-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L7qDn3P9J7UrUp7VQbQj4v2fkYF+k4tVqDpLKJl6Y/nzG+d7mNYFzNn8qSu81Bt2 mKV5z9mjCsbLmlyaZzItSA== 0000891092-04-000239.txt : 20040122 0000891092-04-000239.hdr.sgml : 20040122 20040122165955 ACCESSION NUMBER: 0000891092-04-000239 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040122 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040122 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALLIDUS SOFTWARE INC CENTRAL INDEX KEY: 0001035748 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50463 FILM NUMBER: 04538114 BUSINESS ADDRESS: STREET 1: 160 WEST SANTA CLARA STREET STREET 2: 15TH FLOOR CITY: SAN JOSE STATE: CA ZIP: 95113 FORMER COMPANY: FORMER CONFORMED NAME: TALLYUP SOFTWARE INC DATE OF NAME CHANGE: 19980807 8-K 1 e16668_8k.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): January 22, 2004 CALLIDUS SOFTWARE INC. (Exact Name of Registrant as Specified in Charter) Delaware 000-50463 77-0438629 (State or Other Jurisdiction (Commission File (IRS Employer of Incorporation) Number) Identification No.) 160 W. Santa Clara Street, Suite 1500 San Jose, CA 95113 (Address of Principal Executive Offices) (Zip Code) (408) 808-6400 (Registrant's Telephone Number, Including Area Code) Not Applicable (Former Name or Former Address, if Changed Since Last Report) ---------- ================================================================================ Item 7. Exhibits 99.1 Press release dated January 22, 2004 Item 9. Regulation FD Disclosure. Item 12. Results of Operations and Financial Condition. The following information is furnished pursuant to Item 9, "Regulation FD Disclosure" and Item 12, "Results of Operations and Financial Condition". Callidus Software Reports Record Fourth Quarter 2003 Results Q4 Revenues Up 176%, Year Over Year SAN JOSE, Calif., Jan. 22 /PRNewswire-FirstCall/ -- Callidus Software Inc. (Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM) software systems, today announced financial results for the fourth quarter and fiscal year ended December 31, 2003. Total fourth quarter revenues grew 176% to $22.3 million compared to $8.1 million in the fourth quarter of 2002 and increased 13% sequentially from the preceding third quarter. This represents Callidus Software's eighth consecutive quarter of revenue growth. Fourth quarter net income was $0.7 million, or $0.03 per share, compared to a net loss of $4.9 million, or $3.50 per share, for the fourth quarter of 2002 and break-even in the third quarter of 2003. Non-GAAP net income for the fourth quarter was $2.0 million, or $0.08 per share, as compared to a non-GAAP net loss of $4.8 million in the fourth quarter of 2002 and non-GAAP net income of $0.9 million in the third quarter of 2003. A reconciliation between GAAP and non-GAAP information, which excludes stock-based compensation and applies an effective tax rate of 26%, is contained in the attached tables. For 2003, total revenues were $71.7 million, an increase of 170% over total revenues of $26.6 million in 2002. Net income was $0.8 million, or $0.04 per share, compared to a net loss of $19.1 million, or $13.98 per share, in 2002. Excluding stock-based compensation and applying an effective tax rate of 26%, non-GAAP net income was $4.2 million, or $0.20 per share, for 2003 compared to a non-GAAP net loss of $18.7 million, or $13.67 per share, in 2002. "Callidus achieved record revenues in 2003, finishing the year with a strong fourth quarter," said Reed Taussig, president and CEO of Callidus Software. "Our products are helping customers turn incentive compensation into a competitive advantage by truly influencing employee and channel partner behaviors. We continued to demonstrate our market leadership position in the fourth quarter by selling to top quality customers across a number of vertical markets, including America Online, Auto Club Insurance Association, BMC Software, SBC Communications and Wachovia Securities." Q4 Financial Highlights -- License revenues were a record $10.9 million, a growth rate of 261% year-over-year and 9% sequentially. -- Callidus Software sold 5,750,000 shares of common stock in an initial public offering priced at $14.00 per share in November 2003. Net proceeds to the company totaled approximately $72.2 million. -- Net cash provided by operating activities for the fiscal year was $0.9 million. Cash and investments totaled $80.3 million at December 31, 2003 and includes the net proceeds from the company's initial public offering. -- Days Sales Outstanding (DSO) in accounts receivable at the end of the fourth quarter of 2003 was 51 days, compared to 51 days at the end of the third quarter of 2003. Q4 Business Highlights -- IBM and Callidus Software formed a global strategic alliance to deliver comprehensive incentive compensation management solutions. -- Callidus' TruePerformance(R) product won the prestigious industry award "HR Product of The Year," as featured in the December 2003 issue of Human Resource Executive magazine. -- Callidus exercised its option to purchase a perpetual license to the TruePerformance software code originally developed by Cezanne Software. Callidus will no longer pay royalties to Cezanne and will own and control future development of the award winning TruePerformance product. -- John R. Eickhoff, Executive Vice President and Chief Financial Officer of Ceridian Corporation, joined Callidus' Board of Directors in November 2003. Guidance -- Calendar year 2004 total revenues are projected to be between $95 million and $100 million. -- Calendar year 2004 earnings per share is projected to be between $0.08 and $0.16 on a GAAP basis and non-GAAP earnings per share is projected to be between $0.22 and $0.28. Diluted weighted average shares outstanding for 2004 is estimated to be 29.3 million shares. -- First quarter 2004 total revenues are projected to be between $20 million and $22 million. -- First quarter 2004 earnings per share, on a GAAP basis, is projected to be between a loss of ($0.05) and ($0.02) and non-GAAP earnings per share, excluding stock-based compensation charges, but giving effect to an effective tax rate of 26%, is projected to be between $0.01 and $0.03. Diluted weighted average shares outstanding for the first quarter of 2004 is estimated to be 28.9 million shares. Conference Call Callidus Software's fourth quarter 2003 conference call is scheduled for 1:30 p.m. Pacific Standard Time (PST), Thursday, January 22, 2004. The conference call is available via webcast and can be accessed live, and for one week after the call, at the Investor Relations section of Callidus Software's website at www.callidussoftware.com. To participate in the call via telephone, the dial in number is 800-299-9086 (international 617-786-2903), passcode 42034077. A replay of the conference call can be accessed after 4:00 p.m. PST, by calling 888-286-8010 (international 617-801-6888), passcode 59785976. About Callidus Software Founded in 1996, Callidus Software ( http://www.callidussoftware.com ) is the leading provider of enterprise incentive management (EIM) systems to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage competitive incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp Grid(TM) architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include Airborne Express, Inc., Allstate, Apple Computer, AOL Time Warner Corporation, AT&T Wireless, BMC Software, Citizens Bank, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, Intuit, JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems. Non-GAAP Financial Measures The non-GAAP information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with generally accepted accounting principles (GAAP) in the United States. The non-GAAP financial results exclude stock-based compensation expense and apply an estimated effective tax rate of 26% in order to provide what we believe is an additional tool for investors to use in understanding our operational results and trends. These non-GAAP financial results are used internally by management to evaluate our operations, plan and forecast for future periods and to allocate resources within the organization. A reconciliation between GAAP and non-GAAP financial measures is included in the accompanying tables. Note on Forward-Looking Statements The forward looking statements included in this press release, including guidance for the first quarter of 2004 and the 2004 fiscal year, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential material fluctuations in financial results and future growth rates, risk associated with development and market acceptance of new products and product enhancements, decreases in customer spending, increased competition or new entrants in the marketplace and other risks detailed in the company's SEC reports, including its registration statement on Form S-1, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or the Investor Relations section of Callidus Software's website (www.callidussoftware.com). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release. NOTE: Callidus Software, the Callidus Software logo, TrueComp, and TruePerformance are registered trademarks and TrueAnalytics, TrueComp Grid, TrueComp Manager, TrueComp Viewer, TrueDiagnostics, TrueInformation, TrueIntegration, TruePortal, TrueReferral, TrueResolution, TrueService, TrueSuccess,TrueSupport, Solutions for the Strategic Enterprise and Everyone Profits are trademarks of Callidus Software Inc. in the United States and other countries. Other trademarks are the property of their respective holders. CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) Three months ended Twelve months ended December 31, December 31, 2003 2002 2003 2002 Revenues: License revenues $10,909 $3,025 $37,526 $9,820 Maintenance and service revenues 11,376 5,060 34,208 16,766 Total revenues 22,285 8,085 71,734 26,586 Cost of revenues: License revenues 455 296 1,909 814 Maintenance and service revenues 7,807 4,078 25,746 14,212 Total cost of revenues 8,262 4,374 27,655 15,026 Gross profit 14,023 3,711 44,079 11,560 Operating expenses: Sales and marketing 6,598 4,286 20,813 13,527 Research and development 2,937 2,515 10,963 11,118 General and administrative 1,776 1,556 6,323 5,053 Stock-based compensation 2,008 58 4,577 424 Total operating expenses 13,319 8,415 42,676 30,122 Operating income (loss) 704 (4,704) 1,403 (18,562) Interest expense (99) (174) (502) (582) Other income, net 151 5 201 137 Income (loss) before provision for income taxes and cumulative effect of change in accounting principle 756 (4,873) 1,102 (19,007) Provision for income taxes 92 -- 267 -- Income (loss) before cumulative effect of change in accounting principle 664 (4,873) 835 (19,007) Cumulative effect of change in accounting principle -- -- -- (123) Net income (loss) $664 $(4,873) $835 $(19,130) Basic income (loss) per share attributable to common stockholders $0.04 $(3.50) $0.06 $(13.98) Diluted income (loss) per share $0.03 $(3.50) $0.04 $(13.98) Shares used in basic per share computation 11,650 1,394 4,003 1,368 Shares used in diluted per share computation 24,475 1,394 21,294 1,368 CALLIDUS SOFTWARE INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except for per share data) (unaudited) Three months ended Twelve months ended December 31, December 31, 2003 2002 2003 2002 GAAP net income (loss) $664 $(4,873) $835 $(19,130) Add back: Stock-based compensation 2,008 58 4,577 424 Add back: Provision for income taxes 92 -- 267 -- Non-GAAP income (loss) before income taxes 2,764 (4,815) 5,679 (18,706) Non-GAAP provision for income taxes (26%) 719 -- 1,477 -- Non-GAAP net income (loss) $2,045 $(4,815) $4,202 $(18,706) Non-GAAP diluted income (loss) per share $0.08 $(3.45) $0.20 $(13.67) Shares used in diluted per share computation 24,475 1,394 21,294 1,368 CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (unaudited) December 31, December 31, Assets 2003 2002 Current assets: Cash and cash equivalents $56,330 $12,833 Short-term investments 3,141 -- Accounts receivable, net 14,850 4,395 Prepaid and other current assets 1,511 674 Total current assets 75,832 17,902 Long-term investments 20,795 -- Property and equipment, net 2,721 2,016 Intangible asset 2,000 -- Deposits and other assets 851 777 Total assets $102,199 $20,695 Liabilities and Stockholders' Equity Current liabilities: Bank line of credit $-- $2,765 Current portion of long-term debt 694 883 Accounts payable 3,504 1,978 Accrued payroll and related expenses 3,638 2,258 Accrued expenses 3,486 3,116 Deferred revenue 7,930 6,252 Total current liabilities 19,252 17,252 Long-term debt, less current portion 520 986 Deferred rent 180 88 Long-term deferred revenue 693 276 Total liabilities 20,645 18,602 Stockholders' equity Convertible preferred stock -- 30 Common stock 24 2 Additional paid-in capital 184,399 96,935 Deferred stock-based compensation (9,327) (90) Notes receivable from stockholders (83) (238) Other comprehensive income 287 35 Accumulated deficit (93,746) (94,581) Total stockholders' equity 81,554 2,093 Total liabilities and stockholders' equity $102,199 $20,695 SOURCE Callidus Software Inc. -0- 01/22/2004 /CONTACT: investors, Jon Pexton, +1-408-808-6577, or ir@callidussoftware.com, or media, Jane Le Fevre, +1-408-808-6511, or pr@callidussoftware.com, both of Callidus Software Inc./ /Web site: http://www.callidussoftware.com / (CALD) SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CALLIDUS SOFTWARE INC. Date: January 22, 2004 By: /s/ RON J. FIOR ------------------------ Name: Ron J. Fior Title: Chief Financial Officer, Vice President, Finance EX-99.1 3 e16668ex99_1.txt PRESS RELEASE Exhibit 99.1 Callidus Software Reports Record Fourth Quarter 2003 Results Q4 Revenues Up 176%, Year Over Year SAN JOSE, Calif., Jan. 22 /PRNewswire-FirstCall/ -- Callidus Software Inc. (Nasdaq: CALD), the leader in Enterprise Incentive Management (EIM) software systems, today announced financial results for the fourth quarter and fiscal year ended December 31, 2003. Total fourth quarter revenues grew 176% to $22.3 million compared to $8.1 million in the fourth quarter of 2002 and increased 13% sequentially from the preceding third quarter. This represents Callidus Software's eighth consecutive quarter of revenue growth. Fourth quarter net income was $0.7 million, or $0.03 per share, compared to a net loss of $4.9 million, or $3.50 per share, for the fourth quarter of 2002 and break-even in the third quarter of 2003. Non-GAAP net income for the fourth quarter was $2.0 million, or $0.08 per share, as compared to a non-GAAP net loss of $4.8 million in the fourth quarter of 2002 and non-GAAP net income of $0.9 million in the third quarter of 2003. A reconciliation between GAAP and non-GAAP information, which excludes stock-based compensation and applies an effective tax rate of 26%, is contained in the attached tables. For 2003, total revenues were $71.7 million, an increase of 170% over total revenues of $26.6 million in 2002. Net income was $0.8 million, or $0.04 per share, compared to a net loss of $19.1 million, or $13.98 per share, in 2002. Excluding stock-based compensation and applying an effective tax rate of 26%, non-GAAP net income was $4.2 million, or $0.20 per share, for 2003 compared to a non-GAAP net loss of $18.7 million, or $13.67 per share, in 2002. "Callidus achieved record revenues in 2003, finishing the year with a strong fourth quarter," said Reed Taussig, president and CEO of Callidus Software. "Our products are helping customers turn incentive compensation into a competitive advantage by truly influencing employee and channel partner behaviors. We continued to demonstrate our market leadership position in the fourth quarter by selling to top quality customers across a number of vertical markets, including America Online, Auto Club Insurance Association, BMC Software, SBC Communications and Wachovia Securities." Q4 Financial Highlights -- License revenues were a record $10.9 million, a growth rate of 261% year-over-year and 9% sequentially. -- Callidus Software sold 5,750,000 shares of common stock in an initial public offering priced at $14.00 per share in November 2003. Net proceeds to the company totaled approximately $72.2 million. -- Net cash provided by operating activities for the fiscal year was $0.9 million. Cash and investments totaled $80.3 million at December 31, 2003 and includes the net proceeds from the company's initial public offering. -- Days Sales Outstanding (DSO) in accounts receivable at the end of the fourth quarter of 2003 was 51 days, compared to 51 days at the end of the third quarter of 2003. Q4 Business Highlights -- IBM and Callidus Software formed a global strategic alliance to deliver comprehensive incentive compensation management solutions. -- Callidus' TruePerformance(R) product won the prestigious industry award "HR Product of The Year," as featured in the December 2003 issue of Human Resource Executive magazine. -- Callidus exercised its option to purchase a perpetual license to the TruePerformance software code originally developed by Cezanne Software. Callidus will no longer pay royalties to Cezanne and will own and control future development of the award winning TruePerformance product. -- John R. Eickhoff, Executive Vice President and Chief Financial Officer of Ceridian Corporation, joined Callidus' Board of Directors in November 2003. Guidance -- Calendar year 2004 total revenues are projected to be between $95 million and $100 million. -- Calendar year 2004 earnings per share is projected to be between $0.08 and $0.16 on a GAAP basis and non-GAAP earnings per share is projected to be between $0.22 and $0.28. Diluted weighted average shares outstanding for 2004 is estimated to be 29.3 million shares. -- First quarter 2004 total revenues are projected to be between $20 million and $22 million. -- First quarter 2004 earnings per share, on a GAAP basis, is projected to be between a loss of ($0.05) and ($0.02) and non-GAAP earnings per share, excluding stock-based compensation charges, but giving effect to an effective tax rate of 26%, is projected to be between $0.01 and $0.03. Diluted weighted average shares outstanding for the first quarter of 2004 is estimated to be 28.9 million shares. Conference Call Callidus Software's fourth quarter 2003 conference call is scheduled for 1:30 p.m. Pacific Standard Time (PST), Thursday, January 22, 2004. The conference call is available via webcast and can be accessed live, and for one week after the call, at the Investor Relations section of Callidus Software's website at www.callidussoftware.com. To participate in the call via telephone, the dial in number is 800-299-9086 (international 617-786-2903), passcode 42034077. A replay of the conference call can be accessed after 4:00 p.m. PST, by calling 888-286-8010 (international 617-801-6888), passcode 59785976. About Callidus Software Founded in 1996, Callidus Software ( http://www.callidussoftware.com ) is the leading provider of enterprise incentive management (EIM) systems to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage competitive incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp Grid(TM) architecture, Callidus delivers the industry's only EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include Airborne Express, Inc., Allstate, Apple Computer, AOL Time Warner Corporation, AT&T Wireless, BMC Software, Citizens Bank, CUNA Mutual, DIRECTV, Dun & Bradstreet, IBM, Intuit, JP Morgan Chase & Co., Pennzoil-Quaker State Company, SBC Communications and Sun Microsystems. Non-GAAP Financial Measures The non-GAAP information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with generally accepted accounting principles (GAAP) in the United States. The non-GAAP financial results exclude stock-based compensation expense and apply an estimated effective tax rate of 26% in order to provide what we believe is an additional tool for investors to use in understanding our operational results and trends. These non-GAAP financial results are used internally by management to evaluate our operations, plan and forecast for future periods and to allocate resources within the organization. A reconciliation between GAAP and non-GAAP financial measures is included in the accompanying tables. Note on Forward-Looking Statements The forward looking statements included in this press release, including guidance for the first quarter of 2004 and the 2004 fiscal year, reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential material fluctuations in financial results and future growth rates, risk associated with development and market acceptance of new products and product enhancements, decreases in customer spending, increased competition or new entrants in the marketplace and other risks detailed in the company's SEC reports, including its registration statement on Form S-1, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, or the Investor Relations section of Callidus Software's website (www.callidussoftware.com). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release. NOTE: Callidus Software, the Callidus Software logo, TrueComp, and TruePerformance are registered trademarks and TrueAnalytics, TrueComp Grid, TrueComp Manager, TrueComp Viewer, TrueDiagnostics, TrueInformation, TrueIntegration, TruePortal, TrueReferral, TrueResolution, TrueService, TrueSuccess,TrueSupport, Solutions for the Strategic Enterprise and Everyone Profits are trademarks of Callidus Software Inc. in the United States and other countries. Other trademarks are the property of their respective holders. CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) Three months ended Twelve months ended December 31, December 31, 2003 2002 2003 2002 Revenues: License revenues $10,909 $3,025 $37,526 $9,820 Maintenance and service revenues 11,376 5,060 34,208 16,766 Total revenues 22,285 8,085 71,734 26,586 Cost of revenues: License revenues 455 296 1,909 814 Maintenance and service revenues 7,807 4,078 25,746 14,212 Total cost of revenues 8,262 4,374 27,655 15,026 Gross profit 14,023 3,711 44,079 11,560 Operating expenses: Sales and marketing 6,598 4,286 20,813 13,527 Research and development 2,937 2,515 10,963 11,118 General and administrative 1,776 1,556 6,323 5,053 Stock-based compensation 2,008 58 4,577 424 Total operating expenses 13,319 8,415 42,676 30,122 Operating income (loss) 704 (4,704) 1,403 (18,562) Interest expense (99) (174) (502) (582) Other income, net 151 5 201 137 Income (loss) before provision for income taxes and cumulative effect of change in accounting principle 756 (4,873) 1,102 (19,007) Provision for income taxes 92 -- 267 -- Income (loss) before cumulative effect of change in accounting principle 664 (4,873) 835 (19,007) Cumulative effect of change in accounting principle -- -- -- (123) Net income (loss) $664 $(4,873) $835 $(19,130) Basic income (loss) per share attributable to common stockholders $0.04 $(3.50) $0.06 $(13.98) Diluted income (loss) per share $0.03 $(3.50) $0.04 $(13.98) Shares used in basic per share computation 11,650 1,394 4,003 1,368 Shares used in diluted per share computation 24,475 1,394 21,294 1,368 CALLIDUS SOFTWARE INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except for per share data) (unaudited) Three months ended Twelve months ended December 31, December 31, 2003 2002 2003 2002 GAAP net income (loss) $664 $(4,873) $835 $(19,130) Add back: Stock-based compensation 2,008 58 4,577 424 Add back: Provision for income taxes 92 -- 267 -- Non-GAAP income (loss) before income taxes 2,764 (4,815) 5,679 (18,706) Non-GAAP provision for income taxes (26%) 719 -- 1,477 -- Non-GAAP net income (loss) $2,045 $(4,815) $4,202 $(18,706) Non-GAAP diluted income (loss) per share $0.08 $(3.45) $0.20 $(13.67) Shares used in diluted per share computation 24,475 1,394 21,294 1,368 CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) (unaudited) December 31, December 31, Assets 2003 2002 Current assets: Cash and cash equivalents $56,330 $12,833 Short-term investments 3,141 -- Accounts receivable, net 14,850 4,395 Prepaid and other current assets 1,511 674 Total current assets 75,832 17,902 Long-term investments 20,795 -- Property and equipment, net 2,721 2,016 Intangible asset 2,000 -- Deposits and other assets 851 777 Total assets $102,199 $20,695 Liabilities and Stockholders' Equity Current liabilities: Bank line of credit $-- $2,765 Current portion of long-term debt 694 883 Accounts payable 3,504 1,978 Accrued payroll and related expenses 3,638 2,258 Accrued expenses 3,486 3,116 Deferred revenue 7,930 6,252 Total current liabilities 19,252 17,252 Long-term debt, less current portion 520 986 Deferred rent 180 88 Long-term deferred revenue 693 276 Total liabilities 20,645 18,602 Stockholders' equity Convertible preferred stock -- 30 Common stock 24 2 Additional paid-in capital 184,399 96,935 Deferred stock-based compensation (9,327) (90) Notes receivable from stockholders (83) (238) Other comprehensive income 287 35 Accumulated deficit (93,746) (94,581) Total stockholders' equity 81,554 2,093 Total liabilities and stockholders' equity $102,199 $20,695 SOURCE Callidus Software Inc. -0- 01/22/2004 /CONTACT: investors, Jon Pexton, +1-408-808-6577, or ir@callidussoftware.com, or media, Jane Le Fevre, +1-408-808-6511, or pr@callidussoftware.com, both of Callidus Software Inc./ /Web site: http://www.callidussoftware.com / (CALD) CO: Callidus Software Inc. 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