DGAP-News: Photo Release — Jive Software Announces Fourth Quarter and Full Year 2011 Financial Results

Jive Software

07.02.2012 22:11
—————————————————————————

— Record Total Revenue

— 4Q total revenue of $22.5 million, up 53% year-over-year
— 2011 total revenue of $77.3 million, up 67% year-over-year

— Record Billings

— 4Q total billings of $36.0 million, up 40% year-over-year
— 2011 total billings of $104.9 million, up 46% year-over-year

— Completion of IPO contributes to a $180.6 million cash balance at end of
2011

PALO ALTO, Calif., 2012-02-07 22:02 CET (GLOBE NEWSWIRE) — Jive Software, Inc.
(Nasdaq:JIVE), today announced financial results for its fourth quarter and
full year ended December 31, 2011.

A photo accompanying this release is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11591

–We are thrilled to announce record financial results for the quarter, which
represented a strong finish to a remarkable year,– stated Tony Zingale,
Chairman&CEO of Jive. –Jive is increasingly being adopted by large global
organizations that are investing in social business to change the way work gets
done. During the fourth quarter, we had a record number of wins with an annual
subscription value of $1 million or greater, and more than doubled the average
annual deal size for new relationships during 2011.–

Zingale added, –The completion of Jive–s IPO was a milestone event for us as we
became the first publicly traded social business software pure play. Jive is
well-positioned to execute on our growth strategy and capitalize on our
leadership position in this rapidly growing, multi-billion dollar market.–

Fourth Quarter 2011 Financial Highlights

— Revenue: Total revenue for the fourth quarter was $22.5 million, an
increase of 53% on a year-over-year basis. Within total revenue, product
revenue was $19.2 million for the fourth quarter, an increase of 61% on a
year-over-year basis. Professional Services revenue for the fourth quarter
was $3.3 million, an increase of 21% on a year-over-year basis.
— Non-GAAP Billings: Total billings, which the company defines as revenue
plus the change in total deferred revenue, were $36.0 million for the
fourth quarter, an increase of 40% on a year-over-year basis.
— Gross Profit: GAAP gross profit for the fourth quarter was $12.6 million,
compared to $8.5 million for the fourth quarter of 2010. Non-GAAP gross
profit was $13.5 million for the fourth quarter, representing a
year-over-year increase of 57% and a non-GAAP gross margin of 60%.
— Loss from Operations: GAAP loss from operations for the fourth quarter was
$11.9 million,compared to a loss of $6.4 million for the fourth quarter of
2010. Non-GAAP loss from operations was $8.3 million, compared to a loss of
$5.6 million for the fourth quarter of 2010.
— Net Loss: GAAP net loss for the fourth quarter was $12.7 million, compared
to a net loss of $6.8 million for the same period last year. GAAP net loss
per share for the fourth quarter was $0.39 based on 32.5 million
weighted-average shares outstanding, compared to a loss per share of $0.30
based on 22.7 million weighted-average shares outstanding for the same
period last year.

Non-GAAP net loss for the fourth quarter was $9.1 million, compared to a net
loss of $5.7 million for the same period last year. Non-GAAP net loss per share
for the fourth quarter was $0.28 based on 32.5 million weighted-average shares
outstanding, compared to net a loss per share of $0.25 based on 22.7 million
weighted-average shares outstanding for the same period last year.

— Balance Sheet and Cash Flow: As of December 31, 2011, Jive had cash and
cash equivalents of $180.6 million, an increase from $72.6 million at the
end of the third quarter. The increase in cash was due to the company–s
initial public offering, which priced on December 12, 2011 and generated
net proceeds of $131.4 million. The company used $19.9 million of the net
proceeds to pay down outstanding debt.
The company used $2.4 million in cash from operations and invested $4.0
million in capital expenditures, leading to free cash flow of ($6.4)
million for the fourth quarter. Free cash flow was ($0.1) million for the
fourth quarter of 2010.

A reconciliation of GAAP to non-GAAP financial measures has been provided in
the financial statement tables included in this press release. An explanation
of these measures is also included below under the heading –Non-GAAP Financial
Measures.–

Fourth Quarter and Recent Business Highlights

— Signed new and expanded customer relationships including ACE Group,
PricewaterhouseCoopers LLP/UK, SAP and Thomson Reuters among others;
— Successful initial public offering raised $131.4 million in net proceeds
through the sale of 12,088,403 shares of Jive–s common stock;
— Hosted over 1,000 customers and partners at JiveWorld11, the industry
leading social business customer event. Attendance was at a record level
and increased over 60% from last year–s event;
— Expanded relationships with leading global system integrators Accenture,
CapGemini and Hewlett-Packard;
— Continued to aggressively expand the capabilities of the market leading
Jive 5 platform, including new releases of HTML 5-based Jive Mobile, Jive
Connect for Outlook and Jive Fathom, Jive–s fully integrated social media
monitoring solution.

Full Year 2011 Financial Highlights

— Revenue: Total revenue was $77.3 million for fiscal 2011, an increase of
67% on a year-over-year basis. Within total revenue, product revenue was
$65.3 million for fiscal 2011, an increase of 73% on a year-over-year
basis. Professional Services revenue for fiscal 2011 was $12.0 million, an
increase of 42% on a year-over-year basis.
— Non-GAAP Billings: Total billings, which the company defines as revenue
plus the change in total deferred revenue, were $104.9 million for fiscal
2011, an increase of 46% on a year-over-year basis.
— Gross Profit: GAAP gross profit was $43.0 million for fiscal 2011, compared
to $26.6 million for fiscal 2010. Non-GAAP gross profit was $45.3 million
for fiscal 2011, representing a year-over-year increase of 68% and a
non-GAAP gross margin of 59%.
— Loss from Operations: GAAP loss from operations was $45.7 million for
fiscal 2011, compared to a loss of $27.1 million for fiscal 2010. Non-GAAP
loss from operations was $32.2 million for fiscal 2011, compared to a loss
of $23.4 million for fiscal 2010.
— Net Loss: GAAP net loss for fiscal 2011 was $50.8 million, compared to a
$27.6 million net loss for fiscal 2010. GAAP net loss per share for fiscal
2011 was $1.95 based on 26.1 million weighted-average shares outstanding,
compared to a loss per share of $1.25 based on 22.1 million
weighted-average shares outstanding for fiscal 2010.

Non-GAAP net loss for fiscal 2011 was $33.9 million, compared to a $23.7
million net loss for fiscal 2010. Non-GAAP net loss per share for fiscal 2011
was $1.30, based on 26.1 million weighted-average shares outstanding, compared
to a loss per share of $1.07 based on 22.1 million weighted-average shares
outstanding for fiscal 2010.

— Cash Flow: The company used $9.5 million in cash from operations and
invested $9.8 million in capital expenditures, leading to free cash flow of
($19.3) million for fiscal 2011. Free cash flow was ($12.0) million for
fiscal 2010.

A reconciliation of GAAP to non-GAAP financial measures has been provided in
the financial statement tables included in this press release. An explanation
of these measures is also included below under the heading –Non-GAAP Financial
Measures.–

Financial Outlook

As of February 7, 2012, Jive is initiating guidance for its first quarter and
full year 2012 as follows:

— First Quarter 2012 Guidance: Total revenue is expected to be in the range
of $23.5 million to $24.5 million. Non-GAAP loss from operations is
expected to be in the range of $7.0 million to $7.5 million. Non-GAAP loss
per share is expected to be in the range of $0.13 to $0.14 based on
approximately 61.4 million weighted-average diluted shares outstanding.
— Full Year 2012 Guidance: Total revenue is expected to be in the range of
$108.0 million to $112.0 million. Non-GAAP loss from operations is expected
to be in the range of $23.0 million to $25.0 million. Non-GAAP loss per
share is expected to be in the range of $0.40 to $0.45 based on
approximately 61.7 million weighted-average diluted shares outstanding.
Free cash flow is expected to be in the range of ($5.0) million to ($7.0)
million.

With respect to the Company–s expectations under –Financial Outlook– above, the
Company has not reconciled non-GAAP loss from operations or non-GAAP loss per
share to GAAP loss from operations and GAAP loss per share because the Company
does not provide guidance for stock-based compensation, income taxes or
amortization of intangible assets, which are reconciling items between those
Non-GAAP and GAAP measures. As items that impact loss from operations and loss
per share are out of the Company–s control and/or cannot be reasonably
predicted, the Company is unable to provide such guidance. Accordingly, a
reconciliation to loss from operations and loss per share is not available
without unreasonable effort.

Quarterly Conference Call

Jive will host a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to review
the Company–s financial results for the fourth quarter and full year 2011, in
addition to discussing the company–s outlook for the first quarter and full
year 2012. To access this call, dial (877) 545-1415 (domestic) or (719)
785-9448 (international) with conference ID #2117974. A live webcast of the
conference call will be accessible from the Investor Relations section of
Jive–s website at http://investors.jivesoftware.com/ and a replay will be
archived and accessible at: http://investors.jivesoftware.com/events.cfm. A
replay of this conference call can also be accessed through February 21, 2012,
by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The
replay passcode is 2117974.

About Jive Software

Jive Software (Nasdaq:JIVE) is a leading global Social Business company. We
bring social technology innovations from the consumer world into enterprises
securely and at scale, changing the way work gets done. Our platform combines
the power of big data, enterprise integrations and social collaboration
technologies. Millions of people at the world–s largest companies are using
Jive-powered communities internally and externally to transform their
businesses.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in this release.
Generally, a non-GAAP financial measure is a numerical measure of a company–s
performance, financial position or cash flows that either excludes or includes
amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with generally
accepted accounting principles.

Non-GAAP operating loss, net loss and net loss per share exclude stock-based
compensation expenses, non-recurring expenses related to acquisitions,
amortization of acquisition related intangible assets, and changes in fair
value of warrant liabilities. Total billings is defined by the company as
revenue plus the change in total deferred revenue. Management presents these
non-GAAP financial measures because it considers them to be important
supplemental measures of performance. Management uses the non-GAAP financial
measures for planning purposes, including analysis of the Company–s performance
against prior periods, the preparation of operating budgets and to determine
appropriate levels of operating and capital investments. Management also
believes that the non-GAAP financial measures provide additional insight for
analysts and investors in evaluating the Company–s financial and operational
performance. However, these non-GAAP financial measures have limitations as an
analytical tool and are not intended to be an alternative to financial measures
prepared in accordance with GAAP. We intend to provide these non-GAAP financial
measures as part of our future earnings discussions and, therefore, the
inclusion of these non-GAAP financial measures will provide consistency in our
financial reporting. A reconciliation of these non-GAAP measures to GAAP is
provided in the accompanying tables.

Safe Harbor Statement

–Safe Harbor– statement under Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements, including statements
concerning our financial guidance for the first fiscal quarter of 2012 and the
full year of 2012, our position to execute on our growth strategy, and our
ability to capitalize on our leadership position in the social business market.
The achievement of success of the matters covered by such forward-looking
statements involve substantial risks, uncertainties and assumptions. If any
such risks or uncertainties materialize or if any of the assumptions prove
incorrect, our results or events could differ materially from the results
expressed or implied by the forward-looking statements we make.

The risk and uncertainties referred to above include, but are not limited to,
risks associated with our limited operating history; expectations regarding the
widespread adoption of social business software by enterprises; uncertainty
regarding the market for social business software; changes in the competitive
dynamics of our market, our ability to increase and predict new subscription,
subscription renewal or upsell rates and the impact these rates may have on our
future revenues; our reliance on third-party service providers to host some of
our products; the risk that our security measures could be breached and
unauthorized access to customer data could be obtained; potential third party
intellectual property infringement claims; and the price volatility of our
common stock.

More information about potential factors that could affect our business and
financial results is contained in our prospectus as filed with the Securities
and Exchange Commission. Additional information will also be set forth in our
quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings
that we make with the Securities and Exchange Commission. We do not intend and
undertake no duty to release publicly any updates or revisions to any
forward-looking statements contained herein.

The photo is also available at Newscom, www.newscom.com, and via AP
PhotoExpress.

JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 20112010
———————————————-

Revenues:
Product $ 19,173 $ 11,903 $ 65,265 $ 37,827
Professional services 3,341 2,769 12,020 8,441
———————————————-
Total revenues 22,514 14,672 77,285 46,268

Cost of revenues:
Product 6,481 3,226 21,689 9,870
Professional services 3,450 2,959 12,596 9,836
———————————————-
Total cost of revenues 9,931 6,185 34,285 19,706
———————————————-
Gross profit 12,583 8,487 43,000 26,562

Operating expenses:
Research and development 7,775 5,401 31,095 18,278
Sales and marketing 13,037 8,082 44,794 28,592
General and administrative 3,675 1,448 12,795 6,746
———————————————-
Total operating expenses 24,487 14,931 88,684 53,616
———————————————-

Loss from operations (11,904) (6,444) (45,684) (27,054)

Other income (expense), net:
Interest income 4 23 40 82
Interest expense (812) (85) (1,735) (264)
Change in fair value of warrant — (188) (7,185) (222)
liability
Other, net (7) (44) (3) (91)
———————————————-
Total other income (expense), (815) (294) (8,883) (495)
net
———————————————-

Loss before provision for (12,719) (6,738) (54,567) (27,549)
(benefit from) income taxes
Provision for (benefit from) (53) 27 (3,763) 91
income taxes
———————————————-
Net loss $ (12,666) $ (6,765) $ (50,804) $ (27,640)
==============================================

Basic and diluted net loss per $ (0.39) $ (0.30) $ (1.95) $ (1.25)
share
==============================================

Shares used in basic and diluted 32,490 22,745 26,071 22,096
per share calculations==============================================

JIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)

December 31,
——————–
2011 2010
——————–
Assets

Current assets:
Cash and cash equivalents $ 180,649 $ 43,348
Accounts receivable, net 31,999 20,344
Prepaid expenses and other current assets 4,503 3,031
——————–
Total current assets 217,151 66,723

Property and equipment, net 12,639 6,771
Goodwill 17,265 831
Intangible assets, net 11,141 2,807
Other assets 146 408
——————–
Total assets $ 258,342 $ 77,540
====================

Liabilities, Redeemable Convertible Preferred Stock and Stockholders– Equity
(Deficit)

Current liabilities:
Accounts payable $ 4,566 $ 2,458
Accrued payroll and related liabilities 6,629 3,706
Accrued sales and use tax 1,268 923
Other accrued liabilities 3,856 2,944
Deferred revenue, current 62,329 37,034
Warrants on preferred stock — 264
Revolving credit facility — 3,533
Term debt, current 2,946 1,806
——————–
Total current liabilities 81,594 52,668

Deferred revenue, less current portion 15,497 13,161
Term debt, less current portion 10,192 3,909
Other long-term liabilities 340 276
——————–
Total liabilities 107,623 70,014

Redeemable and convertible preferred stock:Series A preferred stock, $0.0001 par value, liquidation — 15,381
preference $0 and $15.4 million. Authorized 10,100,000
shares; issued and outstanding 0 and 10,100,000 shares at
December 31, 2011 and 2010
Series B preferred stock, $0.0001 par value, liquidation — 12,252
preference $0 and $12.3 million. Authorized 3,335,817
shares; issued and outstanding 0 and 3,335,817 shares at
December 31, 2011 and 2010
Series C preferred stock, $0.0001 par value, liquidation — 29,928
preference $0 and $30.0 million. Authorized 9,646,550
shares; issued and outstanding 0 and 5,787,930 shares at
December 31, 2011 and 2010
——————–
— 57,561
Commitments and contingencies

Stockholders– equity (deficit):
Common stock, $0.0001 par value. Authorized – 290,000,000 7 3
shares; issued – 68,568,778 shares at December 31, 2011
and 29,525,886 shares at December 31, 2010; outstanding –
61,308,006 at December 31, 2011 and 22,881,335 at
December 31, 2010
Less treasury stock at cost (3,352) (3,352)
Additional paid-in capital 258,779 7,216
Accumulated deficit (104,725) (53,921)
Accumulated other comprehensive income 10 19
——————–
Total stockholders– equity (deficit) 150,719 (50,035)
——————–
Total liabilities, redeemable and convertible preferred $ 258,342 $ 77,540
stock and stockholders– equity (deficit)
====================

JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Cash flows from operating
activities:
Net loss $ (12,666) $ (6,765) $ (50,804) $ (27,640)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 2,104602 7,211 1,678
Stock-based compensation 2,898 794 10,422 3,404
Change in fair value of warrant — 189 7,185 222
liability
Change in deferred taxes — — (3,851) —
Gain on sale of property and (2) — (2) —
equipment
(Increase) decrease, net of
acquisitions, in:
Accounts receivable, net (7,219) (2,943) (11,655) (11,987)
Prepaid expenses and other (271) (331) (844) (1,765)
assets
Increase (decrease), net of
acquisitions, in:
Accounts payable (1,588) (1,519) 1,682 (1,551)
Accrued payroll and related 1,721 739 2,857 2,260
liabilities
Other accrued liabilities (934) (227) 623 2,520
Deferred revenue 13,522 11,332 27,606 25,578
Other long-term liabilities — 27 64 52
———————————————-
Net cash provided by (used (2,435) 1,898 (9,506) (7,229)
in) operating activities

Cash flows from investing
activities:
Payments for purchase of (3,977) (2,036) (9,814) (4,782)
property and equipment
Increase in restricted cash (132) — (132) —
Payments for purchase of — — — (2,150)
intangible assets
Acquisitions, net of cash — — (22,892) (650)
acquired
———————————————-
Net cash used in investing (4,109) (2,036) (32,838) (7,582)
activities

Cash flows from financing
activities:
Proceeds from exercise of stock 1,409 136 3,416 985
options and restricted stock
Proceeds from initial public 133,050 — 132,486 —
offering, net
Proceeds from issuance of — (12) 40,000 29,928
preferred stock, net
Proceeds from issuance of — — — 42
warrants on preferred stock
Proceeds from revolving credit (4,048) — (3,533) 2,000
facility, net
Proceeds from term loans — 2,724 24,203 4,340
Repayments of term loans (15,823) (566) (16,927) (1,214)———————————————-
Net cash provided by 114,588 2,282 179,645 36,081
financing activities
———————————————-

Net increase in cash and cash 108,044 2,144 137,301 21,270
equivalents

Cash and cash equivalents, 72,605 41,204 43,348 22,078
beginning of period
———————————————-
Cash and cash equivalents, end of $180,649 $ 43,348 $ 180,649 $ 43,348
period
==============================================

JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Gross profit, as reported $ 12,583 $ 8,487 $ 43,000 $ 26,562
Add back:
Stock-based compensation 234 53 544 158
Amortization related to 664 66 1,738 264
acquisitions
———————————————-
Gross profit, non-GAAP $ 13,481 $ 8,606 $ 45,282 $ 26,984
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Research and development, as $ 7,775 $ 5,401 $ 31,095 $ 18,278
reported
less:
Stock-based compensation 880 203 2,644 528
Amortization related to — — 1,031 3
acquisitions
Non-recurring acquisition — — 333 —
expense
———————————————-
Research and development, $ 6,895 $ 5,198 $ 27,087 $ 17,747
non-GAAP
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Sales and marketing, as $ 13,037 $ 8,082 $ 44,794 $ 28,592
reported
less:
Stock-based compensation 683 278 3,918 822
———————————————-
Sales and marketing, non-GAAP $ 12,354 $ 7,804 $ 40,876 $ 27,770
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

General and administrative, as $ 3,675 $ 1,448 $ 12,795 $ 6,746
reported
less:
Stock-based compensation 1,101 260 3,316 1,896
———————————————-
General and administrative, $ 2,574 $ 1,188 $ 9,479 $ 4,850
non-GAAP
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Loss from operations, as reported $ (11,904) $ (6,444) $ (45,684) $ (27,054)
Add back:
Stock-based compensation 2,898 794 10,422 3,404
Amortization related to 664 66 2,769 267
acquisitions
Non-recurring acquisition — — 333 —
expense
———————————————-
Loss from operations, non-GAAP $ (8,342) $ (5,584) $ (32,160) $ (23,383)
==============================================

Quarter Ended Year Ended DecemberDecember 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Loss before provision for $ (12,719) $ (6,738) $ (54,567) $ (27,549)
(benefit from) income taxes, as
reported
Add back:
Stock-based compensation 2,898 794 10,422 3,404
Amortization related to 664 66 2,769 267
acquisitions
Non-recurring acquisition — — 333 —
expense
Change in fair value of warrant — 189 7,185 222
liability
———————————————-
Loss before provision for $ (9,157) $ (5,689) $ (33,858) $ (23,656)
(benefit from) income taxes,
non-GAAP
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Net loss, as reported $ (12,666) $ (6,765) $ (50,804) $ (27,640)
Add back:
Stock-based compensation 2,898 794 10,422 3,404
Amortization related to 664 66 2,769 267
acquisitions
Non-recurring acquisition — — 333 —
expense
Change in fair value of warrant — 189 7,185 222
liability
Tax benefit related to — — (3,851) —
acquisition of OffiSync
———————————————-
Net loss, non-GAAP $ (9,104) $ (5,716) $ (33,946) $ (23,747)
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Basic and diluted net loss per $ (0.39) $ (0.30) $ (1.95) $ (1.25)
share, as reportedAdd back:
Stock-based compensation 0.09 0.03 0.40 0.15
Amortization related to 0.02 0.00 0.11 0.01
acquisitions
Non-recurring acquisition 0.00 0.00 0.01 0.00
expense
Change in fair value of warrant 0.00 0.01 0.28 0.01
liability
Tax benefit related to 0.00 0.00 (0.15) 0.00
acquisition of OffiSync
———————————————-
Basic and diluted net loss per $ (0.28) $ (0.25) $ (1.30) $ (1.07)
share, non-GAAP
==============================================

Quarter Ended Year Ended December
December 31, 31,
———————————————-
2011 2010 2011 2010
———————————————-

Total revenues $ 22,514 $ 14,672 $ 77,285 $ 46,268
Deferred revenue, end of period 77,826 50,195 77,826 50,195
Less: Deferred revenue, beginning (64,304) (39,035) (50,195) (24,617)
of period
———————————————-
Billings $ 36,036 $ 25,832 $ 104,916 $ 71,846
==============================================

CONTACT: Investor Contact:
Katharine O–Brien
ICR
(646) 277-1217
katharine.obrien@icrinc.com

Media Contact:
Ana Andreescu
(650) 319-1975
ana.andreescu@jivesoftware.com
News Source: NASDAQ OMX

07.02.2012 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
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—————————————————————————

Language: English
Company: Jive Software

United States
Phone:
Fax:
E-mail:
Internet:
WKN:

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