0.88
 
     Net Income (Loss)                      (1.9)      1.7       0.2       0.2
 
     Diluted Earnings (Loss)  per Share    (0.11)     0.09      0.01      0.01
 
     Diluted Number of Shares (millions)    18.8      18.4      18.8      17.0
 
     Note: Adjusted Net Income comprises Net Income (Loss) excluding
           amortization of intangibles, net of tax.
 
     -------------------------------------------------------------------------
 
     Sales for the quarter ended March 31, 2001 were $50.6 million,
 representing a decrease of 11% compared to the quarter ended March 31, 2000.
 The decrease in sales compared to 2000 is attributed to current economic
 weakness and uncertainty being experienced, particularly in North America,
 which the Company believes has led to deferred purchasing decisions by its
 customers.
     Adjusted net income was $3.6 million for the quarter ended March 31, 2001
 compared to $8.6 million for the quarter ended March 31, 2000. Adjusted net
 income for both quarters exclude the amortization of intangibles, net of
 taxes.
     Adjusted diluted earnings per share (based on adjusted net income) were
 $0.19 for the quarter ended March 31, 2001, compared to $0.47 in the quarter
 ended March 31, 2000. The current period earnings per share is based on a
 diluted weighted average number of shares of 18.8 million, compared to 18.4
 million for the same period last year.
     Expenses for the quarter were $40.7 million, compared to $37.4 million
 for the quarter ended March 31, 2000, excluding amortization of the
 intangibles. The increase principally relates to higher sales and marketing
 costs as the Company increased its sales force and marketing efforts to grow
 its EIP business.
     After amortization of intangibles, net of tax, the Company reported a net
 loss of $1.9 million and diluted loss per share of $0.11 for the quarter ended
 March 31, 2001, compared to net income of $1.7 million and diluted earnings
 per share of $0.09 for the quarter March 31, 2000.
     Sales for the six months ended March 31, 2001 were $110.9 million,
 representing a 1% decrease compared to the six months ended March 31, 2000.
 Adjusted net income for the six months was $11.2 million compared to $15.0
 million for the six months ended March 31, 2000. Adjusted diluted earnings per
 share, based on adjusted net income, was $0.60 compared to $0.88 for the
 similar period in the previous year.
     Total assets as at March 31, 2001 were $373 million, compared to $369
 million at March 31, 2000. The Company's cash position remains very strong at
 $99 million as at March 31, 2001, up from $95 million as at December 31, 2000
 and $66 million as at March 31, 2000.
     In accordance with Canadian generally accepted accounting principles, the
 Company reported a net loss of $2.7 million and fully diluted loss per share
 of $0.15 for the quarter ended March 31, 2001, compared to a net loss of $1.5
 million and fully diluted loss per share of $0.09 in the second quarter of
 2000. For the six months ended March 31, 2001, the Company reported net income
 of $4.5 million and fully diluted earnings per share of $0.24, compared to a
 net loss of $6.5 million and fully diluted loss per share of $0.40 for the
 comparable period of 2000.
     "The start of calendar 2001 has been a difficult period for the
 enterprise software industry, and Hummingbird's experience has been no
 exception," said Fred Sorkin, Chairman and Chief Executive Officer. "I do not
 believe the decline in our revenues and earnings per share adequately reflects
 the state of our business at this time. As we have previously disclosed, the
 largest contributor to our revenue shortfall is our legacy Host Access and
 Network Connectivity business. This has been a mature business for some time,
 and although very profitable, has not been seen as strategically contributing
 to the Company's growth. The loss of revenue was not as significant in the EIP
 solutions business, which is our growth vehicle.
     "It is important to note that Hummingbird remains profitable (excluding
 amortization of intangibles) with a positive cash flow that has resulted in an
 increased cash position. While the EIP solutions business was hit by the same
 economic conditions that affected so many other companies, we remain confident
 that the business, and our strategy, remain sound. The market for enterprise
 portals continues to evolve rapidly. For most customers, it is not a matter of
 whether they should deploy a portal, but rather when."
     Important product innovations released during the quarter included
 version 4.6 of Genio Suite(TM), featuring enhanced support for a wider array
 of databases; e-Toolkit(TM) and e-Gateway(TM), which together allow mainframe
 applications to be rejuvenated and accessed as web-based portal applications;
 and, Exceed onDemand(TM), which allows users to access their UNIX applications
 over 100 times faster over dial-up and slow network connections.
     In addition to these products, the Company announced the ability to
 access documents from its document management solutions through wireless
 devices such as mobile phones, personal digital assistants (PDAs) and handheld
 computers. Hummingbird expects to release additional portal enabled wireless
 innovations in the near future.
     Summarizing, Mr. Sorkin stated, "Despite the impact that this challenging
 economic environment has had on our financial results this quarter, we
 continue to see important signs of progress in our business. We believe that
 our ongoing commitment to our customers and product innovation will be
 reflected in improved financial performance at such time as the economy begins
 to rebound. While current economic conditions make it difficult for us to
 provide precise guidance of revenue, we remain confident that Hummingbird will
 be cash flow positive and profitable (excluding amortization of intangibles)
 for the next two quarters."
 
     About Hummingbird
     Hummingbird (NASDAQ:   HUMC; TSE: HUM) develops enterprise software
 solutions that provide the ability to access and act upon all business-
 critical information and resources, aggregated and categorized through a
 single user interface. Hummingbird offers these global enterprise solutions
 through the desktop and the Web with Hummingbird EIP(TM) (Hummingbird
 Enterprise Information Portal), the cornerstone product of the firm's e-
 Business solutions. Integrated within Hummingbird EIP(TM) are the firm's
 proven technologies for Host Access and Network Connectivity, data integration
 and business intelligence, analytical applications as well as document and
 content management. The company offers its solutions, along with related
 consulting, education, and support services, in more than 50 countries around
 the world. For more information, please visit: http://www.hummingbird.com
 
     Forward-looking statements in this press release are made pursuant to the
 safe harbor provisions of the Private Securities Litigation Reform Act of
 1995. This news release may contain forward-looking statements concerning the
 future prospects of the Company's products and its positioning in the
 enterprise software solutions marketplace. Investors are cautioned that these
 forward-looking statements are subject to risks and uncertainties that may
 cause future results to differ materially from those expected. Such risks
 include, but are not limited to: the Company's ability to maintain revenue
 growth at current levels or anticipate a decline in revenue from any of its
 products; the Company's ability to successfully execute its strategy of
 becoming a solution provider; the Company's ability to hire, train, and retain
 highly qualified personnel in a growth environment; the introduction of new
 products in a timely manner and the Company's ability to generate demand for,
 and gain market acceptance of, those products in an intensely competitive
 marketplace; and other risks detailed in the company's various securities
 filings.
 
 
     HUMMINGBIRD LTD.                                               U.S. GAAP
     CONSOLIDATED STATEMENTS OF INCOME
     (Thousands of U.S.$, except share data, unaudited)
 
                                     Three Months Ended     Six Months Ended
                                           March 31              March 31
                                       2001       2000       2001       2000
                                       ----       ----       ----       ----
 
     SALES                         $  50,565  $  57,076  $ 110,939  $ 111,575
     COST OF SALES                     4,854      5,133     10,379     10,450
     -------------------------------------------------------------------------
     GROSS PROFIT                     45,711     51,943    100,560    101,125
     -------------------------------------------------------------------------
 
     EXPENSES
       Sales and marketing            25,087     22,432     52,023     44,661
       Research and development       10,022      9,529     20,003     18,566
       General and administration      5,579      5,402     11,267     10,850
       Amortization of intangibles     7,196      7,623     14,392     15,006
     -------------------------------------------------------------------------
     TOTAL EXPENSES                   47,884     44,986     97,685     89,083
     -------------------------------------------------------------------------
 
     (LOSS) INCOME BEFORE THE
      UNDERNOTED                      (2,173)     6,957      2,875     12,042
     OTHER INCOME (EXPENSE), NET         902        654      2,019       (796)
     -------------------------------------------------------------------------
     (LOSS) INCOME BEFORE INCOME
      TAXES                           (1,271)     7,611      4,894     11,246
     INCOME TAX EXPENSE                  670      5,885      4,696     11,063
     -------------------------------------------------------------------------
     NET (LOSS) INCOME             $  (1,941) $   1,726  $     198  $     183
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC (LOSS) EARNINGS PER
      SHARE                        $   (0.11) $    0.10  $    0.01  $    0.01
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     DILUTED (LOSS) EARNINGS PER
      SHARE                        $   (0.11) $    0.09  $    0.01  $    0.01
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands)                      18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     DILUTED WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands)                      18,843     18,369     18,791     17,008
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     RECONCILIATION TO CANADIAN
      GAAP NET (LOSS) INCOME,
      U.S. GAAP                    $  (1,941) $   1,726  $     198  $     183
     Amortization of Intangibles      (1,517)    (1,625)    (3,034)    (3,655)
     Income taxes                        741     (1,639)     7,288     (3,038)
     -------------------------------------------------------------------------
     NET (LOSS) INCOME, Canadian
      GAAP                         $  (2,717) $  (1,538) $   4,452  $  (6,510)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC (LOSS) EARNINGS PER
      SHARE, Canadian GAAP         $   (0.15) $   (0.09) $    0.24  $   (0.40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     FULLY DILUTED (LOSS) EARNINGS
      PER SHARE, Canadian GAAP     $   (0.15) $   (0.09) $    0.24  $   (0.40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     BASIC WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands), Canadian GAAP       18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     FULLY DILUTED WEIGHTED AVERAGE
      NUMBER OF SHARES (in
      Thousands), Canadian GAAP       18,480     17,529     18,412     16,454
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
     HUMMINGBIRD  LTD.                                               U.S. GAAP
     CONSOLIDATED STATEMENTS OF CASH FLOWS
     (Thousands of U.S.$, unaudited)
 
                                     Three Months Ended     Six Months Ended
                                           March 31              March 31
                                       2001       2000       2001       2000
                                       ----       ----       ----       ----
 
     CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES
       Net (loss) income           $  (1,941) $   1,726  $     198  $     183
       Add (deduct) items not
        affecting cash:
         Amortization of
          intangibles                  7,196      7,623     14,392     15,006
         Deferred income taxes        (1,485)     1,537     (2,542)     7,459
         Depreciation                  1,496      1,981      3,062      3,900
       Changes in operating assets
        and liabilities:
         Accounts receivable           6,845       (686)    11,536      2,115
         Unbilled receivables            (68)       163       (866)     1,434
         Income taxes recoverable     (4,159)     2,650     (2,784)    (1,284)
         Inventory                       (12)       219         44        142
         Prepaid expenses and
          other assets                  (420)    (1,226)       366      1,294
         Other receivables               237       (797)       449     (1,512)
         Accounts payable             (2,647)     3,605     (2,952)     5,776
         Accrued liabilities            (689)      (626)    (2,219)   (21,972)
         Deferred revenue             (1,279)       268        243         10
     -------------------------------------------------------------------------
                                       3,074     16,437     18,927     12,551
     -------------------------------------------------------------------------
     INVESTING ACTIVITIES
     Business acquisition                  -     (2,401)         -     (2,401)
     Proceeds on sale of investment
      in subsidiary                        -          -          -     30,000
     Additions to fixed assets          (766)      (768)    (1,795)    (2,164)
     -------------------------------------------------------------------------
                                        (766)    (3,169)    (1,795)    25,435
     -------------------------------------------------------------------------
     FINANCING ACTIVITIES
       Long-term debt repaid               -    (34,479)         -    (66,040)
       Repayment of other long-term
        liabilities                     (524)    (1,080)    (1,185)    (1,829)
       Issuance of shares              1,838     77,054      3,709     77,933
     -------------------------------------------------------------------------
                                       1,314     41,495      2,524     10,064
     -------------------------------------------------------------------------
 
     INCREASE IN CASH                  3,622     54,763     19,656     48,050
     CASH AND CASH EQUIVALENTS,
      BEGINNING OF PERIOD             95,044     11,434     79,010     18,147
     -------------------------------------------------------------------------
     CASH AND CASH EQUIVALENTS,
      END OF PERIOD                $  98,666  $  66,197  $  98,666  $  66,197
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     SUPPLEMENTARY CASH FLOW
      INFORMATION
       Interest paid               $       5  $     291  $      21  $   1,197
       Income taxes paid               6,350      1,509     10,070      4,700
       Interest received               1,446        471      2,563        581
 
 
 
 
     HUMMINGBIRD LTD.                                               U.S. GAAP
     CONSOLIDATED BALANCE SHEETS
     AS AT MARCH 31
     (Thousands of U.S.$, unaudited)
 
                                                             2001       2000
                                                             ----       ----
 
     ASSETS
     CURRENT ASSETS
       Cash                                              $  98,666  $  66,197
       Accounts receivable                                  66,581     58,159
       Unbilled receivables                                  2,132        582
       Income taxes recoverable                             11,392     10,417
       Inventory                                               682        552
       Prepaid expenses                                      6,727     10,290
       Other receivables                                     2,381      3,117
     -------------------------------------------------------------------------
                                                           188,561    149,314
     OTHER ASSETS                                              264      2,172
     FIXED ASSETS                                           13,289     17,241
     INTANGIBLES                                           170,894    199,865
     -------------------------------------------------------------------------
                                                         $ 373,008  $ 368,592
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
     LIABILITIES
     CURRENT LIABILITIES
       Accounts payable                                  $   6,537  $  12,560
       Accrued liabilities                                  22,926     33,503
       Current portion of other long-term liabilities          256      2,011
       Deferred revenue                                     35,673     29,838
     -------------------------------------------------------------------------
                                                            65,392     77,912
     DEFERRED INCOME TAXES                                  31,535     32,271
     OTHER LONG-TERM LIABILITIES                               650      1,332
     -------------------------------------------------------------------------
                                                            97,577    111,515
     -------------------------------------------------------------------------
 
     SHAREHOLDERS' EQUITY
     SHARE CAPITAL
       Authorized : unlimited
       Issued and outstanding: 18,501,860 in 2001 and
        18,178,753 in 2000                                 172,786    164,724
     ADDITIONAL PAID IN CAPITAL                              3,510      3,510
     RETAINED EARNINGS                                     100,065     89,773
     ACCUMULATED OTHER COMPREHENSIVE LOSS                     (930)      (930)
     -------------------------------------------------------------------------
                                                           275,431    257,077
     -------------------------------------------------------------------------
                                                         $ 373,008  $ 368,592
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
 
 
 SOURCE Hummingbird Ltd.