BackWeb
PRODUCTS & SERVICES    |     CUSTOMERS    |     NEWS    |     ABOUT US
Press Releases

BACKWEB REPORTS IMPROVED Q3 RESULTS

SAN JOSE, Calif., November 14, 2007 – BackWeb Technologies Ltd. (OTC BB: BWEBF), a leading provider of software designed to offline-enable business web applications and enable solutions for enterprises to communicate with their employees, today reported financial results for its third quarter and nine months ended September 30, 2007 and reviewed recent license activity.

BackWeb reported Q3 2007 revenue of approximately $1.4 million, compared to Q3 2006 revenue of $724,000 and Q2 2007 revenue of approximately $1.4 million. Revenue in Q3 2007 reflected the recognition of $500,000 from final acceptance of a previously reported Foundation license sale to Ignite Technologies. Having achieved final acceptance in this license sale, the contract contains provisions for potential revenue that may be recognized in future quarters. Other license revenue in the quarter included new and on-going contracts with BearingPoint, Novartis, Medtronic and others.

Total net expenses for BackWeb in Q3 2007, including costs of revenue, were approximately $1.6 million, compared to approximately $2.3 million in Q3 2006 and approximately $1.7 million in Q2 2007. The decline in expenses from Q3 2006 reflects the Company’s expense management efforts. BackWeb reported an improvement in its Q3 2007 net loss to $208,000, or $0.01 per share, compared to a Q3 2006 net loss of approximately $1.6 million, or $0.04 per share, and a Q2 2007 net loss of $301,000, or $0.01 per share. BackWeb’s cash and cash equivalents totaled approximately $3.2 million at September 30, 2007.

BackWeb’s CEO, Bill Heye, commented, “In Q3, we continued to work closely with a number of prospective customers in pilots as well as with existing customers looking to extend the use of our products. We continue to pursue new sales opportunities for our products while managing expenses with the goal of improving our bottom-line results.”

About BackWeb Technologies:
BackWeb mobilizes critical web applications and content for mobile workforces and remote offices. Mobile professionals can be productive anytime, anywhere, without interruption, regardless of connection status or network availability. BackWeb's web and polite synchronization mobile solution delivers a seamless and simple user experience. The solution is commonly deployed to sales forces, field employees, mobile managers and remote operations. Typical e-business applications include enterprise sales force automation, CRM, e-learning and training and Human Capital Management (HCM). Typical content applications include document repositories and rich media communications.

BackWeb’s customers include market leaders such as Boehringer Ingelheim, Eastman Kodak, Hewlett-Packard, Johnson & Johnson and KLA Tencor. BackWeb also serves customers through partnerships with BEA, Oracle PeopleSoft, and Salesforce.com. BackWeb's operations are centered in San Jose, California, New York, New York, and Rosh Ha 'ayin, Israel. Make every minute of your mobile professional's day productive; visit www.backweb.com or call (877) 222-5932.

© 2007 BackWeb Technologies Ltd. All rights reserved. BackWeb is a registered trademark and Offline Access Server is a trademark of BackWeb Technologies Ltd. All other trademarks are property of their respective owners.

Oracle and PeopleSoft are registered trademarks of Oracle Corporation and/or its affiliates.

Statements in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements of beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, but are not limited to, statements regarding our efforts to pursue new revenue opportunities, our expense management efforts in order to improve our bottom line results, and the recognition of revenue in future periods. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to, the uncertainty of market acceptance of offline access products or the Company’s ability to license those products to customers; the emergence of competitive technologies or competitor companies; and the ability of BackWeb to develop innovative technology and deliver solutions that meet customer needs. In addition, please refer to our periodic filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, which contain more detailed descriptions of the risks facing our business. BackWeb assumes no obligation to update any of the forward-looking statements in this release.

Contacts:

MEDIA
Rachel Clark
BackWeb Technologies
(408) 933-1771
rclark@backweb.com

INVESTORS  
Investor Relations
BackWeb Technologies Ltd.
(408) 933-1722
investors@jcir.com

 

#   #   #

BackWeb Technologies Ltd.
Condensed Consolidated Balance Sheets
(in thousands)

 

September 30, 2007

 

December 31, 2006

 

Unaudited

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash, cash equivalents and short-term investments

$ 3,221

 

$ 4,494

Accounts receivable, net

1,052

 

1,369

Other current assets

434

 

495

Total current assets

4,707

 

6,358

 

 

 

 

Property and equipment, net

119

 

127

Other non-current assets

52

 

42

Total assets

$4,878

 

$6,527

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued liabilities

$ 1,502

 

$ 1,748

Deferred revenue

427

 

948

Total current liabilities

1,929

 

2,696

 

 

 

 

Total shareholders' equity

2,949

 

3,831

Total liabilities and shareholders' equity

$4,878

 

$6,527

 

BackWeb Technologies Ltd.
Condensed Consolidated Statements of Operations

(In thousands, except per share data)
(Unaudited)

 

Three months ended

Nine months ended

 

September 30, 2007

September 30, 2006

September 30, 2007

September 30, 2006

Revenue:

 

 

 

 

Licenses

$            199

$            61

$           854

$          1,314      

Licenses subject to contract accounting

500

---

1,000

---

Services

672

663

2,067

2,208

Total revenue

1,371

724

3,921

3,522

 

 

 

 

 

Cost of revenue:

 

 

 

 

Licenses

29

26

91

66

Licenses subject to contract accounting

39

---

76

---

Services

142

149

535

571

Total cost of revenue

210

175

702

637

 

 

 

 

 

Gross profit

1,161

549

3,219

2,885

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development

397

541

1,327

1,742

Sales and marketing

593

928

1,828

2,982

General and administrative

370

699

1,072

1,783

Total operating expenses

1,360

2,168

4,227

6,507

 

 

 

 

 

Loss from operations

(199)

(1,619)

(1,008)

(3,622)

 

 

 

 

 

 

Interest and other income (expense), net

(9)

56

20

121

Net loss

$ (208)

$ (1,563)

$ (988)

$ (3,501)

 

 

 

 

 

Net loss per share

$ (0.01)

$ (0.04)

$ (0.02)

$ (0.08)

 

 

 

 

 

Shares used in computing net loss per share

41,320

41,279

41,314

41,232

#   #   #