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PR Contact |
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For public relations
inquiries, please contact:
Melissa Stahley
Consona Corporation
317.249.1270
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Press Release
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Cupertino, CA, February 9, 2006 - KNOVA Software (OTC Bulletin
Board: KNVS), a leading provider of Service Resolution Management (SRM) applications,
today announced the financial results for the fourth quarter and year-ended December
31, 2005.
The results of operations include the consolidated results of ServiceWare and Kanisa
from and after our February 8, 2005 merger. Please note that for comparison purposes,
the results of Kanisa are not included in 2004 operating results.
Revenue for the fourth quarter was $6.8 million as compared to revenue of $2.8 million
for the fourth quarter of 2004. The net loss for the quarter was $0.7 million or
$0.08 per share compared to net income of $0.7 million or $0.12 per share for the
fourth quarter of 2004. The fourth quarter of 2004 included a one time net gain
of $1.3M from the successful settlement of a patent litigation suit.
Revenue for the twelve months ending December 31, 2005 was $23.6 million as compared
to $12.5 million for the same period last year. The annual net loss was $5.1 million
or $0.61 per share as compared to a loss of $1.7 million or $0.33 per share in 2004.
The company's cash, cash equivalents, and marketable securities balance was $12.2
million at December 31, 2005.
Commenting on the financial results, Bruce Armstrong, president and CEO of KNOVA
Software, stated, "KNOVA's strong revenue results this quarter reflect the continued,
successful execution of our strategy. In 2005 we completed the merger of Kanisa
and ServiceWare, successfully integrated the two companies and created our new brand
as KNOVA Software. Our first year as a combined company has been characterized by
revenue growth, reduced costs, and clear market momentum. We are pleased to close
out the year with a combination of new competitive customer wins and continued success
selling into our installed base."
Fourth Quarter Highlights
Highlights of KNOVA's fourth quarter include continued sales momentum, the addition
of a new vice president and widespread industry recognition:
- Ten new customer deployments in key target markets, including high technology, financial
services and large enterprise help desks
- Seventeen follow-on deals with existing customers
- Richard Stouffer, formerly of PeopleSoft and Accenture, joined KNOVA as vice president
of worldwide services and support
- Several industry awards, including the HP OpenView 2005 Achiever's Award, and the
"2005 Product of the Year" and "2005 Innovation" awards from Customer Inter@ction
Solutions
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Sponsorship of the 2005 Siebel CustomerWorld in Boston
2005 Highlights
2005 represented a landmark year for KNOVA Software, including a successful merger,
significant customer and revenue growth, and award-winning product releases:
- 25 new customer deals and over 90 follow-on deals with existing customers
- Excellent momentum and competitive wins in key target markets, including high technology,
telecommunications, financial services and enterprise help desks
- The successful release and adoption of KNOVA 6.5 application suite, including enhancements
to search, content management and internalization
- Broad analyst and industry recognition, including Gartner ratings of Visionary in
the Enterprise Search Magic Quadrant report and the highest ranking in its Web Self-Service
Marketscope report
-
Discovery 2005, KNOVA's worldwide user conference held in September, attracted more
than 175 attendees and was sponsored by Siebel, HP and eVergance among others
"Multi-channel customer service is mission-critical to large enterprises in a wide
range of industries. KNOVA's applications for Service Resolution Management improve
the customer experience and derive more value from each and every customer interaction,"
Armstrong continued. "While our top-rated solutions and patented technologies deliver
significant business value for our customers, we expect our commitment to innovation
and execution will deliver shareholder value to our investors."
Financial Guidance and Business Outlook
"KNOVA is well positioned to extend the success and momentum of the past year into
fiscal 2006 through the combination of our industry-leading products and patented
technologies, our trained sales force and partner channels, and our growing recognition
as a market leader," Armstrong added. "We share the belief of leading IT analysts
that the current CRM market dynamics and recent consolidation of large vendors create
greater opportunities for best-of-breed vendors such as KNOVA to extend and enhance
CRM infrastructures."
"KNOVA is focused on achieving profitable growth, and we expect to increase revenue
while closely managing our bottom line," Armstrong concluded. "We are excited by
our ongoing success in competitive sales situations and believe our innovative product
suite and upcoming releases will extend our competitive advantages."
For 2006, the company expects to grow total revenue to a range of $25 million to
$27 million.
Conference Call Information:
KNOVA will present its fourth quarter and year-end 2005 earnings in a teleconference
today at 5:00 p.m. Eastern (2:00 p.m. Pacific). Domestic callers can join the teleconference
by dialing 1.866.825.1692, providing the company name, "KNOVA" and the following
conference ID pass code: 31466183. International callers can access the broadcast
by dialing 1.617.213.8059, providing the company name and same pass code. The teleconference
also can be accessed online by clicking on the Investor Relations area of KNOVA's
Web site, http://www.knova.com/ir. Participants are asked to
call the assigned number approximately 10 minutes before the conference call begins.
If you are unable to participate, an audio digital replay of the call will be available
beginning two hours after the call and will be available until 11:59 p.m. on February
16, 2006 by dialing 1.888.286-8010 (domestic) or 1.617.801.6888 (international)
using the pass code 90574686. KNOVA will also provide a replay of the conference
call on the Investor Relations page of its Web site.
About KNOVA Software
KNOVA Software is a leading provider of service resolution management applications
that reduce service costs, increase revenues and improve customer satisfaction.
Built on a next-generation search and knowledge management platform, KNOVA's suite
of knowledge-empowered customer service applications automate the resolution process
across multiple channels including contact centers, help desks, email and self-service
sites. Industry leaders including EDS, Ford, HP, H&R Block, Novell, Merrill Lynch,
McAfee, Reuters and QUALCOMM rely on KNOVA's award-winning solutions to deliver
world-class customer service. KNOVA Software is headquartered in Cupertino, Calif.
For more information, visit www.knova.com.
KNOVA Software, KNOVA, KNOVA Contact Center, KNOVA Self-Service,
KNOVA Forums, KNOVA Field Service, KNOVA Knowledge Desk, KNOVA 6 and KNOVA 6.5 are
trademarks of KNOVA Software, Inc. All other trademarks are properties of their
respective owners.
Under the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, statements in this press release that are not historical facts, including
those statements that refer to KNOVA Software's plans, prospects, expectations,
strategies, intentions, hopes and beliefs and the expected benefits of the use of
KNOVA's products are forward-looking statements. These forward-looking statements
are not historical facts and are only estimates or predictions. Actual results may
differ materially from those projected as a result of risks and uncertainties including,
but not limited to, risks related to our software strategy, fluctuations in customer
demand, performance of outside distributors and resellers, use of the Web as a delivery
vehicle for customer support solutions, risks resulting from new product introductions,
integration of acquired products with current offerings, and customer acceptance
of new products, rapid technological change, risks associated with competition,
continued growth in the use of the Internet, our ability to retain and increase
revenue from existing customers and to execute agreements with new customers, unforeseen
expenses, our ability to attract and retain qualified personnel and to secure necessary
financing for our operations and business development, and other market conditions
and risks detailed from time to time in our Securities and Exchange Commission filings.
Any forward-looking statements are based on information available to the company
today and the company undertakes no obligation to update publicly any forward-looking
statements, whether as a result of future events, new information, or otherwise.
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