Marimba Announces First-Quarter Results; Pro Forma Diluted Loss Per Share of $0.18 On $11.0...

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 19, 2001

Marimba, Inc. (Nasdaq:MRBA), a leading provider of systems management solutions built for e-business, today announced financial results for the first quarter ended March 31, 2001. These results are consistent

First-quarter revenues were $11.0 million, up 4 percent from $10.6 million for the same period last year. Excluding $592,000 of amortization expense for deferred stock compensation, diluted net loss for the first quarter of 2001 would have been $4.2 million, or a loss of 18 cents per share. Excluding $336,000 of amortization expense, diluted net loss per share for the first quarter of 2000 would have been $323,000, or a loss of 1 cent per share. Including amortization expense, net loss for the first quarter of 2001 was $4.8 million, or a diluted net loss of 20 cents per share, compared with a net loss of $659,000, or a diluted net loss of 3 cents per share, for the same period a year earlier.

"We are maintaining our strategic investments in new product development to support our long-term commitment to the systems management market. We believe that this market will weather the current slowdown in IT purchasing to emerge even stronger, and we view our products as essential to its long-term growth," said John Olsen, president and chief executive officer of Marimba. "At the same time, as we indicated in our earlier announcement on April 11th, we are prudently managing costs and expenses in line with anticipated revenues in a difficult economic environment."

Marimba has scheduled a conference call for today at 1:45 p.m. PT/4:45 p.m. ET to discuss its financial results for the first quarter. Those interested in participating are invited to call 913-981-4900 approximately 10 minutes prior to the start of the teleconference. In addition, there will be a replay available for one week at 719-457-0820, passcode 767987. An archived Webcast of the call may be accessed at approximately 5:00 p.m. PT/8:00 p.m. ET today on Marimba's Web site at http://www.marimba.com/investor/conference_call.html, and will also be available for one week.

About Marimba

Headquartered in Mountain View, Calif., Marimba, Inc. (Nasdaq:MRBA) provides systems management solutions built for e-business. From change management to performance management software, Marimba's extensive Internet expertise allows Global 2000 companies to better manage their resources, increase efficiency and reduce costs. For more information, please call 888-800-5444, or visit our Web site at http://www.marimba.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by these sections. These forward-looking statements include statements regarding Marimba's continued investments in new product development, the growth and strength of the systems management market, Marimba's role in the long-term growth of the systems management market, a slowdown in IT spending, and Marimba's management of its costs and expenses. The results expected by the forward-looking statements in this announcement are subject to a number of risks and uncertainties, including: the ability of Marimba to effectively manage its costs against uncertain revenue expectations, the potential for a decrease in net revenue which may be caused by delays in the timing of sales and the delivery of products or services, fluctuations in customer demand, challenges associated with expanding Marimba's sales reach and growing the company, Marimba's need to retain and hire key personnel, Marimba's dependence on the success of its existing products and the market acceptance of its planned new products, competition from other vendors, Marimba's need to increase third-party distribution and other reseller and channel relationships, the operational, technical and strategic challenges Marimba faces in developing new products (which may affect its ability to release new products on schedule and the degree to which the products are accepted by customers), and general economic, technological and market conditions, which could affect the level of demand for systems management solutions in general and Marimba's products in particular. Actual results may differ materially from the results anticipated by these forward-looking statements due to the factors listed above and other factors. The matters discussed in this announcement also involve risks and uncertainties described from time to time in Marimba's filings with the Securities and Exchange Commission (SEC). In particular, see the Risk Factors described in Marimba's most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as submitted to the SEC and as may be updated or amended with future filings or submissions. Marimba undertakes no obligation to release publicly any updates or revisions to any forward-looking statements contained in this announcement that may reflect events or circumstances occurring after the date of this announcement.

Marimba is a registered trademark, and Systems Management Built for e-business is a trademark, of Marimba, Inc. in the U.S. and/or certain other countries. Other product, trademark, company or service names mentioned herein are the property of their respective owners.

                     Financial Statements Attached

                             MARIMBA, INC.
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)
                              (unaudited)

                                                   Three Months Ended
                                                         March 31,
                                                    2001         2000

Revenues:
 License                                        $  6,983     $  8,061
 Service                                           4,021        2,506
Total revenues                                    11,004       10,567
Cost of revenues:
 License                                             123          132
 Service                                           1,865          891
Total cost of revenues                             1,988        1,023
Gross profit                                       9,016        9,544
Operating expenses:
 Research and development                          3,255        2,542
 Sales and marketing                               8,869        6,915
 General and administrative                        2,126        1,346
 Amortization of deferred compensation               592          336
Total operating expenses                          14,842       11,139
Loss from operations                              (5,826)      (1,595)
Interest income, net                               1,031        1,055
Loss before income taxes                          (4,795)        (540)
Provision for income taxes                            21          119
Net loss                                          (4,816)        (659)
Basic and diluted loss per share                $   (.20)    $   (.03)
 Shares used in per share calculation -
  basic and diluted                               23,575       22,994

Excluding amortization of deferred compensation:

Net loss                                        $ (4,224)    $   (323)

Diluted loss per share                          $   (.18)    $   (.01)


                             MARIMBA, INC.
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                              (unaudited)

                                                March 31,     Dec. 31,
                                                    2001         2000

ASSETS

 Cash and investments                           $ 65,635     $ 68,675
 Accounts receivable, net                          7,971       12,500
 Property and equipment, net                       5,310        4,274
 Other assets                                      1,305        1,959
                                                $ 80,221     $ 87,408

LIABILITIES AND STOCKHOLDERS' EQUITY

 Accounts payable and other liabilities         $  6,516     $  7,089
 Deferred revenue                                 10,475       13,516
  Total liabilities                               16,991       20,605

  Stockholders' equity                            63,230       66,803
                                                $ 80,221     $ 87,408