##### 



Exhibit 99.1
 
 Investor Contact:
    
    Press Contact:Rosemary Moothart
    
    Robert CraigDirector
of Investor Relations
    
    Director of Public Relations+1-425-519-4068
    
    +1-617-314-6846rosemarym@onyx.com
    
    pr@onyx.com
 Onyx Software Reports Q4 and 2005 Results  26% Year Over Year License Revenue Growth
 BELLEVUE, WA  Feb. 14, 2006  ®
 2005 Fourth Quarter
      Business Summary




---



##### 



2005 Financial Summary
   Recent Highlights
 
    
    Onyx introduced Onyx Process Manager 5.1 with new and enhanced features including
Process Cloning, Process Migration, enhanced Service Level Agreement (SLA) enforcement and
support for Onyx Process Manager in international markets.
    
    During the fourth quarter, Onyx added two new partners to its Global Alliance Program.
Metric One, a provider of CRM implementation and development services, joined in October.
WCI Consulting, a business intelligence and systems integration solutions provider, became
an Onyx Global Alliance Partner in December to provide complete customer management and
analytics solutions in Onyxs key market segments  financial services, insurance, health
care, government, and business and customer services companies.
    
    Onyx initiated the Onyx Migration program for Siebel, PeopleSoft, J.D. Edwards or
Vantive CRM systems customers and secured its first major sale, to a large international
life insurance company that selected Onyx to support its ongoing Customer Relationship
Management (CRM) strategy and business growth, replacing a Siebel implementation.




---



##### 



Business Outlook
  Onyx Software Conference Call
  www.onyx.com www.earnings.com ,
 About Onyx Software
  Forward-Looking Statement
 This press release contains forward-looking statements, including statements about the
potential benefits of our products and services and our expectations for future financial
performance and growth. Forward-looking statements are based on the opinions and estimates of
management at the time the statements are made and are subject to risks and uncertainties that
could cause actual results to differ materially from those anticipated in the forward-looking
statements. The words predict, believe, expect, intend, anticipate, variations of such
words, and similar expressions identify forward-looking statements, but their absence does not mean
that the statement is not forward-looking. These statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions that are difficult to predict.
Factors that could affect Onyxs actual results include, but are not limited to, the success of our
ongoing marketing programs, our ability to generate sufficient sales pipeline, our sales
effectiveness, our ability to control expenses, our ability to retain customers on our maintenance
and product support program, the expansion of our partner network and the ability of these partners
to effectively sell our products and the Important Factors That May Affect Our Business, Our
Results of Operations and Our Stock Price described in our quarterly report on form 10-Q for the
period ended September 30, 2005. Readers are cautioned not to place undue reliance upon these
forward-looking statements that speak only as to the date of this release. Onyx undertakes no
obligation to update publicly any forward-looking statements to reflect new information, events or
circumstances after the date of this release or to reflect the occurrence of unanticipated events.
 (more)




---



##### 








---



##### 



Onyx Software Corporation
Condensed Consolidated Statements of Operations
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004RevenueLicense
    
    $
    4,682
    
    
    $
    4,087
    
    
    $
    17,224
    
    
    $
    13,666Service
    
    
    10,710
    
    
    
    10,837
    
    
    
    43,173
    
    
    
    43,968Total revenue
    
    
    15,392
    
    
    
    14,924
    
    
    
    60,397
    
    
    
    57,634Costs of revenueCost of license
    
    
    417
    
    
    
    371
    
    
    
    1,579
    
    
    
    984Amortization of acquired technology
    
    
    256
    
    
    
    
    
    
    
    1,024
    
    
    
    Cost of service
    
    
    4,561
    
    
    
    4,969
    
    
    
    17,876
    
    
    
    18,614Total cost of revenue
    
    
    5,234
    
    
    
    5,340
    
    
    
    20,479
    
    
    
    19,598Gross margin
    
    
    10,158
    
    
    
    9,584
    
    
    
    39,918
    
    
    
    38,036Operating ExpensesSales and marketing
    
    
    4,875
    
    
    
    5,017
    
    
    
    19,261
    
    
    
    19,354Research and development
    
    
    2,405
    
    
    
    2,640
    
    
    
    9,813
    
    
    
    10,613General and administrative
    
    
    2,725
    
    
    
    2,239
    
    
    
    9,956
    
    
    
    8,600Restructuring and other-related charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    442Amortization of other acquisition-related intangibles
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    627Severance Charges
    
    
    
    
    
    
    996
    
    
    
    
    
    
    
    996Total operating expenses
    
    
    10,005
    
    
    
    10,892
    
    
    
    39,030
    
    
    
    40,632Operating income (loss)
    
    
    153
    
    
    
    (1,308
    )
    
    
    888
    
    
    
    (2,596
    )Other income (expense), net
    
    
    76
    
    
    
    15
    
    
    
    107
    
    
    
    (340
    )Investment losses and impairment
    
    
    
    
    
    
    (403
    )
    
    
    
    
    
    
    (403
    )Change in fair value of outstanding warrants
    
    
    
    
    
    
    199
    
    
    
    (2
    )
    
    
    513Income (loss) before income taxes
    
    
    229
    
    
    
    (1,497
    )
    
    
    993
    
    
    
    (2,826
    )Income tax provision (benefit)
    
    
    372
    
    
    
    (145
    )
    
    
    108
    
    
    
    (57
    )Minority interest in consolidated subsidiary
    
    
    
    
    
    
    50
    
    
    
    (106
    )
    
    
    (15
    )Net income (loss)
    
    $
    (143
    )
    
    $
    (1,402
    )
    
    $
    991
    
    
    $
    (2,754
    )Basic and diluted net income (loss) per share
    
    $
    (0.01
    )
    
    $
    (0.10
    )
    
    $
    0.06
    
    
    $
    (0.19
    )Shares used in computation of basic net income
(loss) per share
    
    
    17,967
    
    
    
    14,554
    
    
    
    16,725
    
    
    
    14,364Shares used in computation of diluted net income
(loss) per share
    
    
    17,967
    
    
    
    14,554
    
    
    
    16,846
    
    
    
    14,364




---



##### 



Onyx Software Corporation
Supplemental Non-GAAP Information:
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Operating income (loss)
    
    $
    153
    
    
    $
    (1,308
    )
    
    $
    888
    
    
    $
    (2,596
    )Adjustments to reconcile operating income
(loss) in the financial statements to non-GAAP
operating income (loss):Restructuring and other-related chargesFacilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    155Severance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    287Total restructuring and other-related charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    442Amortization of acquired technology
    
    
    256
    
    
    
    
    
    
    
    1,024
    
    
    
    Amortization of other acquisition-related intangibles
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    627Severance
    
    
    
    
    
    
    996
    
    
    
    
    
    
    
    996Non-GAAP operating income (loss)
    
    $
    409
    
    
    $
    (312
    )
    
    $
    1,912
    
    
    $
    (531
    )Net income (loss)
    
    $
    (143
    )
    
    $
    (1,402
    )
    
    $
    991
    
    
    $
    (2,754
    )Adjustments to reconcile net income (loss) in the
financial statements to non-GAAP net income (loss):Restructuring and other-related chargesFacilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    155Severance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    287Total restructuring and other-related charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    442Amortization of acquired technology
    
    
    256
    
    
    
    
    
    
    
    1,024
    
    
    
    Amortization of other acquisition-related intangiblesIntangibles
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    627Severance
    
    
    
    
    
    
    996
    
    
    
    
    
    
    
    996Investment losses and impairment
    
    
    
    
    
    
    403
    
    
    
    
    
    
    
    403Change in fair value of outstanding warrants
    
    
    
    
    
    
    (199
    )
    
    
    2
    
    
    
    (513
    )Deferred income tax associated with acquisitions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (213
    )Non-GAAP net income (loss)
    
    $
    113
    
    
    $
    (202
    )
    
    $
    2,017
    
    
    $
    (1,012
    )Non-GAAP basic and diluted net income (loss)
per share
    
    $
    0.01
    
    
    $
    (0.01
    )
    
    $
    0.12
    
    
    $
    (0.07
    )Shares used in computation of non-GAAP basic
net income (loss) per share
    
    
    17,967
    
    
    
    14,554
    
    
    
    16,725
    
    
    
    14,317Shares used in computation of non-GAAP diluted
net income (loss) per share
    
    
    18,126
    
    
    
    14,554
    
    
    
    16,846
    
    
    
    14,317




---



##### 



December 31,
    
    
    December 31,2005
    
    
    2004AssetsCurrent Assets:Cash and cash equivalents
    
    $
    21,574
    
    
    $
    14,393Accounts receivable, net
    
    
    11,533
    
    
    
    10,509Prepaid expenses and other current assets
    
    
    2,015
    
    
    
    1,968Current deferred tax asset
    
    
    
    
    
    
    89Total current assets
    
    
    35,122
    
    
    
    26,959Property and equipment, net
    
    
    2,709
    
    
    
    3,711Purchased technology, net
    
    
    3,071
    
    
    
    4,095Goodwill, net
    
    
    9,204
    
    
    
    10,306Deferred tax asset
    
    
    
    
    
    
    35Other assets
    
    
    556
    
    
    
    450Total Assets
    
    $
    50,662
    
    
    $
    45,556Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    2,054
    
    
    $
    1,205Salary and benefits payable
    
    
    1,760
    
    
    
    1,937Accrued liabilities
    
    
    3,118
    
    
    
    2,453Income taxes payable
    
    
    87
    
    
    
    217Current portion of restructuring-related liabilities
    
    
    208
    
    
    
    731Current portion of term loan
    
    
    167
    
    
    
    167Deferred revenue
    
    
    15,211
    
    
    
    17,050Total current liabilities
    
    
    22,605
    
    
    
    23,760Long-term deferred revenue
    
    
    1,032
    
    
    
    1,923Long-term restructuring-related liabilities  warrants
    
    
    
    
    
    
    52Long-term purchased technology obligation
    
    
    908
    
    
    
    1,842Long-term deferred rent
    
    
    639
    
    
    
    914Term loan
    
    
    56
    
    
    
    222Minority interest in joint venture
    
    
    
    
    
    
    106Shareholders EquityCommon stock
    
    
    154,277
    
    
    
    144,736Accumulated deficit
    
    
    (129,978
    )
    
    
    (130,969
    )Accumulated other comprehensive income
    
    
    1,123
    
    
    
    2,970Total shareholders equity
    
    
    25,422
    
    
    
    16,737Total Liabilities and Shareholders Equity
    
    $
    50,662
    
    
    $
    45,556