Dendrite Announces Its Largest Customer Extends US Services Contract Through 2007
October 09 2006 - 4:07PM
Business Wire
Dendrite International, Inc. (NASDAQ: DRTE) today announced that
its largest customer has extended its contract covering Dendrite�s
sales force support services in the US through the end of 2007, at
current pricing, but plans an orderly transition of many of these
support services in-house and to one or more third-party vendors.
The customer will continue with support, maintenance and
enhancements of Dendrite�s sales force effectiveness products up to
2011. Contracts with this customer outside of the US are not
affected. The value of the services the customer intends to
transfer represents approximately 10% of Dendrite�s expected 2006
total revenues, although it represents a larger percentage of its
annual operating income due to the high levels of service
integration and customization. These services are expected to
represent less than 10% of the Company�s total anticipated 2007
revenues. The extension of the contract plus the transition
services are expected to have a positive impact on 2007 results.
Dendrite expects incremental one-time revenue from transition
services during 2007 and anticipates additional cost reductions,
investments in new and complementary business lines and future new
business to mitigate the overall impact of the contract contraction
beyond 2007. The Company will provide additional detail on the
contract renewal on its third quarter earnings conference call
scheduled for November 2, 2006. About Dendrite Founded in 1986,
Dendrite International (NASDAQ: DRTE) enables sales, marketing,
clinical and compliance solutions for the global, pharmaceutical
industry. The Company�s clients are located in more than 50
countries and include the world's top 20 pharmaceutical companies.
For more information, please visit www.dendrite.com. FORWARD
LOOKING INFORMATION: This document contains forward-looking
statements that may be identified by such forward-looking
terminology as �expect,� �believe,� �anticipate,� �will,� �intend,�
�plan,� �target,� �outlook,� �guidance,� and similar statements or
variations. Such forward-looking statements are based on our
current expectations, estimates, assumptions and projections and
involve significant risks and uncertainties, including risks which
may result from our dependence on the pharmaceutical industry; our
ability to achieve additional cost reductions, further expansion
into complementary businesses and further expansion of existing
business services; fluctuations in quarterly revenues due to
lengthy sales and implementation cycles for our products; our fixed
expenses in relation to fluctuating revenues and variations in
customers' budget cycles; dependence on certain major customers;
changes in demand for our products and services attributable to any
weakness experienced in the economy or mergers, acquisitions and
consolidations in the pharmaceutical industry; successful and
timely development and introduction of new products and versions;
risks associated with foreign currency fluctuations as they affect
our non-U.S. operations; increased competition; risks associated
with our expanded international operations and our ability to adopt
and respond successfully to the unique risks involved in our
non-U.S. operations; risks associated with acquisitions; the
ability of our third party vendors to respond to technological
change; any difference between estimated and actual stock option
expense; less favorable than anticipated results from strategic
relationships or acquisitions; dependence of data solutions on
strategic relationships; events which may affect the U.S. and world
economies; and catastrophic events which could negatively affect
our information technology infrastructure. Other important factors
that should be reviewed and carefully considered are included in
the Company's 10-K under �Factors That May Affect Future Results�
and its 10-Qs and other reports filed with the SEC. Actual results
may differ materially. The Company assumes no obligation for
updating any such forward-looking statements to reflect actual
results, changes in expectations or assumptions or other changes
affecting such forward-looking statements, even if such results or
changes make it clear that any such projected results will not be
achieved. Any�outlook and other forward-looking information is as
of the date of this release only. At any such time in the future as
the Company may provide revenue, earnings and other outlook
information, prior related outlook should no�longer be considered
current. Our outlook and other forward-looking information does not
take into account or reflect any possible future acquisitions,
dispositions or similar transactions which may occur. Dendrite
International, Inc. (NASDAQ: DRTE) today announced that its largest
customer has extended its contract covering Dendrite's sales force
support services in the US through the end of 2007, at current
pricing, but plans an orderly transition of many of these support
services in-house and to one or more third-party vendors. The
customer will continue with support, maintenance and enhancements
of Dendrite's sales force effectiveness products up to 2011.
Contracts with this customer outside of the US are not affected.
The value of the services the customer intends to transfer
represents approximately 10% of Dendrite's expected 2006 total
revenues, although it represents a larger percentage of its annual
operating income due to the high levels of service integration and
customization. These services are expected to represent less than
10% of the Company's total anticipated 2007 revenues. The extension
of the contract plus the transition services are expected to have a
positive impact on 2007 results. Dendrite expects incremental
one-time revenue from transition services during 2007 and
anticipates additional cost reductions, investments in new and
complementary business lines and future new business to mitigate
the overall impact of the contract contraction beyond 2007. The
Company will provide additional detail on the contract renewal on
its third quarter earnings conference call scheduled for November
2, 2006. About Dendrite Founded in 1986, Dendrite International
(NASDAQ: DRTE) enables sales, marketing, clinical and compliance
solutions for the global, pharmaceutical industry. The Company's
clients are located in more than 50 countries and include the
world's top 20 pharmaceutical companies. For more information,
please visit www.dendrite.com. FORWARD LOOKING INFORMATION: This
document contains forward-looking statements that may be identified
by such forward-looking terminology as "expect," "believe,"
"anticipate," "will," "intend," "plan," "target," "outlook,"
"guidance," and similar statements or variations. Such
forward-looking statements are based on our current expectations,
estimates, assumptions and projections and involve significant
risks and uncertainties, including risks which may result from our
dependence on the pharmaceutical industry; our ability to achieve
additional cost reductions, further expansion into complementary
businesses and further expansion of existing business services;
fluctuations in quarterly revenues due to lengthy sales and
implementation cycles for our products; our fixed expenses in
relation to fluctuating revenues and variations in customers'
budget cycles; dependence on certain major customers; changes in
demand for our products and services attributable to any weakness
experienced in the economy or mergers, acquisitions and
consolidations in the pharmaceutical industry; successful and
timely development and introduction of new products and versions;
risks associated with foreign currency fluctuations as they affect
our non-U.S. operations; increased competition; risks associated
with our expanded international operations and our ability to adopt
and respond successfully to the unique risks involved in our
non-U.S. operations; risks associated with acquisitions; the
ability of our third party vendors to respond to technological
change; any difference between estimated and actual stock option
expense; less favorable than anticipated results from strategic
relationships or acquisitions; dependence of data solutions on
strategic relationships; events which may affect the U.S. and world
economies; and catastrophic events which could negatively affect
our information technology infrastructure. Other important factors
that should be reviewed and carefully considered are included in
the Company's 10-K under "Factors That May Affect Future Results"
and its 10-Qs and other reports filed with the SEC. Actual results
may differ materially. The Company assumes no obligation for
updating any such forward-looking statements to reflect actual
results, changes in expectations or assumptions or other changes
affecting such forward-looking statements, even if such results or
changes make it clear that any such projected results will not be
achieved. Any outlook and other forward-looking information is as
of the date of this release only. At any such time in the future as
the Company may provide revenue, earnings and other outlook
information, prior related outlook should no longer be considered
current. Our outlook and other forward-looking information does not
take into account or reflect any possible future acquisitions,
dispositions or similar transactions which may occur.
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