SALT LAKE CITY, Oct. 27 /PRNewswire-FirstCall/ -- TenFold(R) Corporation (BULLETIN BOARD: TENF) , provider of the EnterpriseTenFold(TM) platform for building and implementing enterprise applications, today announced financial results for its third quarter of 2004 ended September 30, 2004. TenFold''s President and CEO, Dr. Nancy Harvey, and the company''s founder and CTO, Jeffrey L. Walker, will host a conference call to discuss the results, later today, Wednesday, October 27, 2004, at 5:00 p.m. EDT.
Total revenue for the third quarter was $1.8 million, and operating and net losses were $2.0 million. TenFold''s net cash outflow for Q3 was $2.1 million and ending Q3 cash was $7.0 million. These results are slightly better than the preliminary results presented on October 4th.
"These results are consistent with the trends we expected as we transition TenFold from a services company to a product company. As we convert our business model from the services company model that we used to fund TenFold through our turnaround, our old-model consulting services revenues are declining. We are pleased with the progress we made on our marketing and sales initiatives during the third quarter and are encouraged by what we believe are signs that our focused, continuing investments in building awareness and launching marketing and sales are beginning to deliver results. We are increasingly confident that our business strategy is working and that we are on target to achieve our long-term goals," said Dr. Nancy Harvey, President and CEO. "We look forward to discussing our marketing and sales investments and progress, as well as highlights of our newest technology releases on our Conference Call. "
Quarter Highlights Q3 of 2004 was notable for a number of additional reasons: * TenFold announced many new technology features in its EnterpriseTenFold flagship product. (See press releases on WebFields, Apache Support, MultiLanguage, AnyFile, SmartLinks, SmartSQL, and Knobs&Dials on July 1, July 13, July 14, July 22, August 12, August 17, and August 19, respectively.) * TenFold redesigned its web site to reflect its new packaging and identity package. (See press release dated July 6.) * TenFold issued press releases describing eleven new customers, many of whom became customers in earlier quarters, the applications they''ve built, the industries where TenFold technology has proven beneficial, and customer reactions to TenFold''s unique value proposition. (See press releases discussing Rockclimbing.com, Stoneworkz, AccuConference, Prov, FirstPoint Residential Communications, interNetwork, Pinnacle Health Systems, Binding Curve, a global semiconductor-sector manufacturer, Mehta Partners, and a medical devices company dated July 7, July 16, July 21, July 28, August 4, August 11, August 18, August 26, September 3, September 9, and September 16, respectively.) * TenFold conducted eleven TenFold Seminars in the San Francisco Bay area, New York City, Chicago, and London, and announced TenFold Seminars planned for early Q4. (See press releases dated July 20, August 31, September 7, September 14, September 21, and September 28.) * TenFold began a billboard advertising campaign in conjunction with its TenFold Seminar promotional activities. (See press release dated July 8.) * TenFold conducted its first annual Investor Conference in New York City. (See press release dated August 3, 2004.) * TenFold began shipping beta copies of its newest product, MyTenFold. (See press release dated August 24.) * TenFold announced details of its next major EnterpriseTenFold release. (See press release dated September 8.) * Jeffrey Walker, speaking on behalf of TenFold''s technology, made several public speaking appearances. (See press releases dated September 2 and September 15, 2004.) TenFold Conference call
The conference call will begin at 5:00 p.m. EDT on Wednesday, October 27, 2004, and is available by dialing (888) 989-0722 or (210) 234-8636 for international calls. The conference title is "TenFold Q3 Results," the passcode is "TenFold," and the call leader is "Dr. Nancy Harvey."
To access the release on-line on Wednesday, October 27, 2004, after 4 p.m. EDT, go to the Press Releases section of the TenFold Web site at http://www.tenfold.com/. Telephone replays of the conference call will be available from four hours after the call through November 20, 2004. To access the telephone replay, dial (866) 359-6496 or (203) 369-0153 for international calls.
For more information about TenFold or EnterpriseTenFold, contact Sally White at (801) 619-8232 or at swhite@tenfold.com.
About TenFold
TenFold (BULLETIN BOARD: TENF) licenses its patented technology for applications development, EnterpriseTenFold(TM), to organizations that face the daunting task of replacing obsolete applications or building complex applications systems. Unlike traditional approaches, where business and technology requirements create difficult IT bottlenecks, EnterpriseTenFold technology lets a small team of business people and IT professionals design, build, deploy, maintain, and upgrade new or replacement applications with extraordinary speed, superior applications quality and power features. For more information, call (800) TENFOLD or visit http://www.tenfold.com/.
This release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "expect," "anticipate," "estimate," "should," "will," "may," or the negatives thereof, or similar terminology, or by discussions of strategy or benefits of technology. Forward-looking statements in this release include expected future growth, achievement of long-term objectives, that EnterpriseTenFold technology lets a small team build, and maintain applications with extraordinary speed and quality and with limited demand on IT resources. Our business and operations are subject to a wide variety of risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Factors that could cause future growth, achievement of long-term objectives, and actual benefits of the TenFold product and technology to differ materially from those in the forward-looking statements include lack of success in sales and marketing efforts due to such factors as unfavorable industry or economic conditions, increased competition, or inadequate capital; inadequate training, incorrect installation, use of unsupported hardware and software versions or combinations thereof, and inadequate consultation with TenFold support personnel. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in greater detail in certain documents filed by TenFold Corporation with the Securities and Exchange Commission, including but not limited to, the most recent reports on Forms 10-Q and 10-K. We make no commitment to revise or
update any forward-looking statement to reflect events or circumstances after the date such statement is made.
TenFold and EnterpriseTenFold are trademarks of TenFold Corporation. All other trademarks and registered trademarks are the property of their respective owners.
Press Contacts: Ann Norman Coltrin & Associates 212-221-1616 ann_norman@coltrin.com Benoit Rungeard Coltrin & Associates 650-373-2005 benoit_rungeard@coltrin.com Brad Thatcher Coltrin & Associates 212-221-1616 brad_thatcher@coltrin.com Sally N. White TenFold Corporation 801-619-8232 swhite@tenfold.com TENFOLD CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) September 30, December 31, 2004 2003 Assets Current assets: Cash and cash equivalents $6,993 $12,236 Accounts receivable, (net of allowances for doubtful accounts of $50 and $0, respectively) 330 942 Unbilled accounts receivable, (net of allowances for doubtful accounts of $0 and $0, respectively) 70 58 Prepaid expenses and other assets 218 243 Other assets 9 10 Total current assets 7,620 13,489 Restricted cash 73 73 Property and equipment, net 699 855 Total assets $8,392 $14,417 Liabilities and Stockholders'' Equity Current liabilities: Accounts payable $493 $1,127 Income taxes payable 1,736 1,728 Accrued liabilities 1,536 5,416 Deferred revenue 1,302 7,586 Current installments of obligations under capital leases 24 -- Total current liabilities 5,091 15,857 Long-term liabilities: Obligations under capital leases, excluding current installments 42 -- Total long-term liabilities 42 -- Contingencies Stockholders'' equity: Common stock, $0.001 par value: Authorized: 120,000,000 shares Issued and outstanding shares: 46,354,751 shares at September 30, 2004 and 45,969,524 shares at December 31, 2003 46 46 Additional paid-in capital 76,208 75,936 Deferred compensation (24) (43) Accumulated deficit (72,971) (77,379) Total stockholders'' equity (deficit) 3,259 (1,440) Total liabilities and stockholders'' equity $8,392 $14,417 TENFOLD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenues: License $33 $11 $293 $ 56 Subscription -- -- -- 10,431 Services and other 1,723 4,547 15,547 12,980 Total revenues 1,756 4,558 15,840 23,467 Operating expenses: Cost of revenues 1,038 2,905 5,019 7,420 Sales and marketing 1,045 298 1,941 788 Research and development 982 862 2,786 2,759 General and administrative 676 697 1,898 2,711 Special charges -- (673) -- (673) Total operating expenses 3,741 4,089 11,644 13,005 Income (loss) from operations (1,985) 469 4,196 10,462 Other income (expense): Interest income 25 11 71 40 Interest expense (3) (16) (7) (172) Other income 1 8 152 306 Gain on retirement of debt -- -- -- 2,206 Total other income, net 23 3 216 2,380 Income (loss) before income taxes (1,962) 472 4,412 12,842 Provision for income taxes -- -- 4 17 Net income (loss) $(1,962) $472 $4,408 $ 12,825 Basic earnings (loss) per common share $(0.04) $0.01 $0.10 $0.32 Diluted earnings (loss) per common share $(0.04) $0.01 $0.08 $0.28 Weighted average common and common equivalent shares used to calculate earnings (loss) per share: Basic 46,312 40,913 46,148 40,361 Diluted 46,312 49,337 55,688 46,607 COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands except per share data):
Three Months Ended Nine Months Ended September 30, September 30, Numerator: 2004 2003 2004 2003 Numerator for basic earnings (loss) per share -- net income (loss) available to common stockholders $(1,962) $472 $4,408 $12,825 Numerator for diluted earnings (loss) per share $(1,962) $472 $4,408 $12,825 Denominator: Denominator for basic earnings (loss) per share -- weighted average shares 46,312 40,913 46,148 40,361 Employee stock options -- 8,424 9,540 6,246 Denominator for diluted earnings (loss) per share 46,312 49,337 55,688 46,607 Earnings (loss) per common share: Basic earnings (loss) per common share $(0.04) $0.01 $0.10 $0.32 Diluted earnings (loss) per common share $(0.04) $0.01 $0.08 $0.28
TenFold Corporation
Total revenue for the third quarter was $1.8 million, and operating and net losses were $2.0 million. TenFold''s net cash outflow for Q3 was $2.1 million and ending Q3 cash was $7.0 million. These results are slightly better than the preliminary results presented on October 4th.
"These results are consistent with the trends we expected as we transition TenFold from a services company to a product company. As we convert our business model from the services company model that we used to fund TenFold through our turnaround, our old-model consulting services revenues are declining. We are pleased with the progress we made on our marketing and sales initiatives during the third quarter and are encouraged by what we believe are signs that our focused, continuing investments in building awareness and launching marketing and sales are beginning to deliver results. We are increasingly confident that our business strategy is working and that we are on target to achieve our long-term goals," said Dr. Nancy Harvey, President and CEO. "We look forward to discussing our marketing and sales investments and progress, as well as highlights of our newest technology releases on our Conference Call. "
Quarter Highlights Q3 of 2004 was notable for a number of additional reasons: * TenFold announced many new technology features in its EnterpriseTenFold flagship product. (See press releases on WebFields, Apache Support, MultiLanguage, AnyFile, SmartLinks, SmartSQL, and Knobs&Dials on July 1, July 13, July 14, July 22, August 12, August 17, and August 19, respectively.) * TenFold redesigned its web site to reflect its new packaging and identity package. (See press release dated July 6.) * TenFold issued press releases describing eleven new customers, many of whom became customers in earlier quarters, the applications they''ve built, the industries where TenFold technology has proven beneficial, and customer reactions to TenFold''s unique value proposition. (See press releases discussing Rockclimbing.com, Stoneworkz, AccuConference, Prov, FirstPoint Residential Communications, interNetwork, Pinnacle Health Systems, Binding Curve, a global semiconductor-sector manufacturer, Mehta Partners, and a medical devices company dated July 7, July 16, July 21, July 28, August 4, August 11, August 18, August 26, September 3, September 9, and September 16, respectively.) * TenFold conducted eleven TenFold Seminars in the San Francisco Bay area, New York City, Chicago, and London, and announced TenFold Seminars planned for early Q4. (See press releases dated July 20, August 31, September 7, September 14, September 21, and September 28.) * TenFold began a billboard advertising campaign in conjunction with its TenFold Seminar promotional activities. (See press release dated July 8.) * TenFold conducted its first annual Investor Conference in New York City. (See press release dated August 3, 2004.) * TenFold began shipping beta copies of its newest product, MyTenFold. (See press release dated August 24.) * TenFold announced details of its next major EnterpriseTenFold release. (See press release dated September 8.) * Jeffrey Walker, speaking on behalf of TenFold''s technology, made several public speaking appearances. (See press releases dated September 2 and September 15, 2004.) TenFold Conference call
The conference call will begin at 5:00 p.m. EDT on Wednesday, October 27, 2004, and is available by dialing (888) 989-0722 or (210) 234-8636 for international calls. The conference title is "TenFold Q3 Results," the passcode is "TenFold," and the call leader is "Dr. Nancy Harvey."
To access the release on-line on Wednesday, October 27, 2004, after 4 p.m. EDT, go to the Press Releases section of the TenFold Web site at http://www.tenfold.com/. Telephone replays of the conference call will be available from four hours after the call through November 20, 2004. To access the telephone replay, dial (866) 359-6496 or (203) 369-0153 for international calls.
For more information about TenFold or EnterpriseTenFold, contact Sally White at (801) 619-8232 or at swhite@tenfold.com.
About TenFold
TenFold (BULLETIN BOARD: TENF) licenses its patented technology for applications development, EnterpriseTenFold(TM), to organizations that face the daunting task of replacing obsolete applications or building complex applications systems. Unlike traditional approaches, where business and technology requirements create difficult IT bottlenecks, EnterpriseTenFold technology lets a small team of business people and IT professionals design, build, deploy, maintain, and upgrade new or replacement applications with extraordinary speed, superior applications quality and power features. For more information, call (800) TENFOLD or visit http://www.tenfold.com/.
This release contains forward-looking statements. These statements can be identified by the use of forward-looking terminology such as "expect," "anticipate," "estimate," "should," "will," "may," or the negatives thereof, or similar terminology, or by discussions of strategy or benefits of technology. Forward-looking statements in this release include expected future growth, achievement of long-term objectives, that EnterpriseTenFold technology lets a small team build, and maintain applications with extraordinary speed and quality and with limited demand on IT resources. Our business and operations are subject to a wide variety of risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Factors that could cause future growth, achievement of long-term objectives, and actual benefits of the TenFold product and technology to differ materially from those in the forward-looking statements include lack of success in sales and marketing efforts due to such factors as unfavorable industry or economic conditions, increased competition, or inadequate capital; inadequate training, incorrect installation, use of unsupported hardware and software versions or combinations thereof, and inadequate consultation with TenFold support personnel. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in greater detail in certain documents filed by TenFold Corporation with the Securities and Exchange Commission, including but not limited to, the most recent reports on Forms 10-Q and 10-K. We make no commitment to revise or
update any forward-looking statement to reflect events or circumstances after the date such statement is made.
TenFold and EnterpriseTenFold are trademarks of TenFold Corporation. All other trademarks and registered trademarks are the property of their respective owners.
Press Contacts: Ann Norman Coltrin & Associates 212-221-1616 ann_norman@coltrin.com Benoit Rungeard Coltrin & Associates 650-373-2005 benoit_rungeard@coltrin.com Brad Thatcher Coltrin & Associates 212-221-1616 brad_thatcher@coltrin.com Sally N. White TenFold Corporation 801-619-8232 swhite@tenfold.com TENFOLD CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) September 30, December 31, 2004 2003 Assets Current assets: Cash and cash equivalents $6,993 $12,236 Accounts receivable, (net of allowances for doubtful accounts of $50 and $0, respectively) 330 942 Unbilled accounts receivable, (net of allowances for doubtful accounts of $0 and $0, respectively) 70 58 Prepaid expenses and other assets 218 243 Other assets 9 10 Total current assets 7,620 13,489 Restricted cash 73 73 Property and equipment, net 699 855 Total assets $8,392 $14,417 Liabilities and Stockholders'' Equity Current liabilities: Accounts payable $493 $1,127 Income taxes payable 1,736 1,728 Accrued liabilities 1,536 5,416 Deferred revenue 1,302 7,586 Current installments of obligations under capital leases 24 -- Total current liabilities 5,091 15,857 Long-term liabilities: Obligations under capital leases, excluding current installments 42 -- Total long-term liabilities 42 -- Contingencies Stockholders'' equity: Common stock, $0.001 par value: Authorized: 120,000,000 shares Issued and outstanding shares: 46,354,751 shares at September 30, 2004 and 45,969,524 shares at December 31, 2003 46 46 Additional paid-in capital 76,208 75,936 Deferred compensation (24) (43) Accumulated deficit (72,971) (77,379) Total stockholders'' equity (deficit) 3,259 (1,440) Total liabilities and stockholders'' equity $8,392 $14,417 TENFOLD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenues: License $33 $11 $293 $ 56 Subscription -- -- -- 10,431 Services and other 1,723 4,547 15,547 12,980 Total revenues 1,756 4,558 15,840 23,467 Operating expenses: Cost of revenues 1,038 2,905 5,019 7,420 Sales and marketing 1,045 298 1,941 788 Research and development 982 862 2,786 2,759 General and administrative 676 697 1,898 2,711 Special charges -- (673) -- (673) Total operating expenses 3,741 4,089 11,644 13,005 Income (loss) from operations (1,985) 469 4,196 10,462 Other income (expense): Interest income 25 11 71 40 Interest expense (3) (16) (7) (172) Other income 1 8 152 306 Gain on retirement of debt -- -- -- 2,206 Total other income, net 23 3 216 2,380 Income (loss) before income taxes (1,962) 472 4,412 12,842 Provision for income taxes -- -- 4 17 Net income (loss) $(1,962) $472 $4,408 $ 12,825 Basic earnings (loss) per common share $(0.04) $0.01 $0.10 $0.32 Diluted earnings (loss) per common share $(0.04) $0.01 $0.08 $0.28 Weighted average common and common equivalent shares used to calculate earnings (loss) per share: Basic 46,312 40,913 46,148 40,361 Diluted 46,312 49,337 55,688 46,607 COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands except per share data):
Three Months Ended Nine Months Ended September 30, September 30, Numerator: 2004 2003 2004 2003 Numerator for basic earnings (loss) per share -- net income (loss) available to common stockholders $(1,962) $472 $4,408 $12,825 Numerator for diluted earnings (loss) per share $(1,962) $472 $4,408 $12,825 Denominator: Denominator for basic earnings (loss) per share -- weighted average shares 46,312 40,913 46,148 40,361 Employee stock options -- 8,424 9,540 6,246 Denominator for diluted earnings (loss) per share 46,312 49,337 55,688 46,607 Earnings (loss) per common share: Basic earnings (loss) per common share $(0.04) $0.01 $0.10 $0.32 Diluted earnings (loss) per common share $(0.04) $0.01 $0.08 $0.28
TenFold Corporation