CIMdata PLM Industry Summary Online Archive

3 May 2005

Financial News

Agile Reports Preliminary Results for Fourth Fiscal Quarter

Agile Software Corporation announced preliminary results for the fourth quarter of fiscal 2005, which ended April 30, 2005. Agile expects total revenues for the fourth quarter to be between $31 million and $32 million, compared to $27.2 million in the prior year period and $30.3 million for the third quarter of fiscal 2005. The Company expects total software license revenue for the fourth quarter to be between $12 million and $13 million.

Agile also expects to report a net loss for the fourth quarter between $0.07 and $0.09 per share, on a generally accepted accounting principles (GAAP) basis, and a net loss between $0.01 and $0.02 per share, on a non-GAAP basis. Non-GAAP loss for the fourth quarter of fiscal 2005 excludes from the GAAP results amortization of intangibles and acquired in-process research and development as well as stock compensation expenses. Agile plans to report the full results on May 26, 2005.

In an unrelated development, Agile also announced today that on April 30, 2005, the Company's Board of Directors approved accelerating the vesting of approximately 9 million unvested, "out-of-the-money" stock options awarded to employees and officers under its stock option plans. Options held by non-employee directors were excluded from the vesting acceleration. The accelerated options have exercise prices ranging from $6.76 to $64.00 and a weighted average exercise price of $8.58. As a condition of the acceleration, and to avoid any unintended personal benefits, the Company also imposed a holding period on shares underlying the accelerated options that requires all optionees to refrain from selling any shares acquired upon the exercise of the options until the date on which such shares would have vested under the options' original vesting terms.

The primary purpose of the accelerated vesting is to enable the Company to avoid recognizing future compensation expense associated with the accelerated stock options upon the planned adoption of FASB Statement No. 123R, "Share- Based Payment," ("SFAS 123R") by Agile in fiscal 2006. The Company expects the acceleration to reduce the stock option expense it otherwise would be required to record beginning in its 2006 fiscal year by greater than $20 million on a pre-tax basis. The Company's Board of Directors believes, based on its consideration of this potential expense savings and the current intrinsic and perceived value of the accelerated stock options, that the acceleration is in the best interests of the Company and its shareholders. The Board of Directors further believes that the acceleration is consistent with anticipated changes to the Company's overall equity compensation approach, which are expected to include a reduced use of stock options and a lower overall compensation expense level.

Agile will discuss its fourth quarter results on a conference today beginning at 2:00 p.m. Pacific Time. A Web cast of the conference will be available on Agile's Web site at http://www.agile.com under the 'Investor Relations' section. You may access replays of the Web cast for ninety days after the call at http://www.agile.com/investors . Financial and statistical information to be discussed in the call will be available on the company's Web site immediately prior to commencement of the call. Additional investor information can be accessed at http://www.agile.com or by calling Agile's Investor Relations at 408-284-4042.

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