Ultimate Software Reports First Quarter 2001 Results

Apr 25, 2001, 01:00 ET from The Ultimate Software Group, Inc.

    WESTON, Fla., April 25 /PRNewswire/ --
 The Ultimate Software Group, Inc. (Nasdaq: ULTI), a leading provider of Web-
 based payroll and employee management solutions, today announced financial
 results for its first quarter ended March 31, 2001.
     For the first quarter of 2001, Ultimate Software's total revenues
 increased 7% to $15.8 million from $14.8 million for the same period of 2000.
 License revenues decreased 18% to $5.3 million from $6.5 million for the same
 period of 2000.  Service revenues increased 26% to $10.5 million from
 $8.3 million for the same period of 2000.  Net results for the first quarter
 of 2001 were a net loss of $0.5 million as compared to a net loss of
 $0.7 million for the same period of 2000.  Net loss per share for the first
 quarter of 2001 was $0.03 as compared to a net loss per share of $0.04 for the
 same period of 2000.
     As of March 31, 2001, cash and cash equivalents increased $6.9 million to
 $14.5 million at March 31, 2001, from $7.6 million at December 31, 2000.
 Total deferred revenues increased $10.2 million to $20.1 million as of March
 31, 2001, from $9.9 million as of December 31, 2000.
     On a sequential quarter basis, total revenues for the quarter ended
 March 31, 2001, increased 10% over total revenues of $14.4 million for the
 fourth quarter 2000.  License revenues increased 32% over fourth quarter 2000
 license revenues of $4.0 million.  Service revenues increased 1% over fourth
 quarter 2000 service revenues of $10.3 million.  Net results increased by
 $3.5 million from a net loss of $4.1 million for fourth quarter 2000 to a net
 loss of $0.5 million for the first quarter of 2001.
     "I am pleased with the overall health of our core business and our
 continuing ability to execute on our business service provider (BSP) co-
 branding initiative, designed to accelerate distribution to the smaller
 company market.  The Ceridian Corporation contract signed in the first quarter
 is our tenth BSP agreement and further validates our strategy to position
 Ultimate Software as the premier employee management and payroll
 infrastructure provider for the Internet economy," said Scott Scherr, CEO,
 president and founder of Ultimate Software.
     Ultimate Software's financial results teleconference will be broadcast
 live at 5:00 p.m. Eastern Time on Wednesday, April 25, 2001, via World
 Investor Link at http://www.vcall.com/NASApp/VCall/EventPage?ID=72870 and
 available for replay at the same address.
 
     Forward-Looking Statement
     Certain statements in this press release are forward-looking statements
 within the meaning thereof under the Private Securities Litigation Reform Act
 of 1995.  Such forward-looking statements are made only as of the date hereof.
 These statements involve known and unknown risks and uncertainties that may
 cause the Company's actual results to differ materially from those stated or
 implied by such forward-looking statements, including risks and uncertainties
 associated with fluctuations in the Company's quarterly operating results,
 concentration of the Company's product offerings, development risks involved
 with new products and technologies, competition and other factors disclosed in
 the Company's filings with the Securities and Exchange Commission.  The
 Company undertakes no obligation to publicly update or revise any forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
 
     About Ultimate Software
     Ultimate Software is a leading provider of Web-based payroll and employee
 management solutions, and its mission is to become the premier infrastructure
 provider of Internet payroll and employee management solutions.  With the
 Company's award-winning UltiPro solutions, customers can empower their entire
 workforce -- employees, managers and executives -- to pursue a new level of
 efficiency and strategic business performance.  Headquartered in Florida,
 Ultimate Software employs approximately 440 professionals and has licensed its
 software to more than 1,150 customers, representing approximately 3,500
 companies and servicing approximately 1.3 million employees nationwide.  More
 information on Ultimate Software's award-winning products and services can be
 found at www.ultimatesoftware.com.
     UltiPro is a registered trademark of The Ultimate Software Group, Inc.
 All other trademarks referenced are the property of their respective owners.
 
                THE ULTIMATE SOFTWARE GROUP, INC. AND SUBSIDIARY
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
 
                                                        For the Three Months
                                                          Ended March 31,
                                                         2001           2000
                                                             (Unaudited)
     Revenues, net:
       License                                         $5,327         $6,486
       Services                                        10,478          8,342
         Total revenues, net                           15,805         14,828
     Cost of revenues:
       License                                            312            346
       Services                                         5,825          5,547
         Total cost of revenues                         6,137          5,893
     Operating expenses:
       Sales and marketing                              4,627          4,711
       Research and development                         4,266          3,624
       General and administrative                       1,385          1,292
         Total operating expenses                      10,278          9,627
         Operating loss                                 (610)          (692)
     Interest expense                                    (50)          (105)
     Interest and other income                            120             83
       Net loss                                        $(540)         $(714)
 
     Net loss per share:
       Basic and diluted                              $(0.03)        $(0.04)
 
     Weighted average shares outstanding:
       Basic and Diluted                               16,043         16,054
 
 
                  THE ULTIMATE SOFTWARE GROUP, INC. AND SUBSIDIARY
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                     (Dollars in thousands, except share data)
 
                                                      As of          As of
                                                    March 31,     December 31,
                                                       2001           2000
                ASSETS                             (Unaudited)
 
     Current assets:
       Cash and cash equivalents                      $14,496        $ 7,572
       Accounts receivable, net                        19,150         18,825
       Prepaid expenses and other current assets        1,691          1,025
         Total current assets                          35,337         27,422
 
     Property and equipment, net                        6,053          6,211
     Other assets, net                                    830            807
         Total assets                                $ 42,220       $ 34,440
 
            LIABILITIES AND
          STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                                $1,216         $2,059
       Accrued expenses                                 5,161          5,623
       Deferred revenue                                19,511          9,540
       Current portion of capital
        lease obligations                               1,975          2,017
         Total current liabilities                     27,863         19,239
 
     Capital lease obligations,
      net of current portion                              649            943
     Deferred revenue                                     559            354
         Total liabilities                             29,071         20,536
 
     Stockholders' equity:
       Preferred Stock, $.01 par value                    ---            ---
       Series A Junior Participating
        Preferred Stock, $.01 par value                   ---            ---
       Common Stock, $.01 par value                       161            161
       Additional paid-in capital                      65,728         65,693
       Accumulated deficit                           (52,306)       (51,766)
                                                       13,583         14,088
       Treasury Stock, at cost                          (434)          (184)
         Total stockholders' equity                    13,149         13,904
         Total liabilities and
          stockholders' equity                       $ 42,220       $ 34,440
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
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SOURCE The Ultimate Software Group, Inc.
    WESTON, Fla., April 25 /PRNewswire/ --
 The Ultimate Software Group, Inc. (Nasdaq: ULTI), a leading provider of Web-
 based payroll and employee management solutions, today announced financial
 results for its first quarter ended March 31, 2001.
     For the first quarter of 2001, Ultimate Software's total revenues
 increased 7% to $15.8 million from $14.8 million for the same period of 2000.
 License revenues decreased 18% to $5.3 million from $6.5 million for the same
 period of 2000.  Service revenues increased 26% to $10.5 million from
 $8.3 million for the same period of 2000.  Net results for the first quarter
 of 2001 were a net loss of $0.5 million as compared to a net loss of
 $0.7 million for the same period of 2000.  Net loss per share for the first
 quarter of 2001 was $0.03 as compared to a net loss per share of $0.04 for the
 same period of 2000.
     As of March 31, 2001, cash and cash equivalents increased $6.9 million to
 $14.5 million at March 31, 2001, from $7.6 million at December 31, 2000.
 Total deferred revenues increased $10.2 million to $20.1 million as of March
 31, 2001, from $9.9 million as of December 31, 2000.
     On a sequential quarter basis, total revenues for the quarter ended
 March 31, 2001, increased 10% over total revenues of $14.4 million for the
 fourth quarter 2000.  License revenues increased 32% over fourth quarter 2000
 license revenues of $4.0 million.  Service revenues increased 1% over fourth
 quarter 2000 service revenues of $10.3 million.  Net results increased by
 $3.5 million from a net loss of $4.1 million for fourth quarter 2000 to a net
 loss of $0.5 million for the first quarter of 2001.
     "I am pleased with the overall health of our core business and our
 continuing ability to execute on our business service provider (BSP) co-
 branding initiative, designed to accelerate distribution to the smaller
 company market.  The Ceridian Corporation contract signed in the first quarter
 is our tenth BSP agreement and further validates our strategy to position
 Ultimate Software as the premier employee management and payroll
 infrastructure provider for the Internet economy," said Scott Scherr, CEO,
 president and founder of Ultimate Software.
     Ultimate Software's financial results teleconference will be broadcast
 live at 5:00 p.m. Eastern Time on Wednesday, April 25, 2001, via World
 Investor Link at http://www.vcall.com/NASApp/VCall/EventPage?ID=72870 and
 available for replay at the same address.
 
     Forward-Looking Statement
     Certain statements in this press release are forward-looking statements
 within the meaning thereof under the Private Securities Litigation Reform Act
 of 1995.  Such forward-looking statements are made only as of the date hereof.
 These statements involve known and unknown risks and uncertainties that may
 cause the Company's actual results to differ materially from those stated or
 implied by such forward-looking statements, including risks and uncertainties
 associated with fluctuations in the Company's quarterly operating results,
 concentration of the Company's product offerings, development risks involved
 with new products and technologies, competition and other factors disclosed in
 the Company's filings with the Securities and Exchange Commission.  The
 Company undertakes no obligation to publicly update or revise any forward-
 looking statements, whether as a result of new information, future events or
 otherwise.
 
     About Ultimate Software
     Ultimate Software is a leading provider of Web-based payroll and employee
 management solutions, and its mission is to become the premier infrastructure
 provider of Internet payroll and employee management solutions.  With the
 Company's award-winning UltiPro solutions, customers can empower their entire
 workforce -- employees, managers and executives -- to pursue a new level of
 efficiency and strategic business performance.  Headquartered in Florida,
 Ultimate Software employs approximately 440 professionals and has licensed its
 software to more than 1,150 customers, representing approximately 3,500
 companies and servicing approximately 1.3 million employees nationwide.  More
 information on Ultimate Software's award-winning products and services can be
 found at www.ultimatesoftware.com.
     UltiPro is a registered trademark of The Ultimate Software Group, Inc.
 All other trademarks referenced are the property of their respective owners.
 
                THE ULTIMATE SOFTWARE GROUP, INC. AND SUBSIDIARY
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
 
                                                        For the Three Months
                                                          Ended March 31,
                                                         2001           2000
                                                             (Unaudited)
     Revenues, net:
       License                                         $5,327         $6,486
       Services                                        10,478          8,342
         Total revenues, net                           15,805         14,828
     Cost of revenues:
       License                                            312            346
       Services                                         5,825          5,547
         Total cost of revenues                         6,137          5,893
     Operating expenses:
       Sales and marketing                              4,627          4,711
       Research and development                         4,266          3,624
       General and administrative                       1,385          1,292
         Total operating expenses                      10,278          9,627
         Operating loss                                 (610)          (692)
     Interest expense                                    (50)          (105)
     Interest and other income                            120             83
       Net loss                                        $(540)         $(714)
 
     Net loss per share:
       Basic and diluted                              $(0.03)        $(0.04)
 
     Weighted average shares outstanding:
       Basic and Diluted                               16,043         16,054
 
 
                  THE ULTIMATE SOFTWARE GROUP, INC. AND SUBSIDIARY
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                     (Dollars in thousands, except share data)
 
                                                      As of          As of
                                                    March 31,     December 31,
                                                       2001           2000
                ASSETS                             (Unaudited)
 
     Current assets:
       Cash and cash equivalents                      $14,496        $ 7,572
       Accounts receivable, net                        19,150         18,825
       Prepaid expenses and other current assets        1,691          1,025
         Total current assets                          35,337         27,422
 
     Property and equipment, net                        6,053          6,211
     Other assets, net                                    830            807
         Total assets                                $ 42,220       $ 34,440
 
            LIABILITIES AND
          STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                                $1,216         $2,059
       Accrued expenses                                 5,161          5,623
       Deferred revenue                                19,511          9,540
       Current portion of capital
        lease obligations                               1,975          2,017
         Total current liabilities                     27,863         19,239
 
     Capital lease obligations,
      net of current portion                              649            943
     Deferred revenue                                     559            354
         Total liabilities                             29,071         20,536
 
     Stockholders' equity:
       Preferred Stock, $.01 par value                    ---            ---
       Series A Junior Participating
        Preferred Stock, $.01 par value                   ---            ---
       Common Stock, $.01 par value                       161            161
       Additional paid-in capital                      65,728         65,693
       Accumulated deficit                           (52,306)       (51,766)
                                                       13,583         14,088
       Treasury Stock, at cost                          (434)          (184)
         Total stockholders' equity                    13,149         13,904
         Total liabilities and
          stockholders' equity                       $ 42,220       $ 34,440
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X45903146
 
 SOURCE  The Ultimate Software Group, Inc.