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Chordiant Software Announces Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 2007
Reports Record Revenue and Profit for Fiscal Year 2007
CUPERTINO, CA – November 15, 2007—Chordiant Software, Inc. (Nasdaq - CHRD), the leading provider of Customer Experience (Cx(TM)) software and services, today announced its financial results for the fourth quarter and fiscal year ended September 30, 2007, and filed its Annual Report on Form 10-K with the Securities and Exchange Commission.
Fiscal Year 2007 Financial Highlights
- Record bookings of $163.8 million, up 62% year over year;
- Record revenue of $124.5 million, up 28% year over year;
- Deferred revenue of $68.0 million, up 130% year over year;
- Backlog of $75.4 million, up 107% year over year;
- Record fully diluted GAAP earnings per share of $0.18 and record fully diluted non-GAAP earnings per share of $0.51;
- Positive cash flow from operations of $38.9 million; and,
- Record cash, cash equivalents, restricted cash and marketable securities ending balance of $90.5 million.
“This was a record year for Chordiant and we are extremely pleased with the overall performance of the company in 2007,” said Steven R. Springsteel, Chairman and Chief Executive Officer. “Market demand for our products is the strongest in our company’s history, and we believe we are extremely well positioned to capitalize on the opportunities in front of us.”
Fourth Quarter 2007 Financial Highlights
- Revenue of $32.1 million, up 48% year over year;
- Fully diluted GAAP earnings per share of $0.16 and fully diluted non-GAAP earnings per share of $0.18;
- Positive cash flow from operations during the fourth quarter of $2.6 million;
- Signed four transactions greater than $1 million with new and existing customers;
- Completed product releases of Marketing Director, Enterprise Case Management and Recommendation Advisor; and,
- Expanded our global development capabilities with a new development partner in Eastern Europe.
Customer Wins
Chordiant entered into four $1 million plus transactions during the fourth quarter with new and existing customers. New customer wins included a leading provider of insurance and financial services and Raiffeisen Bank, Polska, a leading institution in the Polish financial market. Existing customer wins included a leading cable system provider and IsBank, a top European bank.
For the fourth quarter, bookings were $20 million, compared to $27 million in the fourth quarter of fiscal 2006. The bookings for the fourth quarter of 2007 exclude $10.3 million of orders which were slightly delayed and received in the first week of October.
“In the fourth quarter, we saw a good distribution of deals across verticals, geographies and with new and existing customers,” said Steve Springsteel. “While our bookings will fluctuate from quarter to quarter based on the timing of deal closures, bookings growth for the fiscal year was extremely strong, up 62% from the prior year, and this positions us well for fiscal 2008.”
Fourth Quarter and Fiscal Year 2007 Financial Results
Total revenues for the fourth quarter of fiscal 2007 were $32.1 million, an increase of 48% from the $21.7 million reported for the three months ended September 30, 2006. For the fiscal year ended September 30, 2007, total revenues were $124.5 million, an increase of 28% from the $97.5 million reported for the fiscal year of 2006. License revenues for the fourth quarter of fiscal 2007 were $13.9 million, compared to $7.9 million reported for the three months ended September 30, 2006. For the fiscal year of 2007, license revenues were $54.1 million, compared to $40.5 million reported for the fiscal year of 2006. Service revenues for the fourth quarter of fiscal 2007 were $18.2 million, compared to $13.8 million reported for the same period of fiscal 2006. For the fiscal year ended September 30, 2007, service revenues were $70.5 million, compared to $57.0 million for the fiscal year of 2006. Chordiant posted a GAAP net income of $5.4 million, or fully diluted GAAP earnings per share of $0.16 for the fourth quarter of fiscal 2007, compared to a GAAP net loss of $8.4 million, or fully diluted loss per share of $0.27 for the three months ended September 30, 2006. For the fiscal year ended September 30, 2007, GAAP net income was $6.0 million, or fully diluted GAAP earnings per share of $0.18, compared to a GAAP net loss of $16.0 million, or fully diluted loss per share of $0.51 for the fiscal year of 2006.
Chordiant reported fourth quarter fiscal 2007 non-GAAP net income of $6.3 million, or fully diluted non-GAAP earnings per share of $0.18, compared to a non-GAAP net loss of $7.1 million, or a non-GAAP loss per share of $0.22 for the three months ended September 30, 2006. For the fiscal year ended September 30, 2007, non-GAAP net income of $17.1 million, or fully diluted non-GAAP earnings per share of $0.51, compared to a non-GAAP net loss of $9.2 million, or fully diluted non-GAAP loss per share of $0.30 for the fiscal year of 2006. Non-GAAP net income excludes stock-based compensation, amortization of purchased intangible assets, restructuring expense and infrequent charges.
Deferred Revenue
Deferred revenue at the end of fiscal year 2007 was $68.0 million, an increase of 130% as compared to the ending balance of $29.5 million at September 30, 2006.
Backlog of Business
At September 30, 2007, Chordiant's backlog, which includes deferred revenue, increased 107% to $75.4 million, as compared to $36.4 million at the end of September 30, 2006. The year to date increase in backlog is primarily related to the continued signing of new license agreements and several large maintenance renewals.
Cash Position
Chordiant increased its cash, cash equivalents, restricted cash and marketable securities position by $44.7 million to a record $90.5 million at September 30, 2007, as compared to $45.8 million at the end of September 30, 2006.
Non-GAAP Financial Measurements
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), please see the section of the accompanying tables titled "non-GAAP Financial Measures" as well as the related Tables C and D which follows it. Please see Table E for the reconciliation of non-GAAP measures used in the section titled Fiscal Year 2008 Financial Guidance.
Fiscal Year 2008 Financial Guidance
- Chordiant expects total bookings for fiscal year 2008 to range between $160 million and $170 million, increasing $10 million from the previous guidance of $150 million to $160 million.
- Chordiant expects total revenue for fiscal year 2008 to range from $140 million to $150 million, unchanged from previous guidance.
- Chordiant expects to increase its deferred revenue balances during fiscal 2008.
- Chordiant expects to report GAAP fully diluted earnings per share between $0.46 and $0.61 and non-GAAP fully diluted earnings per share between $0.60 and $0.76 for fiscal 2008 based on approximately 36.5 million diluted shares outstanding, unchanged from previous guidance.
- Chordiant expects to generate positive cash flow in excess of $20 million for fiscal 2008.
Conference Call and Webcast Scheduled for November 15, 2007
Chordiant Software will host a conference call and webcast to discuss its financial results for the fourth quarter of fiscal 2007 ended September 30, and also its fiscal 2008 financial guidance on November 15, 2007 at 2:00 p.m. (PT), 5:00 p.m. (ET) and 10:00 (GMT). The live audio webcast will be available to investors and the general public from the following website: http://www.veracast.com/webcasts/chordiant2/22114185.cfm
Alternatively, you may access Chordiant's website at http://www.chordiant.com, where you will see the event listed on the homepage. Access is also possible from Chordiant's Investor Relations website.
The webcast will be archived on the Chordiant website; in addition, a telephone replay will be available on Thursday, November 15, 2007, beginning at approximately 5:00 p.m. Pacific Time or 8:00 p.m. Eastern Time for seven days after the live call. The replay can be accessed by dialing (800) 405-2236, access code 11098835#.
Financial Results Tables (PDF format)
About Chordiant Software, Inc.
Chordiant helps leading global brands such as HSBC, Barclay's, CIBC and Capital One deliver the best possible customer experience. Unlike traditional business applications, Chordiant Customer Experience (Cx) solutions blend insight with predictive desktop decisioning to uniquely understand the customer's behavior. This deeper understanding cultivates a lasting, one-to-one relationship that aligns the most appropriate value proposition to each consumer. With Chordiant Cx solutions, customer loyalty, operational productivity and profitability reach new levels of return. For more information, visit Chordiant at http://www.chordiant.com. Chordiant is headquartered in Cupertino, California.
Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. The Customer Experience Company and Cx are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.
Safe Harbor Statement
This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words, such as "believes,", "expects," "will,", "guidance," and similar expressions which are intended to identify forward-looking statements. There are a number of important factors that could cause the results or outcomes discussed herein to differ materially from those indicated by these forward-looking statements, including, among others, whether Chordiant's customers will honor their contractual commitments, whether the Company will be able to achieve its revenue targets and market acceptance of its products. Further information on potential factors that could affect Chordiant are included in risks detailed from time to time in Chordiant's Securities and Exchange Commission filings, including, without limitation, Chordiant's Annual Report on Form 10-K for the period ended September 30, 2007. This filing is available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release.
Chordiant Investor Relations Contact:
Staci Strauss Mortenson
Integrated Corporate Relations (ICR)
203-682-8273
Staci.mortenson@icrinc.com
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