Ross Systems Signs Agreement to Spin Off Human Resource & Payroll Software Business
(HR/Payroll will continue to be resold as a complementary product )
ATLANTA, Feb. 5 /PRNewswire/ -- Ross Systems, Inc. (Nasdaq: ROSS), a leading provider of enterprise management software and e-business solutions for mid-market process manufacturers, today reported the signing of a definitive sale agreement for certain assets related to its Human Resource and Payroll product line to NOW SOLUTIONS, LLC, a private company. ROSS at the same time executed a distribution agreement with NOW to continue to sell the product under license from NOW as a complement to its enterprise systems for process manufacturing companies.
The gross asset sale price of $6.1 million excludes incentives. After fees and expenses the company expects the transaction to generate a non- recurring gain on the sale of approximately $3.7 million before incentives. "This transaction is a win/win. ROSS will utilize the cash to strengthen its balance sheet, while at the same time continuing to provide the product to its targeted market of process manufacturers, and NOW will take the highly regarded product to a broader target market." said Pat Tinley, Ross CEO. "We believe that the sale of this non strategic asset will permit ROSS to focus on its core competencies and accelerate our growth of market share in the process manufacturing sector."
The Company also announced today that its stock will continue to trade on the NASDAQ National Market pending the outcome of a hearing set for March 9, 2001 with the NASDAQ Listing Qualifications Panel where it will present its plans to regain compliance for continued listing. In the event the panel determines to delist Company's common stock, the Company will then seek to have its common stock traded on the NASD OTC Bulletin Board.
"The Company believes that maintaining a NASDAQ National Market listing is of long-term value to both the Company and its shareholders and intends to vigorously pursue continued listing," said Tinley. "At this time, the Company is in compliance with all of NASDAQ's listing requirements except for the minimum bid requirement. We believe the Company's recently announced return to profitability and positive operating cash flow for the second quarter ended December 31st, 2000, along with the additional working capital provided by the sale of the Payroll/Human Resources Division will be positive factors in support of a favorable ruling."
About Ross Systems
Ross Systems Inc. is a leading supplier of enterprise resource planning (ERP) and management software and e-business solutions for process manufacturing industries including food, beverage, chemical, pharmaceutical, paper and metals. The Ross Systems family of solutions includes the award- winning iRenaissance, a broad range of Internet-enabled enterprise resource planning and management applications for financials, manufacturing, advanced planning, supply-chain management, maintenance management, transportation management, materials management and human resources/payroll. Ross Systems' Resynt e-business product family includes digital marketplace applications spanning procurement, sales, Internet trading exchange connectivity, collaboration and employee productivity. More than 3,400 companies around the world use Ross Systems solutions in open systems environments including NT and UNIX. Ross Systems has more than 60 offices around the world to serve its customers. Ross Systems Inc., Two Concourse Parkway, Suite 800, Atlanta, Ga. 30328, 770-351-9600, 1-877-ROSS-INC rossinc.com
STATEMENTS IN THIS ANNOUNCEMENT WHICH EXPRESS THAT THE COMPANY "BELIEVES", "ANTICIPATES," "EXPECTS," "PLANS TO... " OR "SHOULD BEGIN TO... " AS WELL AS OTHER STATEMENTS WHICH ARE NOT HISTORICAL FACT, ARE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY AS A RESULT OF RISKS AND UNCERTAINTIES, INCLUDING THE RISK OF DELISTING IF OUR NASDAQ APPEAL IS UNSUCCESSFUL, QUARTERLY FLUCTUATION OF SOFTWARE PRODUCT LICENSE REVENUE, WEAKENING OF CUSTOMER DEMAND FOR ENTERPRISE SYSTEMS, THE COMPANY'S MAINTENANCE OF A MINIMAL BACKLOG, THE UNCERTAINTY OF DEMAND FOR NEW PRODUCT OFFERINGS AND OTHER RISKS AND UNCERTAINTIES DESCRIBED IN REPORTS FILED BY THE COMPANY WITH THE SEC, INCLUDING THE ANNUAL REPORT ON FORM 10-K FILED FOR THE YEAR ENDED JUNE 30, 2000 AND THE QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2000.
Resynt and "The business of e-Commerce" are trademarks of Ross systems, Inc. Renaissance and GEMBASE are registered trademarks of Ross Systems, Inc. Throughout this release, software and hardware products are mentioned by name. In most, if not all, cases, these product names are claimed as trademarks by the companies that manufacture the products. It is not our intention to claim these names or trademarks as our own.
SOURCE Ross Systems, Inc.
CO: Ross Systems, Inc.; NOW SOLUTIONS, LLC
ST: Georgia
IN: CPR MLM
SU: TNM LIC
02/05/2001 15:52 EST prnewswire.com |
