Primus Confirms Year to Date Revenue Growth of 29% Compared to 2003
Operating Expenses Decrease 16% Sequentially From First Quarter
2004 SEATTLE, Aug. 4 /PRNewswire-FirstCall/ -- Primus Knowledge
Solutions, Inc. (NASDAQ:PKSI) today announced financial results for
the quarter ended June 30, 2004, consistent with preliminary
financial results presented on July 8, 2004. Revenue for the second
quarter ended June 30, 2004 was approximately $5.8 million, an
increase of 55% compared to $3.7 million for the second quarter of
2003. Total operating expenses for the second quarter of 2004 were
approximately $5.9 million compared to $5.1 million for the second
quarter of 2003 and $7.0 million in the first quarter of 2004. Net
loss for the second quarter of 2004 was approximately $2.1 million
or ($0.09) per share, compared to net loss of $2.7 million or
($0.14) per share for the second quarter of 2003 and $3.0 million
or ($0.13) per share in the first quarter of 2004. During the
second quarter of 2004, revenue from sales to one customer
represented approximately 22% of total revenue. The enterprise
license agreement with this customer did not result in an increase
in cash or receivables during the period, as the customer chose to
use funds on deposit against the amount due. Revenue for the six
months ended June 30, 2004 was approximately $11.8 million, an
increase of 29% compared to $9.2 million for the same period of
2003. Total operating expenses for the six months ended June 30,
2004 were approximately $12.9 million (including a restructuring
charge of $461,000) compared to $10.5 million for the same period
of 2003. Net loss for the six months ended June 30, 2004 was
approximately $5.1 million or ($0.22) per share, compared to a net
loss of $3.8 million, or ($0.20) per share for the same period of
2003. As of June 30, 2004, Primus had cash of approximately $8.3
million compared to $11.8 million at March 31, 2004. "We are
pleased with our 29% year over year revenue growth for the first
six months of 2004, as well as our 16% reduction in operating costs
compared to last quarter," said Michael Brochu, president and chief
executive officer of Primus. "With the recent release of our new
product set, Knowledge Center 6.0, and the addition of Bill Moore
as executive vice president of worldwide sales and services, we
enter the second half of the year with solid momentum." Corporate
Conference Call Michael Brochu, president and chief executive
officer, and Ron Stevens, chief financial officer, invite you to
participate in a conference call reviewing complete second quarter
2004 results today at 2:00 p.m. PDT. The conference call number is
800-374-1745. Please call five minutes in advance to ensure that
you are connected prior to the presentation. A playback of the call
will be made available for one week, two hours after the completion
of the call and the call will also be available for playback via
Primus' website at http://www.primus.com/. Playback call numbers
are 800-642-1687 for domestic calls and 706-645-9291 for
international calls. The pass code for the playback is 8670824.
About Primus Primus Knowledge Solutions develops award-winning
software that enables companies to provide a superior customer
experience via contact centers, help desks, Web self-service, and
electronic communication channels. Primus technology powers every
interaction with knowledge to increase customer satisfaction and
reduce operational costs. Primus continues to receive industry
accolades for its robust product suite. In 2003, Primus received
the STAR Award for "Best Support Technology Vendor" from the
Service & Support Professionals Association (SSPA), was
recognized for its trend-setting products and named one of the "100
Companies that Matter in Knowledge Management" by KMWorld magazine,
and received the CRM Excellence Award from the editors of Customer
Interaction Solutions magazine. Global organizations such as 3Com,
Allied Irish Bank, The Boeing Company, CompuCom, Eastman Kodak Co.,
EMC, Ericsson, Inc., Fujitsu Limited, Inc., IBM, HSBC, Orange,
Motorola and T-Mobile rely on Primus technology to enhance their
customer service and support initiatives. Visit
http://www.primus.com/ for more information. NOTE: Primus and
Primus Knowledge Solutions are registered trademarks of Primus
Knowledge Solutions, Inc. Other products and company names
mentioned in this press release may be the trademarks of their
respective owners. Any statements, expectations and assumptions
contained in this press release that do not describe historical
facts, such as statements about anticipated future financial
results, such as anticipated revenues, cash flows and operating
results, constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. There is
no guarantee that these results will actually occur. Any
forward-looking statements contained in this release are based on
current expectations, are not guarantees of future performance, and
are subject to a number of risks and uncertainties. Factors that
could cause actual results to differ materially from current
expectations include the following: difficulties encountered in the
integration of personnel and products from recent acquisitions;
difficulties encountered in the integration, deployment, or
implementation of our products and customer's systems; failure in
customer's widespread adoption and use of our products; quality of
customer's databases of solutions; fluctuations in customer demand;
use of the Web as a delivery vehicle for customer support or eCRM
solutions; risk resulting from new product introductions and
customer acceptance of new products; rapid technological change;
the risks associated with competition, pricing policies and the
rapid consolidation of competitors; continued growth in the use of
the Internet; the ability of Primus to manage its growth and
integration efforts and the ability of Primus to compete
successfully in the future, as well as other risks identified in
Primus' Securities and Exchange Commission filings, including but
not limited to those appearing under the caption "Factors Affecting
our Future Operating Results" in Primus' most recent Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q, which are
available at http://www.sec.gov/. CONTACT: Primus Investor
Relations, +1-206-834-8341, or , or Primus Public Relations,
+1-206-834-8325, or . Primus Knowledge Solutions, Inc. Unaudited
Condensed Consolidated Balance Sheets (In thousands) June 30,
December 31, 2004 2003 Assets Current assets: Cash and cash
equivalents $8,335 $12,154 Accounts receivable, net 2,730 5,475
Prepaids and other assets 827 1,001 Total current assets 11,892
18,630 Property and equipment, net 1,166 1,415 Goodwill 11,841
11,785 Other intangible assets, net 3,075 3,608 Deposits and other
assets 225 225 Total assets $28,199 $35,663 Liabilities and
Shareholders' Equity Current liabilities: Accounts payable $2,028
$2,555 Accrued and other liabilities 1,457 2,170
Compensation-related accruals 980 1,733 Obligations due under
credit facility 349 395 Deferred revenue 7,230 8,797 Total current
liabilities 12,044 15,650 Total shareholders' equity 16,155 20,013
Total liabilities and shareholders' equity $28,199 $35,663 Primus
Knowledge Solutions, Inc. Unaudited Condensed Consolidated
Statements of Operations (In thousands, except share and per share
amounts) Three Months Ended Six Months Ended June 30, June 30 2004
2003 2004 2003 Revenue: License $1,517 $466 $3,170 $2,841 Service
4,238 3,251 8,659 6,364 Total revenue 5,755 3,717 11,829 9,205 Cost
of revenue: License 134 57 366 154 Service 1,431 1,242 2,946 2,381
Amortization of purchased intangibles 374 -- 587 -- Total cost of
revenue 1,939 1,299 3,899 2,535 Gross profit 3,816 2,418 7,930
6,670 Operating expenses: Sales and marketing 2,307 2,527 5,207
5,125 Research and development 2,135 1,874 4,487 3,690 General and
administrative 1,469 702 2,766 1,675 Restructuring charges -- --
461 -- Total operating expenses 5,911 5,103 12,921 10,490 Loss from
operations (2,095) (2,685) (4,991) (3,820) Other income (expense),
net 2 12 (24) 67 Loss before income taxes (2,093) (2,673) (5,015)
(3,753) Income tax expense (24) (31) (66) (81) Net loss $(2,117)
$(2,704) $(5,081) $(3,834) Basic and diluted net loss per Share
amounts $(0.09) $(0.14) $(0.22) $(0.20) Weighted average shares
used in computing basic and diluted net loss per share amounts
23,766,889 19,053,898 23,488,281 19,053,860 DATASOURCE: Primus
Knowledge Solutions, Inc. CONTACT: Primus Investor Relations,
+1-206-834-8341, or , or Primus Public Relations, +1-206-834-8325,
or Web site: http://www.primus.com/
Copyright
Primus Knowledge Solutions (NASDAQ:PKSI)
Historical Stock Chart
From May 2024 to Jun 2024
Primus Knowledge Solutions (NASDAQ:PKSI)
Historical Stock Chart
From Jun 2023 to Jun 2024