SEEBEYOND ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2004 FINANCIAL RESULTS :
36 PERCENT YEAR-OVER-YEAR LICENSE REVENUE GROWTH;
FOURTH QUARTER EPS OF $0.04
Paris, 27/1/2005 - SeeBeyond (Nasdaq:SBYN), provider of the world's first fully Integrated Composite Application Network (ICAN) suite for advanced integration and composite application solutions, today reported final results for the fourth quarter and full year ended December 31, 2004.
Total revenue for the fourth quarter ended December 31, 2004, was $45.8 million. License revenue for the fourth quarter was $21.7 million. Net income calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP) for the quarter ended December 31, 2004, was $3.9 million or $0.04 earnings per share on a fully diluted basis.
Total revenue for the year ended December 31, 2004, increased 19% to $163.8 million. License revenue for the full year 2004 increased 36% to $70.3 million. Net income for the year calculated in accordance with GAAP was $342,000 or $0.00 earnings per share on a fully diluted basis.
SeeBeyond ended the fourth quarter of 2004 with total cash and cash equivalents of $73.1 million and DSO of 76 days.
"Reporting significant license growth for the quarter, we continue to see evidence of increased demand for our unique technology", said Jim Demetriades, founder and CEO of SeeBeyond. "Although 2004 was a rebuilding year for SeeBeyond, it marked several significant milestones in the Company's history including selection with British Telecommunications for the U.K.'s National Health Service program, one of the largest integration projects in the world. With unmatched technology, SeeBeyond is well positioned in the marketplace, and with the continued customer adoption of ICAN 5, we are well poised to increase marketshare in 2005".
"Expense control and profitable growth were key areas of focus during the last four quarters, and were not trivial tasks against the backdrop of a newly introduced and significantly expanded product suite", added Carv Moore, President and COO of SeeBeyond. "Closing out the year with strong financial results, we are confident in our ability to continue to control costs while ensuring operational excellence, and will focus our efforts on driving sales force effectiveness, partner alignment and solution-focused marketing".
Fourth Quarter and Full Year 2004 Highlights:
· SeeBeyond closed 93 deals in the fourth quarter. With success across key verticals including financial services, healthcare, manufacturing and retail, the following customers represent new and existing business during the quarter: Banca IMI, BHP, Blue Cross Blue Shield of North Carolina, BMW Group, Carrefour, Celesio, Conoco Phillips, Centers for Medicaid and Medicare Services, EDS, JP MorganChase, Lands' End, Leroy Merlin, Raytheon, Route One, Schlumberger, Sentry Insurance, Syngenta and TXU.
· SeeBeyond continues to see significant results from its strategic alliances program with significant traction achieved during the fourth quarter from strategic partnerships including Accenture and CSC.
· Throughout 2004, both services and solution partners alike affirmed their support of SeeBeyond's vision of SOA-based composite application development. Most notable is Sun Microsystems, who in October 2004, announced a far-reaching technology and marketing agreement with SeeBeyond that features Service-Oriented Architecture (SOA) solutions and composite application delivery via the Sun Java Enterprise System. Under the agreement, SeeBeyond will port components of its SeeBeyond ICAN 5 Suite to the Sun Java Enterprise System, with an initial focus on solutions for RFID and Portal application development. As Sun's own VP of Java Web Services stated, "Together, Sun's innovative Java Enterprise System and SeeBeyond's integration solutions deliver the highest productivity and most practical SOA-based customer integration solution available today".
· The highlight of the year was the January 2004 announcement of the selection with British Telecommunications (BT) for the U.K.'s NHS National Programme for IT - the largest healthcare integration project in the world to date. During the year, SeeBeyond was also awarded a follow-on, 10 year contract to support BT's role as the London Local Service Provider (LSP) for the NHS Care Records Service, followed by selection to support CSC's role as LSP for the North West and West Midlands region of England. All in all, the contracts represent an opportunity for more than $60 million in revenue to SeeBeyond over the course of the contract life.
· As the industry's first unified suite for the development of integrated composite application networks, the SeeBeyond ICAN 5 Suite received many industry accolades throughout the year. A sampling includes:
· Named "Product of the Year 2004" by Business Integration Journal.
· Gartner, Inc., an independent industry research and advisory firm, earlier this year positioned SeeBeyond in the Leaders Quadrant of its most recent edition of Gartner's Magic Quadrant for Application Integration Suites, 2Q04.(1)
· Leading European analyst firm, Butler Group, reported that SeeBeyond's product suite delivers a powerful proposition for building composite applications, which can improve the time-to-delivery for integration projects, and significantly reduce the Total Cost of Ownership (TCO) when compared to the use of separate point solutions. Specifically, the research showed that organizations using the SOA-based platform can save up to 86% in the time spent building and developing composite applications, leading to a 58% savings in overall project cost.(2)
· Current Analysis, the fastest growing company in the IT Research Industry, cited SeeBeyond as a technology leader in Integration and Web Services in its January 2004 Market Assessment report.
· SeeBeyond was recognized by IT Solution Providers as providing the "Best Enterprise Solution" at EnterpriseVision 2004.
SeeBeyond projects first quarter 2005 revenue to be in the range of $42.0 to $44.0 million, with first quarter 2005 GAAP earnings per share expected to be in the range of $0.00 to $0.01.
The Company will review its fourth quarter and full year 2004 financial performance today at 2:00 p.m. Pacific Standard Time / 5:00 p.m. Eastern Standard Time. The toll-free dial-in number for the call from within the U.S. and Canada is 800-640-9765; international callers may dial 847-413-4837. A simulcast of the conference call will be available on www.seebeyond.com, and a rebroadcast following the completion of the call at www.seebeyond.com. An audio replay of the call will be available after the call until February 2, 2005, at midnight EST. The toll-free dial-in number for the replay from within the U.S. and Canada is 877-213-9653; international callers may dial 630-652-3041 using the access code: 10646518.
Based on 15 years of software innovation and real-world experience in integrating systems across Global 2000 organizations, SeeBeyond (Nasdaq:SBYN) delivers the industry's first integrated composite application network built on a comprehensive integration platform. The SeeBeyond(R) Integrated Composite Application Network Suite(TM) helps organizations rapidly assemble and deploy enterprise-scale end-user applications built on existing systems and infrastructure to dramatically improve business operations. SeeBeyond has approximately 2,000 customers worldwide, including ABN Amro, BHP Billiton, The Cleveland Clinic, The Dial Corporation, DuPont, Florida Power & Light, Fluor Daniel, Fujitsu, General Motors, Halliburton, Hertz Corporation, HP, Lockheed Martin, Pfizer, Samsung, Sprint and Sutter Health. For more information, please visit www.seebeyond.com.
SeeBeyond is a registered trademark of SeeBeyond Technology Corporation in the United States and select foreign countries. SeeBeyond Integrated Composite Application Network Suite is a trademark of SeeBeyond Technology Corporation. The absence of a trademark from this list does not constitute a waiver of SeeBeyond Technology Corporation's intellectual property rights concerning that trademark. All other brands or product names are trademarks of their respective owners.
(1) Magic Quadrant for Application Integration Suites, 2Q04, Markets, M-22-8357, J. Thompson, R. Schulte, M. Cantara, J. Correia, K. Iijima, F. Kenney, B. Lheureux, Y. Natis, M. Pezzini, J. Sinur; Gartner Research Note 14 May 2004
The Magic Quadrant is copyrighted May 2004 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
(2) "Developing Composite Applications; Comparing the Total Cost of Ownership", Butler Group, Tim Jennings, October 2004
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