Vancouver, BC, October 1, 2001
— Pivotal Corporation (Nasdaq NM: PVTL; TSE: PVT), the leading provider of cost-effective CRM and eBusiness software, today announced preliminary financial results for the first quarter ended September 30, 2001.
Based on preliminary information, the company expects revenues for the quarter will be in the range of $16 to $17 million with an expected net loss for the quarter, excluding the amortization of intangibles, restructuring and other costs, in the range of ($0.47) to ($0.51) per share. This loss excludes non-recurring charges that include, but are not limited to, restructuring charges, reserves and write-downs related to certain assets. These non-recurring charges are expected to be in the range of $1 to $3 million.
In the first quarter of fiscal 2001, the company reported $21.1 million in revenues and a net loss of ($0.5) million or ($0.02) per share, excluding amortization of intangibles of $5.0 million.
“We had disappointing results this quarter because we saw a change in customer buying behavior in the last two weeks of September coupled with a downturn in Europe,” said Bo Manning, president and CEO, Pivotal. “As the new president and CEO, I remain convinced of the market opportunity for this company -- we have cost-effective CRM and eBusiness technologies, a strong financial position and talented people. We’ve now completed the first two phases of our corporate transformation with my appointment and the reorganization of our corporate structure. Our new strategic plan to take market share in spite of the new economic realities is the third phase of the transformation -- this plan will be announced to the market in the upcoming weeks.”
Pivotal achieved significant progress in the improvement of its marketing, sales and partnering activities in the quarter.
Conference Call Details
- 38 companies selected Pivotal this quarter over other CRM and eBusiness application providers.
- New customers include companies such as one of the world’s largest financial institutions, a Fortune 500 property developer, and a world-famous cosmetics brand.
- Dramatically increased market opportunity by entering the Oracle database market with the delivery of Pivotal’s first Oracle-based application; signed first two customers on the new Oracle solution.
- Signed strategic agreement with Cap Gemini Ernst & Young; signed first joint customer.
- Signed global alliance with Intel alliance; signed first two joint customers.
- Signed alliance with Alcatel eBusiness Distribution GmbH, one of the largest systems integrators in Europe. The company has also standardized its business on Pivotal CRM and eBusiness software.
- Introduced a cost-effective hosted solution with Interpath Communications and built a significant joint pipeline.
Pivotal will host a conference call to discuss the preliminary results. Here is the dial in information:
Date: Monday, October 1, 2001
Start Time: 2:00 p.m. PT (5:00 p.m. ET)
Dial-In Phone Number: 1.415.247.8580
Conference Call Name: Pivotal Fiscal 2002 1st Quarter Preliminary Results
Live Audio Streaming: www.pivotal.com
If you are unable to participate, a replay will be available from 4:00 p.m. PT October 1st through 4:00 p.m. PT October 3, 2001. For callers within the U.S. or Canada, the replay number is 1.800.633.8284. For callers outside the U.S. or Canada, the replay number is 858.812.6440. The replay pass code for all callers is 19803502. In addition, the replay will be available via our website at www.pivotal.com for 24 days.
Pivotal’s regularly scheduled earnings call will take place on Thursday, October 25, 2001 at which time the company will provide updated guidance.
Pivotal Corporation enables large and medium-sized businesses worldwide to make, serve, and manage customers with superior speed and efficiency by providing CRM and eBusiness solutions that deliver personalized customer experiences across every touch point in real-time. The Pivotal solution suite unifies Internet commerce, CRM, eSelling, and wireless technologies to manage collaborative relationships between customers, business partners, and employees; guide intelligent commerce transactions across multiple channels; seamlessly integrate the demand chain with the supply chain; and fully exploit the newest industry standards.
Pivotal solutions are sold in 35 countries and are available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese. Pivotal’s worldwide customer base includes more than 1300 organizations including, Hewlett Packard, CIBC, Goldman Sachs, HarperCollins Publishers, Hitachi Telecom Inc., Intrawest Corporation, Vivendi, Royal Bank of Canada, Southern Company and Ziff Davis Media Inc.
Pivotal is a public company traded on the NASDAQ under the symbol “PVTL” and the Toronto Stock Exchange under the symbol “PVT.” More information can be found on the corporate Web site at http://www.pivotal.com.
Statements made herein and in today’s conference call may contain forward-looking information about management’s expectations, strategic objectives, business prospects, anticipated financial performance and other similar matters. The estimated results included are preliminary and subject to change based upon Pivotal’s completion of accounting procedures with respect to the first quarter ended September 30, 2001, and therefore are forward-looking statements. A variety of factors, many of which are beyond our control, affect the operations, performance and business strategy and results of Pivotal and could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors include, but are not limited to, the factors described in the company’s 2001 annual report on Form 10-K, in addition to reports on Form 8-K and form 10-Q, which are available at the SEC’s Web site at www.sec.gov. Pivotal undertakes no responsibility to update or revise any forward-looking statements.
Sophia Couspos, Pivotal Corporation