Unica Announces Financial Results for the Fourth Quarter and Full Year Fiscal 2009

http://www.businesswire.com/news/home/20091109006428/en

WALTHAM, Mass.--(Business Wire)--
Unica Corporation (Nasdaq: UNCA), the recognized leader in marketing software
solutions, today announced financial results for its fourth quarter fiscal and
full year ended September 30, 2009.

For the fourth quarter fiscal 2009, the company reported total revenue of $24.4
million, compared with $28.6 million for the fourth quarter of fiscal 2008.
Subscription revenue was $5.6 million, an increase of 28%, perpetual license
revenue was $3.8 million, a decrease of 52%, maintenance revenue on perpetual
licenses was $11.2 million, a decrease of 5%, and services revenue was $3.8
million, a decrease of 16%, each compared to the fourth quarter of fiscal 2008.

Yuchun Lee, chief executive officer of Unica Corporation, stated "As we enter
fiscal 2010, there are a number of reasons that we have growing optimism about
the direction of Unica`s business. Our normalized total revenue has been stable
for the past three quarters and our subscription revenue growth remained strong
throughout fiscal 2009. We have recently introduced the most significant
releases to our enterprise and on-demand product lines in the history of the
company. The strength of our technology continues to be reinforced by industry
analysts and flagship wins."

Lee added, "Unica`s growing traction in the web analytics segment of the market
continues to be an important driver to the overall growth of our
subscription-based business. During the fourth quarter, we won a highly
competitive evaluation with IBM, resulting in a significant multi-year agreement
in which Unica will serve as IBM`s standard web analytics platform. In addition
to winning stand-alone web analytics decisions, we believe a growing number of
mid-market customers and divisions of large companies will be attracted to our
recently launched Interactive Marketing OnDemand product that provides the
industry`s first fully integrated software-as-a-service EMM solution."

For the quarter ended September 30, 2009, Unica reported a loss from operations,
in accordance with generally accepted accounting principles (GAAP), of $1.9
million, compared to loss from operations of $1.5 million for the quarter ended
September 30, 2008. GAAP loss from operations for the quarter ended September
30, 2009 includes $1.9 million of non-cash share-based compensation expense,
$351,000 of amortization of acquired intangible assets and $2.2 million related
to a previously disclosed restructuring charge.

GAAP net loss for the quarter ended September 30, 2009 was $1.2 million,
compared to GAAP net loss of $9.4 million for the quarter ended September 30,
2008. GAAP net loss per share for the quarter ended September 30, 2009 was
$0.06, compared to GAAP net loss per share of $0.46 in the corresponding quarter
of the prior year.

For the quarter ended September 30, 2009, non-GAAP income from operations, which
excludes non-cash share-based compensation expense and amortization of acquired
intangible assets, was $268,000. Non-GAAP operating income includes the above
mentioned $2.2 million restructuring charge recognized during the fourth
quarter. Non-GAAP income from operations was $1.0 million in the year ago
period.

Non-GAAP net income was $358,000 for the quarter ended September 30, 2009,
compared to non-GAAP net income of $724,000 for the quarter ended September 30,
2008. Non-GAAP net income per diluted share was $0.02 for the quarter ended
September 30, 2009, including the impact of the above mentioned restructuring
charge, compared to net income per diluted share of $0.03 for the corresponding
quarter of the prior year.

A reconciliation of GAAP to non-GAAP results has been provided in the financial
statement tables included in this press release. An explanation of these
measures is also included below under the heading "Non-GAAP Financial Measures."

Kevin Shone, chief financial officer of Unica, said, "While the economic
environment was very challenging during our fiscal 2009, we were able to achieve
our goal of delivering positive non-GAAP operating profitability and we
generated $5 million in cash flows from operations. We are planning our business
based on the assumption that the economic environment will remain challenging;
however, we are optimistic that Unica`s revenue will return to growth and that
profitability margins will expand on a full year basis during fiscal 2010."

As of September 30, 2009, Unica had cash, cash equivalents and investments of
$50.3 million, an increase compared to $48.7 million at June 30, 2009, due
primarily to $2.0 million cash provided by operations.

Additional Fourth Quarter and Recent Business Highlights:

* Unveiled Unica Interactive Marketing OnDemand, the industry`s first and only
solution to unify web analytics, customer analytics, campaign management, and
web personalization. In one interface, marketers can analyze visitor behavior,
and then immediately use that insight to design and deliver effective email
campaigns and personalized web experiences to drive improved revenue growth.
* Introduced Unica 8, the latest release of its Enterprise Marketing suite.
Unica 8 includes significant enhancements and capabilities aimed at enabling
interactive marketing and lowering total cost of ownership (TCO) for marketers.
A key highlight of Unica 8 is the new cross-product user interface and
role-based dashboards. The new interface increases user productivity with
enhanced product navigation and a seamless user experience across all modules
that comprise the Enterprise Marketing suite.
* Added customers for its on-demand offerings, including IBM, Barclay`s Global
Investors, Banco Popular, Batteries Plus, Choice Hotels International, Dexia,
Harland Clarke, The Loyalty Group, Mayo Clinic, Musician`s Friend, Mutual of
Omaha, National Association of Realtors, Party Gaming, and Solution Tree, among
others. During the fourth quarter, the company added new enterprise customers
and expanded relationships with existing enterprise customers including:
Allstate, Casinos Austria, BBVA Compass, Comcast, Full Tilt Poker, ING, Kasikorn
Bank, Medco, Sears, T-Mobile, UnitedHealth, and Virgin Mobile Australia, among
others.

* Hosted the Company`s European customer conference, the Marketing Innovation
Summit 2009 (MIS), October 5-7, 2009 in Paris, with a nearly 50% increase in
attendees from the prior year. In addition, the company hosted its inaugural
Asia/Pacific Customer Summit in Sydney, Australia, which was attended by nearly
one hundred of the region`s leading marketers.
* Unveiled its new worldwide brand, "MARKETING SUCCESS STARTS WITH U." As Unica
expands into new and emerging markets with innovative interactive marketing
solutions in both its enterprise and on-demand product lines, the company
concluded that this was the ideal time to update and expand its brand. The new
tagline is designed to connote what Unica stands for: bringing marketing success
to "U"-Unica`s customers.

Full Year Fiscal 2009 Results

For the full year fiscal 2009, the company reported total revenue of $100.6
million, compared to $121.1 million for fiscal 2008. Subscription revenue was
$20.0 million, an increase of 46%, perpetual license revenue was $18.8 million,
a decrease of 56%, maintenance revenue on perpetual licenses was $44.7 million,
an increase of 1%, and services revenue was $17.1 million, a decrease of 15%,
each compared to fiscal 2008.

For the full year fiscal 2009, Unica reported a loss from operations, in
accordance with generally accepted accounting principles (GAAP), of $22.5
million, compared to loss from operations of $3.4 million for fiscal 2008. GAAP
loss from operations during fiscal 2009 includes $5.8 million of non-cash
share-based compensation expense, $2.2 million of amortization of acquired
intangible assets, the $15.3 million goodwill impairment charge and $2.9 million
associated with restructuring charges. GAAP net loss for fiscal 2009 was $21.8
million, compared to GAAP net loss of $9.7 million for fiscal 2008. GAAP net
loss per share for fiscal 2009 was $1.05, compared to GAAP net loss per share of
$0.48 in fiscal 2008.

For the full year fiscal 2009, non-GAAP income from operations, which excludes
non-cash share-based compensation expense, amortization of acquired intangible
assets, and the goodwill impairment charge was $826,000. Non-GAAP income from
operations includes the $2.9 million impact associated with the above mentioned
restructuring charges. For the full year fiscal 2008, non-GAAP income from
operations was $6.2 million.

Non-GAAP net income was $29,000 for fiscal 2009, compared to non-GAAP net income
of $4.9 million for fiscal 2008. Non-GAAP net income per diluted share was
break-even for fiscal 2009, including the impact of the above mentioned
restructuring charges, compared to non-GAAP net income per diluted share of
$0.22 in fiscal 2008.

Conference Call Details

Unica will discuss its quarterly results and related matters via a
teleconference today, November 9, 2009 at 5:00 p.m. ET. To access this call,
dial 800-289-0479 (domestic) or 913-312-0396 (international). Additionally, a
live audio webcast of the conference call will be available through Unica`s web
site at http://investor.unica.com.

A replay of this conference call will be available from 8:00 p.m. ET on Monday,
November 9, 2009 through 11:59 p.m. ET on Monday, November 23, 2009 at
888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is
4282691. A replay of the webcast will also be available on the events portion of
the Unica web site following the earnings call.

Non-GAAP Financial Measures

Unica has provided in this press release selected financial information that has
not been prepared in accordance with GAAP. This information includes historical
non-GAAP operating income, net income, and earnings per share.

Unica uses these non-GAAP financial measures internally in analyzing its
financial results and believes they are useful to investors, as a supplement to
GAAP measures, in evaluating Unica`s ongoing operational performance. Unica
believes that the use of these non-GAAP financial measures provides an
additional tool for investors to use in evaluating ongoing operating results and
trends, and in comparing its financial results with other companies in Unica`s
industry, many of which present similar non-GAAP financial measures to
investors. Specifically, on both an historic and a forward-looking basis, these
non-GAAP measures exclude:

* Expense associated with the amortization of intangible assets related to
acquisitions and the impairment of goodwill, as exclusion of these expenses
allows comparisons of operating results that are consistent over time for both
the company`s newly acquired and long-held businesses and with both acquisitive
and non-acquisitive peer companies.
* Expense associated with share-based compensation related to options to
purchase common stock, the employee stock purchase plan and restricted stock
units because, while share-based compensation is a significant ongoing expense
affecting the company`s results of operations, the company`s management excludes
share-based compensation from the company`s forecasting and planning process
used to allocate resources. In addition, because of varying available valuation
methodologies, subjective assumptions and the variety of award types, the
company believes that excluding share-based compensation may enable useful
comparisons of the company`s operating results to its competitors.

Non-GAAP financial measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with GAAP.
Investors are encouraged to review the reconciliation of these non-GAAP measures
to their most directly comparable GAAP financial measure as detailed above. As
previously mentioned, a reconciliation of GAAP to non-GAAP results has been
provided in the financial statement tables included in this press release.

About Unica

Unica Corporation (Nasdaq: UNCA) is the recognized leader in marketing software
solutions. Unica`s advanced set of enterprise marketing management and on-demand
marketing solutions empowers organizations and individuals to turn their passion
for marketing into valuable customer relationships and more profitable, timely,
and measurable business outcomes. These solutions integrate and streamline all
aspects of online and offline marketing. Unica`s unique interactive marketing
approach incorporates customer and web analytics, centralized decisioning,
cross-channel execution, and integrated marketing operations. More than 1,000
organizations worldwide depend on Unica for their marketing management
solutions.

Unica is headquartered in Waltham, Mass. with offices around the globe. For more
information, visit www.unica.com.

Note to editors: Copyright 2009 Unica Corporation. Unica, NetInsight, and the
Unica logo are registered trademarks of Unica Corporation. All other product
names, service marks, and trademarks mentioned herein are trademarks of their
respective owners.

Forward-looking Statements

The information provided in this press release above contains forward-looking
statements that relate to future events and future financial performance of
Unica. These forward-looking statements are based upon Unica's historical
performance and its current plans, estimates and expectations and are not a
representation that such plans, estimates, or expectations will be achieved.
These forward-looking statements represent Unica's expectations as of the date
of this press announcement. Subsequent events may cause these expectations to
change; and Unica disclaims any obligation to update or revise the
forward-looking statements in the future. Matters subject to forward-looking
statements involve known and unknown risks and uncertainties, including those
factors listed in the Company`s most recent Quarterly Report on Form 10-Q and
the Company`s most recent Annual Report on Form 10-K for the fiscal year ended
September 30, 2008 under "Risk Factors", which factors could cause Unica's
performance or achievements to be materially different from those expressed or
implied by the forward-looking statements.

UNICA CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

September 30, September 30,
2009 2008

ASSETS
Current assets:
Cash and cash equivalents $ 50,314 $ 35,799
Short-term investments - 11,482
Accounts receivable, net 16,492 21,339
Prepaid expenses and other current assets 4,900 6,116
Total current assets 71,706 74,736

Property and equipment, net 5,221 4,781
Long-term investments - 2,989
Goodwill and other acquired intangible assets, net 15,458 33,028
Other assets 1,647 1,375

Total assets $ 94,032 $ 116,909

LIABILITIES AND STOCKHOLDERS` EQUITY
Current liabilities:
Accounts payable $ 1,332 $ 3,536
Accrued expenses 13,175 14,527
Short-term deferred revenue 35,069 35,369
Total current liabilities 49,576 53,432

Long-term deferred revenue 1,250 1,733
Other long-term liabilities 370 1,738
Total liabilities 51,196 56,903

Stockholders` equity 42,836 60,006

Total liabilities and stockholders` equity $ 94,032 $ 116,909

UNICA CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008

Revenue:
License $ 3,799 $ 7,970 $ 18,823 $ 42,877
Maintenance and services 15,049 16,288 61,787 64,511
Subscription 5,560 4,332 20,008 13,743
Total revenue 24,408 28,590 100,618 121,131
Costs of revenue:
License 395 665 1,932 3,118
Maintenance and services 4,236 6,069 19,390 25,461
Subscription 1,409 843 4,671 2,862
Total cost of revenue 6,040 7,577 25,993 31,441
Gross profit 18,368 21,013 74,625 89,690
Operating expenses:
Sales and marketing 9,616 12,340 41,773 49,747
Research and development 4,425 5,234 19,886 22,971
General and administrative 3,947 4,552 16,040 19,078
Restructuring charges (credits) 2,193 - 2,941 (286 )
Goodwill impairment charge - - 15,266 -
Amortization of acquired intangible assets 123 394 1,180 1,573
Total operating expenses 20,304 22,520 97,086 93,083
Loss from operations (1,936 ) (1,507 ) (22,461 ) (3,393 )
Other income (expense), net 102 72 (785 ) 1,065
Loss before income taxes (1,834 ) (1,435 ) (23,246 ) (2,328 )
Provision for (benefit from) income taxes (604 ) 8,014 (1,495 ) 7,411
Net loss $ (1,230 ) $(9,449 ) $ (21,751 ) $ (9,739 )
Net loss per common share:
Basic $ (0.06 ) $ (0.46 ) $ (1.05 ) $ (0.48 )
Diluted $ (0.06 ) $ (0.46 ) $ (1.05 ) $ (0.48 )
Shares used in computing net loss per common share:
Basic 20,725 20,667 20,766 20,443
Diluted 20,725 20,667 20,766 20,443

UNICA CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

Year Ended September 30,
2009 2008

Cash flows from operating activities:
Net loss $ (21,751 ) $ (9,739 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property and equipment 2,685 2,349
Amortization of capitalized software development costs 186 87
Amortization of acquired intangible assets 2,176 2,897
Goodwill impairment charge 15,266 -
Share-based compensation expense 5,845 6,725
Foreign currency translation loss 229 -
Provision for doubtful accounts 346 117
Excess tax benefits from share-based compensation - (142 )
Allowance for deferred tax assets (248 ) 8,098
Deferred tax benefits (1,807 ) (2,618 )
Changes in operating assets and liabilities:
Accounts receivable 4,373 6,559
Prepaid expenses and other current assets 1,258 2,581
Other assets 500 155
Accounts payable (2,118 ) 1,222
Accrued expenses (1,192 ) (2,820 )
Deferred revenue (809 ) (1,554 )
Other long-term liabilities - 370
Net cash provided by operating activities 4,939 14,287
Cash flows from investing activities:
Purchases of property and equipment (2,525 ) (2,481 )
Capitalization of software development costs (776 ) (477 )
Cash collected from license acquired in acquisition 154 162
Proceeds from sales and maturities of investments 15,404 35,749
Purchases of investments (898 ) (30,605 )
Increase in restricted cash (69 ) -
Net cash provided by investing activities 11,290 2,348
Cash flows from financing activities:
Proceeds from issuance of common stock under stock option and employee stock purchase plans 1,093 1,701
Excess tax benefits from share-based compensation - 142
Treasury shares purchased (1,920 ) -
Payment of withholding taxes in connection with settlement of restricted stock units (415 ) (937 )
Net cash provided by (used in) financing activities (1,242 ) 906
Effect of exchange rate changes on cash and cash equivalents (472 ) (235 )
Net increase in cash and cash equivalents 14,515 17,306
Cash and cash equivalents at beginning of period 35,799 18,493
Cash and cash equivalents at end of period $ 50,314 $ 35,799

UNICA CORPORATION AND SUBSIDIARIES

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008

Non-GAAP financial measures and reconciliation:

GAAP loss from operations $ (1,936 ) $ (1,507 ) $ (22,461 ) $ (3,393 )
Add: Share-based compensation 1,853 1,798 5,845 6,725
Add: Amortization of acquired intangible assets 351 717 2,176 2,897
Add: Goodwill impairment charge - - 15,266 -
Non-GAAP income from operations $ 268 $ 1,008 $ 826 $ 6,229

GAAP loss before income taxes $ (1,834 ) $ (1,435 ) $ (23,246 ) $ (2,328 )
Add: Share-based compensation 1,853 1,798 5,845 6,725
Add: Amortization of acquired intangible assets 351 717 2,176 2,897
Add: Goodwill impairment charge - - 15,266 -
Adjusted provision for income taxes (12 ) (356 ) (12 ) (2,407 )
Non-GAAP net income $ 358 $ 724 $ 29 $ 4,887

Diluted non-GAAP net income per common share $ 0.02 $ 0.03 $ 0.00 $ 0.22

Shares used in computing non-GAAP net income per diluted common share: 22,748 22,117 22,490 21,988

UNICA CORPORATION AND SUBSIDIARIES

UNAUDITED SUMMARY OF SHARE-BASED COMPENSATION EXPENSE AND

AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS

(In thousands)

Three Months Ended Year Ended
September 30, September 30,
2009 2008 2009 2008

Share-based compensation:
Cost of license revenue $ 12 $ - $ 49 $ -
Cost of maintenance and services revenue 249 216 975 898
Sales and marketing expense 681 634 2,338 2,389
Research and development expense 298 319 1,020 1,294
General and administrative expense 613 629 1,463 2,144
Total share-based compensation expense $ 1,853 $ 1,798 $ 5,845 $ 6,725

Amortization of acquired intangible assets:
Cost of license revenue $ 228 $ 324 $ 996 $ 1,324
Operating expenses 123 393 1,180 1,573
Total amortization of acquired intangible assets $ 351 $ 717 $ 2,176 $ 2,897

Media contact:
Unica Corporation
Dan Ring, 781-487-8641
dring@unica.com
or
Investor contact:
ICR
Kori Doherty, 617-956-6730
kdoherty@icrinc.com

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