Actuate Q3 income jumps

License revenues for the third quarter of 2007 were $13.4 million, a 16% increase from the year-ago quarter. Total revenues for the third quarter of 2007 were $34.7 million, an increase of 9% compared with the third quarter of 2006.

Net income for the third quarter of 2007, as reported in accordance with U.S. generally accepted accounting principles (GAAP), was $4.6 million, or $0.07 per diluted share, an increase of 83% compared with net income of $2.5 million or $0.04 per diluted share in the third quarter of 2006.

Non-GAAP operating margin for the third quarter of 2007 was 23% compared with a non-GAAP operating margin of 18% for the third quarter of 2006. Non-GAAP net income for the third quarter of 2007 was a record $6.0 million, or $0.09 per diluted share, an increase of 35% compared with non-GAAP net income of $4.5 million, or $0.07 per diluted share in the third quarter of 2006.

For the first nine months of 2007, revenues totaled a record $101.4 million, an increase of 9% compared with the first nine months of 2006. License revenues totaled $39.5 million, an increase of 21% compared with the first nine months of 2006. For the first nine months of 2007, GAAP operating income was a record $9.5 million, GAAP net income was a record $9.4 million and GAAP diluted earnings per share was a record $0.14. Non-GAAP net income for the first nine months of 2007 totaled a record $14.8 million, or $0.21 per diluted share, an increase of 53% compared with non-GAAP net income of $9.7 million, or $0.14 per diluted share reported for the first nine months of 2006. For the first nine months of 2007, cash flow from operations was a record $18.1 million, compared with $9.5 million for the first nine months of 2006.

Cash, cash equivalents and short-term investments at September 30, 2007 totaled $69.5 million, an increase of $9.4 million from December 31, 2006. This amount is net of a $14.2 million cash outlay during the first nine months of 2007 in furtherance of Actuate's ongoing open-market share repurchase program.

"Actuate extended the number of consecutive quarters of double digit year-over-year growth for both license revenue and non-GAAP net income to seven in the third quarter," said Pete Cittadini, Actuate's president and CEO. "Growth in license revenue continues to be fueled by extranet customer self-service applications and intranet strategic and operational performance management applications."

"At the end of September, we launched BIRT Exchange (www.birt-exchange.com), a dedicated resource for the Eclipse BIRT developer community and the Actuate BIRT product line. BIRT Exchange is gaining traction in terms of registered users and software downloads including trial versions of commercial products."

Third Quarter Financial Highlights

• Grew license revenues by 16% on a year-over-year basis, the seventh consecutive quarter of double-digit year-over-year license growth;
• Revenues outside the U.S. represented a record 32% of total revenues;
• Grew non-GAAP operating income 37% on a year-over-year basis;
• Achieved a 23% non-GAAP operating margin, an increase of five percentage points over the third quarter of 2006 and a quarterly record for the company;
• Increased non-GAAP services margin to a record 73%;
• Repurchased approximately 666,000 shares at a total cost of approximately $4.6 million.

Third Quarter Customer Highlights

During the third quarter, Actuate received significant new and repeat business from, among others, Ameriprise Auto and Home Insurance, AT&T, AXA Rosenberg, Bank Fund Staff Federal Credit Union, Bridgepoint Health, Cayenta, Defence Estates, Deltek Systems, DWS Holding & Service GmbH, E.ON U.S, First Health Group, FundWorks, Genentech, Good Samaritan Society, Gottschalks, IBM UK, Lawrence Livermore National Laboratory, Lehman Brothers Holdings, MFS Investment Management, Northwest Airlines, Odyssey Asset Management, Olm Systems, PayPal, Primavera Systems and Wells Fargo.

Third Quarter Business Highlights

• Launched BIRT Exchange, where BIRT developers can easily share code and knowledge with peers, find solutions to their deployment challenges and learn about Actuate's product, support and service offerings for Eclipse BIRT;
• 11th annual Actuate International User Conference (AIUC) took place on August 13 to 15 in Las Vegas. It was the biggest gathering of Actuate customers ever with attendees from over 180 organizations and featured 60 customer presentations. The conference featured the first BIRT Live Day, focused on Eclipse BIRT and Thought Leadership Day focused on Sustainable Performance Management;
• Outlined a potential differentiated business model that expands Actuate's market and accelerates revenues. By harnessing open source disruption to advance the company's leadership in the Business Intelligence (BI) market, the company can substantially lower its cost of sales and marketing to drive overall earnings growth;
• Shipped Actuate 9 Service Pack 2, the only platform that meets the entire range of reporting requirements from pixel-perfect reporting, through ad hoc query and web-based collaborative reporting, to spreadsheet and analytics reporting. Actuate 9 SP2, like other Actuate products, provides full support for the Eclipse BIRT (Business Intelligence and Reporting Tools) open source development framework;
• Announced that version 7 of the Actuate Performancesoft Suite has added over 280 customers to its customer base, predominantly in areas across the public sector, including over 130 Federal, State and Local Government, Departments and Agencies, as well as Government Services and Education organizations.

Read the consolidated balance sheets here:

Download the document now 67.2 kb (PDF File)