Hummingbird Reports Q2 Results

Hummingbird Ltd. has released its consolidated results for the second quarter, ending on March 31, 2000. Sales figures came in at $57.1 million, an increase of 66% over the same quarter ended March 31, 1999. The adjusted net income (excluding the amortization and write off of intangibles, net of taxes) was $8.6 million for the quarter ended March 31, 2000 compared to $7.4 million for the same quarter ended March 31, 1999. Accordingly, the adjusted diluted earnings per share, based on adjusted net income, was $0.47 for the quarter ended March 31, 2000 compared to $0.48 in the same quarter ended March 31, 1999.

The current period earnings per share is based on an increase in weighted average number of shares resulting from the offering of 2 million shares and issuance of over 750,000 shares on the exercise of stock options in the quarter.

Fred Sorkin, Hummingbird’s Chairman and CEO, comments, "Our investments in the enterprise information portal marketplace have set the stage for exciting new growth potential and further technological innovations. The rapidly growing number of Hummingbird EIP customers confirms our portal solution is at the forefront of this exciting market. In the second quarter, for example, we made several major product announcements for all product groups, proving that Hummingbird is capable of succeeding with both individual products and integrated solutions. "

During this quarter, Hummingbird began shipping the Hummingbird EIP, receiving favorable reviews from industry analysts, such as The Delphi Group. During the quarter, many companies adopted the Hummingbird EIP and Hummingbird EIP Developer's Edition, further strengthening Hummingbird's vision in providing a single, Web-based portal interface to access enterprise information.

Significant product releases were introduced during the quarter, including updated versions of BI/Suite, HostExplorer Web, Exceed Web, Hummingbird e-Toolkit, PowerDOCS, and CyberDOCS. In addition, many new products including Hummingbird EIP Developer's Edition, Hummingbird EIP Legal Edition and Hummingbird e-Gateway were introduced during the quarter. These products meet the unique needs of customers while strongly supporting the company's overall enterprise information portal initiative as enabling technologies for Hummingbird EIP.

The second quarter results include amortization and write off of intangibles amounting to $7.6 million, compared to $5.4 million for the same quarter ended March 31, 1999. Excluding the amortization and write off of intangibles, the expenses amounted to $38.7 million, compared to $20.2 million for the same quarter ended March 31, 1999. Including the amortization and write off of intangibles, net of taxes, Hummingbird reported a net income of $1.7 million and diluted earnings per share of $0.09 for the quarter ended March 31, 2000 (compared to net income of $2 million and diluted earnings per share of $0.13 for the same quarter ended March 31, 1999).

Sales for the six months ended March 31, 2000 were $111.6 million, a 72% increase over the same period in the previous year. Adjusted net income was $15 million for the six months ended March 31, 2000 compared to $13.8 million for the same six months in the last year. Adjusted diluted earnings per share, based on adjusted net income, was $0.88 for the six months ended March 31, 2000 compared to $0.90 for the similar period in the previous year.

The Total Assets on March 31, 2000 were $369 million, up from $223 million in the second quarter of 1999.