Netegrity Announces Strong Profitability of $.10 Per Share

First Quarter 2001 Results Include Revenue of $26 Million, Up 286% Year Over

Year, and 66 New Customers



Apr 30, 2001, 01:00 ET from Netegrity, Inc.

    WALTHAM, Mass., April 30 /PRNewswire/ -- Netegrity, Inc. (Nasdaq:   NETE),
 the leading provider of solutions for securely managing e-business, today
 announced financial results for the first quarter ended March 31, 2001.  Total
 revenue of $26.0 million for the first quarter of 2001 increased 286% from
 $6.7 million for the same period last year, and 21% from $21.5 million for the
 previous quarter.  Netegrity reported its third consecutive quarter of
 profitability in the first quarter of 2001 with record net income of $3.3
 million or $0.10 per diluted share, as compared to a net loss of ($935,000),
 or ($0.03) per share for the quarter ended March 31, 2000.
     License revenue from the Company's flagship SiteMinder(R) platform was
 $18.8 million increasing 294% from $4.8 million for the corresponding quarter
 in 2000, and 21% from $15.5 million for the quarter ended December 31, 2000.
     "Netegrity's strong first quarter performance and our continued market
 leadership is a direct result of success across all aspects of our business
 including a record number of new customer wins, new strategic partnerships,
 geographic expansion, and superior technology," said Barry Bycoff, chairman
 and CEO of Netegrity.  "While no company is immune to the current economic
 conditions, Netegrity remains extremely well positioned over the long-term for
 what will be a very significant market opportunity within e-business
 security."
     During the quarter, Netegrity signed agreements with 66 new customers,
 bringing the total number of customers to 379.  New customers in Q1 include
 Data Transport, Dorado, eArmy, FleetBoston Financial Corporation, Miller
 Systems, OpenTide, Ventro, and Verizon. Netegrity also had a record 47 follow
 on software deals with existing customers, indicating the success customers
 are achieving with Netegrity's leading solution and the quality of the
 Company's product suite.
 
     Additional Highlights
     -- The SiteMinder platform was validated as a top performing access
        control product by independent test lab Mindcraft, Inc.  These test
        results confirmed that Netegrity's SiteMinder platform has achieved
        breakthrough product performance and scalability.
     -- Netegrity's strong base of large, traditional economy companies and the
        Company's first mover advantage were highlighted as The Wall Street
        Journal recognized Netegrity as the top three-year stock price
        performer in their sixth annual Shareholder Scoreboard.
     -- VeriSign and Netegrity partnered to provide a new Entitlements
        Management Service and entered into an agreement which includes product
        and technology integration, joint sales initiatives, and joint
        marketing activities.
     -- Netegrity launched the Netegrity Technology Partner Program for
        companies with complementary software or service offerings.  Over 35
        leading software companies have partnered with Netegrity to deliver
        SiteMinder-enabled solutions.
     -- Within the e-marketplace sector, the SiteMinder platform is now
        shipping as part of the Commerce One MarketSite(TM) Operating
        Environment, i2 has bundled the SiteMinder platform within the i2
        TradeMatrix Platform(TM), and BCE Emergis will use Netegrity's
        SiteMinder platform as the engine of its new managed portal security
        service.
     -- Netegrity conducted successful marketing events throughout the quarter
        to over 10,000 registered attendees through joint seminars with
        VeriSign, Bowstreet, and Art Technology Group as well as sponsorship of
        an eWeek seminar.
 
     Earnings Webcast
     Netegrity will hold its Q1 2001 earnings conference call on April 30th at
 5:00 p.m. (EDT).  The call will feature Barry Bycoff, Netegrity's chairman and
 CEO, and Jim Hayden, Netegrity's chief financial officer.  Netegrity will
 broadcast the call live via the Internet at www.netegrity.com.  To listen to
 the Q1 conference call, please go to www.netegrity.com and select the "Live
 Webcast " icon.
     This Webcast will also be archived for later listening at
 www.netegrity.com/investors.  In addition, a replay by telephone will be
 available until 5:00 p.m. (EDT) on Friday, May 4, 2001.  To access the replay,
 dial (800) 642-1687, or (706) 645-9291 (international), and enter access code
 202935.
 
     About Netegrity, Inc.
     Netegrity is the leading provider of software solutions for securely
 managing e-business.  Companies use Netegrity's products to control user
 access to e-business Web sites, to seamlessly create e-partnerships, and to
 secure business-to-business transactions. Netegrity enables customers to
 create new revenue opportunities, reduce operational inefficiencies, and
 strengthen relationships with customers and partners.  With its vast network
 of partners, Netegrity is securely managing e-business solutions for over 370
 customers worldwide including Aetna, American Express, Bank One, Commerce One,
 E*TRADE, General Electric, i2 Technologies, Ingram Micro, and Wells Fargo.
 The Company was the only vendor to be placed in the leader quadrant within
 Gartner's Magic Quadrant Report (November 2000) and according to META Group
 owns 75% of the market (January 2001).  Headquartered in Waltham, Mass.,
 Netegrity also has offices throughout Europe and Asia. More information can be
 found at www.netegrity.com.
     Netegrity and SiteMinder are registered trademarks of Netegrity, Inc. All
 other product names, service marks and trademarks mentioned herein are
 trademarks of their respective owners.  Statements in this release concerning
 Netegrity's future prospects are "forward-looking statements" under the
 Federal securities laws.  There can be no assurance that future results will
 be achieved, and actual results could differ materially from forecasts,
 estimates and summary information contained in this press release.  Investors
 are cautioned that all forward-looking statements involve risks and
 uncertainties that could cause actual results to differ materially from those
 projected or anticipated.  These risks and uncertainties include, but are not
 limited to, the factors described in the Company's registration statements and
 reports filed with the Securities and Exchange Commission including in
 particular the risk factors set forth in the Company's Annual Report on Form
 10-K for the year ended December 31, 2000.  We undertake no obligation to
 update any of our forward-looking statements or to update the reasons actual
 results could differ materially from those anticipated in forward-looking
 statements.  We caution you not to place undue reliance upon any such forward-
 looking statements, which speak only as of the date made. We cannot guarantee
 any future results, levels of activity, performance or achievement.
 
                                NETEGRITY, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
                                                  Three months ended March 31,
                                                         2001           2000
     Revenues:
     SiteMinder software                          $18,772,000     $4,762,000
     SiteMinder services                            6,193,000      1,254,000
     Other                                          1,071,000        730,000
     Total revenues                                26,036,000      6,746,000
 
     Cost of revenues                               5,468,000      1,488,000
 
     Gross profit                                  20,568,000      5,258,000
 
     Selling, general,
      and administrative expenses                  14,448,000      5,923,000
     Research and development costs                 3,956,000      1,486,000
 
     Operating income (loss)                        2,164,000    (2,151,000)
 
     Interest income (expense), net                 1,500,000      1,216,000
 
     Income(loss) before income taxes               3,664,000      (935,000)
 
     Provision for income taxes                       315,000              0
 
     Net income (loss)                              3,349,000     ($935,000)
 
     Net income (loss) per share
      attributable to common stockholders
       Basic                                            $0.11        ($0.03)
       Diluted                                          $0.10        ($0.03)
 
     Weighted avg. common shares outstanding
       Basic                                       30,424,000     27,174,000
       Diluted                                     33,274,000     27,174,000
 
 
                      NETEGRITY, INC. CONDENSED BALANCE SHEETS
 
 
                                               March 31, 2001  Dec. 31, 2000
                                                  (Unaudited)
     ASSETS
 
     Current assets
     Cash and cash equivalents                   $118,059,000   $115,747,000
     Accounts receivable, net                      18,918,000     15,758,000
     Prepaid expenses and other current assets      1,335,000      1,305,000
     Total current assets                         138,312,000    132,810,000
 
     Property and equipment, net                    5,667,000      4,528,000
     Other assets                                   1,079,000      1,041,000
 
     Total assets                                $145,058,000   $138,379,000
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities
     Accounts payable - trade                      $1,278,000     $1,698,000
     Accrued compensation and benefits              4,933,000      7,695,000
     Other accrued expenses                         4,872,000      2,608,000
     Deferred revenue                               9,731,000      8,479,000
     Total current liabilities                     20,814,000     20,480,000
 
     Stockholders' equity                         124,244,000    117,899,000
 
     Total liabilities and stockholders' equity   145,058,000   $138,379,000
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27538454
 
 

SOURCE Netegrity, Inc.
    WALTHAM, Mass., April 30 /PRNewswire/ -- Netegrity, Inc. (Nasdaq:   NETE),
 the leading provider of solutions for securely managing e-business, today
 announced financial results for the first quarter ended March 31, 2001.  Total
 revenue of $26.0 million for the first quarter of 2001 increased 286% from
 $6.7 million for the same period last year, and 21% from $21.5 million for the
 previous quarter.  Netegrity reported its third consecutive quarter of
 profitability in the first quarter of 2001 with record net income of $3.3
 million or $0.10 per diluted share, as compared to a net loss of ($935,000),
 or ($0.03) per share for the quarter ended March 31, 2000.
     License revenue from the Company's flagship SiteMinder(R) platform was
 $18.8 million increasing 294% from $4.8 million for the corresponding quarter
 in 2000, and 21% from $15.5 million for the quarter ended December 31, 2000.
     "Netegrity's strong first quarter performance and our continued market
 leadership is a direct result of success across all aspects of our business
 including a record number of new customer wins, new strategic partnerships,
 geographic expansion, and superior technology," said Barry Bycoff, chairman
 and CEO of Netegrity.  "While no company is immune to the current economic
 conditions, Netegrity remains extremely well positioned over the long-term for
 what will be a very significant market opportunity within e-business
 security."
     During the quarter, Netegrity signed agreements with 66 new customers,
 bringing the total number of customers to 379.  New customers in Q1 include
 Data Transport, Dorado, eArmy, FleetBoston Financial Corporation, Miller
 Systems, OpenTide, Ventro, and Verizon. Netegrity also had a record 47 follow
 on software deals with existing customers, indicating the success customers
 are achieving with Netegrity's leading solution and the quality of the
 Company's product suite.
 
     Additional Highlights
     -- The SiteMinder platform was validated as a top performing access
        control product by independent test lab Mindcraft, Inc.  These test
        results confirmed that Netegrity's SiteMinder platform has achieved
        breakthrough product performance and scalability.
     -- Netegrity's strong base of large, traditional economy companies and the
        Company's first mover advantage were highlighted as The Wall Street
        Journal recognized Netegrity as the top three-year stock price
        performer in their sixth annual Shareholder Scoreboard.
     -- VeriSign and Netegrity partnered to provide a new Entitlements
        Management Service and entered into an agreement which includes product
        and technology integration, joint sales initiatives, and joint
        marketing activities.
     -- Netegrity launched the Netegrity Technology Partner Program for
        companies with complementary software or service offerings.  Over 35
        leading software companies have partnered with Netegrity to deliver
        SiteMinder-enabled solutions.
     -- Within the e-marketplace sector, the SiteMinder platform is now
        shipping as part of the Commerce One MarketSite(TM) Operating
        Environment, i2 has bundled the SiteMinder platform within the i2
        TradeMatrix Platform(TM), and BCE Emergis will use Netegrity's
        SiteMinder platform as the engine of its new managed portal security
        service.
     -- Netegrity conducted successful marketing events throughout the quarter
        to over 10,000 registered attendees through joint seminars with
        VeriSign, Bowstreet, and Art Technology Group as well as sponsorship of
        an eWeek seminar.
 
     Earnings Webcast
     Netegrity will hold its Q1 2001 earnings conference call on April 30th at
 5:00 p.m. (EDT).  The call will feature Barry Bycoff, Netegrity's chairman and
 CEO, and Jim Hayden, Netegrity's chief financial officer.  Netegrity will
 broadcast the call live via the Internet at www.netegrity.com.  To listen to
 the Q1 conference call, please go to www.netegrity.com and select the "Live
 Webcast " icon.
     This Webcast will also be archived for later listening at
 www.netegrity.com/investors.  In addition, a replay by telephone will be
 available until 5:00 p.m. (EDT) on Friday, May 4, 2001.  To access the replay,
 dial (800) 642-1687, or (706) 645-9291 (international), and enter access code
 202935.
 
     About Netegrity, Inc.
     Netegrity is the leading provider of software solutions for securely
 managing e-business.  Companies use Netegrity's products to control user
 access to e-business Web sites, to seamlessly create e-partnerships, and to
 secure business-to-business transactions. Netegrity enables customers to
 create new revenue opportunities, reduce operational inefficiencies, and
 strengthen relationships with customers and partners.  With its vast network
 of partners, Netegrity is securely managing e-business solutions for over 370
 customers worldwide including Aetna, American Express, Bank One, Commerce One,
 E*TRADE, General Electric, i2 Technologies, Ingram Micro, and Wells Fargo.
 The Company was the only vendor to be placed in the leader quadrant within
 Gartner's Magic Quadrant Report (November 2000) and according to META Group
 owns 75% of the market (January 2001).  Headquartered in Waltham, Mass.,
 Netegrity also has offices throughout Europe and Asia. More information can be
 found at www.netegrity.com.
     Netegrity and SiteMinder are registered trademarks of Netegrity, Inc. All
 other product names, service marks and trademarks mentioned herein are
 trademarks of their respective owners.  Statements in this release concerning
 Netegrity's future prospects are "forward-looking statements" under the
 Federal securities laws.  There can be no assurance that future results will
 be achieved, and actual results could differ materially from forecasts,
 estimates and summary information contained in this press release.  Investors
 are cautioned that all forward-looking statements involve risks and
 uncertainties that could cause actual results to differ materially from those
 projected or anticipated.  These risks and uncertainties include, but are not
 limited to, the factors described in the Company's registration statements and
 reports filed with the Securities and Exchange Commission including in
 particular the risk factors set forth in the Company's Annual Report on Form
 10-K for the year ended December 31, 2000.  We undertake no obligation to
 update any of our forward-looking statements or to update the reasons actual
 results could differ materially from those anticipated in forward-looking
 statements.  We caution you not to place undue reliance upon any such forward-
 looking statements, which speak only as of the date made. We cannot guarantee
 any future results, levels of activity, performance or achievement.
 
                                NETEGRITY, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
                                                  Three months ended March 31,
                                                         2001           2000
     Revenues:
     SiteMinder software                          $18,772,000     $4,762,000
     SiteMinder services                            6,193,000      1,254,000
     Other                                          1,071,000        730,000
     Total revenues                                26,036,000      6,746,000
 
     Cost of revenues                               5,468,000      1,488,000
 
     Gross profit                                  20,568,000      5,258,000
 
     Selling, general,
      and administrative expenses                  14,448,000      5,923,000
     Research and development costs                 3,956,000      1,486,000
 
     Operating income (loss)                        2,164,000    (2,151,000)
 
     Interest income (expense), net                 1,500,000      1,216,000
 
     Income(loss) before income taxes               3,664,000      (935,000)
 
     Provision for income taxes                       315,000              0
 
     Net income (loss)                              3,349,000     ($935,000)
 
     Net income (loss) per share
      attributable to common stockholders
       Basic                                            $0.11        ($0.03)
       Diluted                                          $0.10        ($0.03)
 
     Weighted avg. common shares outstanding
       Basic                                       30,424,000     27,174,000
       Diluted                                     33,274,000     27,174,000
 
 
                      NETEGRITY, INC. CONDENSED BALANCE SHEETS
 
 
                                               March 31, 2001  Dec. 31, 2000
                                                  (Unaudited)
     ASSETS
 
     Current assets
     Cash and cash equivalents                   $118,059,000   $115,747,000
     Accounts receivable, net                      18,918,000     15,758,000
     Prepaid expenses and other current assets      1,335,000      1,305,000
     Total current assets                         138,312,000    132,810,000
 
     Property and equipment, net                    5,667,000      4,528,000
     Other assets                                   1,079,000      1,041,000
 
     Total assets                                $145,058,000   $138,379,000
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities
     Accounts payable - trade                      $1,278,000     $1,698,000
     Accrued compensation and benefits              4,933,000      7,695,000
     Other accrued expenses                         4,872,000      2,608,000
     Deferred revenue                               9,731,000      8,479,000
     Total current liabilities                     20,814,000     20,480,000
 
     Stockholders' equity                         124,244,000    117,899,000
 
     Total liabilities and stockholders' equity   145,058,000   $138,379,000
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27538454
 
 SOURCE  Netegrity, Inc.