Actuate Q2 net income rises

Revenues for the second quarter of 2007 were $34.7 million, a 10% increase compared with the second quarter of 2006. License revenues for the second quarter of 2007 were $14.1 million, a 26% year-over-year increase.

Net income for the second quarter of 2007, as reported in accordance with U.S. generally accepted accounting principles (GAAP), was $3.4 million, or $0.05 per diluted share, compared with net income of $1.6 million or $0.02 per diluted share in the second quarter of 2006.

Non-GAAP operating margin for the second quarter of 2007 was 20% compared with a non-GAAP operating margin of 14% for the second quarter of 2006. Non-GAAP net income for the second quarter of 2007 was $5.4 million, or $0.08 per diluted share, an increase of 64% compared with non-GAAP net income of $3.3 million, or $0.05 per diluted share in the second quarter of 2006.

For the first six months of 2007, revenues totaled $66.7 million. License revenues totaled $26.1 million, an increase of 23% compared with the first six months of 2006. Non-GAAP net income for the first half of 2007 totaled $8.8 million, or $0.13 per diluted share, an increase of 63% or $0.05 per diluted share compared with the $0.08 per diluted share reported for the first six months of 2006.

Cash, cash equivalents and short-term investments at June 30, 2007 totaled $70.6 million, an increase of $10.5 million from December 31, 2006. This amount is net of a $9.5 million cash outlay during the first six months of 2007 in furtherance of Actuate's ongoing share repurchase program.

"The second quarter marked the sixth consecutive quarter of double-digit year-over-year growth for both license revenue and non-GAAP net income at Actuate," said Pete Cittadini, Actuate's president and CEO. "During the quarter, we surpassed a million downloads for BIRT and generated over $2 million in Open Source driven commercial business, continuing to gain momentum with our new hybrid Open Source / Enterprise software business model."

"Strong demand for extranet applications, particularly among our large financial services customers, continued in Q2 and we continued to gain traction in the public sector with our Performance Management products."

Second Quarter Financial Highlights

• Grew license revenues by 26% on a year-over-year basis, the sixth consecutive quarter of double-digit year-over-year license growth;
• Increased cash, cash equivalents and short-term investments to a record $70.6 million at June 30, 2007;
• Achieved a 20% non-GAAP operating margin, an increase of six percentage points over the second quarter of 2006;
• Generated $4.7 million in cash flow from operations;
• Increased non-GAAP services margin to a record 72%;
• DSOs ended the quarter at 52 days, a decrease of 20 days from June 30, 2006 and a decrease of 11 days sequentially;
• Repurchased approximately 789,000 shares at a total cost of approximately $5.0 million.

• Grew license revenues by 23% on a year-over-year basis;
• Generated $16.4 million in cash flow from operations;
• Increased non-GAAP services margin to a record 72%;
• Achieved record first half Non-GAAP operating and net margins of 17% and 13%, respectively;
• Non-GAAP diluted earnings per share totaled $0.13, an increase of $0.05 or 63% compared with the first half of 2006;
• Repurchased approximately 1,620,000 shares at a total cost of approximately $9.5 million.

• BIRT surpassed one million downloads within two years of its first release;
• Actuate's 2007 Open Source Software Survey indicates that 42.9 percent of respondents are already using Open Source, 23.6 percent are currently using Open Source BI and 31.2 percent are likely or very likely to consider using Open Source BI solutions;
• MFS Investment Management is leveraging Actuate's Enterprise Reporting Application Platform to provide all stakeholders at MFS with up-to-date information on performance against goals and Key Performance Indicators (KPIs);
• Actuate's commercial BIRT-based offerings can now extend IBM Rational Portfolio Manager to improve SOA governance;
• Named a finalist for the 2007 IBM (NASDAQ: IBM - News) Impact SOA Innovation Award;
• General availability of Actuate Performancesoft BI that greatly simplifies the dissemination and analysis of Performance Management information by offering users interactive, intuitive reports that can be customized to meet their specific needs;
• Announced that one of its pioneering customers, Royal Berkshire Fire and Rescue Service (RBFRS), has received a commendation from the United Kingdom's Audit Commission for the best Audit and Performance Management system within the fire service in England.