Tumbleweed Press Releases
Tumbleweed Communications
Corp. Reports Q4 and Fiscal 2000 Financial Results
Total Revenue was $37.3 Million in 2000 versus
$15.3 Million in 1999
REDWOOD CITY, CA – January 25, 2001 - Tumbleweed® Communications
Corp. (Nasdaq:TMWD), a leading provider of mission critical messaging
solutions, today reported results for the fourth quarter and fiscal year
ended December 31, 2000. Total revenue for the quarter was $8.2 million,
an 81% increase over fourth quarter 1999 revenue of $4.5 million. Revenue
for the fiscal year 2000 totaled $37.3 million, an increase of 144% over
revenue of $15.3 million from continuing product lines in 1999. Tumbleweed's
cash balance at December 31, 2000 was $75.5 million.
Tumbleweed reported a net loss of $16.7 million for the quarter ended
December 31, 2000, excluding expenses related to stock compensation expense,
amortization of goodwill and other intangibles, or $0.57 per basic and
diluted share. The net loss for the fourth quarter, including these expenses,
was $26.3 million, or $0.89 per basic and diluted share. For the year
ended December 31, 2000, net loss was $39.6 million, or $1.42 per basic
and diluted share, excluding merger-related expenses, stock compensation
expense, amortization of goodwill and other intangibles. Net loss for
fiscal year 2000, including these expenses, was $69.8 million, or $2.51
per basic and diluted share.
"Although we had healthy year over year growth in sales of our products
in 2000, we were disappointed with our results in the most recent quarter," said
Jeff Smith, president and chief executive officer of Tumbleweed. "To
position the company for 2001, we've made some difficult but necessary
changes within our organization. We are committed to rebounding from
this quarter and to successfully capturing the market opportunities
that exist for our products in the coming year."
Restructuring
On January 3rd, Tumbleweed announced that following a review of fourth
quarter 2000 performance, and based on current economic conditions,
it planned to re-align company resources to focus only on its strongest
product and market opportunities in 2001. As a result, Tumbleweed reduced
its total headcount by approximately 20%. The company expects to recognize
a one-time charge related to this restructuring in the first quarter
of 2001. At this date, a significant portion of the restructuring is
complete and the company has determined that the restructuring charge
is expected to be in the range of $4.0 to $5.0 million.
Highlights of the quarter and year ended December 31, 2000: |
- Committed message traffic under contract at year-end reached
1.48 billion messages, compared to 1.29 billion messages
at the end of Q3.
- Tumbleweed closed 63 new contracts with new and existing
customers during the quarter, bringing the total number of
new customers in the year to over 400.
- Tumbleweed established a strong presence in each of our
target verticals, including healthcare, banking, technology,
insurance, manufacturing, government and legal.
- Tumbleweed launched the fourth generation of its secure
communications platform, Integrated Messaging Exchange™ 4.0,
launched Messaging Management System 4.5, a comprehensive
messaging management product, and delivered a significant
upgrade in MMS™ Message Monitor™ 4.7, a product
that provides email archiving, monitoring and reporting capabilities
for brokerage and investment firms.
- Tumbleweed was allowed or granted four patents during the
year
- Tumbleweed announced alliances with Broadvision Inc., Iron
Mountain Incorporated and Siebel Systems.
|
|
| Assets |
>December 31, 2000 |
December 31, 1999 |
| Current assets: |
|
|
| Cash and cash equivalents |
$ 75,497 |
$ 60,544 |
| Accounts receivable |
11,220 |
5,182 |
| Prepaid expenses and other current
assets |
3,641 |
3,574 |
| Total current assets |
90,358 |
69,300 |
| Property and equipment, net |
13,700 |
3,485 |
| Intangibles |
4,297 |
- |
| Goodwill |
67,834 |
135 |
| Other assets |
5,226 |
v2,763 |
| Total assets |
$ 181,415 |
$ 75,683 |
| Liabilities and Stockholders'
Equity |
| Current liabilities |
| Accounts payable |
$ 3,872 |
$2,878 |
| Current installments of long-term debt |
581 |
840 |
| Accrued liabilities |
16,835 |
6,398 |
| Deferred revenue |
2,557 |
2,579 |
| Total current liabilities |
23,845 |
12,695 |
| Long-term debt, excluding current installments |
418 |
1,017 |
| Other long-term liabilities |
3,540 |
258 |
| Total liabilities |
27,803 |
13,970 |
| Stockholders' equity: |
| Common stock |
29 |
26 |
| Additional paid-in capital |
295,184 |
132,167 |
| Deferred compensation expense |
(6,461) |
(5,283) |
| Accumulated other comprehensive income
(loss)/income |
(61) |
53 |
| Accumulated deficit |
(135,079) |
(65,250) |
| Total stockholders' equity |
153,612 |
61,713 |
| Total liabilities and stockholders'
equity |
$ 181,415 |
$ 75,683 |
|
| |
Three Months Ended December
31, |
Twelve Months Ended, December
31, |
| |
2000 |
1999 |
2000 |
1999 |
| Revenue: |
| License |
$ 3,703 |
$ 3,120 |
$ 22,490 |
$11,285 |
| Services |
2,414 |
964 |
8,185 |
3,018 |
| Transaction Fees |
2,087 |
457 |
6,663 |
981 |
| Revenue from continuing product lines |
8,204 |
4,541 |
37,338 |
15,284 |
| Discontinued product line |
- |
- |
- |
1,472 |
| Total revenue |
8,204 |
4,541 |
37,338 |
16,756 |
| Cost of revenue: |
| License |
38 |
247 |
1,123 |
737 |
| Services |
3,930 |
1,077 |
11,747 |
4,088 |
| Transaction fees |
- |
34 |
97 |
78 |
| Total cost of revenue |
3,968 |
1,358 |
12,967 |
4,903 |
| Gross Profit |
4,236 |
3,183 |
24,371 |
11,853 |
| Operating Expenses: |
| Research and development |
4,659 |
2,756 |
14,879 |
8,923 |
| Sales and marketing |
12,775 |
7,168 |
40,488 |
19,917 |
| General and administrative |
4,673 |
1,635 |
11,571 |
5,524 |
| Stock compensation |
1,374 |
1,116 |
5,695 |
3,536 |
| Amortization of goodwill, intangibles
and in-process research and development |
8,284 |
- |
13,775 |
- |
| Merger related expenses |
- |
- |
10,803 |
- |
| Total operating expenses |
31,765 |
12,675 |
97,211 |
37,900 |
| Operating loss |
(27,529) |
(9,492) |
(72,840) |
(26,047) |
| Other income, net |
1,292 |
875 |
3,353 |
2,126 |
| Net loss before provision for taxes |
(26,237) |
(8,617) |
(69,487) |
(23,921) |
| Provision for taxes |
42 |
90 |
375 |
301 |
| Minority interest |
43 |
- |
(33) |
- |
| Net loss |
$ (26,322) |
$ (8,707) |
$ (69,829) |
$ (24,222) |
| Net loss per share-basic and diluted |
$ (0.89) |
$ (0.34) |
$ (2.51) |
$ (1.65) |
| Weighted average shares-basic and diluted |
29,457 |
25,376 |
27,829 |
14,650 |
|
Except for the historical information contained herein, the matters
discussed in this press release may constitute forward-looking
statements that involve risks and uncertainties that could
cause actual results to differ materially from those projected,
particularly with respect to the security features of Tumbleweed's
products and the activities of any third party. In some cases,
forward-looking statements can be identified by terminology
such as "may," "will," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and
similar expressions. For further cautions about the risks
of investing in Tumbleweed, we refer you to the documents
Tumbleweed files from time to time with the Securities and
Exchange Commission, particularly Tumbleweed's Form 10-K
filed March 30, 2001 and Form 10-Q filed November 13, 2001.
Tumbleweed assumes no obligation to update information contained
in this press release.
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Contact:
Tumbleweed Communications
Jennifer Ruddock, (650) 216-2129
jennifer.ruddock@tumbleweed.com |
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