EX-99.1 2 a05-7498_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

 

Dendrite Reports First Quarter Results

 

 

      Signs record-high total contract value (TCV) of nearly $200 million

 

 

 

      GAAP EPS of ($0.03) includes charges associated with surplus facilities and other items.  Excluding such items, adjusted EPS reported at $0.12

 

 

 

      Confirms full year business outlook of low double-digit revenue growth and greater than 25% adjusted EPS growth

 

 

 

Bedminster, N.J., April 28, 2005 - Dendrite International, Inc. (NASDAQ: DRTE) today reported its financial results for the quarterly period ending March 31, 2005.

 

 

Financial Results

Revenues increased 5% versus the first quarter of 2004 to $99.4 million. Marketing solutions revenues of $24.6 million were up 18% versus the same period of the prior year. Sales solutions revenues, including $3.3 million of software license fee revenue, totaled $70.2 million in the first quarter of 2005 and remained flat as compared to the same period in 2004.

 

The Company reported a first quarter 2005 GAAP loss of ($0.03) per share, compared to GAAP diluted earnings of $0.13 per share for the first quarter of 2004.  GAAP earnings include approximately $1.3 million of non-cash amortization expense pertaining to acquisition-related intangible assets and $9.4 million of accounting charges related to post-consolidation surplus facilities and severance. Excluding these items, first quarter 2005 adjusted earnings were $0.12 per diluted share. The Company reported adjusted earnings of $0.15 per diluted share in the first quarter of the previous year. A reconciliation of GAAP results to adjusted results can be found on the unaudited financial tables included with this press release.

 

 

 

Dendrite ended the first quarter of 2005 with $53.3 million in cash and cash equivalents.  The Company generated approximately $7.3 million of cash from operations.

 

1405/1425 ROUTE 206 SOUTH BEDMINSTER, NJ 07921

P: 908.443.2000 F: 908.443.2100

 



 

April 28, 2005

 

Business Highlights

 

Dendrite announced it completed the first quarter with a number of significant business achievements. The record high of nearly $200 million TCV signed in the first quarter included the successful closure of the key contracts that had been delayed from the previous quarter. The quarter’s key events were:

 

      Signing a five-year agreement with the sanofi-aventis Group to support its newly combined US salesforce, making sanofi-aventis the 2nd largest customer for Dendrite.

 

      Signing a three-year products and services contract with ALTANA Pharma, US, Inc, the US-based subsidiary of ALTANA AG, for Dendrite’s newly launched WebForceTM solution suite.  ALTANA is Dendrite’s charter customer for its .net solution suite.

 

      Signing a three-year services and implementation contract for PDI’s Select Access™ sales teams (formerly PDI sales). This is the first Contract Sales Organization (CSO) to utilize WebForceTM.

 

      Adding 1,800 users through a software license agreement with the Japanese subsidiary of a major US-based pharmaceutical company.

 

      Winning significant deals for Dendrite’s SFA based solutions (PharbaseTM and WebForceTM) for over 1,000 users in Europe, including several multi-country commitments.

 

      Signing a three-year services contract extension with Forest Laboratories to provide helpdesk, account and project management support for over 2,800 sales representatives and district managers adopting the mySAP® CRM for Pharmaceuticals solution.

 

      Adding over 500 users in Latin America by securing SFA-based (WebForceTM andVisiForce®) software and service agreements with several major pharmaceutical companies.

 

      Securing several US strategic wins in the areas of Patient Assistance, compliance, persistence, and loyalty programs through the Company’s innovative approach to Marketing.

 

      Dendrite’s newly acquired BuzzeoPDMA division entered into several regulatory and/or compliance contracts, including being retained to conduct physical inventories of prescription drugs for a large pharmacy chain with over 1,500 locations nationwide, and providing Reconciliation Services for over 400 sales representatives from a mid-tier pharmaceutical company.

 

Outlook

 

The Company confirmed its previously communicated outlook for the first half and full year 2005.  “We continue to expect revenues for the first half of 2005 to

 

2



 

be in the range of $211-215 million, up 8-10% versus the same period of the prior year,” stated Senior VP and CFO Kathy Donovan.  “We believe that this level of revenue should yield first half 2005 adjusted earnings in the range of $0.36-$0.38 per share, up 10-15% from the prior year.   GAAP EPS, which includes the $9.4 million of charges taken in the first quarter and approximately $2.4 million of acquisition-related intangible expense, is expected to be in the range of $0.20-0.23 per diluted share.”

 

The Company also believes it is still on target to deliver the 2005 full year outlook of low double-digit revenue growth, excluding any 2005 acquisitions, and adjusted EPS growth of more than 25% versus prior year.   Adjusted EPS excludes the $9.4 million of charges taken in the first quarter and approximately $4.2 million of acquisition-related intangible expense

 

This outlook is based on current expectations and assumptions and constitutes “forward-looking information.”  The Company can give no assurance that such expectations and assumptions will prove to be correct.  The Company does not intend to update such outlook to reflect actual results or changes in expectations or assumptions during the period other than in connection with regularly scheduled earnings releases.

 

Additionally, at such time in the future as the Company may provide additional revenue, earnings and other outlook information (including subsequent outlook provided as part of its quarterly sales and earnings releases), prior revenues, earnings or other related outlook (including any prior rolling 6-month outlook) should no longer be considered current.

 

To participate in Dendrite’s earnings call web cast on April 28, 2005 at 5 p.m. EDT, or to obtain replay information, please visit the Investors’ Highlights Section of our website at www.dendrite.com .

 

3



 

About Dendrite

 

Founded in 1986, Dendrite International (NASDAQ: DRTE) provides diversified sales, marketing, clinical and compliance solutions to the global life sciences and pharmaceutical industry.  With clients in more than 50 countries, including the world top 20 pharmaceutical companies, Dendrite strives to be the first source for expert promotional and sales effectiveness solutions.  For more information, please visit www.dendrite.com.

 

 

Investor Relations

Christine Croft
908-443-4265
christine.croft@dendrite.com

 

Note: Dendrite is a registered trademark of Dendrite International, Inc.

 

This document contains forward-looking statements that may be identified by such forward-looking terminology as “expect,” “believe,” “anticipate,” “will,” “intend,” “plan,” “target,” “outlook,” “guidance,” and similar statements or variations. Such forward-looking statements are based on our current expectations, estimates, assumptions and projections and involve significant risks and uncertainties, including risks which may result from our dependence on the pharmaceutical industry; fluctuations in quarterly revenues due to lengthy sales and implementation cycles for our products; our fixed expenses in relation to fluctuating revenues and variations in customers’ budget cycles; dependence on certain major customers; changes in demand for our products and services attributable to any weakness experienced in the economy or mergers, acquisitions and consolidations in the pharmaceutical industry; successful and timely development and introduction of new products and versions; rapid technological changes; risks associated with foreign currency fluctuations as they affect our non-U.S. operations; increased competition; risks associated with our expanded international operations and our ability to adopt and respond successfully to the unique risks involved in our non-U.S. operations; risks associated with acquisitions; our ability to effectively manage our growth; the protection of our proprietary technology; our ability to compete in the Internet-related products and services market; the continued demand for Internet-related products and services; the ability of our third party vendors to respond to technological change; our ability to maintain our relationships with third-party vendors;  less favorable than anticipated results from strategic relationships; dependence of data solutions on strategic relationships; events which may affect the U.S. and world economies; and catastrophic events which could negatively affect our information technology infrastructure. Other important factors that should be reviewed and carefully considered are included in the Company’s 10-K, 10-Qs, and other reports filed with the SEC. Actual results may differ materially. The Company assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in expectations or assumptions or other changes affecting such forward-looking statements.

 

4



 

TABLE 1

DENDRITE INTERNATIONAL, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

 

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

 

 

Three Months Ended March 31,

 

 

 

2005

 

%

 

2004

 

%

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services & Technology:

 

 

 

 

 

 

 

 

 

 

 

Sales solutions

 

$

70,177

 

70.6

%

$

70,411

 

74.1

%

0

%

Marketing solutions

 

24,611

 

24.7

%

20,801

 

21.9

%

18

%

 

 

 

 

 

 

 

 

 

 

 

 

Shipping

 

4,659

 

4.7

%

3,852

 

4.1

%

21

%

Total revenues

 

99,447

 

100.0

%

95,064

 

100.0

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs & Expenses:

 

 

 

 

 

 

 

 

 

 

 

Operating costs (including shipping)

 

53,651

 

53.9

%

49,807

 

52.4

%

8

%

Selling, general and administrative

 

35,788

 

36.0

%

32,157

 

33.8

%

11

%

Research and development

 

1,818

 

1.8

%

3,022

 

3.2

%

-40

%

Facility and other charges

 

9,372

 

9.4

%

 

0.0

%

NM

 

Amortization of acquired intangible assets

 

1,250

 

1.3

%

1,027

 

1.1

%

22

%

Other operating income

 

 

0.0

%

(339

)

-0.4

%

NM

 

Total operating costs & expenses

 

101,879

 

102.4

%

85,674

 

90.1

%

19

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

(2,432

)

-2.4

%

9,390

 

9.9

%

-126

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income), net

 

(141

)

-0.1

%

(7

)

0.0

%

NM

 

Other (income), net

 

(23

)

0.0

%

(43

)

0.0

%

-47

%

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax (benefit) expense

 

(2,268

)

-2.3

%

9,440

 

9.9

%

-124

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

(873

)

-0.9

%

3,776

 

4.0

%

-123

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(1,395

)

-1.4

%

$

5,664

 

6.0

%

-125

%

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

 

$

0.14

 

 

 

-124

%

Diluted

 

$

(0.03

)

 

 

$

0.13

 

 

 

-125

%

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

42,470

 

 

 

40,919

 

 

 

 

 

Diluted

 

42,470

 

 

 

42,515

 

 

 

 

 


   NM - Not meaningful.

 



 

TABLE 2

DENDRITE INTERNATIONAL, INC.

 

ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)

 

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

 

 

Three Months Ended March 31, (1)

 

 

 

 

 

 

 

2005

 

%

 

2004

 

%

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services & Technology:

 

 

 

 

 

 

 

 

 

 

 

Sales solutions

 

$

70,177

 

70.6

%

$

70,411

 

74.1

%

0

%

Marketing solutions

 

24,611

 

24.7

%

20,801

 

21.9

%

18

%

 

 

 

 

 

 

 

 

 

 

 

 

Shipping

 

4,659

 

4.7

%

3,852

 

4.1

%

21

%

Total revenues

 

99,447

 

100.0

%

95,064

 

100.0

%

5

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs & Expenses:

 

 

 

 

 

 

 

 

 

 

 

Operating costs (including shipping)

 

53,651

 

53.9

%

49,807

 

52.4

%

8

%

Selling, general and administrative

 

35,788

 

36.0

%

32,157

 

33.8

%

11

%

Research and development

 

1,818

 

1.8

%

3,022

 

3.2

%

-40

%

Facility and other charges

 

 

0.0

%

 

0.0

%

NM

 

Amortization of acquired intangible assets

 

 

0.0

%

 

0.0

%

NM

 

Other operating income

 

 

0.0

%

(339

)

-0.4

%

NM

 

Total operating costs & expenses

 

91,257

 

91.8

%

84,647

 

89.0

%

8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

8,190

 

8.2

%

10,417

 

11.0

%

-21

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income), net

 

(141

)

-0.1

%

(7

)

0.0

%

NM

 

Other (income), net

 

(23

)

0.0

%

(43

)

0.0

%

-47

%

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax expense

 

8,354

 

8.4

%

10,467

 

11.0

%

-20

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

3,216

 

3.2

%

4,187

 

4.4

%

-23

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5,138

 

5.2

%

$

6,280

 

6.6

%

-18

%

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

 

 

$

0.15

 

 

 

-21

%

Diluted

 

$

0.12

 

 

 

$

0.15

 

 

 

-20

%

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

42,470

 

 

 

40,919

 

 

 

 

 

Diluted

 

43,744

 

 

 

42,515

 

 

 

 

 


Note:

 

The non-GAAP financial information set forth above is not prepared in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company believes that disclosing non-GAAP statements of operations provide further insight into the operating performance of the Company and are useful to investors to help them analyze operating trends and perform comparisons across periods. Management uses the adjusted numbers to manage the business and evaluate operating performance on a period-to-period comparative basis.

 

 

 

(1)

 

See Table 3 for the Statement of Operations reconciliation from GAAP to non-GAAP for the three months ended March 31, 2005 and 2004.

 

 

 

NM

 

- Not meaningful.

 



 

TABLE 3

DENDRITE INTERNATIONAL, INC.

 

RECONCILIATION OF ADJUSTED (NON-GAAP) TO GAAP STATEMENT OF OPERATIONS

 

THREE MONTHS ENDED MARCH 31, 2005 AND 2004

 

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

 

 

 

Three Months Ended March 31, 2005

 

Three Months Ended March 31, 2004

 

 

 

Total
Adjusted

 

Amortization (1)

 

Facility
Charges

 

Severance
Charges

 

GAAP

 

Total
Adjusted

 

Amortization (1)

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services & Technology:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales solutions

 

$

70,177

 

 

 

 

$

70,177

 

$

70,411

 

 

$

70,411

 

Marketing solutions

 

24,611

 

 

 

 

24,611

 

20,801

 

 

20,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipping

 

4,659

 

 

 

 

4,659

 

3,852

 

 

3,852

 

Total revenues

 

99,447

 

 

 

 

99,447

 

95,064

 

 

95,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Costs & Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs (including shipping)

 

53,651

 

 

 

 

53,651

 

49,807

 

 

49,807

 

Selling, general and administrative

 

35,788

 

 

 

 

35,788

 

32,157

 

 

32,157

 

Research and development

 

1,818

 

 

 

 

1,818

 

3,022

 

 

3,022

 

Facility and other charges

 

 

 

7,649

 

1,723

 

9,372

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

1,250

 

 

 

1,250

 

 

1,027

 

1,027

 

Other operating income

 

 

 

 

 

 

(339

)

 

(339

)

Total operating costs & expenses

 

91,257

 

1,250

 

7,649

 

1,723

 

101,879

 

84,647

 

1,027

 

85,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

8,190

 

(1,250

)

(7,649

)

(1,723

)

(2,432

)

10,417

 

(1,027

)

9,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income), net

 

(141

)

 

 

 

(141

)

(7

)

 

(7

)

Other (income), net

 

(23

)

 

 

 

(23

)

(43

)

 

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income tax (benefit) expense

 

8,354

 

(1,250

)

(7,649

)

(1,723

)

(2,268

)

10,467

 

(1,027

)

9,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

3,216

 

(481

)

(2,945

)

(663

)

(873

)

4,187

 

411

 

3,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

5,138

 

$

(769

)

$

(4,704

)

$

(1,065

)

$

(1,395

)

$

6,280

 

$

(616

)

$

5,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.12

 

$

(0.02

)

$

(0.11

)

$

(0.02

)

$

(0.03

)

$

0.15

(2)

$

(0.02

)

$

0.14

 

Diluted

 

$

0.12

 

$

(0.02

)

$

(0.11

)

$

(0.02

)

$

(0.03

)

$

0.15

(2)

$

(0.01

)

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

42,470

 

42,470

 

42,470

 

42,470

 

42,470

 

40,919

 

40,919

 

40,919

 

Diluted

 

43,744

 

42,470

 

42,470

 

42,470

 

42,470

 

42,515

 

42,515

 

42,515

 


(1)

 

Represents exclusion of acquisition related amortization expense of definite lived intangible assets. This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.

(2)

 

EPS does not appear to foot across due to the mathematical rounding of the individual calculations.

 



 

TABLE 4

DENDRITE INTERNATIONAL, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(IN THOUSANDS, EXCEPT SHARE DATA)

(UNAUDITED)

 

 

 

March 31,

 

December 31,

 

 

 

2005

 

2004

 

Assets

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

53,279

 

$

64,020

 

Accounts receivable, net

 

72,873

 

71,653

 

Prepaid expenses and other current assets

 

6,195

 

6,935

 

Deferred income taxes

 

5,685

 

5,029

 

Total current assets

 

138,032

 

147,637

 

 

 

 

 

 

 

Property and equipment, net of accumulated amortization of $51,960 and $56,499, respectively

 

48,815

 

45,283

 

Other assets

 

7,933

 

7,922

 

Goodwill

 

83,334

 

80,963

 

Intangible assets, net

 

23,481

 

19,876

 

Purchased capitalized software, net

 

903

 

1,056

 

Capitalized software development costs, net

 

9,809

 

9,170

 

Deferred income taxes

 

12,302

 

9,873

 

 

 

$

324,609

 

$

321,780

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

Current Liabilities:

 

 

 

 

 

Accounts payable

 

$

9,569

 

$

8,171

 

Income taxes payable

 

10,210

 

12,013

 

Capital lease obligations

 

1,680

 

1,689

 

Accrued compensation and benefits

 

17,186

 

16,058

 

Accrued professional and consulting fees

 

5,803

 

7,413

 

Accrued facility and other charges

 

3,628

 

 

Other accrued expenses

 

16,880

 

19,284

 

Purchase accounting restructuring accrual

 

2,486

 

3,000

 

Deferred revenues

 

12,219

 

13,347

 

Total current liabilities

 

79,661

 

80,975

 

 

 

 

 

 

 

Capital lease obligations

 

2,655

 

3,036

 

Purchase accounting restructuring accrual

 

3,745

 

4,143

 

Accrued facility and other charges

 

4,663

 

 

Deferred rent

 

2,287

 

2,070

 

Other non-current liabilities

 

3,682

 

3,967

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Preferred stock, no par value, 15,000,000 shares authorized, none issued

 

 

 

Common stock, no par value, 150,000,000 shares authorized,
45,074,498 and 44,913,584 shares issued; 42,535,750 and 42,374,836  shares outstanding at March 31, 2005 and December 31, 2004, respectively

 

127,059

 

125,237

 

Retained earnings

 

126,106

 

127,501

 

Deferred compensation

 

(109

)

(123

)

Accumulated other comprehensive income

 

1,125

 

1,239

 

Less treasury stock, at cost

 

(26,265

)

(26,265

)

 

 

 

 

 

 

Total stockholders’ equity

 

227,916

 

227,589

 

 

 

 

 

 

 

 

 

$

324,609

 

$

321,780

 

 



 

TABLE 5

DENDRITE INTERNATIONAL, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(IN THOUSANDS)

(UNAUDITED)

 

 

 

Three Months Ended March 31,

 

 

 

2005

 

2004

 

Operating activities:

 

 

 

 

 

Net (loss) income

 

$

(1,395

)

$

5,664

 

Adjustments to reconcile net (loss) income to net cash

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,402

 

5,196

 

Write-off of property and equipment

 

1,030

 

 

Amortization of deferred compensation, net of forfeitures

 

14

 

109

 

Deferred income tax benefit

 

(3,006

)

 

Changes in assets and liabilities, net of effects from acquisitions:

 

 

 

 

 

Decrease in accounts receivable

 

1,492

 

13,671

 

Decrease in prepaid expenses and other current assets

 

779

 

737

 

(Increase) decrease in other assets

 

(24

)

254

 

Increase (decrease) in accounts payable and accrued expenses

 

7,197

 

(4,027

)

Decrease in purchase accounting restructuring accrual

 

(1,102

)

(2,615

)

Decrease in income taxes payable

 

(1,495

)

(1,007

)

Decrease in deferred revenue

 

(1,308

)

(2,575

)

(Decrease) increase in other non-current liabilities

 

(287

)

114

 

 

 

 

 

 

 

Net cash provided by operating activities

 

7,297

 

15,521

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Acquisitions, net of cash acquired

 

(9,918

)

(1,990

)

Purchases of property and equipment

 

(7,887

)

(2,530

)

Additions to capitalized software development costs

 

(1,407

)

(770

)

 

 

 

 

 

 

Net cash used in investing activities

 

(19,212

)

(5,290

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Repayments of long-term debt

 

 

(1,120

)

Repayments of acquired loan

 

 

(624

)

Payments on capital lease obligations

 

(390

)

(405

)

Issuance of common stock

 

1,493

 

2,514

 

 

 

 

 

 

 

Net cash provided by financing activities

 

1,103

 

365

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash

 

71

 

395

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(10,741

)

10,991

 

Cash and cash equivalents, beginning of year

 

64,020

 

30,405

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

53,279

 

$

41,396

 

 



 

TABLE 6

DENDRITE INTERNATIONAL, INC.

 

PURCHASED INTANGIBLE ASSET AMORTIZATION

 

(IN THOUSANDS)

(UNAUDITED)

 

 

 

 

2005

 

Full Year Projections* (b)

 

 

 

Actuals

 

Forecast

 

 

 

 

 

 

 

 

 

 

 

 

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

2005

 

2006

 

2007

 

2008

 

2009

 

Thereafter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synavant Intangible Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Covenants not to compete

 

$

263

 

$

218

 

$

 

$

 

$

481

 

$

 

$

 

$

 

$

 

$

 

Backlog (a)

 

22

 

22

 

22

 

21

 

87

 

 

 

 

 

 

Pharbase Database

 

65

 

65

 

65

 

65

 

260

 

260

 

260

 

260

 

260

 

899

 

Customer relationships

 

112

 

111

 

112

 

111

 

446

 

446

 

446

 

446

 

446

 

2,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Synavant Amortization Total

 

462

 

416

 

199

 

197

 

1,274

 

706

 

706

 

706

 

706

 

3,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PharmaVision Amortization (c)

 

81

 

86

 

86

 

86

 

339

 

266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schwarzeck Amortization (c)

 

76

 

77

 

77

 

77

 

307

 

307

 

148

 

 

 

 

SAI Amortization

 

153

 

153

 

152

 

152

 

610

 

446

 

 

 

 

 

UTO Brain Amortization (c)

 

45

 

48

 

48

 

48

 

189

 

191

 

191

 

191

 

191

 

841

 

MDM Amortization

 

191

 

191

 

191

 

176

 

749

 

704

 

279

 

93

 

78

 

153

 

Buzzeo Amortization

 

242

 

176

 

174

 

174

 

766

 

777

 

691

 

604

 

479

 

1,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Amortization Expense

 

$

1,250

 

$

1,147

 

$

927

 

$

910

 

$

4,234

 

$

3,397

 

$

2,015

 

$

1,594

 

$

1,454

 

$

6,208

 


(a)

 

Backlog is amortized as the backlog revenue is recognized.

(b)

 

Amortization is recorded on a straight-line basis within each respective year.

(c)

 

Amortization expense will fluctuate based upon movements in foreign currency.

*

 

See “forward-looking” statement included as part of this release. It does not reflect or assume any additional acquisitions.