Oct, 2001 : Keynote Announces Fourth Quarter 2001 Results

📅 October 26, 2001 - Keynote Systems (keynote.com),announced yesterday financial results for the quarter and fiscal year ended Sept. 30, 2001.

Revenues for the fourth quarter of fiscal 2001 were $9.5 million, whichrepresented a 14% decrease from the previous quarter, and a 21% decreasefrom the corresponding quarter in fiscal 2000. Pro forma net loss for thequarter was $2.3 million, or $0.08 per share, compared to pro-forma netincome of $0.2 million, or $0.01 per diluted share, for the precedingquarter and pro-forma net income of $3.4 million, or $0.12 per dilutedshare, for the corresponding quarter a year ago.
Revenues for fiscal 2001 grew to $45.6 million, a 35% increase over fiscal2000. Pro forma net income for fiscal 2001 was $3.0 million, or $0.11 perdiluted share, compared to pro forma net income of $4.1 million, or $0.15per diluted share, for fiscal 2000. Reported net loss for the quarter was$13.8 million, or $0.50 per share, which includes a non-recurring charge of$11.0 million for excess facility costs related to the unleased portion ofthe company's headquarters building.
Reported net loss for the preceding quarter was $34.4 million, or $1.24 pershare, which included a charge of $30.5 million related to the write-down ofgoodwill and other intangibles connected to Keynote's two acquisitionsduring fiscal 2000, $4.2 million of amortization of goodwill, intangiblesand stock-based compensation, and $271,000 in estructuring costs. Reportednet loss for the Sept. 2000 quarter was $2.0 million, or $0.07 per share.Reported net loss for fiscal 2001 was $56.4 million, or $2.04 per share,compared to a reported net loss of $2.7 million, or $0.11 per share, forfiscal 2000.
"We continue to make significant progress in our ability to deliverenterprise-class solutions to our customers despite the continued decline,that began nearly a year ago, in the service provider and dot com sectors ofour business," stated Umang Gupta, chairman and CEO of Keynote. "Ourapplication performance management and testing businesses have increased toover 14% of total revenue from less than 5% for the corresponding quarter ayear ago. Our recent acquisitions and new product introductions such asTest Perspective, Enterprise Perspective, and, most recently, KeynoteWireless Perspective, position us to capture a more significant portion ofthe larger testing and APM market, while we continue to refine and expandour core benchmarking offerings."
For the quarter just completed, 82% of Keynote's total revenue, up from theprevious quarter's 75%, was derived from U.S. corporate accounts,international resellers and consulting services. Revenue from theservice-provider and dot com sector declined for the fourth consecutivequarter and amounted to approximately 18% of total revenue in the Sept.quarter, compared to approximately 25% of the total revenue in the Junequarter, approximately 31% in the March quarter, and 40% in the Dec.quarter. Service provider revenue includes revenue from contentdistribution companies, Web hosting companies, and bandwidth providers.
As of Sept. 30, 2001, the company's total worldwide customer base wasapproximately 2,800 companies. During the quarter, Keynote averaged a 96%monthly customer retention rate, which was equal to last quarter's rate, butslightly less than its historical rates.
Keynote currently provides its services to 75% of the current Media Metrixtop 50 Web sites and 66 of the Fortune 100 companies. As of Sept. 30, 2001,Keynote measured approximately 11,200 URLs, which were down from the priorquarter, primarily as a result of reductions in URLs purchased by theInternet service providers and dot com customers.
Other Highlights:
Keynote launched Wireless Perspective; designed to measure, monitorand diagnose problems with wireless data services including wirelessmessaging, wireless Internet, and next-generation wireless services.Measurements will be taken from actual mobile devices.Keynote launched Test Perspective; a self-service Web portal foron-demand transaction integrity testing and load testing. This new servicecombines the ease of a hosted service with the control of an in-housesolution.Keynote announced the addition of six new Web performance partnersto its KeyPartner program, a set of partner programs and initiativesdesigned to better serve customers' growing needs for Web site performanceand management services, bringing the total number of partners in theprogram to 60.Keynote announced LoadSuite, a cost-effective bundle that packagestogether Keynote's two performance testing services: KeyReadiness LoadProand Test Perspective.Keynote announced the availability of Web Site Perspective ConsumerEdition v. 2.0, which measures "at-home" Internet user experience.Keynote and Agilent announced that in Nov. they will jointly host anSLA seminar designed to instruct IT professionals running e-businessenterprises and working within service provider organizations how tostructure, implement and manage service level agreements.Keynote Systems will be featured on "Making it in America," a localCBS affiliate television program that gives viewers a behind-the-scenes lookat successful companies that contribute to the local economy and community.
Keynote will host a conference call and simultaneous Web cast at 2:00 pm(PDT), today Oct. 26, 2001. The Web cast of the call will be available atthe Investor section of keynote.com, and vcall.com. The replay will beavailable after the call by dialing (888) 203-1112, and the pass code is530155.