NEON Delivers on First Quarter 2001 Goals

Apr 19, 2001, 01:00 ET from New Era of Networks, Inc.

    DENVER, April 19 /PRNewswire/ -- New Era of Networks,(TM) Inc.
 (Nasdaq: NEON) a leading e-Business infrastructure provider, today announced
 revenues of $43.2 million and earnings per share of ($0.05), before charges,
 for the quarter ended March 31, 2001, meeting revenue and profit goals
 communicated in January, 2001.  EPS figures exclude acquisition-related and
 asset impairment charges, and assume a 35% tax rate.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000818/NEWERALOGO )
     "I'm pleased that we were able to achieve our financial targets in a
 difficult economic environment," said NEON Chief Executive Officer Rick Adam.
 "During the quarter we realized the cost savings we identified in our December
 restructuring actions.  We generated cash, ending the quarter with $59 million
 in cash and marketable securities, $1 million higher than our end of year 2000
 level.  We enter our merger with Sybase with an improved cost structure, a
 strong balance sheet, and a commitment to grow our revenues and increase our
 market share."
     On February 20 Sybase, Inc., signed an agreement to acquire NEON in a
 stock-for-stock exchange.  On April 12, Sybase announced that they hold the
 majority of NEON stock with over 75% ownership.  A subsequent offering period
 will end at midnight New York City time on Thursday, April 26, 2001.
     During the first quarter, NEON's successes included sales to new and
 repeat customers such as Cigna, Citigroup, Glenmede Trust Company, Healthcare
 Partners Group, Industrial Bank of Japan, NIWS (Japan), Trizetto, VisionWare
 and VF Corporation.
 
 
      Highlights for NEON's first quarter include:
      -- Grew cash and marketable securities to $59 million
      -- Recorded DSO of 66 days versus 97 days at December 31, 2000
      -- Reduced worldwide headcount to 962 from 1,110 at December 31, 2000
      -- Lowered quarterly cash expenses by $9m (17%)
 
     Note to Investors
     This press release contains forward-looking statements, including
 statements about expected growth, future operational performance, and NEON's
 execution in its integration and e-Business enablement businesses.  NEON's
 forward-looking statements are subject to risks and uncertainties.  Factors
 that could cause actual results to differ materially include, but are not
 limited to, the volume and timing of customer contracts received during a
 given quarter, our partner relationships, increased or decreased demand for
 our products, growth of e-Business and EAI markets, new product development,
 and competition.  Also, due to the nature of our business, quarterly results
 typically are not known until close to the end of the quarter.  NEON has
 invested in companies with complementary products or technologies, or which
 provide access to additional customers and vertical markets.  NEON has, or
 likely will conduct commercial transactions with these companies, and there is
 no assurance that these investments will result in any meaningful commercial
 benefit, and the investments could lose all or a significant part of their
 value.  Other risks and uncertainties associated with the business of New Era
 of Networks, Inc., may be reviewed in the company's public filings, including
 the company's Report on Form 10K for its fiscal year ended December 31, 2000,
 under the caption "Factors that may Affect Future Results."
 
     About New Era of Networks, Inc.
     New Era of Networks, Inc. (Nasdaq: NEON) is a leading provider of
 e-Business infrastructure.  Drawing on proven core technology and years of
 experience, NEON integrates and automates e-Business processes, helping
 companies bring end-to-end business functionality to the Internet in the
 shortest possible time frame.  In addition, NEON products help companies
 establish direct, electronic links with customers, suppliers and partners;
 build and participate in Net markets; and distribute and access information
 using wireless technology.  NEON maintains strong partnerships with leading
 e-Business companies, including BEA Systems, BroadVision, Commerce One, IBM
 and Microsoft, and has more than 3,000 customers worldwide.  Founded in 1994,
 NEON is headquartered in Englewood, Colo., with locations across the globe.
 For more information, call 800-815-6366 or visit www.neonsoft.com.
 
     New Era of Networks, the NEON logotype, e-Biz Integrator, and Open
 Business Interchange are trademarks and service marks of New Era of Networks,
 Inc. and its subsidiaries.  MQSeries is a registered trademark of
 International Business Machines Corporation.  Microsoft and BizTalk are either
 registered trademarks or trademarks of Microsoft Corp. in the United States
 and/or other countries/regions.  All other trademarks and registered
 trademarks are the property of the respective trademark owners.
 
 
                             NEW ERA OF NETWORKS, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
 
                                                   March 31,     December 31,
      ASSETS                                          2001           2000
                                                  (unaudited)
     Cash, cash equivalents and
      marketable securities (1)                     $59,057        $58,194
     Accounts receivable, net (2)                    31,256         42,887
     Prepaid expenses and other current assets       12,360         13,615
     Notes receivable, related party                     --             --
     Property and equipment, net                     26,266         25,919
     Intangibles, net                               178,412        195,885
     Deferred income taxes, net                       2,199          2,226
     Other assets, net                                9,167         10,758
 
         Total assets                              $318,717       $349,484
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Accounts payable                                $6,901         $9,254
     Accrued liabilities                             18,668         24,687
     Deferred revenue (3)                            18,948         19,572
         Total liabilities                           44,517         53,513
 
     Stockholders' equity, including
      common stock                                  424,035        424,658
     Accumulated deficit                           (149,835)      (128,687)
         Total stockholders' equity                 274,200        295,971
 
         Total liabilities and
          stockholders' equity                     $318,717       $349,484
 
 
      (1) As of March 31, 2001 and December 31, 2000, the amount includes
          approximately $7,000 of restricted cash.
      (2) As of March 31, 2000 and December 31, 2000, the amount includes
          unbilled revenue of $923 and $1,531, respectively.
      (3) At March 31, 2000 and December 31, 2000, the amount includes long
          term deferred revenue of $302 and $365, respectively.
 
 
                             NEW ERA OF NETWORKS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
                                    (unaudited)
 
                                                      Three months ended
                                                           March 31,
                                                     2001           2000
     Revenues:
       Software licenses                            $22,818        $24,074
       Software maintenance and
        professional services                        20,417         18,018
         Total revenues                              43,235         42,092
 
     Cost of revenues:
       Cost of software licenses                      1,168            555
       Cost of software maintenance
        and professional services                    11,736         10,069
         Total cost of revenues                      12,904         10,624
 
     Gross profit                                    30,331         31,468
 
     Operating Expenses:
       Sales and marketing                           17,920         17,476
       Research and development                      10,790          9,367
       General and administrative                     5,291          3,971
       Stock-based compensation
        and related payroll taxes                       108            561
       Asset impairment                               1,416             --
       Acquisition-related charges
        and amortization of intangibles              16,496          7,440
         Total operating expenses                    52,021         38,815
 
     Loss from operations                           (21,690)        (7,347)
 
     Other income, net                                  783          1,640
 
     Loss before income taxes                       (20,907)        (5,707)
 
     Provision for income taxes                         241            201
 
     Net loss                                      $(21,148)       $(5,908)
 
     Loss per common share, basic and diluted        $(0.58)        $(0.17)
 
     Weighted average shares of
      common stock outstanding, basic            36,769,116     34,691,960
     Earnings (loss) excluding asset
      impairment, stock-based
      compensation and acquisition-related
      charges:
 
     Earnings (loss) before income taxes            $(2,887)        $2,294
 
     Net earnings (loss), assuming
      a 35% tax rate                                $(1,877)        $1,491
 
     Earnings (loss) per common share, diluted       $(0.05)         $0.04
 
     Weighted average shares of
      common stock outstanding, diluted          36,769,116     38,068,435
 
 
     For further information, please contact Larry Thede, Vice President -
 Investor Relations, of New Era of Networks, Inc., 303-409-7497,
 larry.thede@neonsoft.com.
 
 

SOURCE New Era of Networks, Inc.
    DENVER, April 19 /PRNewswire/ -- New Era of Networks,(TM) Inc.
 (Nasdaq: NEON) a leading e-Business infrastructure provider, today announced
 revenues of $43.2 million and earnings per share of ($0.05), before charges,
 for the quarter ended March 31, 2001, meeting revenue and profit goals
 communicated in January, 2001.  EPS figures exclude acquisition-related and
 asset impairment charges, and assume a 35% tax rate.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000818/NEWERALOGO )
     "I'm pleased that we were able to achieve our financial targets in a
 difficult economic environment," said NEON Chief Executive Officer Rick Adam.
 "During the quarter we realized the cost savings we identified in our December
 restructuring actions.  We generated cash, ending the quarter with $59 million
 in cash and marketable securities, $1 million higher than our end of year 2000
 level.  We enter our merger with Sybase with an improved cost structure, a
 strong balance sheet, and a commitment to grow our revenues and increase our
 market share."
     On February 20 Sybase, Inc., signed an agreement to acquire NEON in a
 stock-for-stock exchange.  On April 12, Sybase announced that they hold the
 majority of NEON stock with over 75% ownership.  A subsequent offering period
 will end at midnight New York City time on Thursday, April 26, 2001.
     During the first quarter, NEON's successes included sales to new and
 repeat customers such as Cigna, Citigroup, Glenmede Trust Company, Healthcare
 Partners Group, Industrial Bank of Japan, NIWS (Japan), Trizetto, VisionWare
 and VF Corporation.
 
 
      Highlights for NEON's first quarter include:
      -- Grew cash and marketable securities to $59 million
      -- Recorded DSO of 66 days versus 97 days at December 31, 2000
      -- Reduced worldwide headcount to 962 from 1,110 at December 31, 2000
      -- Lowered quarterly cash expenses by $9m (17%)
 
     Note to Investors
     This press release contains forward-looking statements, including
 statements about expected growth, future operational performance, and NEON's
 execution in its integration and e-Business enablement businesses.  NEON's
 forward-looking statements are subject to risks and uncertainties.  Factors
 that could cause actual results to differ materially include, but are not
 limited to, the volume and timing of customer contracts received during a
 given quarter, our partner relationships, increased or decreased demand for
 our products, growth of e-Business and EAI markets, new product development,
 and competition.  Also, due to the nature of our business, quarterly results
 typically are not known until close to the end of the quarter.  NEON has
 invested in companies with complementary products or technologies, or which
 provide access to additional customers and vertical markets.  NEON has, or
 likely will conduct commercial transactions with these companies, and there is
 no assurance that these investments will result in any meaningful commercial
 benefit, and the investments could lose all or a significant part of their
 value.  Other risks and uncertainties associated with the business of New Era
 of Networks, Inc., may be reviewed in the company's public filings, including
 the company's Report on Form 10K for its fiscal year ended December 31, 2000,
 under the caption "Factors that may Affect Future Results."
 
     About New Era of Networks, Inc.
     New Era of Networks, Inc. (Nasdaq: NEON) is a leading provider of
 e-Business infrastructure.  Drawing on proven core technology and years of
 experience, NEON integrates and automates e-Business processes, helping
 companies bring end-to-end business functionality to the Internet in the
 shortest possible time frame.  In addition, NEON products help companies
 establish direct, electronic links with customers, suppliers and partners;
 build and participate in Net markets; and distribute and access information
 using wireless technology.  NEON maintains strong partnerships with leading
 e-Business companies, including BEA Systems, BroadVision, Commerce One, IBM
 and Microsoft, and has more than 3,000 customers worldwide.  Founded in 1994,
 NEON is headquartered in Englewood, Colo., with locations across the globe.
 For more information, call 800-815-6366 or visit www.neonsoft.com.
 
     New Era of Networks, the NEON logotype, e-Biz Integrator, and Open
 Business Interchange are trademarks and service marks of New Era of Networks,
 Inc. and its subsidiaries.  MQSeries is a registered trademark of
 International Business Machines Corporation.  Microsoft and BizTalk are either
 registered trademarks or trademarks of Microsoft Corp. in the United States
 and/or other countries/regions.  All other trademarks and registered
 trademarks are the property of the respective trademark owners.
 
 
                             NEW ERA OF NETWORKS, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (In thousands, except share data)
 
                                                   March 31,     December 31,
      ASSETS                                          2001           2000
                                                  (unaudited)
     Cash, cash equivalents and
      marketable securities (1)                     $59,057        $58,194
     Accounts receivable, net (2)                    31,256         42,887
     Prepaid expenses and other current assets       12,360         13,615
     Notes receivable, related party                     --             --
     Property and equipment, net                     26,266         25,919
     Intangibles, net                               178,412        195,885
     Deferred income taxes, net                       2,199          2,226
     Other assets, net                                9,167         10,758
 
         Total assets                              $318,717       $349,484
 
      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Accounts payable                                $6,901         $9,254
     Accrued liabilities                             18,668         24,687
     Deferred revenue (3)                            18,948         19,572
         Total liabilities                           44,517         53,513
 
     Stockholders' equity, including
      common stock                                  424,035        424,658
     Accumulated deficit                           (149,835)      (128,687)
         Total stockholders' equity                 274,200        295,971
 
         Total liabilities and
          stockholders' equity                     $318,717       $349,484
 
 
      (1) As of March 31, 2001 and December 31, 2000, the amount includes
          approximately $7,000 of restricted cash.
      (2) As of March 31, 2000 and December 31, 2000, the amount includes
          unbilled revenue of $923 and $1,531, respectively.
      (3) At March 31, 2000 and December 31, 2000, the amount includes long
          term deferred revenue of $302 and $365, respectively.
 
 
                             NEW ERA OF NETWORKS, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In thousands, except per share data)
                                    (unaudited)
 
                                                      Three months ended
                                                           March 31,
                                                     2001           2000
     Revenues:
       Software licenses                            $22,818        $24,074
       Software maintenance and
        professional services                        20,417         18,018
         Total revenues                              43,235         42,092
 
     Cost of revenues:
       Cost of software licenses                      1,168            555
       Cost of software maintenance
        and professional services                    11,736         10,069
         Total cost of revenues                      12,904         10,624
 
     Gross profit                                    30,331         31,468
 
     Operating Expenses:
       Sales and marketing                           17,920         17,476
       Research and development                      10,790          9,367
       General and administrative                     5,291          3,971
       Stock-based compensation
        and related payroll taxes                       108            561
       Asset impairment                               1,416             --
       Acquisition-related charges
        and amortization of intangibles              16,496          7,440
         Total operating expenses                    52,021         38,815
 
     Loss from operations                           (21,690)        (7,347)
 
     Other income, net                                  783          1,640
 
     Loss before income taxes                       (20,907)        (5,707)
 
     Provision for income taxes                         241            201
 
     Net loss                                      $(21,148)       $(5,908)
 
     Loss per common share, basic and diluted        $(0.58)        $(0.17)
 
     Weighted average shares of
      common stock outstanding, basic            36,769,116     34,691,960
     Earnings (loss) excluding asset
      impairment, stock-based
      compensation and acquisition-related
      charges:
 
     Earnings (loss) before income taxes            $(2,887)        $2,294
 
     Net earnings (loss), assuming
      a 35% tax rate                                $(1,877)        $1,491
 
     Earnings (loss) per common share, diluted       $(0.05)         $0.04
 
     Weighted average shares of
      common stock outstanding, diluted          36,769,116     38,068,435
 
 
     For further information, please contact Larry Thede, Vice President -
 Investor Relations, of New Era of Networks, Inc., 303-409-7497,
 larry.thede@neonsoft.com.
 
 SOURCE  New Era of Networks, Inc.