License revenue for the third quarter is expected to be in the range of $21.0 to $22.0 million. In the prior year’s third quarter, SeeBeyond reported license revenue of $17.6 million. Based on these revenue estimates, the Company is expecting a third quarter loss per share, excluding charges relating to corporate restructuring and amortization, to be in the range of ($0.07) to ($0.06) per share.

We are proud of the performance of our people and what we as a company have achieved in one of the most difficult economic times I have ever experienced, said Jim Demetriades, founder and CEO of SeeBeyond. Faced with uncertainty in today’s business climate, we have increased our cost containment measures to reduce staff and manage expenses. As the fastest-growing company in the eBI market, SeeBeyond sees no fundamental change in our market position or in our inherent ability to deliver long-term customer and shareholder value.

The Company announced the completion of a reduction in its work force, which will result in an approximate $3.8 million one-time restructuring charge in the third quarter of 2001, or $(0.05) per share. In addition, the Company has adjusted the Q401 expected revenue range to $40.0 to $42.0 million, with total expenses estimated to be in the range of $38.0 to $39.0 million. Based on these revised estimates, the Company expects net income, excluding non-cash charges, in the range of $1 to $3 million or EPS in the range of $0.01 to $0.04. In addition, the Company is anticipating revenue for the full year 2001 to be in the range of $182 to $185 million, excluding non-cash charges, representing an approximate 60% growth rate year over year.

We continue to make cost containment a key factor in our daily management of the Company as we remain focused on achieving profitability in the fourth quarter of 2001, said Barry Plaga, senior vice president and CFO for SeeBeyond. Notably, we expect our balance sheet to remain stable, closing with a cash balance of approximately $25 million. Although SeeBeyond’s Q3 sales cycles were impacted by the tragic events of September 11th, we remain confident in the value proposition of our eBI solutions and our growth prospects moving forward.

SOURCE: COMPANY PRESS RELEASE