Micromuse, a provider of real-time business and service assurance software, reported financial results today for its fiscal first quarter ended 31 December 2004. Total revenue for fiscal Q1 was $38.9 million. GAAP net income for fiscal Q1 was $2.6 million or $0.03 per share. Pro forma net income for the quarter - which specifically excludes the amortisation of intangible assets and other charges - was $3.8 million or $0.05 per share. For a detailed comparison of pro forma and GAAP results, please refer to the reconciliation statement at the bottom of this press release.
Cash, cash equivalents and investments balance was $192.8 million on 31 December 2004, down slightly from $193.6 million on 30 September 2004.
"Fiscal Q1 was another solid quarter for us," said Lloyd Carney, Micromuse Chairman and CEO. "We exceeded the high end of guidance on both revenue and EPS, increased deferred revenue, and generated positive cash flow from operations. We saw strength in both the service provider and financial services sectors. At the same time, we strengthened our partner program and made inroads in emerging geographic markets as well as new growth markets including business services management and VOIP."
First quarter FY2005 highlights
* Total revenue was $38.9 million, up 7% compared with Q4 FY04 and up 5% compared with Q1 FY04.
* We were profitable on both a pro forma and GAAP basis.
* Cash, cash equivalents, and investments balance ended at $192.8 million, and we remain debt free.
* Cash flow from operations was positive.
* Deferred revenue increased sequentially.
* Repeat business remained strong at 85% of total revenue.
* Maintenance renewals remained strong, with over 90% of eligible customers renewing maintenance contracts.
Fiscal Q2 outlook
Micromuse establishes the following guidance for the quarter ending 31 March 2005, based on information available as of 26 January 2005:
* The company anticipates that fiscal Q2 revenue will be in the range of $37.5 million to $38.5 million.
* The company anticipates that earnings per diluted share on a pro forma basis will be in the range of $0.03 to $0.04.
* The company anticipates that earnings per diluted share on a GAAP basis will be in the range of $0.01 to $0.02.
Q1 2005 conference call, Webcast and replay information
Micromuse will host a conference call and simultaneous Webcast on Wednesday, 26 January 2005 at 2pm PT, 5pm ET to announce pro forma and GAAP results for the first quarter of fiscal year 2005. The live call will be available to the general public by dialling 800-762-4832 (domestic) or 480-629-9037 (international). A live Webcast of the conference call will be available at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=MUSE&script=2100 or via a link from the Micromuse Web site at http://www.micromuse.com/.
A replay of this conference call will be available by dialling 800-475-6701 (domestic) or 320-365-3844 (international) and entering access code 768352. The replay will be available from Wednesday, 26 January 2005 at 7.15pm PT until Wednesday, 2 February 2005 at 11:59pm PT. The replay will also be available as an archived audio file at http://www.micromuse.com/.
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Micromuse Inc (Nasdaq: MUSE) is the leading provider of ultra-scalable, real-time business and service assurance software solutions. The Netcool software suite provides organisations with the assurance that their IT systems are supporting and driving profits 24 hours a day. Unlike traditional infrastructure management systems, Netcool solutions provide real-time end-to-end visibility and accurate troubleshooting from a business perspective. Such business intelligence allows organisations to respond to problems quickly, streamline workflow processes and improve business uptime. Micromuse customers include BT, Cable & Wireless, Deutsche Telekom, EarthLink, ITC^DeltaCom, JP Morgan Chase, MCI, T-Mobile, and Verizon. Headquarters are located at 139 Townsend Street, San Francisco, California 94107; (415) 538-9090. The Web site is at www.micromuse.com.
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