Revenues were $19.1 million for the fourth quarter of 2001, a 14% increase over revenues of $16.7 million for the third quarter of 2001. Pro forma earnings, excluding non-cash software amortization and non-recurring acquired in-process research and development charges related to the acquisition of DataChannel, were $0.7 million or $0.02 per diluted share for the fourth quarter of 2001, an increase from a net loss in the third quarter of ($2.4) million or ($0.08) per diluted share. Non-cash software amortization charges were $153,000 and non-recurring acquired in-process research and development charges were $3.0 million. Including the after-tax effect of these charges, the reported net loss for the fourth quarter of 2001 was ($2.4) million or ($0.08) per diluted share.
Revenues for the year ended December 31, 2001 were $86.6 million, a 60% increase over revenues of $54.0 million for the year ended December 31, 2000. Pro forma net income, excluding non-cash software amortization and acquired in-process research and development charges related to the acquisition of DataChannel, for 2001 was $4.8 million, or $0.15 per diluted share, as compared to net income of $2.7 million or $0.08 per diluted share for the year ended 2000. The inclusion of non-cash software amortization and non-recurring acquired in-process research and development charges related to the acquisition of DataChannel resulted in net income of $1.6 million or $0.05 per diluted share for the year ended December 31, 2001 as compared to net income of $2.7 million or $0.08 per diluted share for the year ended December 31, 2000.
The results of the current quarter and fiscal 2001 reflect the acquisition of DataChannel, Inc. which closed on December 14, 2001. The total purchase price of $70.2 million included $20.5 million in cash (including acquisition costs and assumed debt) and $49.7 million in stock. In the seventeen days following the acquisition, DataChannel contributed an operating loss, excluding non-cash software amortization and acquired in-process research and development charges, of approximately $0.5 million, which reduced earnings per share for the quarter by $0.02.
Netegrity saw strong license revenue performance as a result of a significant number of new account wins and strong follow on sales from existing customers. License revenue from the Company’s SiteMinder family of products was $11.5 million for the fourth quarter of 2001, an increase of 27% from license revenue of $9.0 million for the third quarter of 2001. License revenue for the year ended December 31, 2001 was $55.3 million, an increase of 47% percent from license revenue of $37.7 million for the year ended 2000.
Our results clearly demonstrate our continued ability to execute on our business objectives, said Barry Bycoff, president, chairman and CEO of Netegrity. Netegrity is in a unique and strong position to re-shape the market and thereby expand the scope of the company through our Secure Relationship Management(TM) strategy. Our strong product offerings, combined with our blue chip customer base, expansive set of partners, and strong financial position, will enable us to take advantage of the vast opportunity in front of us.
During the quarter, Netegrity signed agreements with 52 new customers, bringing the total number of customers to 533. This brings the total number of new customers added in 2001 to 220. New customers in Q4 include, Allegheny Energy, Inc., Certain Teed, Guardian Industries Corp., Halliburton Energy Services, New York Life Insurance Company, and the United States Army. Netegrity also had 63 follow-on software deals with existing customers, which further indicates Netegrity’s strong position as a critical component of a company’s e-business infrastructure.
