EX-99.1 2 a06-10298_1ex99d1.htm EX-99

Exhinit 99.1

 

 

40 Enterprise Boulevard

PO Box 9300

Bozeman, MT 59718-9300

406.522.4200 P

406.522.4227 F

 

FOR IMMEDIATE RELEASE

 

For Further Information, Contact:

 

 

Investor Relations:

 

Corporate Communications:

Todd Friedman or Stacie Bosinoff

 

Jason Treu

The Blueshirt Group

 

RightNow Technologies

415.217.5869

 

972.232.3977 Desk

todd@blueshirtgroup.com

 

214.893.3096 Cell

stacie@blueshirtgroup.com

 

jtreu@rightnow.com

 

RIGHTNOW TECHNOLOGIES REPORTS

FIRST QUARTER 2006 FINANCIALRESULTS

 

Company announces record quarterly bookings of $37.6 million and 97 new customers

 

BOZEMAN, MONT. (April 24, 2006)¾RightNow®Technologies, Inc. (NASDAQ: RNOW), today announced results for the first quarter ended March 31, 2006. RightNow reported its 33rd consecutive quarter of revenue growth, with first quarter consolidated revenue of $24.6 million, an increase of 34 percent from the first quarter of 2005.

 

GAAP net loss in the first quarter of 2006 was $(440,000) or $(0.01) per diluted share, compared to net income of $801,000, or $0.02 per diluted share, in the first quarter of 2005. First quarter 2006 non-GAAP net income per diluted share was $0.01, which excludes the effect of the new accounting standard for stock-based compensation.

 

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RightNow added 97 new customers and handled 281 million customer interactions during the first quarter. New, renewed and expanded customer relationships during the first quarter of 2006 included Crutchfield Corporation, Deltek, Electronic Arts, HanseNet Telekommunikations GmbH, London Underground Ltd., Overstock.com, Ricoh, Scholastic Inc., Sharper Image, Ticketmaster, and Virgin America Inc.

 

“We are very excited to start the year with record bookings, driven by our increasing penetration with large enterprises and the public sector,” stated Greg Gianforte, founder and CEO. “Our customers want to increase their customer loyalty and revenue without increasing costs, and RightNow meets that challenge.  We accomplish this by leveraging our unique and patented knowledge foundation at multiple points of the customer interaction to deliver a great customer experience. After all, you make or break relationships one experience at a time. RightNow is leading the industry beyond CRM to higher impact customer experience, and helping our customers create powerful and sustainable differentiation in their markets.”

 

Susan Carstensen, CFO, added, “Strong performance in our North American sales groups helped drive our highest ever quarterly bookings of $37.6 million. We remain comfortable with our expectation of 40 – 50% bookings growth target for 2006.”  At March 31, 2006 deferred revenue totaled $80.9 million, or 53% more than one year earlier, and cash from operations in the first quarter 2006 totaled $6.1 million.

 

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Guidance

 

                  For the second quarter of 2006, revenue is anticipated to be in the range of $25.5 to $26.5 million. GAAP diluted net loss per diluted share is expected to be in the range of $(0.02) to $(0.04) cents. Excluding the effect of stock-based compensation, non-GAAP diluted net income per diluted share is expected to be in the range of $0.01 to $0.03 cents.

 

                  For the full year 2006, revenue is anticipated to be in the range of $115 to $120 million, and GAAP diluted net income per share is expected to be in the range of $0.02 to $0.09 cents. Excluding the effect of stock-based compensation, non-GAAP diluted net income per share for the year is expected to be in the range of $0.16 to $0.23 cents.

 

Quarterly Conference Call

 

RightNow Technologies will discuss its quarterly results via teleconference at 4:30 p.m. (ET)/2:30 p.m. (MT) today, April 24, 2006. To access the call, please dial (800) 289-0494 at least five minutes prior to the start time. An audio webcast of the call will also be available at www.shareholder.com/rnow/medialist.cfm. A replay of today’s conference call will be available on the company Web site at www.shareholder.com/rnow/, under the Investor Webcasts menu, from 5:30 p.m. (MT) on April 24, 2006 until 10:00 p.m. (MT) May 8, 2006. You may also access a replay of today’s call by dialing (719) 457-0820 or (888) 203-1112 with the replay passcode 9256426.

 

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About RightNow Technologies, Inc.

 

RightNow (NASDAQ: RNOW) is leading the industry beyond CRM to high-impact Customer Experience Management solutions. More than 1,500 companies around the world turn to RightNow to drive a superior customer experience across the frontlines of their business. As a win on service strategy becomes a business imperative, experience management solutions are increasingly recognized as a core driver of business success. Founded in 1997, RightNow is headquartered in Bozeman, Montana, with additional offices in North America, Europe and Asia. For further information, please visit www.rightnow.com.

 

RightNow is a registered trademark of RightNow Technologies, Inc. NASDAQ is a registered trademark of the NASDAQ Stock Market.

 

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

 

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding projected results of operations and management’s future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

 

The risks and uncertainties referred to above include, but are not limited to, risks associated with our business model; our ability to develop or acquire, and gain market acceptance for new products, including our new sales and marketing and voice automation products, in a cost-effective and timely manner; the gain or loss of key customers; competitive pressures; our ability to expand operations; fluctuations in our earnings as a result of the impact of stock-based compensation expense; interruptions or delays in our hosting operations; breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing on the intellectual property rights of third parties; and our ability to expand, retain and motivate our employees and manage our growth. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports of Form 10-Q, and in other filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

 

FRNOW

 

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RightNow Technologies, Inc.

Consolidated Balance Sheets

(In thousands) (Unaudited)

 

 

 

March 31,

 

Dec 31,

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

42,444

 

$

40,874

 

Short-term investments

 

27,063

 

23,314

 

Accounts receivable

 

31,615

 

25,462

 

 

 

 

 

 

 

Term receivables, current

 

17,268

 

15,376

 

Allowance for doubtful accounts

 

(2,090

)

(2,209

)

Net receivables

 

46,793

 

38,629

 

 

 

 

 

 

 

Prepaid & other current assets

 

2,439

 

1,993

 

Total current assets

 

118,739

 

104,810

 

 

 

 

 

 

 

Property and equipment, net

 

6,632

 

6,451

 

Term receivables, non-current

 

12,611

 

10,697

 

Intangible assets, net

 

1,340

 

1,487

 

Other

 

107

 

231

 

Total Assets

 

$

139,429

 

$

123,676

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Accounts payable

 

$

2,983

 

$

2,308

 

Commissions and bonuses payable

 

3,706

 

2,910

 

Other accrued liabilities

 

6,248

 

5,733

 

Current portion of long-term debt

 

30

 

30

 

Current portion of deferred revenue

 

54,191

 

48,673

 

Total current liabilities

 

67,158

 

59,654

 

 

 

 

 

 

 

Long-term debt, less current portion

 

109

 

117

 

Deferred revenue, net of current portion

 

26,715

 

19,250

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

32

 

32

 

Additional paid-in capital

 

79,536

 

78,312

 

Accumulated other comprehensive (loss)

 

(393

)

(401

)

Accumulated deficit

 

(33,728

)

(33,288

)

Total stockholders’ equity

 

45,447

 

44,655

 

Total Liabilities Stockholders’ Equity

 

$

139,429

 

$

123,676

 

 

 

 

 

 

 

 

5



 

RightNow Technologies, Inc.

Consolidated Operating Statements

(In thousands, except per share amounts) (Unaudited)

 

 

 

 

Three Months Ended
March 31,

 

 

 

2006

 

2005

 

Revenue:

 

 

 

 

 

Software, hosting and support

 

$

19,310

 

$

13,874

 

Professional services

 

5,321

 

4,468

 

Total revenue

 

24,631

 

18,342

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

Software, hosting and support

 

2,771

 

2,064

 

Professional services

 

4,104

 

2,696

 

Total cost of revenue

 

6,875

 

4,760

 

 

 

 

 

 

 

Gross profit

 

17,756

 

13,582

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Sales and marketing

 

13,726

 

9,457

 

Research and development

 

3,130

 

2,161

 

General and administrative

 

2,056

 

1,410

 

Total operating expenses

 

18,912

 

13,028

 

 

 

 

 

 

 

Income (loss) from operations

 

(1,156

)

554

 

 

 

 

 

 

 

Interest and other income (expense), net

 

672

 

292

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(484

)

846

 

(Provision) benefit for income taxes

 

44

 

(45

)

Net income (loss)

 

$

(440

)

$

801

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

Basic

 

$

(0.01

)

$

0.03

 

Diluted

 

$

(0.01

)

$

0.02

 

 

 

 

 

 

 

Shares used in the computation:

 

 

 

 

 

Basic

 

31,943

 

29,816

 

Diluted

 

31,943

 

33,564

 

 

 

 

 

 

 

Supplemental information of stock-based compensation expense included in:

 

 

 

 

 

Cost of software, hosting and support

 

$

38

 

$

 

Cost of professional services

 

97

 

 

Sales and marketing

 

366

 

 

Product development

 

159

 

 

General and administrative

 

123

 

 

 

Total stock-based compensation

 

$

783

 

$

 

 

 

 

 

 

 

 

6



 

RightNow Technologies, Inc.

Consolidated Statements of Cash Flows

(In thousands) (Unaudited)

 

 

 

Three Months Ended
March 31,

 

 

 

2006

 

2005

 

Operating activities:

 

 

 

 

 

Net income (loss)

 

$

(440

)

$

801

 

Non-cash adjustments:

 

 

 

 

 

Depreciation and amortization

 

1,105

 

742

 

Provisions (recoveries) for uncollectible accounts receivable

 

(248

)

52

 

Stock-based compensation

 

783

 

 

Changes in operating accounts:

 

 

 

 

 

Receivables

 

(9,798

)

(2,402

)

Prepaid and other current assets

 

(167

)

(44

)

Accounts payable

 

688

 

776

 

Commissions and bonuses payable

 

787

 

(663

)

Other accrued liabilities

 

503

 

208

 

Deferred revenue

 

12,976

 

3,819

 

Other

 

(137

)

(50

)

Cash provided by operating activities

 

6,052

 

3,239

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Net change in short-term investments

 

(3,749

)

11,488

 

Acquisition of property and equipment

 

(1,140

)

(1,078

)

Acquisition of intangible assets

 

(10

)

 

Cash provided by (used for) investing activities

 

(4,899

)

10,410

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Proceeds from issuance of common stock under employee benefit plans

 

433

 

588

 

Payments on long-term debt

 

(8

)

 

Cash provided by financing activities

 

425

 

588

 

 

 

 

 

 

 

Effect of foreign exchange rates on cash and cash equivalents

 

(8

)

(26

)

 

 

 

 

 

 

Increase in cash and cash equivalents

 

1,570

 

14,211

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

40,874

 

18,944

 

Cash and cash equivalents at end of period

 

$

42,444

 

$

33,155

 

 

 

 

 

 

 

 

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RightNow Technologies, Inc.

Reconciliation of Non-GAAP Measurements

(Amounts in thousands, except per share amounts) (Unaudited)

 

Diluted Earnings Per Share Reconciliation

For the three months ended March 31, 2006

 

Net income (loss) as reported

 

$

(440

)

Add stock-based compensation

 

783

 

Net income before stock-based compensation (“SBC”)

 

$

343

 

 

 

 

 

Diluted net (loss) per share, as reported

 

$

(0.01

)

Diluted net income per share, before SBC

 

0.01

 

 

 

 

 

Diluted shares outstanding, as reported

 

31,943

 

Diluted shares outstanding, excluding the effect of SBC

 

34,306

 

 

 

 

 

 

Forward-Looking Guidance Reconciliation

 

 

 

GAAP Guidance

 

 

 

Non-GAAP Guidance

 

 

 

From

 

To

 

Adjustment

 

From

 

To

 

Second quarter ending June 30, 2006

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(700

)

$

(1,400

)

$

1,600

[a]

$

200

 

$

900

 

Diluted EPS

 

$

(0.02

)

$

(0.04

)

$

0.05

[b]

$

0.01

 

$

0.03

 

Diluted shares

 

32,200

 

32,200

 

2,000

[c]

34,200

 

34,200

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

600

 

$

3,100

 

$

5,000

[a]

$

5,600

 

$

8,100

 

Diluted EPS

 

$

0.02

 

$

0.09

 

$

0.14

[b]

$

0.16

 

$

0.23

 

Diluted shares

 

34,500

 

34,500

 

 

34,500

 

34,500

 

 


[a] Estimated stock-based compensation expense to be recorded for the periods indicated in accordance with Statement of Financial Accounting Standards No. 123R, Share-Based Payments, (“SFAS 123R”) which is effective for periods beginning January 1, 2006. Periods prior to 2006 do not include stock-based compensation expense.

[b] Estimated per diluted share effect of stock-based compensation noted in [a].

[c] Estimated adjustment for the dilutive effect of outstanding common stock equivalents.

 

About Non-GAAP Financial Measures

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies.

 

RightNow’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding RightNow’s operating results because they facilitate the comparison of results for future periods with results from past periods. RightNow adopted SFAS 123R on January 1, 2006 using the modified prospective method. Results of prior periods have not been restated to conform with the 2006 presentation. We believe the calculation of diluted net income per share, calculated without stock-based compensation expense, provides a meaningful comparison to our diluted net income per share figures reported for 2005 and prior years.