ClearStory Systems Fiscal 2005 Revenues Increase 31% Fourth Quarter
Revenues Increase by 22% WESTBOROUGH, Mass., July 12
/PRNewswire-FirstCall/ -- ClearStory Systems, Inc. (OTC:CSYS)
(BULLETIN BOARD: CSYS) , an established provider of digital asset
management (DAM) and enterprise content management (ECM) solutions,
today announced that full-year revenues increased 31 percent to
$11.6 million for the year ended March 31, 2005, compared to $8.8
million for the same period last year. For the three months ended
March 31, 2005, revenues increased 22 percent to $3.3 million
compared to $2.7 million for the same period last year. For the
year ended March 31, 2005, product revenues increased 50 percent to
$4.7 million, compared to $3.1 million for the year ended March 31,
2004. For the year ended March 31, 2005, service revenues increased
21 percent to $6.9 million, compared to $5.7 million for the year
ended March 31, 2004. Product revenues for the three months ended
March 31, 2005 increased 70 percent to $1.7 million, compared to
$1.0 million for the same period last year. Service revenues were
$1.7 million for the three months ended March 31, 2005. The
Company's revenue increase is attributable to a number of strategic
investments including the development and launch of Radiant
Enterprise Media Sever (EMS), a direct sales model, and a
successful re-branding of the Company in support of its strategic
transformation into new markets. In addition, in recognition of the
market opportunity for Radiant EMS, the Company expanded its
executive team. "We are pleased with our significant revenue
increase for fiscal 2005, which has exceeded our publicly-traded
peers in this industry," stated Henry F. Nelson, ClearStory Systems
president and CEO. "We have met every major milestone this year
including corporate re-branding, the introduction of two new
products, and the addition of proven industry talent to our
management team. This has resulted in the successful development of
productive OEM and reseller partnerships with companies that
recognize the leading architecture of Radiant EMS. At the same
time, we reduced our net loss by nearly 50%. We are satisfied with
these accomplishments and I believe that we have implemented the
necessary components for long-term success." For the year ended
March 31, 2005, net loss decreased to $1.2 million, or $0.31 per
basic and diluted share, compared to $2.3 million or $0.46 per
basic and diluted share for the year ended March 31, 2004. Net loss
increased to $100,000 or $0.08 per basic and diluted share for the
three months ended March 31, 2005, compared to $76,000 or $0.03 per
basic and diluted share for the same period last year. ClearStory
strengthened its market position in the fiscal year with the
announcement of Radiant Enterprise Media Server (EMS) and Radiant
MailManager, both of which have scaleable, open architectures for
the management of rich media and email respectively -- two of the
fastest growing areas within the ECM market according to several
analyst firms. Radiant EMS provides a foundation for the Company's
future product development of applications such as digital asset
management, video management, and marketing content management.
While ClearStory continued to enjoy additional revenue from
existing customers, new customers for the year included key wins in
strategic vertical markets for the Company: entertainment,
publishing, education, and advertising. The Company secured two new
customers for the Radiant EMS platform. These customers have
successfully developed DAM applications on the platform and are
representative of both the direct sales and OEM market opportunity
that Radiant EMS offers for the Company. In May 2005, ClearStory
announced a teaming agreement with IBM, and an expanded partnership
with AGFA, a leading global provider of prepress and imaging
technology. In support of the Company's growth strategy and vision,
preferred shareholders have provided $1 million in additional
funding since the March 31, 2005. In February 2005, ClearStory was
selected by KMWorld magazine as one of the "100 Companies that
Matter in Knowledge Management". The KMWorld 100 is the official
list of the most influential and innovative companies in knowledge
management. In addition, the Company and its customer, a leading
pharmaceutical and healthcare products company, were awarded the
AIIM 2005 Best Practices Award, which recognizes outstanding
achievement and significant contribution to the ECM industry About
ClearStory Systems ClearStory Systems is an established provider of
flexible, on-demand ECM solutions. ClearStory's Radiant Content
Suite provides discrete management and on-demand access for the
full spectrum of content -- from graphics and video to customer
statements and email. The company's standards-based technology
provides a powerful platform for integrating rich media and
business documents into a multitude of business-critical
environments, including marketing and finance departments, call
centers, channel partner portals, compliance initiatives, and
global marketing extranets. For more information, visit
http://www.clearstorysystems.com/. There are statements in this
news release that contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including for example the expected benefits of ClearStory's
in-house hosting model, the anticipated customer demand for
ClearStory's products and services (including its recently released
ActiveMedia version 6 and its Radiant Enterprise Media Server), and
the expected benefits to be derived from ClearStory's products and
services. These forward-looking statements include all statements
that are not statements of historical fact and relate to the
intent, belief, plans or expectations of ClearStory Systems, their
management, and their customers. Words like "plans," "intends,"
"believes," "signifies," "estimates," "anticipate," "will,"
"expect," and words of similar meaning are intended to identify
forward-looking statements. Actual results may vary significantly
from the forward-looking statements. For a detailed discussion of
cautionary statements that may affect ClearStory's future results
of operations and financial results, please refer to ClearStory's
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-KSB for the year-ended March 31, 2005, and
its Quarterly Reports on Form 10-QSB. Actual results, events and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. CONTACTS: ClearStory Systems Susan Worthy
(508) 870-4225 Ripple Effect Communications Valerie Harding (Media)
(617) 536-8887 ClearStory Systems, Inc. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per
share amounts) Three Months Ended Year Ended March 31, March 31,
2005 2004 2005 2004 Revenue: Product $1,672 $984 $4,703 $3,137
Services 1,652 1,748 6,885 5,692 3,324 2,732 11,588 8,829 Cost of
revenues: Product 74 42 212 157 Services 743 785 3,353 2,213 817
827 3,565 2,370 Gross profit 2,507 1,905 8,023 6,459 Operating
expenses: Sales and marketing 1,114 755 3,380 2,922 Product
development 798 705 2,679 2,973 General and administrative 790 435
2,962 2,163 Non-recurring items -- -- -- 301 2,702 1,895 9,021
8,359 Operating income (loss) (195) 10 (998) (1,900) Interest
expense, net 95 (86) (244) (424) Net loss (100) (76) (1,242)
(2,324) Net loss per share -- basic and diluted $(0.05) $(0.03)
$(0.31) $(0.46) Weighted average common shares outstanding -- basic
and diluted 5,992 5,992 5,992 5,685 DATASOURCE: ClearStory Systems,
Inc. CONTACT: Susan Worthy of ClearStory Systems, Inc.,
+1-508-870-4225, ; or Valerie Harding of Ripple Effect
Communications, +1-617-536-8887, , for ClearStory Systems, Inc. Web
site: http://www.clearstorysystems.com/
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