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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
February 24, 2000
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Date of Report
(date of earliest event reported)
INFERENCE CORPORATION
(Exact name of Registrant as specified in its charter)
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Delaware 000-26334 953436352
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<S> <C> <C>
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification Number)
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100 Rowland Way
Novato, California 94945
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(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 893-7200
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On February 24, 2000, Inference Corporation, a Delaware corporation, announced
financial results for the quarter and year ended January 31, 2000. A copy of
Inference's press release announcing these financial results is attached as
Exhibit 99.1 hereto and incorporated by reference herein .
The press release filed as an exhibit to this report includes certain
statements about Inference's business which are "forward-looking" rather than
"historic." The press release also states that further information on potential
factors that may affect Inference's operating results is discussed from time to
time in Inference's public reports filed with the Securities and Exchange
Commission.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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99.1 Press Release dated February 24, 2000.
SIGNATURES
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 thereunto duly authorized.
INFERENCE CORPORATION
A Delaware Corporation
By: /s/ PHILIP D. RANGER
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Philip D. Ranger
Vice President and
Chief Financial Officer
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EXHIBIT INDEX
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Exhibit Number Description of Exhibit
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99.1 Press Release dated February 24, 2000
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EXHIBIT 99.1
Contact:
Philip Ranger Howard Kalt
Inference Corporation Kalt, Rosen & Chase, Inc.
415-893-7275 415-397-2686
[email protected] [email protected]
Inference Corporation Announces 4th
Quarter,
Year-End Results
Novato, Calif. (February 24, 2000)--Inference Corporation (NASDAQ: INFR)
reported that total revenues for the fourth quarter ended January 31, 2000 were
$5.5 million, a 38% decrease from revenues of $8.9 million during the same
quarter last year. Loss from operations for the quarter was $4.2 million,
compared to operating income of $700,000 in the same quarter last year. The net
loss for the quarter amounted to $4.0 million, or $0.52 per share, as compared
to net income of $900,000, or $0.12 per share (fully diluted), a year ago.
Product revenues from Americas operations were $1.2 million, a 66% decrease
from $3.5 million during the same quarter last year. International product
revenues were $1.2 million, a 40% decrease from $2.0 million a year earlier.
During the quarter, Al Schallop resigned as vice president-Americas
Operations to pursue other business interests. His resignation was not related
to the corporate realignment as previously stated in the press release, entitled
"Inference Announces Corporate Realignment " dated Thursday February 3, 2000.
For the full fiscal year, Inference reported total revenues of $22.9
million, a 26% decrease from revenues of $31.1 million in fiscal 1999. Loss from
operations for fiscal 2000 was $13.6 million, compared to a loss from operations
of $3.0 million a year earlier. The net loss for fiscal 2000 was $12.7 million,
or $1.70 per share, compared to a net loss of $1.9 million, or $0.27 per share,
a year earlier.
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"We believe the decline in revenues is over and that we should begin seeing
the fruits of recent changes and new products now available to our customers",
said Charles Jepson, president and chief executive officer. "We are turning the
corner through the people, partners and resources we have added, the more than
$10 million we have invested in product development, and the company-wide
realignment to focus on markets that we announced earlier this month."
He indicated that the company's previously announced realignment into two
independent operating units--k-Commerce Sales Division to focus on dot.com e-
tailing and k-Commerce Support Enterprise Division to focus on web-based
customer service and support--will enable each to compete more intensely by
placing their sales and marketing teams closer to the customer niches they
serve.
"As a result, our priorities for fiscal 2001 are to grow revenues
substantially in both the sales and support segments and to reach breakeven in
the k-Commerce Support Enterprise business by mid-year. We expect that our
other businesses will be in the investment mode for the foreseeable future,"
Jepson said.
About Inference Corporation
Inference Corporation (NASDAQ: INFR) is a leading provider of software and
services that deliver personalized one-to-one sales, service and support over
the Web. Its k-Commerce(TM) Sales e-merchandising software helps e-tailers know
their Web visitors, anticipate their needs and target offers to turn lookers
into buyers. In addition, k-Commerce(TM) Support Enterprise, the company's e-
service and support product, guides customers to solutions through an easy
exchange of questions and answers regardless of how they contact you. Both
products ensure highly personalized customer experience to build long-term
customer relationships.
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Headquartered in the San Francisco Bay Area, with international
headquarters near London, England, Inference supports its customers from offices
throughout North America and Europe through a global professional services
organization. For further information, contact Inference at 415-893-7200, send
an e-mail to [email protected] or visit www.inference.com.
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The Inference logo, k-Commerce and the k-Commerce logo are trademarks of
Inference Corporation in the United States and other countries. All other
company names and products are trademarks or registered trademarks of their
respective companies.
# # #
In addition to historical information contained herein, this news release
contains forward-looking statements that are subject to certain risks, trends
and uncertainties that could cause actual results to differ materially from
those expressed in or implied by such forward looking statements. Factors that
could cause or contribute to differences in the final results include, but are
not limited to, timeliness of new k-Commerce product releases, fluctuations in
quarterly operating results, the size and timing of customer orders for product
licenses, changes in the competitive marketplace, market acceptance and customer
demand for k-Commerce product offerings, risks of entering markets in which the
company has limited or no prior experience and the potential loss of key
employees. Fourth quarter financial results are not an indication of future
results. Further information on potential factors that may affect future results
are discussed from time to time in the Company's public reports filed with the
Securities and Exchange Commission.
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INFERENCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
[Amounts in thousands, except net income per share]
[unaudited]
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Three Months ended Year ended
January 31, January 31,
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2000 1999 2000 1999
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Revenues:
Products....................................... $ 2,354 $ 5,543 $ 9,857 $ 17,648
Services....................................... 3,180 3,366 13,091 13,446
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Total revenues.................................... 5,534 8,909 22,948 31,094
Operating costs and expenses:
Cost of revenues - products.................... 267 177 1,011 788
Cost of revenues - services.................... 1,618 1,682 6,533 6,859
Product development............................ 1,893 1,385 7,449 5,245
Sales and marketing............................ 4,157 4,114 16,165 15,392
General and administrative..................... 1,021 839 3,817 3,940
Acquistion related............................. 0 0 677 0
Amortization of intangible assets.............. 61 0 183 0
Restructuring.................................. 672 0 672 1,855
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Total operating costs and expenses................ 9,689 8,197 36,507 34,079
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Income (loss) from operations..................... (4,155) 712 (13,559) (2,985)
Interest income and other, net.................... 128 212 846 1,165
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Income (loss) before income taxes................. (4,027) 924 (12,713) (1,820)
Provision for income taxes........................ 0 0 0 100
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Net income (loss)................................. $(4,027) $ 924 $(12,713) $ (1,920)
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Net income (loss) per share:
Basic....................................... $ (0.52) $ 0.13 $ (1.70) $ (0.27)
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Diluted..................................... $ (0.52) $ 0.12 $ (1.70) $ (0.27)
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Shares used in computing net
income (loss) per share:
Basic....................................... 7,760 6,913 7,469 7,146
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Diluted..................................... 7,760 7,685 7,469 7,146
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INFERENCE CORPORATION
CONSOLIDATED BALANCE SHEETS
[Amounts in thousands]
[unaudited]
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January 31, January 31,
2000 1999
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ASSETS
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Current assets:
Cash and cash equivalents ................................. $ 17,244 $ 25,761
Accounts receivable ....................................... 4,299 7,063
Other current assets ...................................... 1,061 433
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Total current assets ................... 22,604 33,257
Property and equipment, net ................................... 1,858 1,607
Intangible assets, net ........................................ 884 0
Other assets .................................................. 470 511
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$ 25,816 $ 35,375
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
Accounts payable .......................................... $ 1,134 $ 819
Accrued salaries and related items ........................ 2,289 2,371
Other accrued liabilities ................................. 2,384 2,785
Deferred revenue .......................................... 5,019 4,642
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Total current liabilities .............. 10,826 10,617
Shareholders' equity:
Common stock .............................................. 78 70
Additional paid-in capital ................................ 49,308 46,328
Accumulated deficit ....................................... (34,025) (21,312)
Cumulative foreign currency translation ................... (371) (328)
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Total shareholders' equity ............. 14,990 24,758
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$ 25,816 $ 35,375
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