SAN MATEO, CA — October 1, 2003 — Keynote Systems (Nasdaq: KEYN), The Internet Performance Authority®, today named Peter J. Maloney to the position of chief financial officer. Prior to today’s announcement, Mr. Maloney has been Keynote’s vice president of finance. Mr. Maloney’s promotion is the final step in a planned transition announced earlier this year in July, 2003. John Flavio, Keynote’s previous CFO, who joined the company in July 1999, resigned from the CFO position to spend more time with his family. Mr. Flavio will be available to Keynote to sign all year-end reports and certifications when completed, and will provide service to Keynote over the next few months as requested.
“John helped Keynote transition from a private company to a public company, built a strong accounting and financial reporting organization and guided us to six consecutive quarters of positive cash flow with GAAP profitability on the horizon in a difficult economic environment. I thank John very much for his many contributions to Keynote and wish him all the best,” said Umang Gupta, chairman and chief executive officer of Keynote. “Peter has contributed significantly to the success of our finance organization. I welcome him to the position of CFO as together we take Keynote to its next goal of meaningful top-line financial growth and sustained profitability.”
Mr. Flavio said, “I hired Peter two years ago and worked closely with him, and others, to put Keynote on a solid financial footing. This is the perfect time for me to step down and spend some long-awaited time with my family and at some point in the future seek other opportunities to work with emerging private companies looking to take the same types of steps taken by Keynote over the past several years.”
“With John’s careful attention to managing Keynote’s balance sheet and creating a solid, scalable financial infrastructure, Keynote is now well positioned to begin to grow again as the economy picks up,” said Mr. Maloney, Keynote’s new chief financial officer. “I look forward to taking the leadership role and continuing to build a quality finance organization that is positioned to support Keynote’s future.”
Mr. Maloney joined Keynote in January of 2002 as vice president and controller of the company. He became vice president of finance shortly thereafter. Mr. Maloney, 40, is a seasoned executive with 14 years of finance, investor relations and corporate development experience. Prior to joining Keynote, Mr. Maloney was the senior vice president of finance and corporate development at Adaptive Broadband Corporation. Before that he served as vice president of investor relations at Republic Industries. In 1996 he was assistant corporate controller at Dole Food Company and previous to Dole, he was a manager with Arthur Andersen LLP.
Forward-Looking Statements
This press release contains forward-looking statements that are not purely historical regarding the Company or management's intentions, hopes, beliefs, expectations and strategies for the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the Company’s current expectations.
Forward-looking statements in this release include, but are not limited to, forecasts concerning Keynote’s expected financial results and future growth. It is important to note that actual outcomes and Keynote’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as Keynote’s ability to develop and introduce new services in a timely manner and customer acceptance of new services, the extent to which demand for Keynote’s benchmarking services fluctuates and the extent to which revenue from other service lines, including application performance management, can continue to increase, the extent to which existing customers renew their subscriptions and purchase additional services, particularly enterprise customers, pricing pressure with respect to Keynote’s services, competition in Keynote’s market, integration of acquired companies and costs associated with any future acquisitions, Keynote’s ability to keep pace with changes in the Internet infrastructure as well as other technological changes, the success of Keynote’s international operations, economic conditions in the technology market and general economic conditions. Readers should also refer to the risks outlined in Keynote’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended September 30, 2002, and its quarterly reports on Form 10-Q and current reports on Form 8-K filed during the fiscal year.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information available to Keynote as of the date of this press release, and Keynote assumes no obligation to update any such forward-looking statement or reasons why results might differ.
About Keynote
Keynote Systems (Nasdaq: KEYN), The Internet Performance Authority®, is the global leader in Web performance measurement, testing and management services that improve the quality of e-business. Keynote’s services enable corporate enterprises to benchmark, diagnose, test and manage their e-business systems both inside and outside the firewall. Approximately 2,300 corporate IT departments and 15,400 individual subscribers rely on the company's easy-to-use and cost-effective services to optimize revenues and reduce downtime costs without requiring additional complex and costly software implementations.
Keynote Systems, Inc. was founded in 1995 and is headquartered in San Mateo, California. The company can be reached at www.keynote.com or by phone in the U.S. at 650-403-2400.
© 2003 Keynote Systems, Inc. Keynote and The Internet Performance Authority are registered trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners.
Editorial Contact:
Dan Berkowitz, Keynote Systems, Inc., (650) 403-3305, dberkowitz@keynote.com
Investor Relations Contact:
Erin Kasenchak, Keynote Systems, Inc., (650) 403-3314, ekasenchak@keynote.com