Retek Inc. Reports Strongest Quarter Results in Company History
Quarter Fueled by New Customers, Products and Strategic Partnerships
MINNEAPOLIS, Jan. 25 /PRNewswire/ -- Retek Inc. (Nasdaq: RETK), the leading provider of Internet business-to-business software for the global retail industry, today announced its strongest quarter in the company's history signing $14.4 million in software license contracts in the fourth quarter, representing a 27 percent growth rate compared to the third quarter of 1999. Total revenues recognized for the fourth quarter were $11.4 million. Operating loss was $12.6 million or $0.18 per share for the quarter, excluding acquisition and compensation non-cash charges.
These fourth quarter results reflect the financial impact from a change in Retek's software licensing contracts. Retek now recognizes license revenues associated with these contracts over a number of quarters rather than at the initial signing. If Retek recognized all contracts at the initial signing in the fourth quarter, the total revenue would have been $23.9 million.
"We are excited by our results this quarter -- our first quarter as a public company," said John Buchanan, Retek's chairman and chief executive officer. "The company's success this quarter reaffirms that our customers and the retail market are embracing our vision and endorsing our solutions. Without a doubt, Retek is the dominant supplier in this market."
The fourth quarter also saw the launch of retail.com, Retek's business-to-business Internet network for the retail industry. Over the course of the quarter, retail.com launched a number of e-services. Some of these e- services include retail.com WebTrack, which brings business partners together on the Web to complete a project; retail.com Design, which helps retailers electronically manage the apparel design process; and retail.com Private Label Exchange, through which private label retailers can post product specifications over the Internet and invite bids from manufacturers.
During the fourth quarter retail.com also began working with Kohl's Department Stores to deliver retail.com Assort, a new e-service that is a paradigm shift in the way retailers plan and collaborate with retail partners. A partnership with MicroStrategy's Intelligent E-Business platform and leveraging Retek's Data Warehouse technology led to the launch of the retail.com Intelligence Center e-service, which provides industry-wide performance information to help retailers better serve their customers.
Retek's other strategic partnership agreements included Celarix. The partnership with Celarix is bringing the logistics component to Retek's B2B network by enabling retailers to oversee the movement of goods through the entire supply chain process -- from sourcing to shipment to store delivery -- completely through the Internet.
"We believe the increase in our customer base and our expanded e-services available on retail.com puts us in the ideal position to continue our rapid growth and domination in the retail marketplace," said Buchanan.
Retek Inc. is the leading provider of Internet business-to-business software for the global retail industry. The company operates retail.com ( retail.com ), the retail industry's leading e-commerce platform for business-to-business collaboration. Through retail.com and Retek's operational and predictive business intelligence software, Retek delivers improved decision-making capabilities and operational efficiencies throughout the supply chain. Retek customers include AnnTaylor, Brooks Brothers, Family Dollar Stores, Kohl's Department Stores, Eckerd Corp., The Home Shopping Network and Fogdog Sports.
For more information, visit Retek's web site at retek.com or call 877-362-2532. Retek can be contacted in Europe at +44 171 872 5795.
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors are described from time to time in the company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
Retek Inc.
Condensed Balance Sheet
(In thousands)
December 31, December 31,
Assets 1999 1998
Current assets:
Cash and cash equivalents $83,680 $415
Accounts receivable, net 24,383 22,050
Current portion of deferred income taxes 10,882 2,972
Other current assets 5,628 2,706
Total current assets 124,573 28,143
Deferred income taxes, less current portion 12,378 13,960
Property, plant and equipment, net 8,291 4,887
Intangible assets, net 8,958 4,010
Other assets 33 283
Total assets $154,233 $51,283
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $6,014 $3,289
Accrued liabilities 3,034 2,970
Deferred revenue 5,883 3,064
Payable to HNC Software Inc. 15,399 5,944
Other current liabilities -- --
Total current liabilities 30,330 15,267
Stockholder's equity:
Total stockholder's equity 123,903 36,016
Total liabilities and stockholders' equity $154,233 $51,283
Retek Inc.
Statements of Operations
(In Thousands, except per share amounts)
(Unaudited)
Three Months Ended
December 31, Year Ended December 31,
1999 1998 1999 1998
Revenue:
License and maintenance $4,572 $11,840 $45,965 $42,753
Services and other 6,828 3,364 23,194 12,280
Total revenue 11,400 15,204 69,159 55,033
Cost of revenue:
License and maintenance 2,280 1,274 6,358 4,349
Services and other 4,983 2,537 16,625 9,503
Total cost of revenue 7,263 3,811 22,983 13,852
Gross profit 4,137 11,393 46,176 41,181
Operating expenses:
Research and development 7,862 3,617 22,612 12,918
Sales and marketing 6,677 3,812 19,625 14,075
General and
administrative 2,180 927 6,257 3,921
Total operating
expenses, excluding
non-cash charges 16,719 8,356 48,494 30,914
Operating (loss)/income,
excluding non-cash
charges (12,582) 3,037 (2,318) 10,267
Acquisition and compensation
non-cash charges 3,999 143 4,778 2,179
Operating (loss) income (16,581) 2,894 (7,096) 8,088
Other income/(expense), net 360 (8) 30 11
Income before income tax
(benefit) provision (16,221) 2,886 (7,066) 8,099
Income tax (benefit)
provision (5,759) 1,179 (1,697) 4,221
Net (loss)/income $(10,462) $1,707 $(5,369) $3,878
Basic net (loss)/income
per share $(0.24) $0.04 $(0.13) $0.10
Diluted net (loss)/income
per share $(0.24) $0.04 $(0.13) $0.09
Shares used in computing
basic net income/
(loss) per share 43,089 40,000 40,779 40,000
Shares used in computing
diluted net (loss)/
income per share 43,089 41,635 40,779 41,635
Net (loss)/income per
share, operational: diluted
operational net income/
(loss) per share$ (0.18) $0.05 $(0.04) $0.15
Shares used in computing
diluted operational net
(loss)/income per share 43,089 41,635 40,779 41,635
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SOURCE: Retek Inc.
CONTACT: Analysts, Greg Effertz, 612-630-5930, or Media Relations, Dawn Felepe Klehr, 612-630-5718, both of Retek, Inc. |
