Edgar Filing: DALEEN TECHNOLOGIES INC

DALEEN TECHNOLOGIES, INC.

Securities And Exchange Commission
Washington, D.C. 20549

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): November 8, 2002

Daleen Technologies, Inc.
(Exact Name of Registrant as Specified in Charter)


Delaware	0-27491	65-0944514
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)


902 Clint Moore Road, Suite 230 Boca Raton, Florida (Address of principal executive offices)		33487 (Zip Code)

(561) 999-8000
(Registrant’s telephone number, including area code)

TABLE OF CONTENTS


Condensed Unaudited Consolidated Balance Sheets
Condensed Unaudited Consolidated Statements of Operations
SIGNATURES

Item 5 – Other Events.

Daleen Technologies, Inc. (the “Company”) today reported that despite a decrease in revenues for the third quarter, incremental reductions in operating expenses and cash used contributed to the Company’s third consecutive quarterly decrease in net loss per share. The Company reported revenues of $1.2 million for its third quarter of 2002. Net loss for the quarter was $1.7 million, or $0.07 per share, compared with a $2.3 million net loss, or $0.10 per share, during the second quarter of 2002, and compared to a net loss of $36.8 million, or $1.68 per share, in the third quarter of 2001. The Company had revenues of $2.2 million for the third quarter of 2001.

Third Quarter Highlights:

	•		Total expenses were $3.0 million for the third quarter of 2002, compared to $4.8 million for the previous quarter, and compared to total expenses of $37.0 million for the third quarter of 2001. Total expenses in the second quarter of 2002 included $745,000 in restructuring charges, and total expenses in the third quarter of 2001 included $23.4 million in goodwill impairment charges. These improvements and the Company’s continued diligence in managing expenses and maintaining a lower total cost of operations helped reduce the amount of cash used to support operations to $1.2 million for the quarter.

	•		Total expenses for the nine months ended September 30, 2002 were $12.7 million, compared to $86.4 million for the same period in 2001. Total expenses for the nine months ended September 30, 2002 and 2001 included $745,000 and $7.8 million of restructuring charges, respectively. In addition, total expenses for the nine months ended September 30, 2001 included $27.9 million in impairment charges related to goodwill intangibles and property and equipment.

	•		The Company restructured its license and services contract with Cbeyond Communications to include a schedule of fixed payments through the end of 2006, which creates long term, recurring revenues for the Company.

Daleen Technologies, Inc. and Subsidiaries

Condensed Unaudited Consolidated Balance Sheets
(in thousands)


					September 30		December 31
					2002		2001

				Assets
	Current assets:
		Cash and cash equivalents			$	5,984	$	13,093
		Restricted cash				30		30
		Accounts receivable, net				1,296		2,885
		Other current assets				690		436

			Total current assets			8,000		16,444
Property and equipment, net						1,534		2,704
Other assets						1,567		2,045

			Total assets		$	11,101	$	21,193

				Liabilities and Stockholders’ Equity
Current liabilities:
		Accounts payable				440		678
		Accrued payroll and other accrued expenses				1,650		3,733
		Billings in excess of costs				542		1,323
		Deferred revenue				917		1,013
		Other current liabilities				16		—

			Total current liabilities			3,565		6,747
Minority Interest						—		184
Total stockholders’ equity						7,536		14,262

Total liabilities and stockholders’ equity					$	11,101	$	21,193

Daleen Technologies, Inc. and Subsidiaries

Condensed Unaudited Consolidated Statements of Operations
(in thousands except per share data)


			Three Months Ended									Nine Months Ended

			Sept 30,			June 30,			Sept 30,			Sept 30,			Sept 30,
			2002			2002			2001			2002			2001

Revenue:
	License fees		$	397			753			418			1,361			3,193

	Professional services & other			849			1,290			1,786			3,831			7,601
		Total revenue		1,246			2,043			2,204			5,192			10,794

Cost of revenue:
	License fees			34			63			1,236			171			1,604
	Professional services & other			404			608			1,287			1,980			6,331

		Total cost of revenue		438			671			2,523			2,151			7,935

Gross margin				808			1,372			(319	)		3,041			2,859
Operating expenses:
	Sales & marketing			789			1,083			1,826			3,028			8,781
	Research & development			713			1,054			2,430			3,098			10,931
	General & administrative			1,093			1,250			3,149			3,681			11,976
	Amortization of goodwill & other intangibles			—			—			3,661			—			11,156
	Impairment of long lived assets			—			—			23,408			—			27,906
	Restructuring charges			—			745			—			745			7,758

		Total operating expenses		2,595			4,132			34,474			10,552			78,508

Operating loss				(1,787	)		(2,760	)		(34,793	)		(7,511	)		(75,649	)

Other income:
	Interest income & nonoperating income, net			42			118			447			321			989
	Gain on sale of subsidiary			—			391			—			391			—

		Total other income, net		42			509			447			712			989

Net loss			$	(1,745	)		(2,251	)		(34,346	)		(6,799	)		(74,660	)
	Less: preferred stock dividends			—			—			(2,447	)		—			(28,512	)

Net loss applicable to common stockholders			$	(1,745	)		(2,251	)		(36,793	)		(6,799	)		(103,172	)

Net loss applicable to common stockholders per share — basic and diluted			$	(0.07	)		(0.10	)		(1.68	)		(0.29	)		(4.73	)

Weighted average outstanding shares - basic and diluted				23,376			23,532			21,870			23,049			21,823

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	DALEEN TECHNOLOGIES, INC.



	By:	/s/ Jeanne Prayther Jeanne Prayther Chief Financial Officer and Secretary
Dated: November 8, 2002

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