<PAGE> 1
================================================================================
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): FEBRUARY 21, 2000
POET HOLDINGS, INC.
------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 333-87267 94-3221778
- ------------------------------- ------------------------ -------------------
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
999 BAKER WAY, SUITE 100
SAN MATEO, CALIFORNIA 94404
-------------------------------------------------------------
(ADDRESS, INCLUDING ZIP CODE, OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:
(650) 286-4640
NOT APPLICABLE
-------------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
================================================================================
<PAGE> 2
ITEM 5. OTHER EVENTS.
POET Holdings, Inc. filed a required ad hoc notice with the Frankfurt
Stock Exchange on February 21, 2000, which is incorporated by reference and
filed as Exhibit 99.1 hereto.
POET Holdings, Inc. distributed copies of a slide presentation to
analysts at a conference in Germany on February 21, 2000, which is incorporated
by reference and filed as Exhibit 99.2 hereto.
POET Holdings, Inc. issued a press release on February 22, 2000,
announcing fourth quarter revenues, which is incorporated by reference and filed
as Exhibit 99.3 hereto.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 Text of ad hoc notice filed with the Frankfurt Stock
Exchange dated February 21, 2000.
99.2 Text of slide presentation distributed at Analyst
Conference on February 21, 2000.
99.3 Text of press release dated February 22, 2000.
-2-
<PAGE> 3
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
POET HOLDINGS, INC.
a Delaware corporation
Dated: February 29, 2000 By: /s/ Dirk Bartels
---------------------------------
Dirk Bartels
President and Chief Executive Officer
<PAGE> 4
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Description
- -------------- -----------
<S> <C>
99.1 Text of ad hoc notice filed with the Frankfurt Stock Exchange
dated February 21, 2000.
99.2 Text of slide presentation distributed at Analyst Conference
on February 21, 2000.
99.3 Text of press release dated February 22, 2000.
</TABLE>
<PAGE> 1
EXHIBIT 99.1
Ad Hoc-Mitteilung zum Jahresergebnis 1999 der POET Holdings, Inc., San Mateo
- - Umsatze von 10,6 Mio USD
- - Ergebnis im Plan
- - Deutliches Wachstum bei den Internet-Losungen
- - Abhangigkeit von Novell beendet
Hamburg, February, 21, 2000 - POET Holdings Inc. hat im Geschaftsjahr 1999 ihren
Wachstumskurs erfolgreich fortgesetzt. Der Umsatz stieg um 19 Prozent auf 10,6
Mio USD.
Das Vorsteuerergebnis (EBIT) entspricht mit -5,0 Mio USD (Vorjahr -3,6 Mio USD)
den Erwartungen der Analysten. Das Jahresergebnis (nach US-GAAP) liegt mit minus
5,6 Mio USD uber den Erwartungen der Analysten, die einen Jahresfehlbetrag von
5,8 bzw 6,0 Mio USD prognostiziert haben.
Grund fur den Jahresfehlbetrag ist der starke Ausbu der Vertriebs- und
Marketingaktivitaten zur Vermarktung der neuen Internet-Losungen CMS (Catalogue
Management Suite) und eCS (eCatalogue Suite). Weiterhin haben der
Vergutungsaufwand aus Mitarbeiterbeteiligungen und ein einmaliger Zinsaufwand
aus der Umwandlung eines Darlehens das Ergebnis erheblich belastet.
Der Produktumsatz stieg um 38 Prozent von 5,7 Mio USD auf 7,8 Mio USD. Die
Internet-Losungen haben daran mit 1,1 Mio USD bereits einen Anteil von 13
Prozent gegenuber 2 Prozent im Vorjahr.
Der Bereich Datenbanken wuchs um 22 Prozent auf 6,8 Mio USD und erwirtschaftete
damit 87 Prozent der Produktumsatze.
Im vierten Quartal ist es POET gelungen, seine Abhangigkeit von Novell zu
beenden. Im vierten Quartal des Vorjahres entfielen noch 25% der Produktumsatze
auf den Kunden Novell.
Unsere vertraglichen Verpflichtungen gegenuber dem Kunden sind erfullt und wir
haben im vierten Quartal 1999 keine Novell-Umsatze gebucht.
Unsere Produktumsatze ausserhalb von Novell sind um 80 Prozent gewachsen,
von 1,3 Mio USD im vierten Quartal 1998 auf 2,3 Mio USD im vierten Quartal 1999.
Im vierten Quartal 1999 trug kein Kunde mehr als 10 Prozent zum Gesamtumsatz
bei.
<PAGE> 2
Der Dienstleistungsbereich, welcher Umsatze aus Consulting, Schulung, Wartung
und Support umfasst, ist von 3,2 Mio USD im Vorjahr auf 2,8 Mio USD in 1999
zuruckgegangen.
Dieser Ruckgang ist darauf zuruckzufuhren, dass die Dienstleistungen fur den
Kunden Novell abgeschlossen wurden.
AuBerhalb von Novell verbesserten sich die Dienstleistungs-Umsatze hingegen von
2,4 Mio USD auf 2,7 Mio USD.
Der Dienstleistungsbereich trug 26 Prozent zum Gesamtumsatz bei gegenuber 36
Prozent im Jahr 1998.
Insgesamt erhohte sich der Anteil des Produktgeschafts am Konzernumsatz auf 74
Prozent (Vorjahr 64 Prozent), der Rohertrag verbesserte sich dadurch um 29
Prozent auf 8,2 Mio USD. Dies entspricht einer Rohertragsmarge von 78 Prozent
gegenuber 71 Prozent im Jahr 1998.
Kontakt:
Investor Relations
Ludwig. M. Lutter
[email protected]
Tel: 040 60 99 0-219
<PAGE> 3
English Text (original filed with the Frankfurt Stock Exchange in German):
AdHoc Notice on the CY 1999 results of POET Holdings, Inc., San Mateo
- - Revenue of 10,6 Mio USD
- - Operating Results on target
- - Significant growth in Internet Solutions
- - Dependency on Novell eliminated
Hamburg, February, 21, 2000 - POET Holdings Inc. has successfully continued on
its growth path in CY 1999. Revenues grew by 19% to 10,6 Mio USD in CY 1999.
POET recognized an operating loss of -5,0 Mio USD (CY 1998: -3,6 Mio USD) which
is in line with the analyst expectations. The net loss according to US-GAAP of
- -5,6 Mio USD is better than the analyst expectations of -5,8 and -6,0 Mio USD
respectively.
The net loss is primarily created by strong investments into sales and marketing
especially for the new Internet Solutions CMS (Catalog Management Suite) and eCS
(eCatalogue-Suite). We also incurred significant losses from amortization of
deferred stock compensation and a non-recurring interest expense in connection
with a loan conversion.
Product revenues grew by 38% from 5,7 Mio USD to 7,8 Mio USD. The Internet
Solutions contributed 1,1 Mio USD or 13% to product revenues, up significantly
from 2% in 1998.
The database revenues grew by 22% to 6,8 Mio USD contributing 87% to product
revenues.
In the fourth quarter POET has eliminated its dependecy on Novell. In the fourth
quarter of 1998 25% of POET's product revenues were generated by Novell. Our
contract with this customer is fulfilled and there was no revenue from Novell in
Q4 99. Our product revenues outside Novell grew by 80% from 1,3 Mio USD in Q4 98
to 2,3 Mio USD in Q4 99. In Q4 99 no single customer contributed more than 10%
of total revenue.
Service revenues which include revenues from consulting, training, support and
maintenance declined from 3,2 Mio USD in 1998 to 2,8 Mio USD in 1999. This
decline is due to the completion of services for
<PAGE> 4
Novell. Non-Novell service revenues grew from 2,4 MIO USD in 1998 to 2,7 MIO USD
in 1999.
Service revenues represented 26% to total revenues in 1999 compared to 36% in
1998.
Product Revenues grew to 74% of total revenues in 1999 compared to 64% in 1998.
Gross profit in CY 1999 grew by 29% to 8,2 Mio USD representing a gross margin
of 78% as compared to 71% in 1998.
Contact:
Investor Relations
Ludwig. M. Lutter
[email protected]
Tel: 040 60 99 0-219
<PAGE> 1
EXHIBIT 99.2
POET/SOFTWARE
DATA MANAGEMENT FOR THE INTERNET AGE
ANALYST CONFERENCE
FEBRUARY, 21, 2000
DIRK BARTELS, PRESIDENT UND CEO
JOCHEN WITTE, CFO
<PAGE> 2
- --------------------------------------------------------------------------------
[POET LOGO]
- --------------------------------------------------------------------------------
CONTENTS
- - INTRODUCTION
- - POET ON THE CAPITAL MARKET
- - FINANCIALS
- - STRATEGY & OUTLOOK
<PAGE> 3
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
[PHOTO OF DIRK BARTELS & JOCHEN WITTE] A DYNAMIC DUO
- - DIRK BARTELS, Chief Executive Officer, age 39
- - JOCHEN WITTE, Chief Financial Officer, age 39
- - Working together for over 10 years
- - A software specialist and a business strategist . . .
- - The foundation of POET's Executive Management Team
(10) 3
<PAGE> 4
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
IMPRESSIVE MILESTONES
1999
POET eCatalog Suite Product launch
109 employees
IPO in Frankfurt, Neuer Markt
1998
New XML based Internet Solutions
POET Content Management Suite (CMS) Product launch
1995
POET Holdings, Inc.
US headquarters, San Mateo, CA
R&D and European headquarters, Hamburg
1993
POETSoftware GmbH, Hamburg
1st provider of object-oriented database systems for Windows
(10) 4
<PAGE> 5
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
From the `Old Days' to the `Internet Age'
[GRAPHIC]
Evolution of Data =
Increasing volume, complexity, access, speed
(10) 5
<PAGE> 6
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
Our Competitve Advantages
- - GROWTH SEGMENT BUSINESS TO BUSINESS COMMERCE (B2B)
- - INNOVATIVE INTERNET SOLUTIONS based upon XML, JAVA and POET's database
platform
- - ESTABLISHED IN key markets U.S. and GERMANY
- - Experienced INTERNATIONAL MANAGEMENT TEAM
(10) 6
<PAGE> 7
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
AN EXCITING PRODUCT RANGE:
Core Data Management Technology and Internet Solutions
[GRAPHIC]
(10) 7
<PAGE> 8
- --------------------------------------------------------------------------------
INTRODUCTION [POET LOGO]
- --------------------------------------------------------------------------------
NEWS SINCE THE IPO
- - Sales / Marketing
- eBusiness software solutions partnership with Compaq Germany
established
- UK office opened in December
- Major CMS wins in Q4 (Marcel Dekker, Haufe)
- - Product development
- POET CMS 2.1 Released
- POET ECS 2.0 in Pre-Release
(10) 8
<PAGE> 9
- --------------------------------------------------------------------------------
[POET LOGO]
- --------------------------------------------------------------------------------
CONTENTS
- - INTRODUCTION
- - POET ON THE CAPITAL MARKET
- - FINANCIALS
- - STRATEGY & OUTLOOK
<PAGE> 10
- --------------------------------------------------------------------------------
POET ON THE CAPITAL MARKET [POET LOGO]
- --------------------------------------------------------------------------------
POET'S PEER GROUP
INTERNET INFRASTRUCTURE AND CONTENT MANAGEMENT
- - Object Database Companies
- Excelon (EXLN, formerly Object Design)
- Versant (VSNT)
- - Internet Infrastructure and Content Management (US)
- Ondisplay (ONDS)
- Bluestone Software (BLSW)
- Interleaf (LEAF), pending acquisition from Broadvision
- WebMethods (WEBM), initial public offering in Feb 2000
- - Neuer Markt
- iXOS (XOS)
- Gauss (GSO)
- Tiscon (TIS)
(10) 10
<PAGE> 11
- --------------------------------------------------------------------------------
POET ON THE CAPITAL MARKET [POET LOGO]
- --------------------------------------------------------------------------------
PEER GROUP COMPARISON (15.8.99 - 14.2.00)
[PERFORMANCE GRAPH]
(10) 11
<PAGE> 12
- --------------------------------------------------------------------------------
[POET LOGO]
- --------------------------------------------------------------------------------
CONTENTS
- - INTRODUCTION
- - POET ON THE CAPITAL MARKET
- - FINANCIALS
- - STRATEGY & OUTLOOK
<PAGE> 13
- --------------------------------------------------------------------------------
FINANCIALS [POET LOGO]
- --------------------------------------------------------------------------------
Q4 1999 OVERVIEW
- - Revenues 2,9 MIO USD (Q4 98: 2,5 MIO USD)
- - Growth in product revenues: 34%, without Novell: 80%
- - License revenue 78% of total (Q4 98: 68%)
- - Gross Margin 78% (Q4 98: 72%)
- - Internet solutions 24% of total product sales (Q4 98: 3%)
- - Quarterly loss -1,3 MIO USD (Q4 98: -0,9 MIO USD)
(10) 13
<PAGE> 14
- --------------------------------------------------------------------------------
FINANCIALS [POET LOGO]
- --------------------------------------------------------------------------------
OVERVIEW PRELIMINARY RESULTS 1999
- - Total revenue 10,6 MIO USD (1998: 8,9 MIO USD)
- - Growth in product revenues: 38%, without Novell: 47%
- - License revenue 74% of total (1998: 64%)
- - Gross Margin 78% (1998: 71%)
- - Internet solutions 13% of total product sales (1998: 2%)
- - Net loss of -5,6 MIO USD is smaller than expected by analysts
- - Equity ratio: 91%
(10) 14
<PAGE> 15
- --------------------------------------------------------------------------------
FINANCIALS [POET LOGO]
- --------------------------------------------------------------------------------
REVENUE GROWTH 1995 - 1999
[PERFORMANCE GRAPH]
(10) 15
<PAGE> 16
- --------------------------------------------------------------------------------
FINANCIALS [POET LOGO]
- --------------------------------------------------------------------------------
OPERATING EXPENSES
[PERFORMANCE GRAPH] [PERFORMANCE GRAPH]
(10) 16
<PAGE> 17
- --------------------------------------------------------------------------------
FINANCIALS - BALANCE SHEET [POET LOGO]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POET HOLDINGS, INC. DECEMBER 31,
CONSOLIDATED BALANCE SHEETS -------------------------------
(IN THOUSANDS - USD) US-GAAP / UNAUDITED 1999 1998 CHANGE
------- ------- ------
<S> <C> <C> <C>
CURRENT ASSETS
Cash and Equivalents and Short Term Investments 44.350 4.776 829%
Accounts Receivable (net) 2.125 1.590 34%
Inventories and other current assets 320 376 -15%
------- ------- ----
TOTAL CURRENT ASSETS 46.795 6.742 594%
Property and Equipment- net 581 538 8%
Other Assets 224 253 -11%
------- ------- ----
TOTAL ASSETS 47.600 7.533 532%
======= ======= ====
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable 934 518 80%
Accrued Liabilities 2.057 956 115%
Deferred Revenue 845 2.197 -62%
Current Portion of Debt 282 262 8%
------- ------- ----
CURRENT LIABILITIES 4.118 3.933 5%
------- ------- ----
Long Term Obligation 418 2.906 -86%
Redeemable Convertible Preferred Stock and Warrants 0 15.996 -100%
EQUITY
Common Stock 11 1 1000%
Additional Paid in Capital 65.582 2.287 2768%
Deferred Stock Compensation -927 -1.237 -25%
Retained Earnings -22.058 -16.494 34%
Translation Adjustments and other 456 141 223%
------- ------- ----
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) 43.064 -15.302 -381%
------- ------- ----
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) 47.600 7.533 532%
======= ======= ====
</TABLE>
(10) 17
<PAGE> 18
- --------------------------------------------------------------------------------
FINANCIALS - STATEMENT OF OPERATIONS [POET LOGO]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POET HOLDINGS, INC. YEAR ENDED DECEMBER 31,
CONSOLIDATED STATEMENTS OF OPERATIONS -----------------------------
(IN THOUSANDS - USD) US-GAAP UNAUDITED 1999 1998 CHANGE
------ ------ ------
<S> <C> <C> <C>
REVENUES
Product 7.812 5.668 38%
Consulting & Training 1.505 1.819 -17%
Maintenance 1.297 1.430 -9%
------ ------ ----
TOTAL REVENUES 10.614 8.917 19%
OPERATING EXPENSES
Cost of Product 295 295 0%
Cost of Consulting & Training 1.052 1.184 -11%
Cost of Maintenance 1.029 1.067 -4%
Selling and Marketing 7.591 5.922 28%
Research and Development 3.221 2.612 23%
General and administrative 1.825 1.428 28%
Amort. of deferred Stock compensation 626 47 1232%
------ ------ ----
TOTAL OPERATING EXPENSES 15.639 12.555 25%
------ ------ ----
OPERATING LOSS -5.025 -3.638 38%
------ ------ ----
Interest Expense -1.114 -382 192%
Interest Income and Other, net 567 45 1160%
------ ------ ----
INCOME (LOSS) BEFORE TAXES -5.572 -3.975 40%
------ ------ ----
Income taxes 8 -15 -153%
------ ------ ----
NET LOSS -5.564 -3.990 39%
====== ====== ====
</TABLE>
(10) 18
<PAGE> 19
- --------------------------------------------------------------------------------
FINANCIALS - CASH FLOWS [POET LOGO]
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
POET HOLDINGS, INC. YEAR ENDED DECEMBER 31,
CONSOLIDATED STATEMENTS OF CASH FLOWS -----------------------------
(IN THOUSANDS - USD) US-GAAP UNAUDITED 1999 1998 CHANGE
------ ------ ------
<S> <C> <C> <C>
NET LOSS -5.564 -3.990 39%
Adjustments to Net Loss
Depreciation and Amortization 1.991 632 215%
Changes in Assets and Liabilities
Trade Accounts Receivable -682 -430 59%
Inventories 13 19 -32%
Other Current Assets 17 -177 -110%
Other Assets -4 37 -111%
Accounts Payable and Accrued Liabilities 1.637 73 2142%
Deferred Revenues -1.326 1.251 -206%
------ ------ ----
NET CASH USED BY OPERATING ACTIVITIES -3.918 -2.585 52%
------ ------ ----
NET CASH FROM INVESTING ACTIVITIES
Purchases of property, furniture and equip. -501 -199 152%
------ ------ ----
Borrowings 3.912 -91 -4399%
Repayments of Debt -2.151 1.338 -261%
Preferred Stock Issued, net 475 4.964 -90%
Common Stock Issued, net 41.662 14 297486%
------ ------ ----
NET CASH FROM FINANCING ACTIVITIES 43.898 6.225 605%
------ ------ ----
Effect of Exchange Rate Changes on Cash 95 -190 -150%
------ ------ ----
INCREASE/DECREASE IN CASH 39.574 3.251 1117%
------ ------ ----
OPENING CASH 4.776 1.525 213%
------ ------ ----
ENDING BALANCE 44.350 4.776 829%
====== ====== ====
</TABLE>
(10) 19
<PAGE> 20
- --------------------------------------------------------------------------------
FINANCIALS [POET LOGO]
- --------------------------------------------------------------------------------
EMPLOYEES
[PERFORMANCE GRAPH]
(10) 20
<PAGE> 21
- --------------------------------------------------------------------------------
[POET LOGO]
- --------------------------------------------------------------------------------
CONTENTS
- - INTRODUCTION
- - POET ON THE CAPITAL MARKET
- - FINANCIALS
- - STRATEGY & OUTLOOK
<PAGE> 22
- --------------------------------------------------------------------------------
STRATEGY AND OUTLOOK [POET LOGO]
- --------------------------------------------------------------------------------
SUCCESSFUL Q4 AND CY 1999
- - Successful introduction of B2B and XML Internet Solutions
- - Strategic partnership with Ariba
- - Successful Initial Public Offering
- - Internet Solutions grew from 3% to 24% of license revenues
in Q4
- - Product License Growth outside Novell: 80% over Q4 98
(10) 22
<PAGE> 23
- --------------------------------------------------------------------------------
STRATEGY AND OUTLOOK [POET LOGO]
- --------------------------------------------------------------------------------
STRATEGIC OBJECTIVES FOR CY 2000
- - Establish market leadership in electronic Catalogs
- - Continue expansion into western europe
- - Expand Strategic Partnerships
- - Achieve significant higher revenue growth
- - Increase share of internet solutions to about 50% of total
license revenue by Q4 00
(10) 23
<PAGE> 24
POET/SOFTWARE
DATA MANAGEMENT FOR THE INTERNET AGE
ANALYST CONFERENCE
FEBRUARY, 21, 2000
DIRK BARTELS, PRESIDENT UND CEO
JOCHEN WITTE, CFO
<PAGE> 1
EXHIBIT 99.3
CONTACT:
Jerry Wong
POET Holdings, Inc.
(650) 286-4640
[email protected]
POET HOLDINGS, INC ANNOUNCES FOURTH QUARTER REVENUES OF $2.9 MILLION
AND RECORD FISCAL YEAR REVENUES OF $10.6 MILLION
SAN MATEO, CALIF. -- FEBRUARY 22, 2000 -- POET Holdings, Inc (Neuer Markt: POXA)
announced today revenues for the fourth quarter of fiscal 1999 of $2.9 million,
and record fiscal revenues for the year ended December 31, 1999 of $10.6
million.
Revenues for the year ended December 31, 1999 were $10.6 million, an increase of
approximately $1.7 million, or 19%, from revenues for the year ended December
31, 1998. Net loss for the year ended December 31, 1999 was $5.6 million or
$0.79 per share, based on pro-forma weighted average shares outstanding of
7,071,000, compared to a net loss of $4.0 million or $0.72 per share, based on
pro-forma weighted average shares outstanding of 5,575,000 for the year ended
December 31, 1998. Revenues from the sale of products for the year ended
December 31, 1999 increased $2.1 million, or 38%, from the year ended December
31, 1998.
Revenues for the quarter ended December 31, 1999 were $2.9 million, an increase
of over $420,000, or 17%, from revenues for the same period in 1998. Net loss
for the quarter ended December 31, 1999 was $1.3 million or $0.15 per share,
based on pro-forma weighted average shares outstanding of 8,631,000, compared to
a net loss of $921,000 or $0.16 per share, based on pro-forma weighted average
shares outstanding of 5,649,000 for the same period in 1998. Revenues from the
sale of products in the quarter ended December 31, 1999 increased $573,000, or
34%, from the same period in 1998. As planned, our contract with Novell has been
fulfilled and our dependency on them was eliminated in the fourth quarter of
1999. In spite of this, revenues for the
<PAGE> 2
quarter ended December 31, 1999 increased $988,000, or 51% from the same period
in 1998 when revenues attributable to Novell are excluded. In the fourth quarter
of 1999, no single customer contributed more than 10% of total revenue.
- more -
POET HOLDINGS ANNOUNCES FOURTH QUARTER/FY99 REVENUES 2
"We are very satisfied with the results from the fourth quarter and the annual
results for 1999", said Dirk Bartels, president and CEO of POET Holdings. "The
market introduction of our Business-to-Business eCatalog Suite, continued
growing demand for internet solutions and a growing base of licensees for our
database Suite give POET an excellent foundation for further growth in CY 2000
in particular driven by demand from Internet related projects."
POET Holdings, Inc. develops data management software and solutions that allow
organizations to share, manage and manipulate complex information to facilitate
effective business-to-business processes and information exchange over the
Internet. POET's product offerings consist of the POET Object Server Suite
database management system, and two Internet applications that incorporate the
Suite: the POET Content Management Suite and the POET eCatalog Suite.
ABOUT POET HOLDINGS, INC.
Founded in 1992, POET is a provider of innovative data management software for
the Internet age. Organizations around the world, such as Ericsson LM, Fidelity
Investments and General Dynamics, use POET's software to efficiently manage and
share complex information. The company's object data management products are
widely embedded in next generation packaged applications and smart devices, and
its Internet applications enable XML-based content management and
Business-to-Business information exchange.
POET Holdings maintains headquarters in San Mateo, California and Hamburg,
Germany. For more information, visit the company at http://www.poet.com.
<PAGE> 3
###
This press release may contain statements relating to future plans, events or
performance. Such statements may involve risks and uncertainties, including
risks associated with uncertainties pertaining to the timing and level of
customer orders, demand for products and services, development of markets for
POET Holding's products and services, and other risks identified in POET
Holding's SEC filings. Actual results, events and performance may differ
materially. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. POET
Holdings undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
The unaudited financial statements that follow should be read in conjunction
with the notes set forth in POET Holding's Form S-1 filed with the United States
Securities and Exchange Commission.
<PAGE> 4
POET HOLDINGS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------
1999 1998
-------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 35,039 $ 4,776
Short term investments 9,311 --
Accounts receivable, net 2,125 1,590
Inventories and other current assets 320 376
-------- --------
Total current assets 46,795 6,742
Property and equipment, net 581 538
Other assets 224 253
-------- --------
Total assets $ 47,600 $ 7,533
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts Payable $ 934 $ 518
Accrued Liabilities 2,057 956
Deferred Revenue 845 2,197
Current Portion of Debt 282 262
-------- --------
Total current liabilities 4,118 3,933
Long Term Obligation 418 2,906
Redeemable Convertible Preferred Stock -- 15,913
Warrants -- 83
Stockholders' equity (deficiency):
Common Stock 11 1
Additional Paid in Capital 65,582 2,287
Deferred Stock Compensation (927) (1,237)
Retained Earnings (22,058) (16,494)
Accumulated other comprehensive income 456 141
-------- --------
Total stockholders' equity (deficiency) 43,064 (15,302)
======== ========
Total liabilities and stockholders' equity $ 47,600 $ 7,533
(deficiency)
======== ========
</TABLE>
<PAGE> 5
POET HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
YEAR ENDED QUARTER ENDED
DECEMBER 31, DECEMBER 31,
----------------------- ---------------------
1999 1998 1999 1998
-------- -------- ------- -------
<S> <C> <C> <C> <C>
Revenues:
Product $ 7,812 $ 5,668 $ 2,257 $ 1,684
Consulting and Training 1,505 1,819 292 464
Support and Maintenance 1,297 1,430 362 343
-------- -------- ------- -------
Total Revenues: $ 10,614 $ 8,917 $ 2,911 $ 2,491
Cost of Revenues
Products 295 295 125 92
Consulting and training 1,052 1,184 253 324
Support and maintenance 1,029 1,067 261 274
-------- -------- ------- -------
Total cost of revenues 2,376 2,546 639 690
-------- -------- ------- -------
Gross profit 8,238 6,371 2,272 1,801
Operating Expenses:
Selling and marketing 7,591 5,922 2,290 1,435
Research and development 3,221 2,612 869 717
General and administrative 1,825 1,428 480 341
Amortization of deferred stock
compensation 626 47 187 47
-------- -------- ------- -------
Total operating expenses 13,263 10,009 3,826 2,540
-------- -------- ------- -------
Operating loss (5,025) (3,638) (1,554) (739)
Other income (expense):
Interest Expense (1,114) (382) (36) (192)
Interest Income and Other, net 567 45 324 10
-------- -------- ------- -------
Total other expense, net (547) (337) 288 (182)
-------- -------- ------- -------
Loss before income taxes (5,572) (3,975) (1,266) (921)
Income taxes 8 (15) -- --
-------- -------- ------- -------
Net Loss ($ 5,564) ($ 3,990) ($1,266) ($ 921)
======== ======== ======= =======
Basic and diluted net loss per share ($ 2.63) ($ 2.65) ($ 0.35) ($ 0.60)
======== ======== ======= =======
Shares used in computing basic and diluted
net loss per share 2,112 1,507 3,649 1,544
======== ======== ======= =======
Pro forma basic and diluted net loss per
share ($ 0.79) ($ 0.72) ($ 0.15) ($ 0.16)
======== ======== ======= =======
Shares used in computing pro forma basic
and diluted net loss per share 7,071 5,575 8,631 5,649
======== ======== ======= =======
</TABLE>
