Industri-Matematik International Announces First Quarter Results
STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 31, 2000--
- Year over Year License Revenue Growth -
- John Geraci Takes On Newly Created Position of
Chief Operating Officer -
Industri-Matematik International Corp. (www.im.se and Nasdaq:
IMIC), a recognized leader in customer-driven supply chain management
solutions, today announced results for its first fiscal quarter ended
July 31, 2000.
Revenues for the first quarter were $17.0 million, compared to
$16.7 million for the same period in 1999. License revenue was $4.1
million versus $1.6 million a year earlier, and service and
maintenance revenue was $12.4 million versus $14.8 million. The
reported net loss for the three months ended July 31, 2000 was $3.5
million or $0.11 per share. A year earlier the Company had a net loss
of $7.3 million or $0.23 per share.
Stig Durlow, President and Chief Executive Officer of
Industri-Matematik, said that results for the first quarter of the
2001 fiscal year, traditionally Industri-Matematik's slowest period,
were satisfactory.
"License revenue gains this quarter reflect momentum for our
VIVALDI(TM) suite," Mr. Durlow said. "We succeeded in adding new
customers and selling add-on solutions to existing customers while
continuing to reduce costs, primarily by trimming European overhead.
This action removed about $2 million from our cost structure on an
annualized basis."
The Company announced several license deals during the quarter.
-- Sales of VIVALDI CRM to Domain Technology, one of the leading
domain name services in Europe; and Grapes Communication Group, a
Spain-based telecom operator rapidly expanding into other
countries in Europe. The Company also announced an important new
agreement with a major international logistics company for VIVALDI
Contact Center, Customer Service Center and Campaign Manager
functionality as the basis for a strategic solution to eventually
be deployed in 52 countries.
-- Follow-on orders from existing clients including Spicers,
Sherwin-Williams and NMD. Spicers, a UK-based office supplies
wholesaler currently uses VIVALDI Advanced Order Management (AOM)
to manage multiple distribution channels and provide value-added
services to its retailers. It has added VIVALDI Fulfillment Center
warehousing management and expanded its implementation of VIVALDI
AOM to other parts of the organization.
Industri-Matematik also announced progress in expanding its
product offerings to appeal to a broader market base. The Company is
planning to launch a new suite of B2B e-business components for Supply
Chain Event Management (SCEM), a capability that leverages the
Company's core strength in global logistics to improve supply chain
visibility for all trading partners. According to Durlow, the new
applications will facilitate greater collaboration between trading
partners by monitoring the physical movement of goods throughout the
supply chain and automatically notifying different parts of the supply
chain when any particular event may impact a commitment to a customer
or trading partner.
"As more companies move to the Internet and an e-business model,
the integration of logistics and customer service information is
critical," commented Durlow. "We believe Industri-Matematik is at the
leading edge of delivering customer service and multi-channel sales
information through the integration of logistics and call center
technology. Our focus on contact center management along with these
new SCEM capabilities gives us a real competitive advantage as
companies move to the Internet.
"On its own, this new SCEM application will appeal to a much
broader spectrum of potential customers - from our traditional base of
large manufacturers, distributors and retailers to on-line trading
exchanges and e-marketplaces," added Durlow. "SCEM is a very promising
opportunity for us because it is an additive solution instead of a
replacement one. It offers value for our existing customers and for
new customers, including those with an ERP or Order Management systems
already in place."
Durlow also announced shifts in responsibility at the board and
senior executive level. First, Geoffrey Squire, a long term board
member, will assume the role of non-executive Chairman. Squire, who is
gradually reducing his other activities, will spend more time focused
on Industri-Matematik. Additionally, John Geraci, currently Senior
Vice President of Worldwide Sales and Marketing, will assume
responsibility for day-to-day operational matters in the newly created
position of Executive Vice President and Chief Operating Officer. In
this new role, reporting to Durlow, Geraci will manage sales,
marketing, product development and customer service.
"This is a very positive step for us," said Durlow. "Thanks to
John's efforts, we have our costs under control and our product
strategy in place. This allows me to shift my focus to more strategic
activities and work more closely with customers, partners and key
industry influencers. John has already shown himself to be capable in
operations during the past year and we expect even greater progress
with him in this role."
Durlow concluded, "Our current sales pipeline reflects increased
demand for our broader product offering and tells us that we are
making solid progress in improving our software license sales
performance. While we continue to grow our license revenues, we are
keeping an eye on carefully managing our cost structure and making
significant progress in moving toward achieving our principal
financial goals of generating higher revenue and restoring the Company
to profitability."
About Industri-Matematik
Industri-Matematik International Corp. provides high-performance
fulfillment and customer service software solutions for B2B and B2C
e-commerce. Its applications help companies achieve a Zero
Inventory/100 Percent Visibility business model by replacing inventory
with information to speed the movement of goods through the supply
chain. Customers include market-leading companies such as British
Airways, Campbell Soup, Canadian Tire, Carlton & United Breweries,
Ericsson, FedEx Corp., Kellogg's, Starbucks, Sun Microsystems and
Warner/Elektra/Atlantic as well as new internet businesses including
CoShopper.com, Electronic Business Partners (EBP), FULLeCOM and
Yellowrent.com.
The statements contained in this release that are not historical
facts contain forward-looking information with respect to plans,
projections or future performance of Industri-Matematik and further
versions of its software products, the achievements of which involve
certain risks and uncertainties, including, but not limited to,
product demand and market acceptance risks, the effect of economic
conditions particularly in its target markets, the impact of
competitive products and pricing, product development,
commercialization and technological difficulties and other
uncertainties detailed in Industri-Matematik's filings with the
Securities and Exchange Commission, particularly its Annual Report on
Form 10-K filed in July 2000.
Editors: For Industri-Matematik company and product information,
and press releases, access the Industri-Matematik site on the World
Wide Web at im.se.
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollars in thousands, except per share data)
Three Months Ended
07/31/00 07/31/99
Revenues:
Licenses $4,132 $1,645
Services and maintenance 12,430 14,820
Other 431 211
Total revenues 16,993 16,676
Cost of revenues:
Licenses 318 346
Services and maintenance 9,110 12,154
Other 168 58
Total cost of revenues 9,596 12,558
Gross profit 7,397 4,118
Operating expenses:
Product development 4,137 4,441
Sales and marketing 4,422 5,087
General and administrative 2,451 2,162
Amortization of goodwill
and other intangible assets 376 346
Total operating expenses 11,386 12,036
Loss from operations (3,989) (7,918)
---------------- ------------
Other income (expense):
Interest income 466 632
Interest expense (6) (28)
Miscellaneous income (expense) 49 (33)
---------------- ------------
Loss before income taxes (3,480) (7,347)
Benefit for income taxes 0 0
Net loss $(3,480) $(7,347)
================ ============
Net loss per share - assuming dilution $(0.11) $(0.23)
================ ============
Weighted average number of
shares outstanding - assuming dilution 31,894,697 31,534,651
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
07/31/00 04/30/00
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $13,151 $12,036
Short-term investments 18,739 19,821
Accounts receivable, less allowance
for doubtful accounts 11,825 20,176
Contract receivables 1,306 1,089
Prepaid expenses 2,470 2,727
Income taxes receivable 428 646
Other current assets 632 698
Total current assets 48,551 57,193
Non-current assets:
Property and equipment, net 6,283 6,595
Deferred income taxes 15,381 15,520
Goodwill and other intangible assets 7,956 8,359
Other non-current assets 1,038 1,265
Total non-current assets 30,658 31,739
Total assets $79,209 $88,932
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of notes payable 162 303
Accounts payable 1,448 2,031
Accrued expenses and other
current liabilities 7,643 7,978
Accrued payroll and employee benefits 4,339 5,702
Deferred revenue 4,752 8,529
Total current liabilities 18,344 24,543
Long-term liabilities:
Accrued pension liability 2,975 2,930
Total long-term liabilities 2,975 2,930
Total liabilities 21,319 27,473
Stockholders' equity:
Common Stock 320 318
Additional paid-in capital 124,624 124,310
Accumulated deficit (56,251) (52,771)
Accumulated other comprehensive loss (4,921) (4,476)
Notes receivable from stockholders (5,882) (5,922)
---------------- -----------
Total stockholders' equity 57,890 61,459
Total liabilities and
stockholders' equity $79,209 $88,932
*T
CONTACT:
Industri-Matematik International Corp.
Stig Durlow, email: stdu@im.se
Karl Asp, email: kaas@im.se
phone: +46 8 676 5000
or
Lippert/Heilshorn & Associates
John Heilshorn, email: john@lhai.com
Jody Burfening, email: jody@lhai.com
phone: 212-838-3777 |
