Revenue rose 34 percent in the second quarter to $16.8 million, up from $12.5 million in the year ago quarter. In the first quarter of the current year, revenue totaled $17.0 million. Niku’s pro forma net loss for the second quarter was $20.8 million, or $0.28 per share, excluding amortization of goodwill, stock-based compensation, impairment charges and restructuring costs.
Driven by continued efforts to bring the Company’s cost structure in line with current market conditions, the second quarter pro forma net loss represents a substantial narrowing from a pro forma net loss of $40.9 million, or $0.54 per share, in the first quarter of the current fiscal year.
In the year-ago quarter, the pro forma net loss was $12.3 million, or $0.18 per share.
Farzad Dibachi, CEO and chairman of Niku, said, Our Q2 results, achieved in a challenging economic environment, are a direct result of the cost reduction program we have undertaken. This dramatic change in our expense structure positions us to benefit from sales of our new product, Niku 6, which now has an impressive list of limited production customers.
The Company’s net loss for the fiscal second quarter on a GAAP basis was $159.6 million, or $2.12 per share, with approximately $114.4 million, or $1.52 per share, attributable to impairment of goodwill and other intangible assets from acquisitions. This compares with a net loss of $24.5 million, or $0.35 per share, in the year-ago quarter and a net loss of $92.9 million, or $1.23 per share, in the first quarter of the current fiscal year.
As of July 28, 2001, the Company had cash and short-term investments of almost $93 million. Day Sales Outstanding (DSO) for the second quarter was 75 days, down from 88 days in the first quarter of the current fiscal year.
Joshua Pickus, chief financial officer, said, During my first full quarter as chief financial officer, we implemented a cost reduction program that affected spending in all areas. As a result of this program, we reduced total pro forma expenses by approximately $20 million in Q2 while maintaining organizational strength. Based on other steps that have already been taken, our total pro forma quarterly expenses will be reduced by an additional $10 million over the next two quarters. This will bring our total pro forma quarterly expenses to approximately $28 million. Our balance sheet remains strong with almost $93 million in cash and short-term investments and DSO of 75 days.
Source: COMPANY PRESS RELEASE
