Novadigm Announces Record Fourth Quarter Revenues of $16.8M and $0.07 EPS

Continued International Growth, Renewed Momentum in U.S., Strong Public Sector

Business Drive Better Than Expected Performance vs Analyst Estimates

Of $13.2M Revenue and $0.02 EPS



Apr 25, 2001, 01:00 ET from Novadigm, Inc.

    MAHWAH, N.J., April 25 /PRNewswire/ -- Novadigm, Inc. (Nasdaq: NVDM), a
 leading provider of automated software and content management solutions for
 enterprise and Internet computing environments, today reported financial
 results for the fourth quarter and fiscal year ended March 31, 2001.
     Revenue for the fourth quarter reached a record $16.8 million, a
 26% increase over the $13.3 million reported for the same quarter last year
 and a 32% gain over the prior quarter. Net income for the fourth quarter
 excluding amortization of intangible assets was $1.4 million, or $.07 per
 diluted share, compared with $1.7 million, or $0.08 per diluted share, for the
 same quarter last year. The performance for the quarter exceeded analyst
 estimates for revenue of $13.2 million and earnings of $0.02 per diluted
 share. Net loss including amortization for the fourth quarter was
 $601 thousand or $0.03 per diluted share.
     Revenue for the twelve months ended March 31, 2001 was a record
 $50.4 million compared to revenue of $44.7 million for the same period last
 year. Net income for the twelve month period was $263 thousand, or $0.01 per
 diluted share, excluding amortization of intangible assets and non-recurring
 other income, net of related expense, compared with $5.1 million, or $0.25 per
 diluted share, for the same twelve-month period in fiscal 2000. Including the
 amortization expense and the non-recurring other income, net of related
 expense, the company reported a net loss for the twelve-month period of
 $4.6 million or $0.23 per diluted share loss. Cash and marketable securities
 were $27.2 million as of March 31, 2001.
     "Our investments during the year in our field organization, our
 partnerships with Hewlett-Packard and EDS, and our technology drove record
 revenues for the fourth quarter and for the fiscal year, bringing the year to
 a successful close with our market leadership stronger than ever," said
 Albion Fitzgerald, Novadigm Chairman and CEO. "Our European operation had
 another great quarter, our U.S. organization renewed its momentum during the
 quarter, and we saw tremendous growth in our public sector business both
 through our EDS partnership and our direct sales efforts."
     In addition to record license, services, and overall quarterly revenues
 for both its North American and European operations, the company recorded a
 record number of contracts and new customers, with contributions from its
 direct channels in U.S., Canada, UK, Germany, France, Belgium, and Sweden, and
 distributors in Spain, Italy, South Africa, Australia, and Japan. The company
 also shipped a new release of Radia, Release 2.1, the Radia DTA migration
 package for HP customers, and the Radia E-wrap Adapter for HP OpenView, during
 the quarter.
     Fitzgerald continued, "We believe that our success in closing business and
 building our pipeline of qualified opportunities during the quarter
 demonstrates our competitive superiority and the growing market acceptance of
 our value proposition, particularly in the current economic environment where
 companies need to quickly reduce IT ownership and service costs. We're
 starting the new year with exciting opportunities, an expanded and
 strengthened management team, increased productivity from our direct channels
 and partnerships, and a continuing focus on profitable growth."
 
     Conference Call Information
     Investors are invited to listen to the live conference call at
 5:00 p.m., eastern daylight time, over the Internet through Novadigm's
 website, located at http://www.novadigm.com/ir/index.html . To listen to the
 live call, please go to the web site at least fifteen minutes early to
 download, and install any necessary audio software. For those who cannot
 listen to the live broadcast, a replay will be available shortly after the
 call. Investors may also listen to a telephone replay of the conference call
 by dialing 800-633-8284, reservation #18557206, starting at 7:00 p.m., eastern
 daylight time today until 5:00 p.m., eastern daylight time, on April 27th.
 
     About Novadigm
     Novadigm is a leading provider of software and content management
 solutions, for enterprise and Internet computing environments, that enable
 organizations to reduce software management costs, speed time-to-market,
 expand marketing channels and open new sources of revenue. Novadigm's suite of
 integrated products, based on the company's e-wrap(TM) technology, work
 seamlessly together as the only end-to-end solution that can efficiently,
 reliably and scalably deploy and manage the full range of today's software and
 content, personalized for a wide range of computing devices, across virtually
 any network. Novadigm customers -- Global 1,000 business enterprises, software
 vendors and service providers -- report software management savings of 80% or
 more, time-to-market improvements of 70% or more, and reliability typically
 greater than 99%. For more information on Novadigm, please see
 www.novadigm.com or call 800-626-6682.
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934. Where possible, we have attempted to identify these
 statements by using words such as "intend," "target" and similar expressions.
 These forward-looking statements include, by way of example, "We believe that
 our success in closing business and building our pipeline of qualified
 opportunities during the quarter demonstrates our competitive superiority and
 the growing market acceptance of our value proposition, particularly in the
 current economic environment where companies need to quickly reduce IT
 ownership and service costs. We're starting the new year with exciting
 opportunities, an expanded and strengthened management team, increased
 productivity from our direct channels and partnerships, and a continuing focus
 on profitable growth." The forward-looking statements and financial forecasts
 are subject to certain risks and uncertainties that could cause actual results
 to differ materially from historical results or anticipated results. These
 risks include a history of operating losses. The Company's quarterly operating
 results have fluctuated significantly in the past, and may fluctuate in the
 future, due to a number of factors, including the number, size and timing of
 customer orders, the timing and market acceptance of the Company's new
 products, the dependence on resellers, the level and pricing of international
 sales, changes in the level of operating expenses, technological advances and
 new product introductions by the Company's competitors, competitive conditions
 in the industry and foreign currency exchange rates. In addition, the sales
 cycle for the Company's products is lengthy and unpredictable depending upon
 the interest of the prospective customer in the Company's products, the size
 of the order, the decision-making and acceptance procedures within the
 customer's organization, the complexity of implementation and other factors.
 The Company's operating results may also vary significantly due to seasonal
 trends, as a result of efforts by the Company's direct sales personnel to meet
 annual quotas, lower international revenues in the summer months when many
 European businesses experience lower sales, the establishment of calendar year
 capital budgets by prospective customers, as well as other factors. There can
 be no assurance that the Company will be able to achieve or maintain
 profitability on a quarterly or annual basis in the future. These and other
 risks and uncertainties that could affect the Company's future operating
 results are described from time to time in Novadigm's filings with the
 Securities and Exchange Commission. In particular, see the Risk Factors
 described in the Company's Form 10-K for the fiscal year ended March 31, 2000,
 and Form 10-Q for the quarters ended June 30, 2000, September 30, 2000 and
 December 31, 2000.  Except as expressly required by the Federal Securities
 laws, the Company undertakes no obligation to update or revise these
 forward-looking statements or forecasts to reflect new events or changed
 circumstances or for any other reason.
     NOTE:  Novadigm, Enterprise Desktop Manager, Radia and e-wrap are either
 trademarks or registered trademarks of Novadigm, Inc. All other product,
 trademark, company or service names mentioned herein are the property of their
 respective owners.
 
                                 NOVADIGM, INC.
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Amounts in thousands, except per share amounts)
                                  (Unaudited)
 
 
                                              Three Months     Twelve Months
                                                  Ended            Ended
                                                 March 31,        March 31,
                                              2001     2000    2001      2000
     REVENUES:
       Licenses                             $11,144   $9,183  $31,247  $27,978
       Maintenance and services               5,630    4,084   19,199   16,750
         Total revenues                      16,774   13,267   50,446   44,728
     OPERATING EXPENSES:
       Cost of maintenance and services       3,253    1,507    9,278    5,355
       Sales and marketing                    7,667    6,768   25,934   21,912
       Research and development               2,520    1,732    9,003    6,126
       General and administrative             2,313    1,634    8,305    6,823
       Amortization of intangible             2,018       --    6,046       --
         Total operating expenses            17,771   11,641   58,566   40,216
     Operating income (loss)                  (997)    1,626  (8,120)    4,512
     Interest income, net                       426      317    1,586    1,058
     Other Income                                --       --    2,171       --
     Income (loss) before provision
      for income taxes                        (571)    1,943  (4,363)    5,570
     Provision for income taxes                  30      202      233      427
 
     Net income (loss)                       $(601)   $1,741 $(4,596)   $5,143
 
     Earnings per share-basic
     Loss per share - basic and diluted     $(0.03)    $0.09  $(0.23)    $0.28
 
     Weighted average common shares
      outstanding-basic                      20,041   18,523   19,711   18,185
 
     Earnings per share-diluted (*)          $ 0.07    $0.08   $ 0.01    $0.25
 
     Weighted average common and common
      equivalent shares outstanding
      - diluted                              20,461   21,373   19,850   20,558
 
     (*) excluding $2 million of amortization of intangible for the three
 months ended March 31, 2001; and excluding $6 million of amortization of
 intangible and $2.2 million of non-recurring other income and related expense
 of $984 thousand for the twelve months ended March 31, 2001
 
                                 NOVADIGM, INC.
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                     March 31,       March 31,
                                                       2001            2000
                                                    (unaudited)
     ASSETS
 
     Cash and cash equivalents                        $20,592         $3,670
     Short-term marketable securities                   6,570         21,348
     Accounts receivable, net                          18,179         15,544
     Prepaid expenses and other current assets          1,250          1,144
         Total current assets                          46,591         41,706
     Property and equipment, net                        2,705          1,894
     Intangible Assets                                 10,089             --
     Other assets                                         547            780
                                                      $59,932        $44,380
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable and accrued liabilities         $10,669         $7,953
     Deferred revenue                                   5,113          4,712
         Total current liabilities                     15,782         12,665
     Stockholders' equity                              44,150         31,715
                                                      $59,932        $44,380
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X31825686
 
 

SOURCE Novadigm, Inc.
    MAHWAH, N.J., April 25 /PRNewswire/ -- Novadigm, Inc. (Nasdaq: NVDM), a
 leading provider of automated software and content management solutions for
 enterprise and Internet computing environments, today reported financial
 results for the fourth quarter and fiscal year ended March 31, 2001.
     Revenue for the fourth quarter reached a record $16.8 million, a
 26% increase over the $13.3 million reported for the same quarter last year
 and a 32% gain over the prior quarter. Net income for the fourth quarter
 excluding amortization of intangible assets was $1.4 million, or $.07 per
 diluted share, compared with $1.7 million, or $0.08 per diluted share, for the
 same quarter last year. The performance for the quarter exceeded analyst
 estimates for revenue of $13.2 million and earnings of $0.02 per diluted
 share. Net loss including amortization for the fourth quarter was
 $601 thousand or $0.03 per diluted share.
     Revenue for the twelve months ended March 31, 2001 was a record
 $50.4 million compared to revenue of $44.7 million for the same period last
 year. Net income for the twelve month period was $263 thousand, or $0.01 per
 diluted share, excluding amortization of intangible assets and non-recurring
 other income, net of related expense, compared with $5.1 million, or $0.25 per
 diluted share, for the same twelve-month period in fiscal 2000. Including the
 amortization expense and the non-recurring other income, net of related
 expense, the company reported a net loss for the twelve-month period of
 $4.6 million or $0.23 per diluted share loss. Cash and marketable securities
 were $27.2 million as of March 31, 2001.
     "Our investments during the year in our field organization, our
 partnerships with Hewlett-Packard and EDS, and our technology drove record
 revenues for the fourth quarter and for the fiscal year, bringing the year to
 a successful close with our market leadership stronger than ever," said
 Albion Fitzgerald, Novadigm Chairman and CEO. "Our European operation had
 another great quarter, our U.S. organization renewed its momentum during the
 quarter, and we saw tremendous growth in our public sector business both
 through our EDS partnership and our direct sales efforts."
     In addition to record license, services, and overall quarterly revenues
 for both its North American and European operations, the company recorded a
 record number of contracts and new customers, with contributions from its
 direct channels in U.S., Canada, UK, Germany, France, Belgium, and Sweden, and
 distributors in Spain, Italy, South Africa, Australia, and Japan. The company
 also shipped a new release of Radia, Release 2.1, the Radia DTA migration
 package for HP customers, and the Radia E-wrap Adapter for HP OpenView, during
 the quarter.
     Fitzgerald continued, "We believe that our success in closing business and
 building our pipeline of qualified opportunities during the quarter
 demonstrates our competitive superiority and the growing market acceptance of
 our value proposition, particularly in the current economic environment where
 companies need to quickly reduce IT ownership and service costs. We're
 starting the new year with exciting opportunities, an expanded and
 strengthened management team, increased productivity from our direct channels
 and partnerships, and a continuing focus on profitable growth."
 
     Conference Call Information
     Investors are invited to listen to the live conference call at
 5:00 p.m., eastern daylight time, over the Internet through Novadigm's
 website, located at http://www.novadigm.com/ir/index.html . To listen to the
 live call, please go to the web site at least fifteen minutes early to
 download, and install any necessary audio software. For those who cannot
 listen to the live broadcast, a replay will be available shortly after the
 call. Investors may also listen to a telephone replay of the conference call
 by dialing 800-633-8284, reservation #18557206, starting at 7:00 p.m., eastern
 daylight time today until 5:00 p.m., eastern daylight time, on April 27th.
 
     About Novadigm
     Novadigm is a leading provider of software and content management
 solutions, for enterprise and Internet computing environments, that enable
 organizations to reduce software management costs, speed time-to-market,
 expand marketing channels and open new sources of revenue. Novadigm's suite of
 integrated products, based on the company's e-wrap(TM) technology, work
 seamlessly together as the only end-to-end solution that can efficiently,
 reliably and scalably deploy and manage the full range of today's software and
 content, personalized for a wide range of computing devices, across virtually
 any network. Novadigm customers -- Global 1,000 business enterprises, software
 vendors and service providers -- report software management savings of 80% or
 more, time-to-market improvements of 70% or more, and reliability typically
 greater than 99%. For more information on Novadigm, please see
 www.novadigm.com or call 800-626-6682.
     This press release contains forward-looking statements within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934. Where possible, we have attempted to identify these
 statements by using words such as "intend," "target" and similar expressions.
 These forward-looking statements include, by way of example, "We believe that
 our success in closing business and building our pipeline of qualified
 opportunities during the quarter demonstrates our competitive superiority and
 the growing market acceptance of our value proposition, particularly in the
 current economic environment where companies need to quickly reduce IT
 ownership and service costs. We're starting the new year with exciting
 opportunities, an expanded and strengthened management team, increased
 productivity from our direct channels and partnerships, and a continuing focus
 on profitable growth." The forward-looking statements and financial forecasts
 are subject to certain risks and uncertainties that could cause actual results
 to differ materially from historical results or anticipated results. These
 risks include a history of operating losses. The Company's quarterly operating
 results have fluctuated significantly in the past, and may fluctuate in the
 future, due to a number of factors, including the number, size and timing of
 customer orders, the timing and market acceptance of the Company's new
 products, the dependence on resellers, the level and pricing of international
 sales, changes in the level of operating expenses, technological advances and
 new product introductions by the Company's competitors, competitive conditions
 in the industry and foreign currency exchange rates. In addition, the sales
 cycle for the Company's products is lengthy and unpredictable depending upon
 the interest of the prospective customer in the Company's products, the size
 of the order, the decision-making and acceptance procedures within the
 customer's organization, the complexity of implementation and other factors.
 The Company's operating results may also vary significantly due to seasonal
 trends, as a result of efforts by the Company's direct sales personnel to meet
 annual quotas, lower international revenues in the summer months when many
 European businesses experience lower sales, the establishment of calendar year
 capital budgets by prospective customers, as well as other factors. There can
 be no assurance that the Company will be able to achieve or maintain
 profitability on a quarterly or annual basis in the future. These and other
 risks and uncertainties that could affect the Company's future operating
 results are described from time to time in Novadigm's filings with the
 Securities and Exchange Commission. In particular, see the Risk Factors
 described in the Company's Form 10-K for the fiscal year ended March 31, 2000,
 and Form 10-Q for the quarters ended June 30, 2000, September 30, 2000 and
 December 31, 2000.  Except as expressly required by the Federal Securities
 laws, the Company undertakes no obligation to update or revise these
 forward-looking statements or forecasts to reflect new events or changed
 circumstances or for any other reason.
     NOTE:  Novadigm, Enterprise Desktop Manager, Radia and e-wrap are either
 trademarks or registered trademarks of Novadigm, Inc. All other product,
 trademark, company or service names mentioned herein are the property of their
 respective owners.
 
                                 NOVADIGM, INC.
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (Amounts in thousands, except per share amounts)
                                  (Unaudited)
 
 
                                              Three Months     Twelve Months
                                                  Ended            Ended
                                                 March 31,        March 31,
                                              2001     2000    2001      2000
     REVENUES:
       Licenses                             $11,144   $9,183  $31,247  $27,978
       Maintenance and services               5,630    4,084   19,199   16,750
         Total revenues                      16,774   13,267   50,446   44,728
     OPERATING EXPENSES:
       Cost of maintenance and services       3,253    1,507    9,278    5,355
       Sales and marketing                    7,667    6,768   25,934   21,912
       Research and development               2,520    1,732    9,003    6,126
       General and administrative             2,313    1,634    8,305    6,823
       Amortization of intangible             2,018       --    6,046       --
         Total operating expenses            17,771   11,641   58,566   40,216
     Operating income (loss)                  (997)    1,626  (8,120)    4,512
     Interest income, net                       426      317    1,586    1,058
     Other Income                                --       --    2,171       --
     Income (loss) before provision
      for income taxes                        (571)    1,943  (4,363)    5,570
     Provision for income taxes                  30      202      233      427
 
     Net income (loss)                       $(601)   $1,741 $(4,596)   $5,143
 
     Earnings per share-basic
     Loss per share - basic and diluted     $(0.03)    $0.09  $(0.23)    $0.28
 
     Weighted average common shares
      outstanding-basic                      20,041   18,523   19,711   18,185
 
     Earnings per share-diluted (*)          $ 0.07    $0.08   $ 0.01    $0.25
 
     Weighted average common and common
      equivalent shares outstanding
      - diluted                              20,461   21,373   19,850   20,558
 
     (*) excluding $2 million of amortization of intangible for the three
 months ended March 31, 2001; and excluding $6 million of amortization of
 intangible and $2.2 million of non-recurring other income and related expense
 of $984 thousand for the twelve months ended March 31, 2001
 
                                 NOVADIGM, INC.
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
 
                                                     March 31,       March 31,
                                                       2001            2000
                                                    (unaudited)
     ASSETS
 
     Cash and cash equivalents                        $20,592         $3,670
     Short-term marketable securities                   6,570         21,348
     Accounts receivable, net                          18,179         15,544
     Prepaid expenses and other current assets          1,250          1,144
         Total current assets                          46,591         41,706
     Property and equipment, net                        2,705          1,894
     Intangible Assets                                 10,089             --
     Other assets                                         547            780
                                                      $59,932        $44,380
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Accounts payable and accrued liabilities         $10,669         $7,953
     Deferred revenue                                   5,113          4,712
         Total current liabilities                     15,782         12,665
     Stockholders' equity                              44,150         31,715
                                                      $59,932        $44,380
 
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X31825686
 
 SOURCE  Novadigm, Inc.