-----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, WjtXSZ5MKr+34SeyJ/wqU50mc/r6P71aCJTWOI3PJhQ7dGefNPwIK/3IzXEuGyGn uG/NQvzgyYb0AHQ6Hjlweg== 0001275287-06-003795.txt : 20060725 0001275287-06-003795.hdr.sgml : 20060725 20060725160435 ACCESSION NUMBER: 0001275287-06-003795 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060725 DATE AS OF CHANGE: 20060725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CALLIDUS SOFTWARE INC CENTRAL INDEX KEY: 0001035748 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 770438629 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50463 FILM NUMBER: 06979149 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 cs6501.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): JULY 25, 2006 CALLIDUS SOFTWARE INC. (Exact Name of Registrant as Specified in Charter) Delaware 000-50463 77-0438629 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File 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) ---------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 25, 2006, Callidus Software Inc. issued a press release announcing its financial results of and for the quarter ended June 30, 2006. 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. (d) Exhibits. 99.1 Earnings Press Release, dated July 25, 2006 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: July 25, 2006 By: /s/ Ronald J. Fior --------------------------- Name: Ronald J. Fior Title: Vice President, Finance and Chief Financial Officer EXHIBIT INDEX 99.1 Earnings Press Release, dated July 25, 2006. EX-99.1 2 cs6501ex991.txt EXHIBIT 99.1 Exhibit 99.1 CALLIDUS SOFTWARE REPORTS SECOND QUARTER 2006 RESULTS Q2 REVENUES $17.7 MILLION, UP 40% YEAR-OVER-YEAR SAN JOSE, Calif., July 25 /PRNewswire-FirstCall/ -- Callidus Software Inc. (Nasdaq: CALD), a leading provider of Enterprise Incentive Management (EIM) software, today announced financial results for the second quarter ended June 30, 2006. Total second quarter revenues were $17.7 million, an increase of 40% compared to second quarter 2005 and an increase of 4% from the prior quarter. Second quarter license revenues were $5.9 million, an increase of over 350% compared to second quarter 2005 and a decrease of 15% compared to the prior quarter. On a trailing twelve month basis, license revenues are up over 130% from $11.1 million to $25.9 million and total revenues are up 23% from $56.1 million to $69.0 million. Second quarter maintenance and service revenues were $11.7 million, an increase of 4% compared to the second quarter 2005 and an increase of 17% compared to the prior quarter. Second quarter net loss was $3.2 million, or ($0.12) per share (including $1.4 million of stock-based compensation expense). This compares to a net loss of $3.7 million, or ($0.14) per share, for the second quarter of 2005 (including $0.4 million of stock-based compensation expense) and a net loss of $3.1 million, or ($0.11) per share, for the prior quarter (including $1.2 million of stock-based compensation expense). Cash and investments totaled $56.7 million at June 30, 2006, a decrease of $3.9 million from March 31, 2006. "We are pleased with our performance in the second quarter. We continued to experience strong year-over-year growth in license revenues, our maintenance and service revenues grew both sequentially and year-over-year and we made substantial progress in our on-demand business," said Robert Youngjohns, president and CEO of Callidus Software. "We continue to see substantial market opportunity for our EIM and Sales Performance Management solutions, both in our traditional enterprise software model and through our new on-demand offering," Mr. Youngjohns concluded. Recent Business Highlights -- Some of the customers purchasing Callidus solutions in the second quarter included First Command Financial, Harland Financial Solutions, Hyperion, Lenovo, Mentor Graphics, and The Prudential Life Insurance Company of Korea. -- Callidus launched the hosted version of its on-demand offering in the quarter. We experienced strong initial success, signing a number of new customers. We expect the second quarter sales to generate an additional $1.6 million a year in recurring revenues. The hosted on-demand revenues are not reflected in our Q2 results, but will be recognized ratably over the contract term once the implementations are complete, the first of which are expected to be in the fourth quarter. -- Callidus Software grew its existing on-demand business, which offers on-premise solution management services, generating revenues of $2.0 million in the quarter. On-Demand Solutions, together with maintenance revenues, accounted for $6.2 million, or 35% of total revenues in the quarter. Both on-demand and software maintenance contracts provide for recurring revenue streams but remain subject to periodic adjustment or cancellation. -- Callidus' flagship product TrueComp(R) earned "Certified for SAP NetWeaver(R)" status during the second quarter. To obtain this certification, vendors must ensure that the integration of their application to SAP software has been tested and certified at an SAP Integration and Certification Center. Callidus customers can now leverage the NetWeaver platform to rapidly deploy Callidus Software solutions on the same framework as their SAP solutions. -- Callidus announced Workflow Solutions as an important addition to its line of strategic, value-added service offerings. Built on the TrueResolution(R) framework and integrated with TrueComp and TrueInformation(R) software products, Workflow Solutions are designed to drive enterprise productivity and efficiency to streamline and automate business processes and information flow with three packaged offerings: Payee Self-Service, Data Management Services and Sales Operations Support. Q3 2006 Financial Outlook -- License revenues may fluctuate on a quarter-to-quarter basis, as they are inherently difficult to predict; therefore we will not be providing guidance on license revenues. -- Maintenance and service revenues are expected to be between $11.3 million and $11.8 million, with a related gross margin between 26% and 28% (including $0.3 million of expected stock-based compensation expense). -- Operating expenses are expected to be between $12.8 million and $13.3 million (including $1.0 million of expected stock-based compensation expense). Conference Call A conference call to discuss the second quarter results is scheduled for today at 1:30 p.m. Pacific Daylight Time (PDT). The conference call will be available via live-webcast at the Investor Relations section of Callidus' website at www.callidussoftware.com. To participate in the call via telephone, the dial-in number is 866-356-3093 (international +1-617-597-5381), passcode 23752218. A telephone playback and webcast replay of the conference call will be available after 3:30 p.m. PDT today through August 8, 2006. The telephone replay will be available by calling 888-286-8010 (international: +1-617-801-6888), passcode 28204974. The webcast replay will be available at the Investor Relations section of Callidus' website under Calendar of Events. About Callidus Software Founded in 1996, Callidus Software Inc. ( www.callidussoftware.com ) is an industry leading Enterprise Incentive Management (EIM) provider to global companies across multiple industries. Callidus' EIM systems allow enterprises to develop and manage incentive compensation linked to the achievement of strategic business objectives. Through its TrueComp(R) Grid architecture, Callidus Software delivers an EIM solution that combines the power and scalability of grid computing with the flexibility of rules-based interface. Customers/Partners include 7-Eleven, Accenture, CUNA Mutual, HP, IBM, Philips Medical Systems, Sprint Nextel, Sun Microsystems, Time Warner Corporation and Wachovia. Callidus Software is publicly traded on the NASDAQ under the symbol CALD. Note on Forward-Looking Statements The forward looking statements included in this press release, including with respect to the substantial market opportunity in EIM and Sales Performance Management solutions, third quarter maintenance and service revenues and associated gross margin, recurring revenues expected to be derived from the Company's hosted on-demand contracts signed in the second quarter and the timing of the implementation of those projects, estimates of third quarter operating expenses and stock-based compensation expense, and a customer's ability to rapidly deploy Callidus software on the SAP NetWeaver platform, 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, timing and size of software license orders, management's ability to successfully implement its business plan and its on-demand offering, potential material fluctuations in financial results and future growth rates, decreases in customer spending, customer cancellation or non-renewal of software maintenance contracts or on-demand services, increased competition or new entrants in the marketplace, litigation and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K and its Form 10-Q for the first quarter of 2006, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 408-808-6577, 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. NOTE: Callidus Software, the Callidus Software logo, Callidus TrueAnalytics, TrueChannel, TrueComp, TrueComp Grid, TrueInformation, TruePerformance, TrueReferral, and TrueResolution are trademarks of Callidus Software Inc. All other trademarks are the property of their respective owners. CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per share data) (unaudited)
Three months ended Six months ended June 30, June 30, ---------------------------- ---------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Revenues: License revenues $ 5,935 $ 1,295 $ 12,893 $ 4,795 Maintenance and service revenues 11,729 11,320 21,728 22,321 Total revenues 17,664 12,615 34,621 27,116 Cost of revenues: License revenues 148 86 284 183 Maintenance and service revenues (1) 8,585 7,725 16,365 14,955 Total cost of revenues 8,733 7,811 16,649 15,138 Gross profit 8,931 4,804 17,972 11,978 Operating expenses: Sales and marketing (1) 6,169 3,612 12,359 8,150 Research and development (1) 3,650 2,940 7,220 6,015 General and administrative (1) 2,992 2,357 6,079 4,699 Total operating expenses 12,811 8,909 25,658 18,864 Operating loss (3,880) (4,105) (7,686) (6,886) Interest and other income, net 675 353 1,243 665 Loss before provision for income taxes (3,205) (3,752) (6,443) (6,221) Provision (benefit) for income taxes -- (34) -- (9) Loss before cumulative effect of a change in accounting principle (3,205) (3,718) (6,443) (6,212) Cumulative effect of a change in accounting principle -- -- 128 -- Net loss $ (3,205) $ (3,718) $ (6,315) $ (6,212) Basic net loss per share $ (0.12) $ (0.14) $ (0.23) $ (0.24) Diluted net loss per share $ (0.12) $ (0.14) $ (0.23) $ (0.24) Shares used in basic per share computation 27,486 26,144 27,304 25,948 Shares used in diluted per share computation 27,486 26,144 27,304 25,948 (1) Stock-based compensation included in amounts above by category: Cost of maintenance and service revenues $ 246 $ 41 $ 510 $ 91 Sales and marketing 264 63 530 189 Research and development 218 102 465 226 General and administrative 662 217 1,094 357 Total stock-based compensation $ 1,390 $ 423 $ 2,599 $ 863
CALLIDUS SOFTWARE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) June 30, December 31, 2006 2005 ------------ ------------ Assets Current assets: Cash and cash equivalents $ 15,493 $ 23,705 Short-term investments 41,246 40,000 Accounts receivable, net 15,311 11,063 Prepaid and other current assets 1,808 1,581 Total current assets 73,858 76,349 Property and equipment, net 3,392 2,801 Deposits and other assets 1,381 1,494 Total assets $ 78,631 $ 80,644 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 618 $ 756 Accrued payroll and related expenses 6,003 6,383 Accrued expenses 2,989 2,043 Deferred revenue 11,986 12,205 Total current liabilities 21,596 21,387 Deferred rent 647 377 Long-term deferred revenue 409 729 Total liabilities 22,652 22,493 Stockholders' equity Common stock 28 27 Additional paid- in capital 189,785 186,232 Deferred stock- based compensation -- (445) Accumulated other comprehensive income 315 171 Accumulated deficit (134,149) (127,834) Total stockholders' equity 55,979 58,151 Total liabilities and stockholders' equity $ 78,631 $ 80,644 SOURCE Callidus Software Inc. -0- 07/25/2006 /CONTACT: Jon Pexton, +1-408-808-6577, or ir@callidussoftware.com, or Jock Breitwieser, +1-408-975-6683, or pr@callidussoftware.com, both of Callidus Software Inc./ /Web site: http://www.callidussoftware.com / (CALD) -----END PRIVACY-ENHANCED MESSAGE-----