RightNow Reports Third Quarter 2011 Financial Results

Published on October 24, 2011 in Computer Hardware, Technology

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BOZEMAN, Mont. (October 24, 2011) – RightNow® (NASDAQ: RNOW) today announced results for the third quarter ended September 30, 2011.

Third quarter 2011 financial results were as follows:

Total revenue was $57.7 million in the third quarter of 2011, compared to $48.6 million in the third quarter of 2010, reflecting a 19% increase. Recurring revenue in the third quarter of 2011 increased 24% to $47.9 million from $38.6 million in the third quarter of 2010.

Net income in the third quarter of 2011 was $1.5 million, or $0.04 per diluted share, compared to net income of $2.9 million, or $0.09 per diluted share, in the third quarter of 2010. Non-GAAP net income in the third quarter of 2011 was $6.6 million, or $0.19 per diluted share, compared to non-GAAP net income of $5.1 million, or $0.15 per diluted share, in the third quarter of 2010.

Total revenue was $164.8 million for the nine months ended September 30, 2011, compared to $134.1 million for the nine months ended September 30, 2010, reflecting a 23% increase. Recurring revenue in the nine months ended September 30, 2011 increased 27% to $135.2 million from $106.4 million in the nine months ended September 30, 2010.

Net income in the nine months ended September 30, 2011 was $3.1 million, or $0.09 per diluted share, compared to net income of $4.9 million, or $0.15 per diluted share, in the nine months ended September 30, 2010. Non-GAAP net income in the nine months ended September 30, 2011 was $15.7 million, or $0.44 per diluted share, compared to non-GAAP net income of $10.6 million, or $0.32 per diluted share, in the nine months ended September 30, 2010.

Quarterly Conference Call and Financial Presentation at Analyst Day Cancelled

RightNow is cancelling the third quarter 2011 earnings conference call that was previously scheduled for Tuesday, October 25, 2011. Additionally, the Company is cancelling its financial presentation from RightNow’s Analyst Day at the Broadmoor Hotel, in Colorado Springs, CO on Tuesday, October 25, 2011. To access the previously announced Analyst Day webcast please visit the RightNow investor relations portion of our website.

About RightNow Technologies

RightNow is helping rid the world of bad experiences one consumer interaction at a time, eight million times a day. RightNow CX, the customer experience suite, helps organizations deliver exceptional customer experiences across the web, social networks and contact centers, all delivered via the cloud. With more than ten billion customer interactions delivered, RightNow is the customer experience fabric for nearly 2,000 organizations around the globe. To learn more about RightNow, go to www.rightnow.com.

RightNow is a registered trademark of RightNow Technologies,

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words and include, but are not limited to, statements regarding projected results of operations, business and profit growth and management’s future strategic plans. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to, the proposed merger between RightNow and Oracle; our business model; our ability to develop or acquire and gain market acceptance for new products and enhancements to existing products in a cost-effective and timely manner; general economic conditions; fluctuations in foreign currency exchange; the gain or loss of key customers; competitive pressures and other similar factors such as the availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; our ability to expand or contract operations, manage expenses and grow profitability; the rate at which our present and future customers adopt our existing and future products and services; fluctuations in our operating results including our revenue mix and our rate of growth; fluctuations in backlog; the risk that our investments in partner relationships and additional employees will not achieve expected results; interruptions or delays in our hosting operations; breaches of our security measures; our ability to protect our intellectual property from infringement, and to avoid infringing on the intellectual property rights of third parties; any unanticipated ambiguities in fair value accounting standards; the amount and timing of any stock repurchases under our stock repurchase program; fluctuations in our operating results from the impact of stock-based compensation expense; our ability to manage and expand our partner relationships; our ability to hire, retain and motivate our employees and manage our growth; the risks associated with prior and future acquisitions; and risks associated with our offering of convertible senior notes including the potential impact on earnings per share calculations; and various other factors. Further information on potential factors that could affect our financial results is included in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and in other filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

FRNOW

RightNow Technologies, Inc.
Consolidated Balance Sheets
(In thousands) (Unaudited)
Sept. 30, Dec. 31,
2011 2010
Assets
Cash and cash equivalents $ 108,299 $ 181,948
Short-term investments 133,152 94,759
Accounts receivable 39,364 39,338
Allowance for doubtful accounts (1,467 ) (2,021 )
Net receivables 37,897 37,317
Deferred commissions 6,257 5,418
Prepaid and other current assets 5,447 4,662
Deferred tax assets 3,801 3,801
Total current assets 294,853 327,905
Property and equipment, net 13,603 10,702
Intangible assets, net 18,234 6,149
Goodwill 29,825 7,975
Deferred commissions, non-current 4,907 4,747
Other 5,012 4,921
Deferred tax assets, non-current 17,510 16,480
Total Assets $ 383,944 $ 378,879
Liabilities and Stockholders’ Equity
Accounts payable $ 6,949 $ 10,463
Commissions and bonuses payable 5,489 7,137
Other accrued liabilities 16,796 13,363
Current portion of deferred revenue 94,889 90,350
Total current liabilities 124,123 121,313
Deferred revenue, net of current portion 2,256 2,969
Deferred tax liability, non-current 1,003
Other long-term liabilities 405
2.50% Convertible senior notes due 2030 175,000 175,000
Total liabilities 302,787 299,282
Stockholders’ equity:
Common stock 36 35
Additional paid-in capital 161,389 136,717
Treasury stock, at cost (55,031 ) (29,149 )
Accumulated other comprehensive income 1,606 1,953
Accumulated deficit (26,843 ) (29,959 )
Total stockholders’ equity 81,157 79,597
Total Liabilities and Stockholders’ Equity $ 383,944 $ 378,879
RightNow Technologies, Inc.
Consolidated Operating Statements
(In thousands, except per share amounts) (Unaudited)
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,
2011 2010 2011 2010
Revenue:
Recurring revenue $ 47,924 $ 38,613 $ 135,246 $ 106,368
Professional services 9,749 9,980 29,572 27,781
Total revenue 57,673 48,593 164,818 134,149
Cost of revenue:
Recurring revenue 9,042 5,923 24,114 17,754
Professional services 8,679 8,395 27,500 23,105
Total cost of revenue 17,721 14,318 51,614 40,859
Gross profit 39,952 34,275 113,204 93,290
Operating expenses:
Sales and marketing 24,685 20,006 72,148 57,507
Research and development 5,143 5,160

Source: RightNow Technologies

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