Chordiant Software, Inc. (Nasdaq:CHRD), the leading provider of Customer Experience (Cx™) software and services, today announced its financial results for the third quarter of fiscal year 2009 ended June 30, 2009, and filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
Third Quarter Fiscal Year 2009 Financial Highlights
- Total revenues of $20.9 million, up 16% sequentially;
- License revenues of $8.2 million, up 91% sequentially;
- Generally Accepted Accounting Principles (“GAAP”) net loss of $0.02 million, or $0.00 per basic share;
- Non-GAAP net income of $1.7 million, or $0 . 06 per fully diluted share;
- Total bookings of $13.5 million, up 62% sequentially;
- Ending backlog of $39.5 million; and
- Ending cash, cash equivalents and restricted cash of $56.7 million.
Third Quarter Fiscal Year 2009 Business Highlights
- Closed three individual license transactions in excess of $1 million, one in each of our focused verticals of financial services, telecommunications and insurance;
- Received two seven-figure multi-year maintenance renewals;
- Launched Chordiant Cx Marketing (CxM), our new customer-centric outbound marketing tool; and
- Continued to release next generation products with Chordiant Collections 3.0 and Chordiant Marketing Director 6.4.
“Chordiant executed well despite the continued challenging macroeconomic environment, posting sequential growth in total bookings and total revenues, and returning to non-GAAP profitability,” said Steve Springsteel, Chairman, President and Chief Executive Officer. “These results are a testament to our market leading products and focused execution and operational discipline. I believe that we remain well positioned to benefit from the initial signs of the slowly improving market conditions.”
Third Quarter Fiscal Year 2009 Financial Results
Total revenues for the third quarter of fiscal year 2009 were $20.9 million, up 16% from $18.0 million in the prior quarter but down from $30.7 million for the third quarter of fiscal year 2008.
License revenues for the third quarter of fiscal year 2009 were $8.2 million, up 91% from the $4.3 million reported in the prior quarter but down from $11.0 million in the third quarter of fiscal year 2008. Service revenues for the third quarter of fiscal year 2009 were $12.7 million, compared to $13.7 million in the prior quarter and $19.8 million reported for the same period of fiscal year 2008.
Chordiant reported a GAAP net loss of $0.02 million, or GAAP loss per basic share of $0.00, for the third quarter of fiscal year 2009 compared to a GAAP net income of $0.8 million, or GAAP earnings per fully diluted share of $0.02, for the same period of fiscal year 2008.
Chordiant reported third quarter fiscal year 2009 non-GAAP net income of $1.7 million, or non-GAAP earnings per fully diluted share of $0.06, compared to non-GAAP net income of $2.4 million, or non-GAAP earnings per fully diluted share of $0.08, for the third quarter of fiscal year 2008. Non-GAAP net income and non-GAAP net loss exclude stock-based compensation expense, the amortization of purchased intangible assets, and the non-cash tax expense relating to net operating loss carryforwards.
Deferred revenue at the end of the third quarter of fiscal year 2009 was $36.8 million, an increase of $0.4 million as compared to the ending balance of $36.4 million at March 31, 2009.
Total bookings were $13.5 million for the third quarter of fiscal year 2009, compared to $8.4 million in the prior quarter and $26.4 million in the same period last year.
Backlog of Business
At June 30, 2009, Chordiant’s backlog, which includes deferred revenue, was $39.5 million, a change from $44.6 million at the end of the prior quarter. The primary reasons for the change during the period were 1) the recognition of license revenues associated with Vodafone and license revenue taken on previously signed contracts; 2) the recognition of service revenue for hourly work completed; and 3) increases of approximately $2.1 million caused by foreign exchange rate changes.
Chordiant’s cash, cash equivalents, restricted cash and marketable securities position increased by approximately $3.3 million during the quarter to $56.7 million at June 30, 2009, as compared to $53.4 million at March 31, 2009.
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 GAAP, please see the section below titled “Non-GAAP Financial Measures” as well as the related Table C.
Outlook for Fiscal Year 2009
Although the Company is not providing specific bookings, revenue, cash flow or earnings per share guidance, it is providing the following basic parameters for its financial performance in fiscal 2009. We expect:
- to recognize a total of $1.0 to $2.0 million of the remaining $6.2 million in license revenue backlog, over the remaining quarter of fiscal year 2009;
- to continue to renew our existing support and maintenance contracts at rates in line with our historical experience. For the trailing 12-month period ended June 30, 2009, support and maintenance revenues averaged approximately $9.1 million per quarter;
- our aggregate services revenues to improve sequentially in the fourth quarter of fiscal year 2009; and
- to be approximately break-even on a non-GAAP basis in the fourth quarter of fiscal year 2009.
Conference Call and Webcast Information
Chordiant will host a conference call and webcast to discuss its financial results for the third quarter fiscal year 2009 ended June 30, 2009 today, Thursday, July 30, 2009 at 2:00 p.m. (PT), 5:00 p.m. (ET) and 10:00 p.m. (GMT). A live audio webcast will be available to investors and the public from the following website: http://www.veracast.com/webcasts/chordiant2/36123163.cfm .
Alternatively, you may prefer to 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, July 30, 2009, beginning at approximately 4:00 p.m. (PT), 7:00 p.m. (ET) and 12:00 a.m. (GMT), for seven days after the live call. The replay can be accessed by dialing (800) 406-7325, access code 4114115#.
About Chordiant Software, Inc.
Chordiant optimizes the customer experience, helping clients improve business results while significantly strengthening customer relationships. Chordiant’s solutions allow multi-channel interaction management and centralized Next-Best-Action™ driven predictive decisioning to target individual customer needs and provide unprecedented management and control over sophisticated customer experience strategies. Fortune 1000 customers turn to Chordiant to build, maintain and significantly strengthen connections with customers, so they can differentiate themselves from the competition and maximize their business objectives. For more information, please visit http://www.chordiant.com .