Exhibit 7a Salesforce.com, Inc. - Consolidated Statements of Operations (in thousands, except per
share data)
Fiscal Year Ended January 31,
2005 2004
2006
2003
Revenues:
Subscription and support
Professional services and other
Total Revenues
$280,639
29,218
309,857
$157,977
18,398
176,375
$85,796
10,227
96,023
$47,656
3,335
50.991
34,457
34,669
69,126
12,727
20.727
33,454
7,782
9.491
17,273
7,199
3,164
10,363
Cost of revenues:
Subscription and support
Professional services and other
Total Cost of Revenues
Gross profit
Operating expenses:
Research and development
Marketing and sales
General and administrative
Lease abandonment (recovery)
Total Operating Expenses
240,731
142,921
78,750
40,628
23,330
149,598
47.986
(285)
220,629
9,822
96,311
30.268
6,962
54,600
16,915
(3,445)
75,032
4,648
33,522
12,958
136,401
51,128
20,102
7,657
6.520
2,621
(37)
12
3,718
379
(22)
164
(10.500)
471
(77)
98
439
Income from operations
Interest income
Interest expense
Other income (expense)
Income before provision for income taxes and
minority interest
Provision for income taxes
28,198
1,310
9,153
1,217
4,239
541
(10,008)
29,508
(1.034)
7,936
(590)
3,698
(184)
(10,008)
(292)
Income before minority interest
Minority interest in consolidated joint venture
Net income
$28.474
$7,346
$3,514
$(9,716)
Source: Salesforce.com 10-K, March 25, 2005, 2006 data is based on results announced on February 22, 2006.
Exhibit 7b Salesforce.com, Inc. Condensed Consolidated Balance Sheets (in thousands)
January 31, 2005
(unaudited)
January 31, 2006
(unaudited)
$35,731
83,087
48,874
7,556
3,467
$178,715
$99,842
107,723
76,128
13,186
6,338
$303,217
87,120
3.191
7,637
2,057
0
1.779
$280,499
89,227
0
24,216
3,889
10,416
3,784
$434,749
ASSETS
Current assets:
Cash and cash equivalents
Short-term marketable securities
Accounts receivable
Deferred commissions
Prepaid expenses and other current assets
Total Current Assets
Marketable securities, noncurrent
Restricted cash
Fixed assets, net
Deferred commissions, noncurrent
Deferred income taxes, noncurrent
Other assets
Total Assets
LIABILITIES, CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
Accrued expenses and other current liabilities
Income taxes payable
Deferred income tax liabilities
Deferred revenue
Current portion of capital lease obligation
Total Current Liabilities
Capital lease obligations, net of current portion
Long-term lease abandonment liability and other
Minority interest
Total Liabilities
Commitments and contingencies
Convertible preferred stock
Stockholders' Equity (Deficit):
Common stock
Additional paid-in capital
Deferred stock-based compensation
Notes receivables from stockholders
Accumulated other comprehensive income
Accumulated deficit
$2.525
32.467
216
0
95.900
563
$131,671
$10,212
48,782
2,650
3,191
169,175
615
$234,625
721
1,596
1,380
$135,368
184
1,155
2,414
$238,378
105
217.248
(5.908)
(727)
(999)
(64,588)
111
237,010
(2.531)
0
(2,105)
(36,114)
Deferred commissions
Prepaid expenses and other current assets
Total Current Assets
7.556
3.467
$178,715
13,186
6,338
$303,217
87.120
3.191
7,637
2.057
0
1,779
$280,499
89,227
0
24,216
3,889
10,416
3,784
$434,749
$2.525
32.467
216
0
95.900
563
$131,671
$10,212
48,782
2,650
3,191
169,175
615
$234,625
Marketable securities, noncurrent
Restricted cash
Fixed assets, net
Deferred commissions, noncurrent
Deferred income taxes, noncurrent
Other assets
Total Assets
LIABILITIES, CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable
Accrued expenses and other current liabilities
Income taxes payable
Deferred income tax liabilities
Deferred revenue
Current portion of capital lease obligation
Total Current Liabilities
Capital lease obligations, net of current portion
Long-term lease abandonment liability and other
Minority interest
Total Liabilities
Commitments and contingencies
Convertible preferred stock
Stockholders' Equity (Deficit):
Common stock
Additional paid-in capital
Deferred stock-based compensation
Notes receivables from stockholders
Accumulated other comprehensive income
Accumulated deficit
Total Stockholders' Equity (Deficit)
Total Liabilities, Convertible Preferred
Stock and Stockholders' Equity (Deficit)
721
1,596
1,380
$135,368
184
1,155
2,414
$238,378
105
217.248
(5.908)
(727)
(999)
(64,588)
$145,131
111
237,010
(2.531)
0
(2,105)
(36,114)
$196,371
$280,499
$434,749
Source: Salesforce.com 10-K, March 25, 2005, 2006 data based on salesforce.com press release, February 22, 2006.
15
Exhibit 6 Siebel Income Statement (2002-2005)
Year Ended December 31,
2003
2002
2004
2005
Revenues:
Software license
Professional services, maintenance and other
Total revenues
$700,344
934,963
1,635,307
$482,274
871,954
1,354,228
$487,127
852,666
1,339,793
$480,493
948,647
1,429,140
Cost of revenues:
Software license
Professional services, maintenance and other
Total cost of revenues
Gross margin
21,612
542,938
564,550
1,070,757
18,357
490,006
508,363
13,316
443,585
456,901
22,809
478,072
500,881
928,259
845,865
882,892
368,387
478,816
119,783
202,398
310,686
358,318
106,594
102,310
5,312
883,220
(37,355)
299,051
337,690
106,541
6,789
6,000
754.071
128,821
285,941
382,351
107,806
82,629
10,890
1,169,384
(98,627)
869,617
58,642
Operating expenses:
Product development
Sales and marketing
General and administrative
Restructuring and related expenses
Purchased in-process product development
Total operating expenses
Operating income (loss)
Other income, net:
Interest and other income, net
Loss on early extinguishment of debt
Interest expense
Total other income, net
Income (loss) before income taxes
Income tax provision (benefit)
Net income (loss)
58,491
47.765
64,216
(20,016)
38,475
(60,152)
(21,345)
$(38,807)
54,071
(10,711)
(14.927)
28,433
(8.922)
(3.731)
S(5.191)
(1,019)
46,746
175,567
64,899
$110.668
122,858
53,330
$69,528
Source: Siebel Systems, Inc. 10-K, March 11, 2005. 2005 numbers announced January 25, 2006.
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