TigrSoft second-quarter results
TigrSoft Inc TGF
Shares issued 22,010,000 Jun 22 close $0.45
Wed 23 Jun 99 News Release
Mr. Dilip Kembhavi reports
TigrSoft Inc. (formerly ShivaSoft Inc.), has completed its financial
results for the second quarter; highlighted by the official launch of a new
corporate name, key additions to the company's senior management team and
new contracts from prestigious clients.
For the quarter ended April 30, the company posted revenue of $1,160,715,
compared with a year earlier when it recorded sales of $1,680,777. Revenues
from implementation, extended support, training and consulting, and other
sources accounted for $754,547 or 65 per cent of revenue, while revenue
from licence fees accounted for $406,168 or 35 per cent of revenue.
The company reported a before-tax loss of $1,445,810, compared with income
in the prior year's period of $367,736, reflecting increased staffing
levels the company has maintained since the beginning of its fiscal year,
the continuing and development and implementation of the company's
products, a marketing program aimed at building awareness for the company's
new corporate name and products as well as the costs associated with its
regional sales and support offices in the United States. These new offices
are expected to become productive in the third and fourth quarters. As a
result of its increased infrastructure, the company posted an after-tax
loss of $1,043,746 or loss per share of negative five cents over net
earnings of $215,052 in the same quarter of fiscal 1998 when earnings per
share were one cent. At the end of the quarter the company had cash and
short-term investments in the amount of $4,640,328.
Quarterly highlights
The following activities were announced or occurred since the company's
last financial reporting period:
In March, the company launched a new line of products for the supply chain
marketplace. Three new products, TigrVision, TigrTrak and TigrIOQ were
unveiled at National Manufacturing Week, a large trade show in Chicago.
TigrVision is a management information centre which allows senior
management to easily evaluate the schedule using key performance
indicators. TigrTrak is a manufacturing execution system for collecting
plant floor information and monitoring plant performance. The third
product, TigrIOQ is an immediate order quotation module which enables
customer representatives and sales staff to quote accurate and realistic
delivery dates for new orders in real-time, while considering committed
plant capacity and real constraints. These three products are sold as
add-on modules to TigrAPS, the company's advanced planning and scheduling
system.
During the quarter the company also rebranded its advanced planning and
scheduling applications previously marketed under the SHIVA and VISHAL
trade names under the new names TigrAPS, TigrSteel and TigrALS.
On March 25, shareholders of the company approved a resolution at the
annual and special meeting to change the corporate name from ShivaSoft Inc.
to TigrSoft Inc. The company's trading symbol was subsequently changed from
SOF to TGF.
In March, Fuji Photo Film Inc., the United States marketing subsidiary of
Fuji Photo Film Co., Ltd., in Tokyo, a leading manufacturer of imaging and
information products, signed a contract to purchase a licence for TigrAPS
to manage the planning and scheduling processes at its manufacturing plant
in Greenwood, S.C. Implementation services for Fuji began in April and are
continuing.
In April, the company appointed Edward Thiede, Jr. to the newly created
executive position of vice-president professional services. Mr. Thiede is
responsible for all consulting services related to the implementation of
the company's products. TigrSoft has implementation professionals based at
its Edmonton, Toronto, Cleveland, Milwaukee, Atlanta and Pune, India,
offices. Prior to joining TigrSoft, Mr. Thiede was chief operating officer
of Hughes Consulting Group, a division of Hughes Electronics and subsidiary
of General Motors. Prior thereto, Mr. Thiede held executive positions with
International Microwave Corporation, Coopers and Lybrand LLP and Arthur
Young & Company.
In April, the company received an engagement from Honda of Canada
Manufacturing for TigrLine and TigrAPS, its advanced planning and
scheduling application for assembly line sequencing and parts
manufacturing. Under the terms of the new licencing agreement, TigrLine and
TigrAPS will be implemented at Honda's Alliston, Ont., facility to plan and
schedule two assembly lines and all-parts manufacturing in Canada.
Implementation services began immediately and continue.
"Over the years we have developed significant expertise in assembly line
sequencing and scheduling. We are pleased to continue our long-standing
relationship with Honda and look forward to implementing our best-of-breed
solution in other Honda plants around the world," said Dilip Kembhavi in
announcing the engagement. Honda has been a client since 1995 and uses the
company's products at all its manufacturing facilities in the United
States.
Subsequent to the end of quarter, the company had filled several key senior
management positions. These included the successful recruitment of a
vice-president of sales and the appointment of a chief financial officer.
Ty Myers became vice-president sales and marketing for the company with
responsibility for all North American sales and marketing activities. Prior
to joining TigrSoft, Mr. Myers was vice-president Americas for Baan
Engineering, a position he held since 1996. Prior thereto, Mr. Myers held
various sales and marketing positions with technology firms in the U.S. He
joined TigrSoft in May.
Michael A. Moore was appointed to the newly created chief financial officer
position. Mr. Moore, a chartered accountant and professional engineer,
assumed his responsibilities in May and is responsible for all finance and
accounting activities for the company. Prior to joining TigrSoft, Mr. Moore
was controller and manager of finance and information services for an
Edmonton-based manufacturer of advanced industrial materials. Prior
thereto, Mr. Moore held various management positions with firms in the
manufacturing and technology sectors. He joined TigrSoft in May.
CONSOLIDATED STATEMENT OF INCOME
Three months ended April 30
1999 1998
Revenue
Licence fees $ 406,168 $ 859,200
Implementation
and consulting 566,092 744,933
Extended support 188,455 76,644
---------- ----------
1,160,715 1,680,777
Cost of sales 1,017,348 548,710
---------- ----------
Gross margin 143,367 1,132,067
Sales and
marketing 690,428 355,836
Research and
development 290,343 58,352
General and
administration 503,046 339,725
Amortization 51,297 22,936
---------- ----------
(1,391,747) 355,218
Other income
(expenses) (54,063) 12,518
---------- ----------
Income (loss)
before tax (1,445,810) 367,736
---------- ----------
Provision for
income taxes (402,064) 152,684
---------- ----------
Net income
(loss) ($1,043,746) $ 215,052
========== ==========
Earnings
per share (5 cents) 1 cent
CONSOLIDATED STATEMENT OF INCOME
Six months ended April 30
1999 1998
Revenue
Licence fees $ 818,118 $1,822,620
Implementation
and consulting 1,045,636 1,192,588
Extended support 284,543 150,743
---------- ----------
2,148,297 3,165,951
Cost of sales 1,818,724 937,108
---------- ----------
Gross margin 329,573 2,228,843
Sales and
marketing 1,154,469 640,273
Research and
development 549,373 121,788
General and
administration 1,139,980 665,984
Amortization 154,744 43,047
---------- ----------
(2,668,993) 757,751
Other income
(expenses) (8,449) 83,468
---------- ----------
Income (loss)
before tax (2,677,442) 841,219
---------- ----------
Provision for
income taxes (706,454) 379,577
---------- ----------
Net income
(loss) ($1,970,988) $ 461,642
========== ==========
Earnings
per share (9 cents) 3 cents
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