UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: May 03, 2011
(Date of earliest event reported)
Callidus Software Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
000-50463
(Commission File Number)
77-0438629
(IRS Employer
Identification Number)
6200 Stoneridge Mall Road, Suite 500, Pleasanton, CA
(Address of principal executive offices)
94588
(Zip Code)
(925) 251-2200
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Item 2.02. Results of Operations and Financial Condition On May 3, 2011, Callidus Software Inc. issued a press release announcing its financial results as of and for the quarter ended March 31, 2011. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished in this report, including the exhibit, shall not be deemed to be incorporated by reference into Callidus Software Inc.'s filings with the SEC under the Securities Act of 1933 and shall not be deemed to be "filed" with the SEC under the Securities Exchange Act of 1934.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
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.
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Dated: May 03, 2011 |
CALLIDUS SOFTWARE INC.
By: /s/ Ronald J. Fior |
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Exhibit No. | Description |
99.1 | Press Release of Callidus Software Inc. dated May 03, 2011 |
Record Total Recurring Revenue of $14.7 Million, up 20% Year-Over-Year; Fifth Consecutive Quarter of Revenue Growth; Third Consecutive Quarter of Profitable Growth
PLEASANTON, CA -- (Marketwire - May 03, 2011) - Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced financial results for the first quarter ending March 31, 2011.
"I am pleased that for the third consecutive quarter, we achieved non-GAAP profitability. For the fifth consecutive quarter, we achieved sequential growth in total revenues. Overall we grew Q1 total revenues by 22% year-over-year, and recurring revenues by 20%. New recurring revenues, which exclude maintenance revenues, are up 38% over the prior year, demonstrating the growth profile of our SaaS business model," said Leslie Stretch, President and CEO of Callidus Software Inc.
"In the quarter, we continued to drive new customer expansion and add-on business in our installed base, signing deals with our core compensation solution and our new acquisitions -- ForceLogix, a pure play SaaS solution that helps optimize sales force results with actionable sales coaching programs, and Salesforce Assessments, a self-service online application for predicting sales hiring success. These acquisitions round out our Sales Talent Management suite and add to our cross sell opportunities. Our continued growth reflects the value of our solutions for Sales Selection, Onboarding, Goal Management, Coaching, and Compensation Management."
Financial Highlights for the First Quarter 2011
Business Highlights for the First Quarter 2011
Financial Outlook
Total revenue for the second quarter of 2011 is expected to be between $19 million and $20 million. GAAP operating expenses, including stock-based compensation of approximately $3.9 million and amortization of acquired intangibles of $0.2 million, are expected to be between $13.0 million and $14.0 million in the second quarter of 2011.
Conference Call
A conference call to discuss the first quarter 2011 results and outlook is scheduled for 1:30 p.m. Pacific Daylight Time (PDT) today. The conference call will be available via live webcast at the Investor Relations section of Callidus Software's website at www.callidussoftware.com.
Webcast site: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=146634&eventID=3945695
Dial-in number: 866.356.4281
International callers: 617.597.5395
Passcode: 33024656
Replay: A webcast replay will be available after 3:30 p.m. PT on May 3, 2011 through May 11, 2011. The webcast replay will be available at the Investor Relations section of our website.
The time or manner of the webcast may change for technical or administrative reasons outside of Callidus Software's control.
About Callidus Software®
Callidus Software (NASDAQ: CALD) is the market and technology leader in Sales Performance Management (SPM). Callidus customers gain a competitive advantage by maximizing sales cost efficiencies and driving improvements in sales effectiveness. Our award-winning Software-as-a-Service (SaaS) applications set the standard for performance management of a company's sales force and channel partners. Over 2 million employees and channel partners have their performance managed by Callidus Software. For more information, please visit www.callidussoftware.com.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including estimates of second quarter 2011 total revenues, operating expenses, and stock-based compensation expense 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 disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, increased legal expense related to pending litigation, uncertainty regarding purchasing trends in the SPM market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, uncertainty regarding the demand for and profitability of our on-demand services, increased competition or new entrants in the marketplace, and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its form 10-K for 2010, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 925-251-2248, or from 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.
Non-GAAP Financial Measures
Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP operating expense, income (loss) from operations, net loss and net loss per share. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense pursuant to SFAS 123(R), restructuring expense and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
©1997-2011 Callidus Software Inc. All rights reserved. Callidus Software, the Callidus Software logo, TrueComp Manager, ActekSoft and ACom3 are trademarks, service marks, or registered trademarks of Callidus Software Inc. in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited) Three months ended March 31, ------------------ 2011 2010 -------- -------- Revenues: Recurring $ 14,692 $ 12,287 Services 4,286 3,645 License 729 229 -------- -------- Total revenues 19,707 16,161 Cost of revenues: Recurring (1) 7,887 6,414 Services (1) (2) 3,946 4,412 License 91 110 -------- -------- Total cost of revenues 11,924 10,936 -------- -------- Gross profit 7,783 5,225 Operating expenses: Sales and marketing (1) (2) 4,215 4,645 Research and development (1) 2,533 3,138 General and administrative (1) 3,472 3,232 Restructuring 39 719 -------- -------- Total operating expenses 10,259 11,734 -------- -------- Operating loss (2,476) (6,509) Interest and other income, net 50 7 -------- -------- Income (loss) before provision for income taxes (2,426) (6,502) Provision (benefit) for income taxes 80 (551) -------- -------- Net Income (loss) $ (2,506) $ (5,951) ======== ======== Basic net income (loss) per share $ (0.08) $ (0.19) ======== ======== Diluted net income (loss) per share $ (0.08) $ (0.19) ======== ======== Shares used in basic per share computation 33,110 30,963 ======== ======== Shares used in diluted per share computation 33,110 30,963 ======== ======== (1) Stock-based compensation included in amounts above by category: Cost of recurring 719 124 Cost of services 323 241 Sales and marketing 367 272 Research and development 360 218 General and administrative 599 498 -------- -------- Total stock-based compensation $ 2,368 $ 1,353 ======== ======== (2) Acquisition related asset amortization $ 189 $ 157 CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) March 31, December 31, Assets 2011 2010 ----------- ----------- Current assets: Cash and cash equivalents $ 14,027 $ 12,830 Short-term investments 15,413 17,873 Accounts receivable, net 19,784 19,908 Prepaid and other current assets 4,495 4,441 ----------- ----------- Total current assets 53,719 55,052 Long-term investments 787 787 Property and equipment, net 7,577 8,016 Goodwill 9,692 8,031 Intangible assets, net 6,050 4,274 Deferred income taxes, noncurrent 1,645 1,645 Deposits and other assets 1,747 2,000 ----------- ----------- Total assets $ 81,217 $ 79,805 =========== =========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,982 $ 3,299 Accrued payroll and related expenses 2,654 2,859 Accrued expenses 5,085 6,169 Deferred income taxes 1,691 1,691 Deferred revenue 30,130 28,417 Capital lease obligations, short term 1,140 1,119 ----------- ----------- Total current liabilities 43,682 43,554 Long-term deferred revenue 3,916 4,388 Long-term deferred income taxes 39 - Other liabilities 1,528 1,619 Capital lease obligations, long term 1,818 2,162 ----------- ----------- Total liabilities 50,983 51,723 ----------- ----------- Stockholders' equity Common stock 32 31 Additional paid-in capital 226,978 222,363 Accumulated other comprehensive income (56) (98) Accumulated deficit (196,720) (194,214) ----------- ----------- Total stockholders' equity 30,234 28,082 ----------- ----------- Total liabilities and stockholders' equity $ 81,217 $ 79,805 =========== =========== CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Three months ended March 31, ------------------ 2011 2010 -------- -------- Cash flows from operating activities: Net loss $ (2,506) $ (5,951) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation expense 803 549 Amortization of intangible assets 664 869 Provision for doubtful accounts and service remediation reserves 43 (148) Stock-based compensation 2,326 1,277 Stock-based compensation related to acquisition 42 77 Revaluation of acquisition contingent consideration - 22 Release of valuation allowance - (614) Net amortization on investments 80 47 Put option loss - 33 Gain on investments classified as trading securities - (41) Changes in operating assets and liabilities: Accounts receivable 81 (1,768) Prepaid and other current assets (54) 37 Other assets 253 (607) Accounts payable (508) (1,133) Accrued expenses (1,383) 743 Accrued payroll and related expenses (252) (329) Accrued restructuring (104) (133) Deferred revenue 1,243 5,104 Deferred income taxes 38 51 -------- -------- Net cash provided by (used in) operating activities 766 (1,915) -------- -------- Cash flows from investing activities: Purchases of investments (5,180) (2,474) Proceeds from maturities and sale of investments 7,563 6,700 Purchases of property and equipment (440) (356) Purchases of intangible assets (214) (240) Acquisition, net of cash acquired (3,260) (1,649) -------- -------- Net cash provided by (used in) investing activities (1,531) 1,981 -------- -------- Cash flows from financing activities: Net proceeds from issuance of common stock 2,525 762 Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units (277) (75) Repayment of debt assumed through acquisition - (899) Payment of principle under capital lease (323) - -------- -------- Net cash provided by (used in) financing activities 1,925 (212) -------- -------- Effect of exchange rates on cash and cash equivalents 37 (79) -------- -------- Net decrease in cash and cash equivalents 1,197 (225) Cash and cash equivalents at beginning of quarter 12,830 11,565 -------- -------- Cash and cash equivalents at end of quarter $ 14,027 $ 11,340 ======== ======== Non-cash activities: Acquistion of property and equipment through capital leases $ 453 $ - ======== ======== CALLIDUS SOFTWARE INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except for percentages and per share data) (unaudited) Three months ended March 31, -------------------- 2011 2010 --------- --------- Non-GAAP operating expense reconciliation: Operating expenses $ 10,259 $ 11,734 Operating expenses, as a % of total revenues 52% 73% Add back: Non-cash stock-based compensation $ (1,326) $ (988) Non-cash amortization of acquired intangible assets (189) (157) Restructuring (39) (719) --------- --------- Non-GAAP Operating Expenses $ 8,705 $ 9,870 --------- --------- Non-GAAP Operating expenses, as a % of total revenues 44% 61% Non-GAAP operating income (loss) reconciliation: Operating income (loss) $ (2,476) $ (6,509) Operating income (loss), as a % of total revenues -13% -40% Add back: Non-cash stock-based compensation $ 2,368 $ 1,353 Non-cash amortization of acquired intangible assets 189 157 Restructuring 39 719 --------- --------- Non-GAAP Operating income (loss) $ 120 $ (4,280) --------- --------- Non-GAAP Operating income (loss), as a % of total revenues 1% -26% Non-GAAP net income (loss) reconciliation: Net income (loss) $ (2,506) $ (5,951) Net income (loss), as a % of total revenues -13% -37% Add back: Non-cash stock-based compensation $ 2,368 $ 1,353 Non-cash amortization of acquired intangible assets 189 157 Restructuring 39 719 --------- --------- Non-GAAP Net income (loss) $ 90 $ (3,722) --------- --------- Non-GAAP Net income (loss), as a % of total revenues 0% -23% Non-GAAP net income (loss) per share reconciliation: Net income (loss) per basic and diluted share $ (0.08) $ (0.19) Add back: Non-cash stock-based compensation 0.07 0.04 Non-cash amortization of acquired intangible assets 0.01 0.01 Restructuring - 0.02 --------- --------- Non-GAAP net income (loss) per basic share $ - $ (0.12) --------- --------- Non-GAAP net income (loss) per diluted share $ - $ (0.11) --------- --------- Basic and fully diluted shares reconciliation: Basic shares 33,110 30,963 --------- --------- Add back: Weighted average effect of dilutive securities 4,816 1,588 --------- --------- Diluted shares 37,926 32,551 --------- ---------
Investor Relations Contact: Ron Fior Callidus Software Inc. 925-251-2205 ir@callidussoftware.com Press Contact: Lorna Heynike Callidus Software Inc. 925-251-2207 pr@callidussoftware.com