SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 23, 2004
Daleen Technologies, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-27491 65-0944514
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
902 Clint Moore Road, Suite 230, Boca Raton, Florida 33487
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (561) 999-8000
Item 12. Results of Operations and Financial Condition
On April 23, 2004, Daleen Technologies, Inc. issued a press release
regarding its earnings for the first quarter ended March 31, 2004. A copy of the
press release is attached hereto.
The information in this Current Report on Form 8-K, including the
attached press release, shall not be deemed "filed" for the purposes of Section
18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to
the liabilities of that section, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, as amended, except as
shall be expressly set forth by specific reference in such a filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DALEEN TECHNOLOGIES, INC.
By: /s/ Gordon Quick
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President and Chief Executive Officer
Dated: April 23, 2004
FOR IMMEDIATE RELEASE
For additional information contact:
Teresa M. Gyulafia Jeanne Prayther
Director of Marketing Communications Chief Financial Officer
+ 1-561-981-2119 + 1-561-981-2004
tgyulafia@daleen.com jprayther@daleen.com
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Daleen Reports First Quarter Operating Results
BOCA RATON, Fla. - April 23, 2004 - Daleen Technologies, Inc. (OTCBB: DALN.OB),
a global provider of licensed and outsourced billing and customer management,
operational support systems (OSS) and revenue assurance solutions for
traditional and next generation service providers, today reported revenues of
$4.3 million for the first quarter of 2004, as compared to $5.0 million for the
fourth quarter of 2003. The decrease in revenues was primarily due to a lower
level of new business than expected. Total expenses in the first quarter were
$5.3 million, compared to $5.4 million in the fourth quarter of 2003. The
company's total cash and cash equivalents used in the quarter were $350,000,
compared to $1.1 million in the fourth quarter. Net loss for the first quarter
of 2004 was $1.1 million, or $.02 per share, as compared to $409,000, or $.01
per share in the fourth quarter of 2003.
"Although revenues from new sales declined, we had a number of successes
this quarter expanding our relationships with several existing customers, and
with our ongoing project implementation at ETB," said Gordon Quick, president
and CEO of Daleen.
First Quarter Highlights
o US Signal renewed its contract for outsourced billing services through
BillingCentral(R). Under terms of the new agreement, Daleen will
provide outsourcing services to US Signal until 2009.
o Onvoy, Inc. purchased Daleen's Asuriti(TM) event management and
revenue assurance software to provide comprehensive data collection
and analysis, mediation, event rating, and cost management
capabilities. The Asuriti contract expands Daleen's footprint at
Onvoy, where the company's NetworkStrategies(R) and EventProcessor(R)
billing and rating software have been in use since 2000.
o As a result of work completed in the first quarter, Daleen completed
Phase 1 of its ongoing implementation at ETB in Bogota, Colombia in
April. RevChain(R) has reduced the time required to import, rate,
validate, and store usage records by more than 95 percent, exceeding
ETB's requirements and expectations.
o Daleen continues to effectively manage its operational costs. Total
expenses were $5.3 million for the first quarter, compared to $5.4
million in the fourth quarter of 2003.
- more -
Daleen Reports First Quarter Operating Results p 2 of 4
o Daleen was approved for up to $2.7 million under a fifteen-month
operating loan with Silicon Valley Bank. The proceeds of this loan are
being used to cover operating costs associated with our contract with
ETB. Daleen intends to repay the operating loan solely from revenues
received from ETB as project milestones are completed and payments are
received. To date, Daleen has borrowed $2.0 million against this loan.
The Company is currently not in compliance with a financial covenant
under the operating loan; however, it is currently seeking a waiver or
an amendment from the bank on this covenant.
o The company's total cash and cash equivalents used in the first
quarter were $350,000, compared to $1.1 million in the prior quarter.
This reduction was primarily due to borrowing $2.0 million against the
operating loan to support the ETB project.
About Daleen
Daleen Technologies, Inc. is a global provider of high performance billing and
customer care, OSS and revenue assurance software, with a comprehensive
outsourcing solution for traditional and next generation service providers.
Daleen's solutions utilize advanced technologies to enable providers to reach
peak operational efficiency while driving maximum revenue from products and
services. Core products include its RevChain(R) billing and customer management
software, Asuriti(TM) event management and revenue assurance software, and
BillingCentral(R) ASP outsourcing services. More information is available at
WWW.DALEEN.COM.
Information with Respect to Forward-Looking Statements. Statements in this
release may be considered "forward-looking statements" within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. These include statements
regarding the intent, belief or current expectations of the Company and the
assumptions on which these statements are based. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual results
to differ materially from those in forward-looking statements include business
concentration; the Company's ability to continue as a going concern; the
Company's ability to successfully implement its aggregation strategy; the
Company's inability to achieve profitability; the consequences of any default on
the SVB operating loan; customers' and potential customers' market position and
lack of financial resources; the costs and success of the Company's
international expansion; the ability of the Company to develop and protect its
intellectual property; the Company's relationship with third party software
vendors and service providers; competition; the Company's ability to retain
senior management and other key personnel; low price and volatility of the
Company's common stock and the impact of the delisting from The Nasdaq SmallCap
Market; the on-going securities class action against the Company; the risks
associated with the proposed reverse stock split; claims related to liabilities
associated with the Abiliti acquisition; and the rights and preferences of the
series F convertible preferred stock. These factors and others are described in
the Company's most recent SEC filings including its most recently filed Form
10-K. The Company undertakes no obligation to update the forward-looking
statements in this news release.
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(C)Daleen Technologies, Inc. All rights reserved. Daleen, the Daleen logo,
RevChain, Asuriti, BillingCentral, NetworkStrategies, and EventProcessor are
trademarks, or service marks, of Daleen Technologies, Inc. in the United States
and other countries. All other trademarks and registered trademarks are property
of their respective owners.
Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
Unaudited
March 31 December 31
2004 2003
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Assets
Current assets:
Cash and cash equivalents $ 2,195 $ 2,497
Restricted Cash 506 561
Accounts receivable, net 1,957 1,002
Cost in excess of billing 2,975 2,032
Other current assets 568 487
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Total current assets 8,201 6,579
Property and equipment, net 786 931
Goodwill 5,086 5,086
Other assets 481 430
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Total assets $ 14,554 $ 13,026
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 86 148
Accrued payroll and other accrued expenses 2,575 2,267
Billings in excess of costs 320 97
Current portion of note payable 2,000 -
Deferred revenue 508 372
Other current liabilities 12 42
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Total current liabilities 5,501 2,926
Other long term liabilities 11 5
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Total liabilities 5,512 2,931
Total stockholders' equity 9,042 10,095
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Total liabilities and stockholders' equity $ 14,554 13,026
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Daleen Technologies, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands except per share data)
Unaudited
Three Months Ended
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March 31 December 31
2004 2003
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Revenue:
Professional services and other $ 3,667 $ 4,378
License fees 587 573
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Total revenue 4,254 4,951
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Cost of revenue:
Professional services and other 1,584 1,700
License fees - 27
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Total cost of revenue $ 1,584 $ 1,727
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Gross margin 2,670 3,224
Operating expenses:
Sales and marketing 734 769
Research and development 1,652 1,652
General and administrative 1,373 1,234
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Total operating expenses 3,759 3,655
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Operating loss (1,089) (431)
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Total interest income and nonoperating expense, net 36 22
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Net loss applicable to common shareholders $ (1,053) $ (409)
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Net loss applicable to common shareholders per
share - basic and diluted $ (0.02) $ (0.01)
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Weighted average outstanding shares - basic and 46,858 46,429
diluted --------- -----------
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