Rogue Wave Software Reports Financial Results for Second Fiscal Quarter 2001; Company Posts Record Quarter Revenue of $15 Million

Apr 10, 2001, 01:00 ET from Rogue Wave Software, Inc.

    BOULDER, Colo., April 10 /PRNewswire/ -- Rogue Wave Software, Inc.
 (Nasdaq: RWAV) a leading global software and consulting services company,
 today reported record revenue for the second fiscal quarter ended March 31,
 2001, of $15.0 million, up 15 percent from the $13.0 million achieved in the
 second fiscal quarter of 2000.  Net loss for the quarter was ($653,000) or
 ($0.06) per share on a basic and diluted basis, compared to a net loss of
 ($112,000) or ($0.01) per share reported for the same period last year.
 Excluding the impact of certain restructuring costs, the current period loss
 is ($238,000) or ($0.02) per basic and diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000417/RWAVLOGO )
     "Despite recent announcements regarding a sluggish economy, Rogue Wave
 continues to enjoy revenue growth, as reflected in our record second quarter
 performance," stated Jack Iacobucci, CEO and president of Rogue Wave Software.
 "Our focus on delivering mission critical solutions offers a high degree of
 value to our customers, enabling us to secure recent million-dollar
 contracts."
     Continued implementation of the recent release of our Large Scale Object
 Solutions offering, and record revenues in the European and Asia markets also
 contributed to a strong quarter," continued Iacobucci.
     The company announced that operations will cease for Fornova, a division
 of the company, due to its inability to secure outside funding.  This action
 resulted in a restructuring charge, including severance, of approximately
 $640,000 to the second fiscal quarter ended March 31, 2001.
     Although changes in the economy as a whole have made Rogue Wave cautious,
 the company anticipates meeting its fiscal 2001 objectives with revenue in the
 range of $62-65 million and earnings per share on a basic and diluted basis of
 $0.07-$0.10.
     Rogue Wave Software's earnings call will begin today at 4:30 p.m. EDT and
 will be available live via its Web site at www.roguewave.com or by calling
 (800) 260-0718.  There will also be an on-demand webcast replay of the
 conference call beginning two hours after the conclusion of the live
 broadcast, found either at www.roguewave.com or www.streetfusion.com and will
 remain available until April 17, 2001.
 
     About Rogue Wave Software, Inc.
     Rogue Wave Software, Inc. (Nasdaq: RWAV) is a leading global software and
 consulting services company.  Its large-scale, platform-independent business
 frameworks, components and services provide the fastest way to deliver durable
 mission-critical applications.  Today more than 300,000 developers at the
 world's leading companies use Rogue Wave products to develop comprehensive,
 enterprise-level general business and e-business applications.  With
 headquarters in Boulder, Colo., Rogue Wave has offices located throughout the
 United States, Europe, and Asia and can be found on the Internet at
 www.roguewave.com.
 
     Rogue Wave is a registered trademark of Rogue Wave Software, Inc.  All
 other trademarks are the property of their respective owners.
 
     This release may contain projections or other forward-looking statements
 regarding future events or the future financial performance of the company
 that involve risks and uncertainties.  Readers are cautioned that these
 forward-looking statements are only predictions and may differ materially from
 actual future events or results.  Readers are referred to the documents filed
 by Rogue Wave with the SEC, specifically the most recent reports on Form 10-K
 and 10-Q, including amendments thereto, which identify important risk factors
 that could cause actual results to differ from those contained in the
 forward-looking statements, including risks associated with acquisition
 strategy, dependence on new product offerings, competition, patents,
 intellectual property and licensing, future growth, rapid technological and
 market change, manufacturing and sourcing risks, Internet infrastructure and
 regulation, international operations, volatility of stock price, financial
 risk management, and potential volatility in operating results, among others.
 
 
                             ROGUE WAVE SOFTWARE, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
                                                   March 31,   September 30,
                                                     2001           2000
                                                  (unaudited)
                       A S S E T S
     Current assets:
       Cash and short-term investments             $31,341        $33,526
       Accounts receivable, net                     14,227         12,101
       Prepaid and other current assets              3,244          3,102
         Total current assets                       48,812         48,729
 
       Equipment, net                                4,990          5,208
       Other assets, net                             1,555          1,682
         Total assets                              $55,357        $55,619
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                               $595           $880
       Accrued expenses                              5,899          5,746
       Deferred revenue                             11,865         11,700
         Total current liabilities                  18,359         18,326
 
     Stockholders' equity:
       Common stock                                     11             11
       Additional paid-in capital                   41,208         40,801
       Accumulated deficit                          (3,707)        (3,419)
       Other comprehensive loss                       (514)          (100)
         Total stockholders' equity                 36,998         37,293
         Total liabilities and
          stockholders' equity                     $55,357        $55,619
 
 
 
                             ROGUE WAVE SOFTWARE, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data, unaudited)
 
                                     Three months ended     Six months ended
                                         March 31,             March 31,
                                      2001       2000       2001       2000
     Revenue:
       License revenue               $7,681     $7,013    $14,469    $13,825
       Service and maintenance
        revenue                       7,338      6,029     14,845     11,833
         Total revenue               15,019     13,042     29,314     25,658
 
     Cost of revenue:
       Cost of license revenue          220        364        479        808
       Cost of service and
        maintenance revenue           3,536      1,998      6,452      3,925
         Total cost of revenue        3,756      2,362      6,391      4,733
         Gross profit                11,263     10,680     22,383     20,925
 
     Operating expenses:
       Product development            3,738      3,502      7,532      7,157
       Sales and marketing            6,510      5,781     12,610     11,353
       General and administrative     1,714      1,381      2,861      2,729
       Goodwill amortization             --        354         --        955
       Restructuring and severance      640         --        640         --
         Total operating expenses    12,602     11,018     23,643     22,194
         Loss from operations        (1,339)      (338)    (1,260)    (1,269)
     Other income, net                  333        356        815        691
         Income (loss) before
          income taxes               (1,006)        18       (445)      (578)
     Income tax expense (benefit)      (353)       130       (157)        41
         Net loss                     $(653)     $(112)     $(288)     $(619)
 
     Basic and diluted
      loss per share                 $(0.06)    $(0.01)    $(0.03)     $(0.06)
 
     Shares used in per share
      calculation                    10,966     10,504     10,937     10,349
 
 

SOURCE Rogue Wave Software, Inc.
    BOULDER, Colo., April 10 /PRNewswire/ -- Rogue Wave Software, Inc.
 (Nasdaq: RWAV) a leading global software and consulting services company,
 today reported record revenue for the second fiscal quarter ended March 31,
 2001, of $15.0 million, up 15 percent from the $13.0 million achieved in the
 second fiscal quarter of 2000.  Net loss for the quarter was ($653,000) or
 ($0.06) per share on a basic and diluted basis, compared to a net loss of
 ($112,000) or ($0.01) per share reported for the same period last year.
 Excluding the impact of certain restructuring costs, the current period loss
 is ($238,000) or ($0.02) per basic and diluted share.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20000417/RWAVLOGO )
     "Despite recent announcements regarding a sluggish economy, Rogue Wave
 continues to enjoy revenue growth, as reflected in our record second quarter
 performance," stated Jack Iacobucci, CEO and president of Rogue Wave Software.
 "Our focus on delivering mission critical solutions offers a high degree of
 value to our customers, enabling us to secure recent million-dollar
 contracts."
     Continued implementation of the recent release of our Large Scale Object
 Solutions offering, and record revenues in the European and Asia markets also
 contributed to a strong quarter," continued Iacobucci.
     The company announced that operations will cease for Fornova, a division
 of the company, due to its inability to secure outside funding.  This action
 resulted in a restructuring charge, including severance, of approximately
 $640,000 to the second fiscal quarter ended March 31, 2001.
     Although changes in the economy as a whole have made Rogue Wave cautious,
 the company anticipates meeting its fiscal 2001 objectives with revenue in the
 range of $62-65 million and earnings per share on a basic and diluted basis of
 $0.07-$0.10.
     Rogue Wave Software's earnings call will begin today at 4:30 p.m. EDT and
 will be available live via its Web site at www.roguewave.com or by calling
 (800) 260-0718.  There will also be an on-demand webcast replay of the
 conference call beginning two hours after the conclusion of the live
 broadcast, found either at www.roguewave.com or www.streetfusion.com and will
 remain available until April 17, 2001.
 
     About Rogue Wave Software, Inc.
     Rogue Wave Software, Inc. (Nasdaq: RWAV) is a leading global software and
 consulting services company.  Its large-scale, platform-independent business
 frameworks, components and services provide the fastest way to deliver durable
 mission-critical applications.  Today more than 300,000 developers at the
 world's leading companies use Rogue Wave products to develop comprehensive,
 enterprise-level general business and e-business applications.  With
 headquarters in Boulder, Colo., Rogue Wave has offices located throughout the
 United States, Europe, and Asia and can be found on the Internet at
 www.roguewave.com.
 
     Rogue Wave is a registered trademark of Rogue Wave Software, Inc.  All
 other trademarks are the property of their respective owners.
 
     This release may contain projections or other forward-looking statements
 regarding future events or the future financial performance of the company
 that involve risks and uncertainties.  Readers are cautioned that these
 forward-looking statements are only predictions and may differ materially from
 actual future events or results.  Readers are referred to the documents filed
 by Rogue Wave with the SEC, specifically the most recent reports on Form 10-K
 and 10-Q, including amendments thereto, which identify important risk factors
 that could cause actual results to differ from those contained in the
 forward-looking statements, including risks associated with acquisition
 strategy, dependence on new product offerings, competition, patents,
 intellectual property and licensing, future growth, rapid technological and
 market change, manufacturing and sourcing risks, Internet infrastructure and
 regulation, international operations, volatility of stock price, financial
 risk management, and potential volatility in operating results, among others.
 
 
                             ROGUE WAVE SOFTWARE, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
                                                   March 31,   September 30,
                                                     2001           2000
                                                  (unaudited)
                       A S S E T S
     Current assets:
       Cash and short-term investments             $31,341        $33,526
       Accounts receivable, net                     14,227         12,101
       Prepaid and other current assets              3,244          3,102
         Total current assets                       48,812         48,729
 
       Equipment, net                                4,990          5,208
       Other assets, net                             1,555          1,682
         Total assets                              $55,357        $55,619
 
         LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
       Accounts payable                               $595           $880
       Accrued expenses                              5,899          5,746
       Deferred revenue                             11,865         11,700
         Total current liabilities                  18,359         18,326
 
     Stockholders' equity:
       Common stock                                     11             11
       Additional paid-in capital                   41,208         40,801
       Accumulated deficit                          (3,707)        (3,419)
       Other comprehensive loss                       (514)          (100)
         Total stockholders' equity                 36,998         37,293
         Total liabilities and
          stockholders' equity                     $55,357        $55,619
 
 
 
                             ROGUE WAVE SOFTWARE, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data, unaudited)
 
                                     Three months ended     Six months ended
                                         March 31,             March 31,
                                      2001       2000       2001       2000
     Revenue:
       License revenue               $7,681     $7,013    $14,469    $13,825
       Service and maintenance
        revenue                       7,338      6,029     14,845     11,833
         Total revenue               15,019     13,042     29,314     25,658
 
     Cost of revenue:
       Cost of license revenue          220        364        479        808
       Cost of service and
        maintenance revenue           3,536      1,998      6,452      3,925
         Total cost of revenue        3,756      2,362      6,391      4,733
         Gross profit                11,263     10,680     22,383     20,925
 
     Operating expenses:
       Product development            3,738      3,502      7,532      7,157
       Sales and marketing            6,510      5,781     12,610     11,353
       General and administrative     1,714      1,381      2,861      2,729
       Goodwill amortization             --        354         --        955
       Restructuring and severance      640         --        640         --
         Total operating expenses    12,602     11,018     23,643     22,194
         Loss from operations        (1,339)      (338)    (1,260)    (1,269)
     Other income, net                  333        356        815        691
         Income (loss) before
          income taxes               (1,006)        18       (445)      (578)
     Income tax expense (benefit)      (353)       130       (157)        41
         Net loss                     $(653)     $(112)     $(288)     $(619)
 
     Basic and diluted
      loss per share                 $(0.06)    $(0.01)    $(0.03)     $(0.06)
 
     Shares used in per share
      calculation                    10,966     10,504     10,937     10,349
 
 SOURCE  Rogue Wave Software, Inc.

RELATED LINKS

http://www.roguewave.com