SOURCE: Tidal Software

July 31, 2006 06:00 ET

Tidal Software Announces Strong Finish for Fiscal Year 2006

New License Revenue Growth of 62% for Final Quarter Drives Results

PALO ALTO, CA -- (MARKET WIRE) -- July 31, 2006 -- Capping three consecutive years of accelerating growth, Tidal Software, a leading provider of application scheduling and performance management software, today announced a record close to its fiscal 2006 ending June 30, 2006, with new license revenue up 62% compared to the fiscal fourth quarter of the previous year. The quarter was marked not only by financial success, but continued execution on the company's growth plans with delivery of new products and completion of a strategic acquisition.

Performance highlights for the year included top-line sales growth for each quarter culminating in an annual increase of nearly 40% in total sales. Revenue for maintenance increased 23% for the year, reflecting the substantial increase in installed base driven by this year's new license results. Profitability and cash flow continued up from plan, in line with company expectations allowing the company to continue building a strong foundation for FY'07.

"This was a watershed year for Tidal," said Flint Brenton, CEO and President of Tidal Software. "Customer allegiance to our long-term vision to radically simplify IT operations grew strong as demonstrated by increased deployments of our combined scheduling and performance management solution. We have set a solid foundation for growth in 2007 -- our strong year-end finish continues to build on the strength of our balance sheet, and our expanded product portfolio positions Tidal to begin selling broader solutions into the market. Combining scheduling and performance sets the stage for the closed loop feedback that will connect IT operations management into the business process."

According to Mr. Brenton, Tidal's enormous success over the last year means that the Company is well positioned to deliver solutions that cover a broad range of environments. The company's performance management solutions can monitor and manage custom J2EE applications, packaged applications, and most importantly, composite applications comprised of both. The company's products can support IT architectures ranging from client / server, to application servers, to full SOA environments. And by tying performance back to the business process, Tidal's products can provide the foundation to automate the optimized operation of both batch and interactive processes.

In FY'06, customer interest in new methods for simplifying the management of IT operations resulted in increased market traction for the company's performance management product line and continued to drive demand for its combined scheduling and performance management solution introduced earlier in the year. Fourth quarter new customer wins ranged across industries and regions, and included sector giants as well as mid-size organizations, reinforcing the fact that IT demand for products that simplify operations is strong regardless of industry, region, or scale.

New customers included biopharma leader UCB; in healthcare BlueCross BlueShield of Nebraska, Manor Care, University of Connecticut Health Center, and Colorado Access; in financial services Fremont Investment & Loan, Reliance Trust Co., and TT International Investment Mgmt; construction giant CSR Ltd of Australia; in oil and gas Alyeska Pipeline Services; in manufacturing The Timken Company; in education University of Wisconsin; and in government agencies the Canada Pension Plan.

Other fourth quarter achievements include the release of Tidal™ Transaction Analyzer, a new product that captures 100% of SAP transactions and provides self-service reporting for compliance, end user performance, and business process operations. Tidal also strengthened strategic alliances with SAP, Microsoft and HP in FY'06, demonstrating new technologies and capabilities at partner events throughout the year. Results also expedited the extension of Tidal's product portfolio through the recently announced acquisition of Intersperse, a leading provider of monitoring and management solution for service-oriented enterprises. The new offering, in conjunction with Tidal's complete portfolio, will enable customers to easily manage composite applications built of packaged applications and custom J2EE components running in batch and interactive processes.

In FY'07 the company expects to see expansion of its footprint into broader solutions that combine scheduling and performance management in both traditional packaged applications and SOA environments as it continues to expand the coverage of its product suite. The company will continue its investment in international markets and new sales channels which contributed to the results of FY'06 and are expected to have additional impact on FY'07.

About Tidal Software

Tidal Software is a leading provider of advanced application scheduling and performance management software that radically simplify IT operations by automating performance and process management. Tidal provides a unique comprehensive management solution that enables IT organizations to maximize the automation, visibility, and control they have in the operation of their systems, ultimately making applications such as SAP®, PeopleSoft®, and Oracle E-business Suite™, as well as composite solutions consisting of packaged applications and custom SOA-based components more efficient, productive, reliable, and secure, enabling them to return greater business value. Tidal has increased the efficiency of advanced datacenters for global enterprises such as General Mills, HP, Microsoft, T-Mobile, ING Direct, and Warner Brothers. The privately held company is venture-funded by JPMorgan Partners, Kleiner Perkins Caufield & Byers, Novus Ventures and VantagePoint Venture Partners. For more information, contact Tidal Software at (650) 475-4600 or visit the company's web site at www.tidalsoftware.com.

Tidal Software Logo, Tidal Enterprise Scheduler, Tidal Horizon, Tidal Intersperse and Expert-in-a-Box are trademarks of Tidal Software, Inc. All other trademarks are those of their respective owners.