CallidusSoftware, the Callidus Software logo, Callidus TrueAnalytics, TrueComp,TrueComp Grid, TrueComp Manager, TrueConnection, TrueFoundation,TrueInformation, TruePerformance, TruePerformance Index, TruePerformanceIndicator, TrueMBO, TrueAllocation, TrueProducer, TrueQuota, TrueReferral,TrueResolution, TrueTarget and TrueService are trademarks, servicemarks,or registered trademarks of Callidus Software Inc in the United Statesand other countries. All other brand, service or product names aretrademarks or registered trademarks of their respective companies orowners.CALLIDUS SOFTWARE INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except for per share data)(unaudited) Three months endedYear endedDecember 31, December 31,2008 2007 2008 2007Revenues:Recurring $11,338$ 6,501$40,546$23,907Services 11,543 11,648 49,535 49,125License 4,4626,756 17,100 28,025Total revenues 27,343 24,905107,181101,057Cost of revenues:Recurring (1) 5,0162,850 16,111 11,043Services (1) (2) 11,000 10,274 45,093 43,555License 192238897884Total cost of revenues 16,208 13,362 62,101 55,482Gross profit 11,135 11,543 45,080 45,575Operating expenses:Sales and marketing (1) 6,9947,650 28,977 30,806Research and development (1)3,6393,782 14,597 15,563General and administrative (1)4,1472,619 14,408 13,991Restructuring 1,2441,4581,6411,458Total operating expenses 16,024 15,509 59,623 61,818Operating loss (4,889)(3,966) (14,543) (16,243)Interest and other income, net (222) 5336922,772Income (loss) before provision for income taxes(5,111)(3,433) (13,851) (13,471)Provision (benefit) for income taxes (282)(474) 125 (330)Net Income (loss) $(4,829) $(2,959) $ (13,976) $ (13,141)Basic net income (loss) per share$ (0.16) $ (0.10) $ (0.47) $ (0.45)Diluted net income (loss) per share$ (0.16) $ (0.10) $ (0.47) $ (0.45)Shares used in basic per share computation 29,841 29,573 29,913 29,068Shares used in diluted per share computation 29,841 29,573 29,913 29,068(1) Stock-based compensationincluded in amounts aboveby category:Recurring 195 73692250Services2932061,263838Sales and marketing 3742881,8611,162Research and development2542581,169995General and administrative6901802,7111,709Total stock-based compensation $ 1,806$ 1,005$ 7,696$ 4,954(2) Acquisition related assetamortization$ 500$ -$ 1,917$ -CALLIDUS SOFTWARE INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(unaudited) December 31,December 31,Assets 20082007Current assets:Cash and cash equivalents $ 35,390$ 21,813Short-term investments 1,45528,824Accounts receivable, net22,75223,575Deferred income taxes423 423Prepaid and other current assets 3,998 4,038Total current assets64,01878,673Long-term investments4,320 -Property and equipment, net4,890 4,438Goodwill 5,655 -Intangible assets, net 3,208 2,333Deferred income taxes, noncurrent 7490Deposits and other assets1,006 1,913Total assets$ 83,171$ 87,447Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable$2,447$2,901Accrued payroll and related expenses 7,128 7,326Accrued expenses 4,917 4,225Deferred revenue21,92315,831Total current liabilities 36,41530,283Long-term deferred revenue 1,202 2,326Other liabilities1,525 1,089Total liabilities 39,14233,698Stockholders' equityCommon stock2930Additional paid-in capital 207,700 203,110Accumulated other comprehensive income 123 456Accumulated deficit (163,823) (149,847)Total stockholders' equity44,02953,749Total liabilities and stockholders' equity $ 83,171$ 87,447CALLIDUS SOFTWARE INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)(unaudited)Year Ended December 31,2008 2007Cash flows from operating activities:Net loss$ (13,976) $ (13,141)Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation expense2,5111,915Amortization of intangible assets 2,886485Provision for doubtful accounts and sales returns818114Stock-based compensation7,6964,954Loss on disposal of property 252Deferred income taxes16 (513)Net accretion on investments (162)(596)Put option gain(492) -Other than temporary impairment of investments771-Loss on contract1,583-Changes in operating assets and liabilities:Accounts receivable 2,301 (573)Prepaid and other current assets (1,309) 254Other assets910 82Accounts payable (687) 666Accrued payroll and related expenses(99) 681Accrued expenses (2,862)(283)Deferred revenue6,1742,826Net cash (used in) provided by operating activities 6,104 (3,127)Cash flows from investing activities:Purchases of investments(13,919) (46,730)Proceeds from maturities and sale of investments 36,820 59,438Purchases of property and equipment(2,491)(2,664)Purchases of intangible assets (361)(1,942)Acquisition, net of cash acquired(9,386) -Change in restricted cash -136Net cash provided by (used in) investing activities10,6638,238Cash flows from financing activities:Net proceeds from issuance of common stock and warrants 4,8054,658Purchases of treasury stock(7,920) -Net cash provided by financing activities(3,115) 4,658Effect of exchange rates on cash and cash equivalents(75) (38)Net increase (decrease) in cash and cash equivalents 13,5779,731Cash and cash equivalents at beginning of year 21,813 12,082Cash and cash equivalents at end of year$35,390$21,813Supplemental disclosures of cash flow information:Cash paid for income taxes$14$12Non-cash investing and financing activities:Purchases of property and equipment not paid as of year-end$ 405$ 454Purchases of intangible assets not paid as of year-end $ -$ 500Acquisition, net of cash acquired not paid as of year-end $14$ -Investor Relations Contact:Ron Press Contact:Jock Copyright 2009, Market Wire, All rights reserved.-0-. ) After sustaining a serious leg injury in January 2008, Arsenal have gone 20 months with out the flare, trickery and pace of midfielder Tomas Rosicky. Rosicky was absent all of last season but to the joy of Arsene Wenger, Arsenal fans and the footballing world, the former Czech captain made his return a few weeks back, providing flare off the bench.Last weekend saw the 28 year old make his first Premier League start since January 2008 Although we did not witness the old Tomas Rosicky. Arsene Wenger is said to be in talks with the injury prone midfielder but nothing is certain.There is a chance we will witness the departure of "Little Mozart" in the January transfer window.
Selling Rosicky in January will ensure Arsenal receive an amount of cash rather than selling him for zilch next season.It'sguaranteed Rosicky will have little trouble attracting a new club. The thought of Rosicky on a team in Germany, Italy, or even at the likes of Blackburn and Portsmouth, makes those coaches' mouths water.But selling Rosicky would have severe major cons. The likes of Robin van Persie, Andrei Arshavin, and Cesc Fabregas all play strongly beside Rosicky. Although when the likes of Samir Nasri and Jack Wilshere return to the Arsenal fray, Rosicky may found himself occupying the bench. That only ensures Arsenal have a superb attacking option of the bench.It's evident that Rosicky has worked hard and is to far off from returning the Rosicky that dominated the Arsenal attack a few years ago.Offer him a contract Wenger.. The upgrade to 'A-' mainly reflects Beebe Medical Center's (BMC) historicallysound profitability and positive utilization trends.
For the past three fiscalyears, operating margin has averaged 3.9 and through the first six months offiscal 2009 BMC has earned $1.8 million from operations, equating to a 1.5operating margin. These profitability trends are largely due to healthy volumegrowth relating to the expansion of services and facilities as well as theservice area growth. In the past three fiscal years, births and adult acuteadmissions grew by an average of 3 annually and outpatient surgeries grew by 5annually. The six months year to date decline in discharges (down to 4,633 from4,838 from prior year) is mainly due to a reclassification of discharges toobservations (observation days are up to 1,909 from the prior year period's1,236). With the recent expansion of cardiac procedure areas, cardiaccatheterizations are up to 4,018 year-to-date from 2,488 in prior year (a 61.5increase). The upgrade also reflects BMC's successful completion of its patienttower project and of its multi-year contract with Blue Cross Blue Shield, whichaccounts for 40 of the locally insured market.
The 'A-' rating is further supported by BMC's leading market share and young ageof plant. BMC captures roughly two-thirds of admissions from its primary servicearea, which covers a large, sparsely populated area in Sussex County, Delaware.The county's estimated 2007 population was 184,291, a 17 increase from 2000.BMC's closest competitor - BayHealth Medical Center's (revenue bonds rated 'AA-'by Fitch) Milford Memorial Hospital - is located 22 miles away. In fiscal 2008,BMC finished its Hudson Building project which included a sizable expansion ofthe emergency department, the cardiac suite, the critical care unit, and anaddition of 45 medical/surgical beds. The main credit concern is BMC's decline in liquidity through the first sixmonths of fiscal 2009 with Dec. The decline is chieflyattributable to investment losses ($16.4 million of unrealized and realizedlosses) and the posting of collateral ($5.7 million) relating the negativemark-to-market value of the 2007 swap Liquidity ratios as of Dec.