EX-99.2 3 dex992.htm FINANCIAL STATEMENTS Financial Statements

Exhibit 99.2

 

Portal Software, Inc.

Preliminary Consolidated Statements of Operations

(In thousands, except per share data, unaudited)

 

     Three Months Ended
    

Year Ended

January 28, 2005

    

Year Ended

January 30, 2004 (1)

  
     January 28, 2005
     January 30, 2004
      

Revenues

                                 

License fees

    $ 6,154     $ 8,988     $ 20,580     $ 39,566  

Services

      21,131       27,112       84,138       87,187  
    
 
 
 

Total revenues

      27,285       36,100       104,718       126,753  

Cost of revenues

                                 

Cost of license fees

      48       56       207       185  

Cost of services

      15,486       17,739       65,440       56,625  

Amortization of purchased developed technology

      —         665       1,995       2,660  
    
 
 
 

Total cost of revenues

      15,534       18,460       67,642       59,470  

Gross Margin

      11,751       17,640       37,076       67,283  

Operating Expense

                                 

Research and development

      9,871       7,822       37,457       30,243  

Sales and marketing

      10,431       11,902       45,199       45,600  

General and administrative

      6,329       5,118       23,540       15,472  

Stock option compensation (benefit) charges

      5       (19,152 )     (7,333 )     14,687  

Restructuring

      11,591       —         10,750       —    
    
 
 
 

Total operating expenses

      38,227       5,690       109,613       106,002  

Income (Loss) from operations

      (26,476 )     11,950       (72,537 )     (38,719 )

Interest and other income (loss), net

      46       1,194       (1,640 )     2,024  
    
 
 
 

Income (Loss) before income taxes

      (26,430 )     13,144       (74,177 )     (36,695 )

Income taxes

      1,005       1,496       1,195       3,496  
    
 
 
 

Net Income (Loss)

    $ (27,435 )     11,648     $ (75,372 )   $ (40,191 )
    
 
 
 

Net loss per share

                                 

Basic earnings (loss) per share

    $ (0.64 )   $ 0.28     $ (1.77 )   $ (1.05 )

Diluted earnings (loss) per share

    $ (0.64 )   $ 0.26     $ (1.77 )   $ (1.05 )

Shares used in computing basic earnings per share

      42,740       41,840       42,519       38,163  

Shares used in computing diluted earnings per share

      42,740       44,476       42,519       38,163  
(1) Derived from the audited financial statements for the year ended January 30, 2004

Portal Software, Inc.

Preliminary Consolidated Balance Sheets

(In thousands)

 

    

Quarter Ended

January 28, 2005

    

Prior Year (1)

January 30, 2004

  
     (unaudited)        

Assets

                 

Current assets

                 

Cash and short-term investments

    $ 45,202     $ 85,460  

Accounts receivable, net

      20,571       29,749  

Prepaid expenses and other current assets

      6,845       4,029  
    
 

Total current assets

      72,618       119,238  

Property and equipment, net

      18,537       20,848  

Purchased developed technology, net

      —         1,995  

Restricted long-term investments

      14,471       13,164  

Other assets

      1,444       2,910  
    
 

Total assets

    $ 107,070     $ 158,155  
    
 

Liabilities and Stockholders’ Equity

                 

Current liabilities

                 

Accounts payable

    $ 8,348     $ 5,390  

Accrued employee benefits

      12,037       8,829  

Current portion restructuring costs

      14,142       9,193  

Other accrued liabilities

      20,219       12870  

Current portion of long-term debt

      32       96  

Deferred revenue

      42,363       28,891  
    
 

Total current liabilities

      97,141       65,269  

Long-term accrued restructuring costs

      13,209       18,791  

Long-term notes payable and other liabilities

      2,449       1,564  

Long-term deferred revenue

      2,318       —    
    
 

Total liabilities

      115,117       85,624  
    
 

Stockholders’ equity

                 

Common stock

      43       42  

Additional paid-in capital

      613,995       618,966  

Accumulated other comprehensive income (loss)

      (939 )     (647 )

Notes receivable from stockholders

      (5 )     (61 )

Accumulated deficit

      (621,141 )     (545,769 )
    
 

Total stockholders’ equity

      (8,047 )     72,531  
    
 

Total liabilities and stockholders’ equity

    $ 107,070     $ 158,155  
    
 
(1) Derived from the audited financial statements for the year ended January 30, 2004