SOURCE: Callidus Software Inc.

November 27, 2007 20:13 ET

Callidus Software Announces $10 Million Share Repurchase Program and Targeted Initiatives to Reduce Costs

SAN JOSE, CA--(Marketwire - November 27, 2007) - Callidus Software Inc. (NASDAQ: CALD), a leader in Sales Performance Management (SPM), today announced that its board of directors has authorized a stock repurchase program enabling the company to repurchase up to $10 million of Callidus' common stock.

In its efforts to achieve profitability, the company also announced it is implementing a cost savings program to reduce its workforce by approximately 8% as a result of an analysis of the company's internal structure and efficiency. Callidus Software expects to realize annualized savings in excess of $5 million and record a charge of approximately $1.2 million in the fourth quarter for severance and termination related costs.

"We have confidence in our business and are committed to maintaining a prudent capital structure and the flexibility to continue executing on our strategic objectives while creating shareholder value," said Leslie Stretch, president and CEO of Callidus Software. "The cost savings actions are difficult because they affect some of our loyal, talented, and hard-working employees. However, it is important to streamline the company to drive profitable growth at Callidus."

In furtherance of its stock repurchase plan, Callidus Software intends to establish a Rule 10b5-1 plan that would allow it to repurchase shares at times when it would ordinarily not be in the market because of the company's trading policies or the possession of material non-public information. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors. Repurchases may be conducted in the open market or in privately negotiated transactions and the repurchase program may be modified, extended or terminated by the board of directors at any time. There is no guarantee as to the exact number of shares that will be purchased under the stock repurchase program.

Conference Call

A conference call to discuss the recent appointment of Leslie Stretch as president and CEO of Callidus Software and the actions announced today is scheduled for Wednesday, November 28, 2007 at 5:30 a.m. Pacific Time (8:30 a.m. Eastern Time). The conference call will be available via live-webcast at the investor relations section of Callidus' website at To participate in the call by telephone, the dial-in number is 866-510-0708 (international +1-617-597-5377), passcode 59619842.

A webcast replay and telephone playback of the conference call will be available at the investor relations section of Callidus' website under Calendar of Events. The telephone replay will be available for one week by calling 888-286-8010 (international +1-617-801-6888), passcode 57650698.

About Callidus Software®

Callidus Software ( (NASDAQ: CALD) is a leading provider of on-premise and on-demand Sales Performance Management (SPM) solutions to global companies across a broad range of industries. Our software allows innovative enterprises of all sizes to strategically manage incentive compensation, set quota targets, administer producers, and align territories, resulting in improved sales and distribution performance. Over 1.8 million salespeople, brokers, and channel representatives have their sales performance managed by Callidus Software's products.

Forward-Looking Statements

This press release includes certain forward-looking statements including statements regarding repurchase of Callidus' common stock, plans to reduce the company's workforce and the financial implications of the planned reduction. Actual results may differ materially from those in the forward-looking statements. Factors that could affect results include but are not limited to the possibility of unforeseen near-term cash requirements, changes in the trading price of Callidus' common stock, changes in general market, economic or industry conditions impacting the ability or willingness of the company to repurchase stock, or other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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