Vitria Announces Record Third Quarter Revenues of $41.6 Million, Up 431%

Business Wire, Oct 19, 2000

Business Editors

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 19, 2000

Second Consecutive Profitable Quarter; Results Beat First

Call Estimate for Fifth Consecutive Quarter

Vitria Technology, Inc. (Nasdaq:VITR), a leading ebusiness platform provider, today reported record results for the third quarter ended September 30, 2000.

Revenues for the third quarter were $41.6 million, an increase of 431% over revenues of $ 7.8 million for the third quarter in 1999. For the nine-month period ended September 30, 2000, revenues were $93.9 million, an increase of 385% over revenues of $19.3 million for the comparable period in 1999. Excluding non-cash charges relating to stock compensation, Vitria's earnings for the quarter were $1.4 million or $0.01 per share, beating the First Call consensus estimate of $0.00 per share. For the corresponding quarter in fiscal 1999 the net loss, excluding non-cash charges relating to stock compensation, was $2.8 million or a loss of $0.04 per share.

"The third quarter was yet another record-breaking quarter for Vitria," said JoMei Chang, president and CEO of Vitria. "A major OEM and reseller partnership with Nortel, key customer wins with telco leaders like AT&T, Genuity, and Verizon, and strategic wins with non-telco leaders like BP, Dana Corporation, and Trans Union, underscore Vitria's undisputed leadership in telco and strong expansion into non-telco industries."

Customers

Vitria added over 50 new customers and partners in the third quarter, bringing the total to 350. New customers included AT&T Broadband, BP, BroadNet, Dana Corporation, DirecTV Latin America, Genuity, TyCom, Trans Union, and Verizon. Vitria continues to extend its leadership in the telecommunications industry while simultaneously growing its business outside telecommunications. Continuing the trend from the second quarter, approximately one third of Vitria's customers came from non-telecommunications industries like BP in energy, Dana Corporation in manufacturing, and Trans Union in financial services. Key wins in telecommunications included AT&T Broadband, BroadNet, Genuity, TyCom, and Verizon. Vitria's telecommunications business continues to be broadly and evenly diversified across multiple segments including ILEC, long distance, CLEC, ISP, DSL, cable and wireless, and international. Vitria also closed repeat business from existing customers, including 3Com, AT&T, Covad, Hartford Group, ICG, KLA-Tencor, Rhythms, Teleglobe, and WebLink Wireless. In addition, many existing Vitria customers deployed mission-critical ebusiness solutions, including Omnisky, PSINet, Telstra, UPC, and UUNet.

Partners

Vitria announced a major OEM/reseller partnership with Nortel. Nortel will embed and resell Vitria's ebusiness platform in solutions targeted at carriers in multiple markets, including optical, wireless, DSL and ISP. These solutions will offer carriers end-to-end automation of order management, customer care, and billing processes across their extended enterprise. Nortel will market and resell these solutions worldwide. Vitria and Nortel have already closed new joint customers as a result of this partnership. Vitria also announced details of a similar deal with Siemens. Both the Nortel and Siemens agreements include specific revenue goals for each year of the agreements. Vitria also secured partnerships with leading software vendors, including Agile Software, Daleen, and Niku. Vitria also closed joint deals with leading systems integration partners including Andersen Consulting, Cap Gemini Ernst & Young, Deloitte Consulting, DMR Consulting, EDS, KPMG, and PricewaterhouseCoopers.

Products

Vitria delivered 21 new product releases, including new releases of the company's out-of-the-box ebusiness solutions for vertical markets like telco and manufacturing. Vitria also delivered new functionality for building and managing large, complex trading networks. This new functionality will make it faster and easier for companies to discover new partners and establish electronic relationships with them. Vitria also released new functionality that enables Fortune 1000 customers to integrate their legacy mainframe and EDI systems into Vitria's ebusiness platform.

About Vitria

Vitria Technology, Inc. is a leading ebusiness platform provider. Vitria's ebusiness platform, BusinessWare, automates mission-critical business processes across the extended enterprise, reducing time to market, shortening lead times, lowering operating costs, and increasing customer satisfaction.

Vitria is a publicly traded company (Nasdaq:VITR) based in Sunnyvale, California. For more information, call 408/212-2700, visit the company's Web site at www.vitria.com, or send email to info@vitria.com.

This press release includes forward-looking statements, including statements relating to goals and market position, that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, quarterly fluctuations in operating results, failure to meet financial expectations of analysts and investors, risk as related to market acceptance of Vitria's product, deployment delays or errors associated with these products, hardware platform incompatibilities, reliance on a limited number of customers for a majority of revenue, need to maintain and enhance certain business relationships with system integrators and other parties, ability to manage growth, activities by Vitria and others regarding protection of proprietary information, release of competitive products and other actions by competitors and economic downturns in either domestic or foreign markets. Vitria does not undertake an obligation to update forward-looking statements.