Actuate Reports Solid Q4 and FY01 Results; 2001 Revenues Total $125 Million, 17% Growth From 2000

Business Wire, Jan 24, 2002

Business Editors/High-Tech Writers

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Jan. 24, 2002

Actuate(R) Corporation (Nasdaq:ACTU), the Information Delivery market leader, announced today revenue and earnings for the fourth quarter and fiscal year ended December 31, 2001. Revenues for the fourth quarter of 2001 totaled $28.8 million, an increase of $0.6 million from the third quarter of 2001. Excluding the amortization of goodwill and other intangibles and idle facility costs, pro forma income from operations in the fourth quarter of 2001 was $1 million. Pro forma diluted earnings per share were $0.01 for the fourth quarter of 2001 (See Table A). Actual diluted loss per share were $0.06 for the fourth quarter of 2001 (See Table B). In addition, cash, cash equivalents and short-term investments increased $6.0 million in the fourth quarter of 2001, deferred revenue increased $1.7 million during the quarter and days sales outstanding ended the year at 90 days, down 17 days from Q3 2001.

For fiscal year 2001, total revenues increased 17% to $125.0 million compared with $107.3 million of revenue during fiscal 2000. Pro forma diluted earnings per share for 2001, excluding goodwill and other intangibles amortization, idle facility and restructuring costs, were $0.12 (See Table A). Actual diluted loss per share was $0.11 for fiscal year 2001 (See Table B).

"Despite a soft macroeconomic environment, I am extremely pleased with Actuate's financial results in Q4 and 2001," said Pete Cittadini, Actuate's president and chief executive officer. "We saw solid performance across all business units, significantly strengthened our balance sheet and continued to run a profitable company. Based on the record number of customers that purchased our Information Delivery products, we continue to extend our position as the leader in our market and to lay the foundation for substantial revenue growth. Actuate is a very exciting place to be these days -- we have best-of-breed technology, customers who understand the value of our products and services and a very talented and dedicated group of employees," said Cittadini.

"Looking ahead in 2002, we remain very enthusiastic about Actuate's business," said Cittadini. "We are encouraged by early adoption of our new e.Spreadsheet products that appear to be attracting new types of users and applications. We are also looking forward to the release of Actuate 6, which should significantly expand the scale and range of projects for our e.Reporting products."

Significant Q4 accomplishments for Actuate included the following:

-- Added over 165 new direct and 40 new OEM customers, both Actuate records;

-- Increased cash, cash equivalents and short-term investments by $6.0 million,
net of $1.8 million of open market stock repurchases;

-- Increased deferred revenue by $1.7 million (8%) compared with Q3;

-- Increased OEM revenue from 22% of total revenues in Q3 to about 30% in Q4;

-- Increased services gross margin to 45% from 42% in Q3;

-- Decreased days sales outstanding to 90 from 107 in Q3.

In fiscal year 2001, Actuate's achievements included the following:

-- Increased total revenue to $125.0 million, a 17%

increase over 2000;

-- Increased cash, cash equivalents and short-term

investments by $12.9 million;

-- Increased international revenues to 25% of total

revenues, compared with 15% in 2000;

-- Added approximately 600 new direct channel customers

during 2001;

-- Added over 100 new OEM partners during the year;

-- Recorded pro forma diluted EPS of $0.12 as a result of

tight cost management.

During Q4, Actuate closed over 165 new customers within its direct sales channel, indicating both continuing customer acceptance of the company's core products and increasing recognition of the new line of e.Spreadsheet products. The company continued to expand its Global 2000 customer base across a wide variety of industry segments, particularly financial services, manufacturing, utilities, pharmaceuticals, high-tech, retail and health care. Customers making substantial initial commitments to Actuate in Q4 included Westinghouse Electric, Centre Insurance, Autozone and Lear Corporation, among other companies.

Sizable repeat orders were received from American Express, Pfizer, Salomon Smith Barney, Magellan Health, Merck-Medco, Marriott, Corning and Pacific Healthcare, among other companies.

Internationally, Actuate won significant business from, among others, Toshiba, British Telecom, Renault, Ricoh, BNP, Zurich Financial, Siemens Automotive, Barclays, Merrill Lynch, NTT and Fujitsu.

In the fourth quarter, new revenue-generating partnerships were established with several e.Business Application vendors who resell Actuate's e.Reporting and e.Spreadsheet Server products, among them Broadvision, Mantas, Chordiant Software, Automating Peripherals and Intuit. Among the companies from which Actuate received significant repeat revenue were Siebel, PeopleSoft, Callidus, Cayenta and eFunds.