Chordiant Software (Nasdaq: CHRD), the leading provider of Customer Experience (Cx) software and services, today announced its financial results for the third quarter of fiscal 2007 ended June 30, 2007, and filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission (SEC).
Third Quarter Fiscal 2007 Financial Highlights
- Record bookings of $45.8 million;
- Record revenue of $36.8 million, up 36% year over year;
- Record deferred revenue of $76.6 million, up 160% since the end of fiscal 2006;
- Record backlog of $87.6 million;
- Record fully diluted GAAP EPS of $0.19;
- Positive cash flow from operations in fiscal Q3; and
- Record cash, cash equivalents, restricted cash and marketable securities of $85.4 million.
- Signed three transactions greater than $1 million with new and existing customers;
- Announced the general availability of the Chordiant Collections module which empowers financial institutions to differentiate themselves and build customer loyalty through their collections efforts by utilizing real-time predictive decisioning enabling agents to resolve delinquencies while optimizing customer service;
- Based on the availability of the Chordiant Collections module, began recognizing revenue from the Citibank transaction; and
- Chordiant and First Data International (FDI) announced a partnership whereby FDI will deliver a cards servicing contact center solution as a service (SaaS) powered by Chordiant technology to FDI's global customers. The SaaS offering utilizes Chordiant's Enterprise Platform, Decision Management Suite and Contact Center Advisor as the basis for this highly scalable, multi-tenant system.
"This was another record quarter for Chordiant and we are extremely pleased with the overall performance of the company," said Steven R. Springsteel, Chairman and Chief Executive Officer. "Market demand for our products remains strong and our customers are continuing to make sizable, long term investments in our solutions. This quarter is another proof point that we have a great team in place as well as the operational processes to continue to grow a profitable business."Customer Wins
Chordiant entered into three $1 million plus transactions with new and existing customers including a transaction with FDI, a leading provider of electronic commerce and payment solutions, one with Touring SA, Belgium's leading motorist association for breakdown, travel and medical assistance, and one with a leading health insurance benefits company.
"We entered into several large transactions during the quarter as enterprises continue to rely on our platform to provide better customer experiences," said Steve Springsteel. "Our open architecture, proven implementation methodologies and unmatched application functionality are differentiating us from our competitors."Bookings
For the third quarter of fiscal 2007, Chordiant reported bookings of $45.8 million, compared to the $23.4 million reported for the third quarter of fiscal 2006.Third Quarter Fiscal Year 2007 Financial Results
Total revenues for the third quarter of fiscal 2007 were a record $36.8 million, an increase of 36% from the $27.0 million reported for the three months ended June 30, 2006. For the nine month period ended June 30, 2007, total revenues were $92.5 million, an increase of 22% from the $75.9 million reported for the nine month period of fiscal 2006. License revenues for the third quarter of fiscal 2007 were $14.1 million, compared to $10.3 million reported for the three months ended June 30, 2006. For the nine month period ended June 30, 2007, license revenues were $40.1 million, compared to $32.6 million reported for the same period of fiscal 2006. Service revenues for the third quarter of fiscal 2007 were $22.7 million, compared to $16.8 million reported for the same period of fiscal 2006. For the nine month period ended June 30, 2007, service revenues were $52.3 million, compared to $43.3 million for the same period of fiscal 2006. Chordiant posted a record GAAP net income of $6.5 million, or a fully diluted GAAP net income of $0.19 per share for the third quarter of fiscal 2007 ended June 30, compared to a GAAP net loss of $3.7 million, or a basic and fully diluted $0.12 per share net loss for the three months ended June 30, 2006.
Chordiant reported record third quarter fiscal 2007 non-GAAP net income of $7.1 million, or a fully diluted non-GAAP net income of $0.21 per share, compared to a non-GAAP net loss of $1.9 million, or a non-GAAP net loss of $0.06 per share for the three months ended June 30, 2006. Non-GAAP net income excludes stock-based compensation, amortization of purchased intangible assets, restructuring expense and infrequent charges.Deferred Revenue
The record deferred revenue balance of $76.6 million for the third quarter of fiscal 2007 ended June 30 increased 160% as compared to the ending balance of $29.5 million at September 30, 2006.Backlog of Business
At June 30, 2007, Chordiant's backlog, which includes deferred revenue, increased 141% to $87.6 million, as compared to $36.4 million at the end of September 30, 2006. This marks the highest amount of backlog in Chordiant's history. The year to date change in backlog is primarily related to the continued signing of new license agreements and several large maintenance renewals including a three year renewal with Lloyds signed this quarter.Cash Position
Chordiant increased its cash, cash equivalents, restricted cash and marketable securities position by $39.6 million to $85.4 million at June 30, 2007, as compared to $45.8 million at the end of September 30, 2006.Non-GAAP Financial Measurements
This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the section of the accompanying tables titled "non-GAAP Financial Measures" as well as the related Table C which follows it.
Updates Fiscal Year 2007 Financial Guidance
- Chordiant expects to be in the upper half of our previously published guidance for revenue, GAAP and non-GAAP operating margins and GAAP and non-GAAP earnings per share.
- Chordiant expects to slightly exceed the upper end of our previously published bookings guidance of $170 million.
- Chordiant expects deferred revenue to remain relatively flat for the remainder of fiscal 2007 as compared to our June 30, 2007 balance.
- Chordiant expects to exit fiscal 2007 with ending cash, restricted cash and marketable securities balances that slightly exceeds the upper end of our previously published guidance of $85 million.
Reiterates Fiscal Year 2008 Financial Guidance
- Chordiant is reiterating its previous financial guidance for fiscal year 2008 that was issued on April 30, 2007.
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