Kintera,� Inc. (NASDAQ:KNTA), a leading provider of software as a
service (SaaS) to the nonprofit and government sectors, today
reported financial results for its first quarter ended March 31,
2008. Revenue for the first quarter 2008 was $8.9 million, compared
to $10.7 million for the same period last year. On a GAAP basis,
net loss for the quarter was $4.3 million, or $0.11 per diluted
share, which is an improvement of 48 percent or $0.10 per diluted
share, compared with a net loss of $8.3 million, or $0.21 per
diluted share, for the same period last year. Earnings before
interest, taxes, depreciation, amortization, stock-based
compensation expense and restructuring charges (adjusted EBITDA)
was a loss of $2.5 million, or $0.06 per share, in the first
quarter of 2008, compared to a loss of $3.8 million, or $0.09 per
share, in the first quarter of 2007. This is an improvement of
approximately 33 percent or $0.03 per share year-over-year. �We
believe our unified software as a service platform, which includes
events, marketing, and donor management, will help fuel our growth,
expand our existing relationships, and attract new organizations to
Kintera,� said Richard N. LaBarbera, Kintera CEO. �We are excited
about its potential and the value it brings to help nonprofit
organizations better achieve their mission.� Operating expenses for
the first quarter 2008 totaled $9.2 million. This is a decrease of
37 percent year over year, from $15 million in the first quarter
2007. Cash, cash equivalents and marketable securities at March 31,
2008 were $5.7 million. Deferred revenues were $15.7 million at
March 31, 2008 compared with $15.5 million at Dec. 31, 2007. The
company also announced a restructuring plan which includes a 14
percent reduction in resources targeting an excess of one million
per quarter of savings by the third quarter. Our expected charge is
$450,000. Earnings Call Kintera will host a conference call on
Wednesday, May 7, 2008 at 1:45 p.m. PDT to discuss the company's
financial results. The conference call can be accessed by dialing
toll-free 866.356.4123 (617.597.5393 for international calls),
using conference code 72167212. A replay of the call will be
available via the Internet at www.kintera.com/webcasts. KNTA-F
About Kintera, Inc. Kintera�, Inc. (NASDAQ:KNTA) provides an
integrated, on-demand open platform to help organizations quickly
and easily reach more people, raise more money, and run more
efficiently. The Kintera platform consists of a variety of products
including Events, Advocacy, E-mail, Web Site Content Management,
Donor Management, Constituent Relationship Management and
Accounting. In addition, Kintera�s open technology, Kintera
Connect�, enables clients and partners to integrate directly with
Kintera technology, resulting in the availability of best of breed
solutions through the Kintera Connect partner program. For more
information about Kintera software and services, visit
www.kintera.com. Kintera, Kintera Sphere, Kintera Connect, Social
CRM and The Giving Experience, are either registered trademarks or
trademarks of Kintera, Inc. in the U.S. and/or other countries.
Other company and product names may be trademarks of their
respective owners. Forward-Looking Statements This press release
contains, in addition to historical information, forward-looking
statements. Such statements are based on management�s current
estimates and expectations and are subject to a number of
uncertainties and risks that could cause actual results to differ
materially from those described in the forward-looking statements.
Kintera is providing this information as of May 7, 2008, and
expressly disclaims any duty to update information contained in
this press release. Forward-looking statements in this press
release include, without limitation, express and implied statements
regarding Kintera's anticipated operating results, including
anticipated expense reductions, and the growth in the market for
Kintera's services. These forward-looking statements involve risks
and uncertainties, which could cause actual results to differ
materially from those expressed or implied here. Readers are
referred to the documents filed by Kintera with the Securities and
Exchange Commission, specifically the most recent reports which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements,
including but not limited to: our limited operating history; our
history of losses; our dependence on increased acceptance by
nonprofit organizations of online fundraising; lengthy sales cycles
for major customers; our need to manage growth; risks associated
with accounting for and processing large amounts of donations; the
rapidly changing technologies and market demands; and other risks
identified in our filings with the Securities and Exchange
Commission. Given these uncertainties, you should not place undue
reliance on these forward-looking statements. The information
contained in this press release is a statement of Kintera's present
intention, belief or expectation and is based upon, among other
things, the existing industry conditions, market conditions and
prices, the economy in general and Kintera's assumptions. Kintera
may change its intention, belief or expectation, at any time and
without notice, based upon any changes in such factors, in
Kintera's assumptions or otherwise. Kintera undertakes no
obligation to review or confirm analysts' expectations or estimates
or to release publicly any revisions to any forward-looking
statements to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events. Note
Regarding Use of Non-GAAP Financial Measures Certain of the
information set forth herein, including adjusted EBITDA, adjusted
EBITDA per share, and operating expenses and net losses excluding
restructuring charges, are considered non-GAAP financial measures.
Kintera believes this information is useful to investors because it
provides a basis for measuring the Company�s available capital
resources, the operating performance of the Company�s business and
the Company�s cash flow, excluding non-cash and non-recurring items
that would normally be included in the most directly comparable
measures calculated and presented in accordance with generally
accepted accounting principles. The Company�s management uses these
non-GAAP financial measures along with the most directly comparable
GAAP financial measures in evaluating the Company�s operating
performance and capital resources and cash flow. Non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance with
GAAP, and non-financial measures as reported by the Company may not
be comparable to similarly titled amounts reported by other
companies. Kintera, Inc. Consolidated Statements of Operations Data
(in thousands, except per share data) (unaudited) � � For the three
months ended March 31, 2008 � 2007 � Net revenue $ 8,911 $ 10,721
Cost of revenue � 3,993 � � � 4,136 � Gross profit 4,918 6,585
Gross margin 55 % 61 % � Sales and marketing 4,018 5,620 Product
development and support 1,621 1,732 General and administrative
3,006 4,486 Amortization of purchased intangibles 522 733
Restructuring charges � - � � � 2,445 � Total operating expenses �
9,167 � � � 15,016 � � Operating loss (4,249 ) (8,431 ) � Interest
income (expense) and other, net � 6 � � � 286 � � Loss before
income taxes (4,243 ) (8,145 ) Provision for income taxes � 52 � �
� 118 � � Net loss $ (4,295 ) � $ (8,263 ) � Basic and diluted net
loss per share $ (0.11 ) � $ (0.21 ) Weighted average shares -
basic and diluted � 40,248 � � � 39,839 � � � Kintera, Inc.
Reconciliation of GAAP Net Loss to EBITDA (in thousands, except per
share data) (unaudited) � � For the three months ended March 31,
2008 � 2007 Net loss $ (4,295 ) $ (8,263 ) Interest income (6 )
(286 ) Depreciation and amortization 1,265 1,370 Income taxes 52
118 Stock-based compensation 505 838 Restructuring charges - 2,445
� � � Adjusted EBITDA $ (2,479 ) � $ (3,778 ) � Basic and Diluted
Adjusted EBITDA per share $ (0.06 ) � $ (0.09 ) � � Weighted
average shares - basic and diluted � 40,248 � � � 39,839 � � �
Kintera, Inc. Condensed Consolidated Statements of Cash Flows (in
thousands) (unaudited) � � For the three months ended March 31,
2008 � 2007 Cash provided by (used in) operating activities $
(2,769 ) $ (3,721 ) Cash provided by (used in) investing activities
558 (2,171 ) Cash provided by (used in) financing activities � (265
) � � (100 ) Net increase (decrease) in cash (2,476 ) (5,992 ) Cash
and cash equivalents, beginning of period � 6,556 � � � 11,548 �
Cash and cash equivalents, end of period $ 4,080 � � $ 5,556 � � �
Kintera, Inc. Condensed Consolidated Balance Sheet Data (in
thousands) (unaudited) � � � � � March 31, December 31, September
30, June 30, March 31, 2008 � 2007 � 2007 � 2007 � 2007 Cash, cash
equivalents and marketable securities $ 5,660 $ 9,404 $ 11,751 $
12,036 $ 14,772 Restricted cash 7,718 12,429 11,776 4,813 6,271
Accounts receivable, net 4,608 4,174 5,025 5,889 5,916 Other
current assets � 2,284 � � 2,147 � � 1,960 � � 1,668 � � 1,526
Total current assets 20,270 28,154 30,512 24,406 28,485 � Property
and equipment, net 5,854 5,859 3,396 3,215 3,228 Goodwill,
intangibles and other � 15,456 � � 15,985 � � 16,564 � � 17,143 � �
17,723 Total assets $ 41,580 � $ 49,998 � $ 50,472 � $ 44,764 � $
49,436 � Donations payable $ 7,718 $ 12,429 $ 11,776 $ 4,813 $
6,271 Deferred revenue 15,721 15,513 15,637 16,892 18,001 Accounts
payable and other current liabilities � 5,052 � � 5,235 � � 6,043 �
� 5,592 � � 6,332 Total current liabilities 28,491 33,177 33,456
27,297 30,604 � Other liabilities 3,283 3,230 1,101 810 654 �
Stockholders' equity � 9,806 � � 13,591 � � 15,915 � � 16,657 � �
18,178 Total liabilities and stockholders' equity $ 41,580 � $
49,998 � $ 50,472 � $ 44,764 � $ 49,436
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