EX-99.1 2 a04-12290_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

 

Click Commerce Announces 5th Straight Quarter of
Record Profits

 

Results Fueled By Strong Quarter Over Quarter Revenue Growth

 

 

CHICAGO, Oct. 27, 2004 — Click Commerce, Inc. (Nasdaq: CKCM), a leading provider of collaborative extranet solutions, today announced results for the third quarter ended Sept. 30, 2004.

 

Third quarter 2004 total revenues were $7.1 million and net income was $1.5 million, or $0.14 per share on a fully diluted basis. This compares with second quarter revenues of $6.2 million and net income of $1.2 million, or $0.13 per share. This represents the Company’s fifth consecutive profitable quarter, with a pre-tax profit margin of 19 percent in the third quarter. Revenues grew over 40 percent compared to revenues of $5.0 million for the same quarter last year.

 

“Click Commerce achieved quarter over quarter growth through effective sales and marketing execution, the addition of 70 new clients, and the completion of our bTrade acquisition in July,” said Michael W. Ferro, Jr., chairman and CEO of Click Commerce. “We are committed to executing our strategic plan that delivers financial results and positions Click Commerce as a leader in the marketplace.”

 

The Company’s third quarter was marked by new customer wins, license renewals and new service system management agreements.

 

Quarterly Highlights

 

The following highlights occurred since the Company’s last earnings release:

 

New Business

Click Commerce announced quarter over quarter growth in new business by concluding agreements with over 70 new customers in the third quarter. Industry leaders such as Interstate Batteries, Sharp Electronics, Berkshire Mortgage and clothing retailer Ann Taylor chose Click Commerce solutions to secure transactions with their channel partners and streamline their operations through process automation.

 

- MORE -

 

 

 


 

 

Page 2 — Click Commerce Announces 5th Straight Quarter of Profits

 

The Company also announced that UCCnet, a subsidiary of the Uniform Code Council, is now using the Click Commerce TDNgine message management software as the hub for its data synchronization network. UCCnet required a scalable, secure and reliable system that could easily manage Internet-based trading partner communications and grow with the organization.

 

The Company also reported customer wins in compliance automation for human subject research and animal care and research in the healthcare and higher education markets.

 

Customer Renewals and Upgrades

The Company announced that its customer base continues to invest in collaborative commerce and channel management initiatives utilizing Click Commerce solutions. In the third quarter, the Company secured renewals and/or upgrades from over 75 companies in the automotive, high tech and manufacturing industries. Several of these clients are expanding their deployments internationally and have selected Click Commerce as their global partner relationship management platform.

 

Click Commerce also signed a significant services contract with Pearson Government Solutions. The Click Commerce/Pearson project utilizes TDNgine software to process millions of transactions for a department of the federal government.

 

New Customers In Production

In Q3, the Click Commerce services organization deployed over 60 client projects into production in the high tech, transportation and manufacturing industries. The Company also deployed production projects to the University of Rochester, the University of Utah, the University of Washington, MetroHealth Clinic and its first animal care site at the University of British Columbia. The Company is further engaged in over 160 active projects.

 

Hosting Operations and System Management

For the third quarter, the Company announced that new and existing customers continue to turn to Click Commerce for turn-key solutions as well as system management of their existing installations. During the third quarter, over 60 clients contracted with Click Commerce for hosting, system management or system monitoring services.

 

 

- MORE -

 


 

 

 

Page 3 — Click Commerce Announces 5th Straight Quarter of Profits

 

 

New Product Releases

In Q3, the Company released its Click Commerce 7.5 extranet solution, which integrated its partner relationship management and e-Commerce applications onto a single, unified platform. With the 7.5 release, the Company’s clients can expand the functionality of their sell-side portals with minimal deployment costs.

 

Click Commerce also renewed its commitment to a leadership position in the data synchronization marketplace in the third quarter. The Company announced that it passed the beta test to become a data pool in the Global Data Synchronization Network (GDSN). The GDSN is the repository for item information and data synchronization in the global retail supply chain. Click Commerce is one of four companies in North America to be designated as both a source data pool and a recipient data pool. Data pools and data synchronization are enabling technologies for the emerging RFID solutions market.

 

Awards

In Q3, Click Commerce and several of its customers received awards:

 

•                  For the fourth consecutive year, Click Commerce was recognized as one of the fastest growing technology companies in Chicago by Deloitte & Touche.

•                  Click Commerce was ranked in Software Magazine’s Top 500 software vendors.

•                  Several Click Commerce customers, including Microsoft and Samsung, were recognized by VARBusiness Magazine in their 2004 Annual Report Card (ARC) Awards. The ARC award assesses and analyzes solution providers’ satisfaction with their vendor partners. Powered by Click Commerce software, the companies were recognized for their strong, effective partner relationships. Samsung received the number one ranking for the second straight year. Allison Watson, vice president of worldwide partner sales and marketing at Microsoft, received the Channel Executive of the Year Award. Microsoft successfully manages their 775,000 partner-strong community utilizing Click Commerce technology.

 

 

-  MORE -

 

 


 

 

Page 4 — Click Commerce Announces 5th Straight Quarter of Profits

 

 

About Click Commerce, Inc.

Click Commerce (Nasdaq: CKCM) provides extranet solutions for channel management, collaborative commerce, and compliance automation. Click solutions are used by enterprises and institutions in the manufacturing, high tech, financial services, retail, healthcare and higher education industries. Leading corporations such as Microsoft, Delphi, Honda, Citibank, FedEx, Carrier, Samsung, Kawasaki, Logitech, Hitachi, and Tellabs have transformed their business relationships using Click Commerce solutions. Six of the top ten research institutions in North America, including Johns Hopkins, the University of Washington, and the University of Michigan, use the company’s compliance automation software to automate their regulatory compliance processes and manage research project approvals. More information can be found at www.clickcommerce.com.

 

Click Commerce is a registered trademark of Click Commerce, Inc. and its subsidiaries. All other company and product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

 

Information Concerning Forward-Looking Statements

Information contained in this release that are not historical facts and refer to the Company’s future operations are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements involve expectations, beliefs, hopes, plans or strategies regarding the future. These statements are subject to risks and uncertainties and actual results may differ materially from those indicated by these forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to: success of our suite of applications, impact of acquisitions or investments in other companies, general economic trends, introduction of new products or services by competitors, and security risks and regulation related to the Internet. We refer you to the risk factors listed in our annual report on Form 10-K, quarterly reports on form 10Q and other filings, which are on file with the SEC. In addition, Click Commerce assumes no obligation to update statements made in this press release.

 

###

 

Investor Contact:

Mike Nelson

Click Commerce, Inc.

(312) 377-3887

mike.nelson@clickcommerce.com

 

Media Contact:

Nancy Koenig

Click Commerce, Inc.

(415) 551-0621

nancy.koenig@clickcommerce.com

 

 

1


 

CLICK COMMERCE, INC.

Consolidated Balance Sheet

 

 

 

 

September 30, 2004

 

December 31, 2003

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash, cash equivalents, and short-term investments

 

$

11,520

 

$

11,863

 

Trade accounts receivable, net

 

6,617

 

4,628

 

Revenue earned on contracts in progress in excess of billings

 

272

 

—

 

Other current assets

 

1,294

 

820

 

Total current assets

 

19,703

 

17,311

 

 

 

 

 

 

 

Property and equipment, net

 

886

 

865

 

Intangibles

 

3,166

 

—

 

Goodwill

 

6,779

 

359

 

Other assets

 

414

 

659

 

Total assets

 

$

30,948

 

$

19,194

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

598

 

$

400

 

Billings in excess of revenues earned on contracts in progress

 

92

 

33

 

Deferred revenue

 

4,995

 

4,785

 

Accrued compensation

 

1,612

 

1,016

 

Accrued expenses and other current liabilities

 

2,053

 

1,832

 

Total current liabilities

 

9,350

 

8,066

 

 

 

 

 

 

 

Other liabilities

 

24

 

79

 

Total liabilities

 

9,374

 

8,145

 

 

 

 

 

 

 

Preferred stock

 

—

 

—

 

Common stock

 

10

 

8

 

Additional paid-in capital

 

69,491

 

62,498

 

Accumulated other comprehensive income

 

152

 

136

 

Deferred compensation

 

—

 

(21

)

Treasury stock

 

(117

)

(117

)

Accumulated deficit

 

(47,962

)

(51,455

)

Total shareholders’ equity

 

21,574

 

11,049

 

 

 

 

 

 

 

Total liabilities and

 

 

 

 

 

shareholders’ equity

 

$

30,948

 

$

19,194

 

 

 


 

Click Commerce, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

Product

 

 

 

 

 

 

 

 

 

Product license

 

$

1,321

 

$

584

 

$

3,181

 

$

1,452

 

Subscription

 

708

 

571

 

1,495

 

1,515

 

Total product

 

2,029

 

1,155

 

4,676

 

2,967

 

Service

 

 

 

 

 

 

 

 

 

Maintenance and hosting

 

2,682

 

1,692

 

6,397

 

4,868

 

Consulting and implementation service

 

2,419

 

2,194

 

7,537

 

5,209

 

Total service

 

5,101

 

3,886

 

13,934

 

10,077

 

Total revenues

 

7,130

 

5,041

 

18,610

 

13,044

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

 

 

 

 

 

 

 

Product license

 

35

 

69

 

121

 

295

 

Service

 

2,526

 

2,197

 

7,208

 

6,310

 

Total cost of revenues

 

2,561

 

2,266

 

7,329

 

6,605

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

4,569

 

2,775

 

11,281

 

6,439

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Sales and marketing

 

1,084

 

676

 

2,362

 

2,508

 

Research and development

 

1,007

 

587

 

2,072

 

1,928

 

General and administrative

 

856

 

891

 

2,971

 

3,737

 

Amortization of stock-based compensation

 

—

 

8

 

21

 

51

 

Amortization of intangible assets

 

262

 

40

 

431

 

68

 

Restructuring and other charges

 

—

 

(983

)

—

 

2,959

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

3,209

 

1,219

 

7,857

 

11,251

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

1,360

 

1,556

 

3,424

 

(4,812

)

 

 

 

 

 

 

 

 

 

 

Other income

 

104

 

19

 

68

 

319

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

1,464

 

1,575

 

3,492

 

(4,493

)

Income tax benefit

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

1,464

 

$

1,575

 

$

3,492

 

$

(4,493

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per weighted average

 

 

 

 

 

 

 

 

 

common share outstanding:

 

 

 

 

 

 

 

 

 

- Basic

 

$

0.15

 

$

0.19

 

$

0.39

 

$

(0.55

)

- Diluted

 

$

0.14

 

$

0.19

 

$

0.37

 

$

(0.55

)

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

- Basic

 

9,707,350

 

8,136,643

 

8,954,253

 

8,117,148

 

- Diluted

 

10,103,344

 

8,186,102

 

9,315,889

 

8,117,148