3/31/2003 - Marimba, Inc. (Nasdaq: MRBA), the Software Change-Management Company, today filed its Form 10-K with the Securities and Exchange Commission for the fiscal year ended December 31, 2002. The Form 10-K reflects a change to the unaudited financial information announced by the company on January 28, 2003. This change, combined with an accounting adjustment included in the previously announced results, had the effect of taking the company from a net loss position to a net profit for the fourth quarter of 2002. These adjustments are highlighted and explained in detail below.
Subsequent to its January 28, 2003 announcement, the company made the determination that bonuses to be paid to executives and other employees were significantly less than the estimated amounts that had been accrued as of December 31, 2002. Consistent with Marimba's policy of accounting for subsequent events, its audited results of operations for the year ended December 31, 2002 reported in the company's Form 10-K includes an adjustment to the accrued compensation accounts to reflect this determination. Specifically, the results for the fourth quarter include an adjustment of $605,000 to decrease accrued compensation, which has the effect of decreasing reported expenses by the same amount.
The results announced by the company on January 28, 2003 also included a reversal of its sales return reserve. This reserve was for estimated losses resulting from the possibility of product returns by customers. At year-end the company analyzed its past returns history, and combined with changed business practices determined that its returns reserve was no longer appropriate. Eliminating this reserve resulted in a net increase to license revenue of $620,000 for the fourth quarter.
Taken together, the reversal of the bonus accrual and the elimination of the sales return reserve had a positive impact of $1.2 million on Marimba's results in the fourth quarter, taking the company from a net loss position to a net profit for the quarter.
Including all adjustments, fourth quarter 2002 revenues were $9.6 million, compared with $8.6 million for the third quarter of 2002 and with $10.8 million for the fourth quarter of 2001. GAAP net profit for the fourth quarter of 2002 was $201,000, or a net profit per diluted share of 1 cent. This compares with a net loss of $1.8 million, or 7 cents per diluted share, sequentially and a net loss of $1.5 million, or 6 cents per diluted share, during the fourth quarter of 2001.
Excluding non-cash amortization of deferred stock compensation, pro forma net profit for the fourth quarter of 2002 was $296,000, or a net profit per diluted share of 1 cent. This compares with a pro forma net loss of $1.7 million, or 7 cents per diluted share, sequentially and with a pro forma net loss of $1.0 million, or 4 cents per diluted share, for the fourth quarter of 2001. A reconciliation between GAAP and pro forma results is provided in the attached financial statements. At December 31, 2002, the company had cash and total investments of $50.3 million and no debt.
Marimba, Inc., the Software Change-Management Company, is headquartered in Mountain View, Calif. Marimba's Desktop/Mobile Management, Server Change Management, and Embedded Management product families allow Global 2000 companies to better manage their IT resources, increase operational efficiency and reduce IT costs. Additional information is available at www.marimba.com.
Marimba is a registered trademark of Marimba, Inc. in the U.S. and certain other countries.
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