Sagent Announces Q4 and FY2001 Financial Results; License Revenues Up 44% Sequentially

Business Wire, Feb 5, 2002

Business Editors/High-Tech Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Feb. 5, 2002

Sagent (Nasdaq:SGNT), a leading provider of business intelligence software, today announced results for the fourth quarter and year ended December 31, 2001.

Sagent's revenues for the fourth quarter of 2001 were $13.1 million, compared to the $12.3 million reported in the fourth quarter of 2000, representing an increase of 15 percent sequentially, compared to the $11.4 million reported in the third quarter of 2001. Sagent's license revenues for the fourth quarter of 2001 totaled $8.5 million, an increase of 44 percent sequentially, compared to the $5.9 million reported in the third quarter of 2001. Sagent's fourth quarter 2001 pro forma net loss was $4.9 million, or a loss of $0.11 per share on a diluted basis, compared to a pro forma net loss of $13.1 million, or a loss of $0.45 per share on a diluted basis, for the fourth quarter of 2000.

Revenues for the year ended December 31, 2001, were $47.4 million, compared with revenues of $58.2 million reported in fiscal 2000. Sagent's pro forma net loss for the year was $27.7 million, or a loss of $0.71 per share, compared with a pro forma net loss of $22.6 million, or a loss of $0.78 per share in 2000.

The pro forma results contained in this press release exclude charges related to restructuring costs, non-cash charges (asset impairments, amortization of stock-based compensation and goodwill, depreciation, minority interest in losses of subsidiary, and merger and integration credits), interest and taxes. Under generally accepted accounting principles (GAAP), which treat the foregoing items as expenses, net loss was $10.0 million, or $0.22 per share, for the fourth quarter of 2001, compared to a net loss of $14.8 million, or $0.51 per share, for the fourth quarter of 2000. For the year ended December 31, 2001, GAAP net loss was $40.3 million, or $1.02 per share compared to a GAAP net loss of $23.7 million or $0.82 per share for the year ended December 31, 2000.

"We are pleased with the results we delivered this quarter despite the tough economic times," said Ben Barnes, President and Chief Executive Officer, Sagent. "We have made notable progress executing on our 2001 strategic objectives. One of the key initiatives for 2001 and going forward is to expand our indirect sales channel. Recently, as an example, we announced an OEM agreement with Hyperion whereby our Data Flow Server, data transformation capabilities and various elements of our user interface will be embedded in Hyperion's business intelligence solutions. I believe that as we continue to execute on our strategies in 2002 we will meet our prime objective of profitability by mid-year."

Highlights for Sagent's Fourth Quarter and Fiscal 2001

Signed 163 New Customers in 2001

Sagent increased its customer base by 40 new customers in the fourth quarter and 163 new customers for the year with the addition of such marquee names as Capital One, AT&T Wireless, California Department of Justice, Fannie Mae, GlaxoSmithKline, Pfizer Laboratories Limited, Microsoft, Verisign, Compaq, GM-Onstar, Singapore Health, CNA Insurance (UK) and Sungard Securities, among others.

Continued International Strength

-- Sagent's international business continued to grow, achieving its best
quarter ever, representing 32% of total net revenue in the fourth quarter and
28% of Sagent's total year 2001 net revenues.

-- Continued to solidify its No. 1 market share in Japan, with new wins at
Asahi Beer, Siebu Department Stores and Sumitomo Bank, as well as renewed
business at Kawasaki, NTT-DoCoMo and Suruga Bank.

-- Sagent also had a significant Unix win with Singapore Telecom.

-- Opened subsidiaries in the Benelux region, Australia and Mexico

-- Gained a majority ownership of the Asia Pacific joint Venture

Appointed New Executives

-- Steve Springsteel, former Executive Vice President and Chief

Financial Officer for Chordiant and Chief Operating Officer

for NOCpulse, joined Sagent in Q4 as Executive Vice President

and Chief Financial Officer.

-- Rich Ghiossi, former Vice President, Marketing for Tandem and

WhiteLight Systems, joined Sagent in Q4 as Chief Marketing

Officer. Ghiossi is responsible for corporate marketing,

product marketing and product management.

Strengthened the Board

-- Andre Boisvert, formerly of SAS and Cognos, was appointed new

Chairman of the Board in December 2001.

-- Appointed Ali Jenab, President and Chief Operating Officer of

the VA Software Corporation to the Board of Directors in

November of 2001.

-- Appointed Irv Lichtenwald, Senior Vice President and Chief

Financial Officer of Advent Software to the Board of Directors

in November 2001.

Indirect Channel Producing

-- Sagent's OEM/VAR/SI team represented 26% percent of Sagent's

total net revenues during 2001.

-- A major fourth quarter 2001 win included the signing of

Hyperion, the Company's largest OEM agreement to date.

-- Signed Dalkia, the team's first international win with Sagent