WESTON, Fla.--(BUSINESS WIRE)--April 26, 2007--Ultimate Software
(Nasdaq:ULTI), a leading provider of end-to-end strategic human
resources, payroll, and talent management solutions, announced today
financial results for its first quarter of 2007. For the quarter ended
March 31, 2007, Ultimate Software reported total revenues of $36.5
million, an increase of 48% compared with the first quarter of 2006,
and recurring revenues of $19.5 million, a 35% increase over the first
quarter of the previous year. GAAP net income for the first quarter of
2007 was $1.3 million, or $0.05 per diluted share, versus a GAAP net
loss of $1.1 million, or $(0.05) per diluted share, for the first
quarter of 2006. Excluding stock-based compensation and amortization
of acquired intangibles, non-GAAP net income for the first quarter of
2007 was $4.1 million, or $0.15 per diluted share, compared to
non-GAAP net income for the first quarter of 2006 of $0.5 million, or
$0.02 per diluted share.
New annual recurring revenues (ARR) were $6.0 million for the
first quarter of 2007. (See Financial Highlights below for
definition.)
"Our momentum continued in the first quarter of 2007. We acquired
double the number of new customers than in the first quarter of 2006,
and two-thirds of them selected Intersourcing," said Scott Scherr,
CEO, president, and founder of Ultimate Software.
Ultimate Software's financial results teleconference will be held
today, April 26, 2007, at 5:00 p.m. Eastern Time, via World Investor
Link at http://www.vcall.com/IC/CEPage.asp?ID=115345 . The call will
be available for replay at the same address beginning at 9:00 p.m.
Eastern Time the same day. Windows Media Player software is required
to listen to the call and can be downloaded from the site.
Forward-looking information about future company performance may be
discussed during the teleconference call.
Financial Highlights
-- New ARR attributable to sales during the first quarter of 2007
was $6.0 million. New annual recurring revenues represent the
expected one-year value from (i) new Intersourcing sales
(including prorated one-time charges); (ii) maintenance
revenues related to new license sales; (iii) recurring
revenues from new business service providers; and (iv)
recurring revenues from additional sales to Ultimate
Software's existing client base.
-- Recurring revenues - consisting of maintenance revenues,
Intersourcing revenues from our hosted offering of UltiPro,
and subscription revenues from per-employee-per-month fees
generated by business service providers - grew by 35% for the
first quarter of 2007 compared with the same quarter of 2006.
Intersourcing revenues and, to a lesser extent, maintenance
revenues were the principal factors in the year-over-year
growth in recurring revenues.
-- The combination of cash, cash equivalents, and marketable
securities was $31.2 million as of March 31, 2007. In the
first quarter of 2007, the Company generated $3.6 million in
cash from operations. During the first quarter of 2007, the
Company also repurchased 165,600 shares of the Company's
Common Stock for $4.4 million.
-- Days sales outstanding were 64 days at March 31, 2007,
representing a reduction of 10 days compared with days sales
outstanding at December 31, 2006.
Forward-Looking Statement
Certain statements in this press release are, and certain
statements on the teleconference call may be, forward-looking
statements within the meaning provided under the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
made only as of the date hereof. These statements involve known and
unknown risks and uncertainties that may cause the Company's actual
results to differ materially from those stated or implied by such
forward-looking statements, including risks and uncertainties
associated with fluctuations in the Company's quarterly operating
results, concentration of the Company's product offerings, development
risks involved with new products and technologies, competition,
contract renewals with business partners, compliance by our customers
with the terms of their contracts with us, and other factors disclosed
in the Company's filings with the Securities and Exchange Commission.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
About Ultimate Software
A leading provider of end-to-end, strategic human resources,
payroll and talent management solutions, Ultimate Software markets its
award-winning UltiPro products as licensed software and as on-demand
services through Intersourcing. Employing approximately 650
professionals who are focused on developing the highest quality
products and services, Ultimate Software was identified as a Leader in
Forrester Research Inc.'s 2006 U.S. Midmarket HR solutions Wave
ranking. Ultimate Software was also named the 2005 Payroll Provider of
the Year by the Human Resources Outsourcing Association and ranked #3
on the 2006 Top 25 Best Medium-Sized Companies to Work for in America
list by the Great Place to Work Institute. Also in 2006, Ultimate
Software won two customer service awards, one from American Business
Awards as the Best Customer Service Organization and the other a
first-place SSPA STAR Award from Service & Support Professionals
Association. Ultimate Software customers represent diverse industries
and include such organizations as The Container Store, Elizabeth
Arden, The Florida Marlins Baseball Team, The New York Yankees
Baseball Team, Nintendo of America, Ruth's Chris Steak House, and
SkyWest Airlines. More information on Ultimate Software's products and
services can be found at www.ultimatesoftware.com.
UltiPro and Intersourcing are registered trademarks of The
Ultimate Software Group, Inc. All other trademarks referenced are the
property of their respective owners.
CONTACT: Ultimate Software, Weston
Mitchell K. Dauerman, Chief Financial Officer
and Investor Relations, 954-331-7369
E-mail: IR[at]ultimatesoftware.com