Some recapping since no one is in here lately and this stock is heading to the B2B MOON!
Descartes Reports Record E-Commerce Revenues in
Third Quarter
Revenues Reach $10.5 Million E-Commerce Revenues exceed 80% Of License Revenues
WATERLOO, Ontario--(BUSINESS WIRE)--Nov. 30, 1999--The Descartes Systems Group Inc. (NASDAQ:DSGX -
news), (TSE:DSG - news), a leading provider of business-to-business e-commerce solutions, today announced its fiscal 2000
third-quarter results for the period ended October 31, 1999. All dollar amounts are expressed in US currency and are reported
in accordance with United States generally accepted accounting principles (US GAAP).
Revenues for the third quarter of fiscal 2000 (Q3 FY00) reached $10.5 Million up 7% from revenues of $9.8 Million in the
second quarter of this fiscal year (Q2 FY00). License revenues increased to $4.8 Million in Q3 FY00 up 27% from $3.8
Million in Q2 FY00. In addition, license revenues from e-commerce increased to over 80% of license revenues in Q3 FY00 up
from 60% of license revenues in Q2 FY00. Gross margins increased to 52% of revenues in Q3 FY00 from 38% of revenues in
Q2 FY00. Net loss for the quarter was $4 million or ($0.11) per share compared with a net loss of $6.5 Million or ($0.18) per
share in Q2 FY00.
The company had net cash and marketable securities at the end of the quarter of $14.9 Million.
''We are pleased to report on our success in the B2B e-Commerce marketplace this quarter,'' said Peter Schwartz, Descartes'
Chairman and CEO. ''Our continued growth in e-commerce revenue and our momentum in emerging e-fulfillment areas like
home delivery and Internet-empowered third-party logistics evidence that we are doing a good job of executing on this
exploding market opportunity.''
''Increased sales activity among e-business start-ups and companies undergoing e-business transformations validates our
leading position in Internet fulfillment,'' continued Mr. Schwartz. ''We are excited to announce we are building DeliveryNets
with new customers such as Peapod, the largest U.S. Internet home grocer; Virtual Supply Logistics, an innovative e-business
retail fulfillment company in Australia (see press release today); and TNT, a global provider of express and logistics services.''
''At the moment, there is a lot of attention on Internet trade such as e-procurement and online marketplaces. We view the
success of Internet trade as a strong leading indicator for an equally powerful Internet logistics market - logistics follows trade.
We feel that with our early wins, together with our innovative success-based pricing strategy, we are well positioned to
capitalize on this market demand.'' Schwartz concluded.
Third Quarter Events
At Descartes' e-business launch on September 8 in Boston, the company introduced a portfolio of new e-business solutions,
called DeliveryNets, in response to the market's demand for high-performance customer fulfillment networks. Descartes
announced four industry-tailored DeliveryNet solutions for each of the direct store delivery and consumer packaged goods
industry; the field service management industry; the home delivery and consumer direct industry; and the third party logistics and
transportation industry. At the e-business launch, top executives from Descartes customers spoke on how they were using
DeliveryNet solutions to:
-- Create new e-businesses that offer Internet-based fulfillment
optimization services.
-- Create new, hosted outsourcing offerings to provide virtual
logistics services.
-- Optimize the final frontier of the supply chain - delivering
groceries and other products directly to consumers' homes.
-- Transform collaborative business processes between the retailer,
the manufacturer and the distributor to grow sales and increase
product availability for consumers.
In October, Descartes customers, prospects and partners met in Atlanta for Momentum 99, Descartes' annual user conference.
The conference, which had record-breaking attendance and partner support, focused on how companies can use DeliveryNets
to lower fulfilment costs, increase customer satisfaction and create new revenue-generating products and services.
A highlight of the user conference was the presentation of The Alliance Award for Excellence in Customer Fulfillment to
Ericsson, a world-leading supplier in the telecommunications and data communications industry. Presented by Don Tapscott --
Chairman of the Alliance for Converging Technologies and noted author of bestsellers THE DIGITAL ECONOMY and
PARADIGM SHIFT -- the Alliance Award recognized Ericsson's commitment to customer satisfaction through the successful
deployment of Descartes' DeliveryNet solution to create a high-performance customer fulfillment network that lowered lead
times by 72 percent.
More Third Quarter Highlights
Descartes announced new partnerships in the third quarter with PeopleSoft, Research in Motion and Sun Microsystems. Other
third quarter highlights included the first successful deployment of DeliveryNet at Buffalo Rock, one of the United States' largest
privately owned Pepsi distributors, and the implementation of Descartes' Scan-Based Trading reconciliation application at
Flowers Bakeries to manage its Pay on Scan program for a large mass merchandise retailer.
New product highlights for the third-party logistics and transportation industry included the successful implementation of
Descartes' wireless routing application running on the RIM Inter@active(tm) Pager from Research In Motion at G.O.D., and
the announcement of Collaborative Logistics Exchange, a product that enables customers to create their own Internet-based
freight exchanges. This sector also saw increased momentum around e-Frame, Descartes' e-business framework that is used to
connect internal organizations and trading partners in a zero-latency-messaging environment that also provides real-time supply
chain visibility, exception notification and performance monitoring.
Descartes continued to enhance its leadership position in the home delivery and consumer direct market with the release of its
customer-centric Web-based scheduling application. Descartes' Self-Service Available to Promise-Delivery (ATP-D)
application gives customers the ability to interactively schedule the delivery time window of their choice using their Web
browser while the system simultaneously cost-optimizes delivery routes and resources.
Descartes was recognised as a 1999 Canadian Technology Fast 50 Company, an annual ranking by Deloitte & Touche of the
50 fastest growing technology companies in Canada. Rankings are based on the percentage of growth in revenues from 1994 -
1998 (five-year periods). Descartes' increase in revenue of 1247 % over 5 years resulted in a Number 21 ranking overall in the
Canadian Technology Fast 50 for 1999. |
