Chordiant Software, a developer of eBusiness and customer interaction software, has announced its financial results for the first quarter ended 31 March 2000. The company completed its initial public offering of common stock on 14 February 2000.
Total net revenues were $5 million, up 12 per cent from $4.5 million for the first quarter of 1999. License revenues were $2.1 million, up 21 per cent from $1.8 million a year earlier. Service revenues were $2.9 million, up 6 per cent from $2.7 million a year ago.
Net loss was $13.2 million, or a loss of $0.36 per share on a pro forma basis. This included a one-time charge of $3.5 million for the write-off of purchased in-process research and development related to a technology and intellectual property transfer agreement with Chase Manhattan Mortgage Corporation, as well as stock-based compensation expenses of $2.5 million.
Excluding the one-time charge and stock-based compensation expenses, first-quarter net loss was $7.2 million, or a loss of $0.20 per share pro forma, compared with a net loss of $4.3 million, or a loss of $0.20 per share pro forma, for the first quarter of 1999. Pro forma computations are based on 36.4 million weighted average shares for the first quarter of 2000 and 21.7 million weighted average shares for the same quarter a year earlier.
Chordiant's balance sheet at 31 March 2000 included $79.9 million in cash, cash equivalents and short-term investments, reflecting the net proceeds of its initial public offering.
“First-quarter revenues were stronger than expected, following a robust fourth quarter driven by customers’ push to complete their e-business projects before Y2K,” said Sam Spadafora, chief executive officer of Chordiant.
“During the quarter, we were pleased with the addition of blue-chip companies to our customer base, the expansion of our European operations to meet market demand, and the enhancement of our management team and board of directors. With ample cash on our balance sheet, we look forward to the continued execution of our business strategy and plans, as we pursue a healthy pipeline of new business opportunities in the fast-moving eCRM market.”
During the first quarter, Chordiant:
*completed an initial public offering of 4.9 million shares of common stock, at an offering price of $18 per share, generating net proceeds in excess of $80 million
*recorded international sales comprising nearly 70 per cent of total net revenues
*signed three new Global 500 customers--Andersen Consulting, Barclays Mercantile and General Motors in Germany
*generated follow-on business from existing accounts
*was named a recognized IBM Business Partner and an Advanced Level Member of IBM PartnerWorld for Developers
*supported the start-up of CRM projects at MetLife and Direct Line Financial Services, solidifying the company's presence in the United States and Europe
*reached agreement with Chase Manhattan Mortgage Corporation for the transfer of technology and intellectual property developed by both companies
*opened sales offices for the Benelux countries and Germany and staffed regional sales management to support the company's expansion in the European eCRM market
*appointed Steven Sherman, formerly of Vantive, as senior vice president of development and David Bernstein, formerly of AT&T, as vice president of strategy and business development
*appointed to its board of directors Robert McKinney, acting chief information officer of MetLife, and Dr. David Springett, president of the Community College Foundation.
The Chordiant system has been selected by MetLife, Thomas Cook Global Services, KLM Royal Dutch Airlines, First USA Bank, Cable & Wireless, and Bank One International. Headquartered in Cupertino, California, Chordiant maintains regional offices in Chicago, Dallas, New York and London.