Industri-Matematik International Reports Results for Third Fiscal Quarter
STOCKHOLM, Sweden--(BUSINESS WIRE)--March 3, 2000--
-- License Revenues Growing
-- Quarter Brings Significant Success In Internet-Related Markets
Industri-Matematik International Corp. (www.im.se and Nasdaq:
IMIC), the leader in fulfillment and customer service solutions for
e-business, today reported revenues of $18.9 million for its third
fiscal quarter, which ended on January 31, 2000. This compares with
revenues of $20.1 million for the same period a year earlier.
License revenue for the third quarter of fiscal 2000 totaled $4.3
million and service and maintenance revenue totaled $14.1 million. In
the three months ended January 31, 1999, the comparable figures were
$4.1 million for license revenue and $15.4 million for service and
maintenance.
Stig Durlow, Industri-Matematik's president and chief executive
officer, said the gain in third-quarter license revenues compared to
the first and second quarters of fiscal 2000 (when license revenues
totaled $1.6 million and $1.0 million respectively) demonstrates the
progress the company is making in executing the strategic plan it
adopted last spring.
"Our shift in emphasis from enterprise applications to point
solutions is starting to produce visible results," Mr. Durlow said.
"I'm particularly pleased by our success in moving Industri-Matematik
into high-growth market segments where the Internet is profoundly
changing supply chain management practices."
Industri-Matematik had a loss before income taxes of $5.9 million
in this year's third quarter compared with a loss before income taxes
of $13.2 million a year earlier. The company posted a net loss of $5.9
million, or $0.19 per share, in this year's third quarter, compared
with a net loss of $8.9 million or $0.28 per share, a year earlier.
In the nine months ended January 31, 2000, the company had a loss
before income taxes of $20.1 million compared to a loss before income
taxes of $34.9 million in the prior year. For the nine months ended
January 31, 2000, the company had a net loss of $20.1 million or $0.64
per share, with total license revenue and service and maintenance
revenue amounting to $7.0 million and $45.8 million respectively. For
the same period in the prior year, the company reported a net loss of
$23.7 million or $0.73 per share, with license revenue and service and
maintenance revenue totaling $14.5 million and $51.2 million
respectively.
Mr. Durlow described three recent events as particularly
significant in Industri-Matematik's progress in fast-growing,
Internet-related market segments.
First, in late December, Albert Heijn, The Netherlands' largest
retailer, signed a license agreement to use a new solution being
developed jointly by IBM and Industri-Matematik to streamline the
replenishment of its 680 supermarkets and six warehouses.
"This is the first significant license sale to come out of the
Global Supply Chain Management Agreement that we entered into with IBM
in September, and it greatly increases our visibility within IBM," Mr.
Durlow said. "It uses a solution that combines our VIVALDI(TM)
Advanced Order Management and Fulfillment Center applications with
IBM's Application Framework for e-Business, and it has great potential
in the retailing markets in both North America and Europe. This
next-generation application augments Industri-Matematik's other
solutions for retail including Distribution Center Replenishment,
Multi-Channel Distribution and e-Fulfillment/e-CRM for dot-com
companies."
Second, Industri-Matematik recently signed an agreement with
FedEx Corp. for it to use components of the Company's VIVALDI software
as the transaction backbone of its new e-Supply Chain Services suite
for high-tech manufacturers. The agreement provides the potential for
ongoing license fees to Industri-Matematik as FedEx adds new customers
and transaction volumes exceed minimum levels.
Third, Industri-Matematik also signed up a new dot-com company in
Europe for the use of a new configuration of its VIVALDI Advanced
Order Management and Customer Relationship Management applications.
Industri-Matematik will be working through Electronic Business Partner
(EBP), an application service provider, in the deal. According to Mr.
Durlow, the new solution offers dot-com companies a highly scalable
transaction engine capable of handling high volumes of orders quickly
and profitably. "This moves us into a tremendously exciting market
that has great potential" Mr. Durlow said. "The opportunities are huge
and Industri-Matematik has a lot to offer. Here, as with FedEx Corp.,
we have adopted a transaction-based pricing model that gives us new
ways of generating recurring revenue streams."
About Industri-Matematik
Industri-Matematik International Corp. (www.im.se) provides
high-performance fulfillment and customer service software solutions
for e-business. Its VIVALDI software suite enables companies to move
to a Zero Inventory/100 Percent Visibility business model by replacing
inventory with information to speed the movement of goods through the
supply chain. The company has implemented advanced supply chain
solutions worldwide at market-leading organizations such as Albert
Heijn, AT&T, British Airways, Campbell Soup, Canadian Tire, Canon,
Carlton & United Breweries, Ericsson, Hakon Group, Hartz Mountain,
Kellogg, Starbucks, Sun Microsystems and Warner/Elektra/Atlantic.
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 the VIVALDI(TM) Software Suite, the occurrence of which
involve certain risks and uncertainties, including, but not limited
to, product demand and market acceptance risks, the impact to the
company as a result of its participation in IBM's Global Supply Chain
Management initiative, the effect of economic conditions, 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 the Annual Report on
Form 10-K filed in July 1999.
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. Dollar in thousands, except share and per share data)
Nine Months Ended Three Months Ended
01/31/00 01/31/99 01/31/00 01/31/99
Revenues
Licenses 7 008 14 467 4 344 4 128
Services
and maintenance 45 785 51 178 14 109 15 353
Other 1 050 1 254 426 588
Total revenues 53 843 66 899 18 879 20 069
Cost of revenues:
Licenses 1 407 1 337 877 910
Services
and maintenance 37 051 52 850 12 175 15 336
Other 265 637 106 407
Total cost
of revenues 38 723 54 824 13 158 16 653
Gross profit 15 120 12 075 5 721 3 416
Operating expenses:
Product development 13 594 18 387 4 656 5 033
Acquired in-process
research and
development 0 2 500 0 2 500
Sales and marketing 15 485 20 367 4 969 7 068
General and
administrative 6 827 9 287 2 317 2 877
Amortization of
goodwill and
other intangible
assets 1 038 57 346 28
Total operating
expenses 36 944 50 598 12 288 17 506
Loss from
operations (21 824) (38 523) (6 567) (14 090)
-------- -------- -------- --------
Other income
(expense):
Interest income 1 851 3 721 651 976
Interest expense (55) (112) (14) (37)
Miscellaneous
income (expense) (62) 29 37 0
Loss before
income taxes (20 090) (34 885) (5 893) (13 151)
Benefit from
income taxes 0 (11 221) 0 (4 225)
-------- -------- -------- --------
Net loss (20 090) (23 664) (5 893) (8 926)
======== ======== ======== ========
Net loss
per share -
assuming
dilution ($0.64) ($0.73) ($0.19) ($0.28)
======== ======== ======== ========
Weighted average
number of shares
outstanding -
assuming
dilution 31 591 500 32 630 458 31 635 732 32 041 928
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(U.S. Dollar in thousands)
01/31/00 04/30/99
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 16 268 29 065
Short-term investments 24 765 24 848
Accounts receivable, less allowance
for doubtful accounts 11 442 23 772
Contract receivables 1 645 703
Prepaid expenses 2 349 2 742
Income taxes receivable 1 014 733
Other current assets 660 558
Total current assets 58 143 82 421
Non-current assets:
Property and equipment, net 8 039 6 682
Deferred income taxes 15 691 16 042
Goodwill and other intangible assets 8 006 9 084
Other non-current assets 1 066 856
Total non-current assets 32 802 32 664
Total assets 90 945 115 085
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease obligations 2 110
Current portion of notes payable 441 534
Accounts payable 2 320 3 177
Accrued expenses and
other current liabilities 9 610 12 853
Accrued payroll and employee benefits 5 023 6 243
Deferred revenue 5 815 5 317
Total current liabilities 23 211 28 234
Long-term liabilities:
Notes payable 0 303
Accrued pension liability 2 863 2 476
Other long-term liabilities 616 191
Total long-term liabilities 3 479 2 970
Total liabilities 26 690 31 204
Stockholders' equity:
Common stock 317 315
Additional paid-in capital 123 901 123 945
Accumulated deficit (50 062) (29 972)
Accumulated other comprehensive loss (3 819) (3 514)
Note receivable from stockholders (6 082) (6 893)
-------- --------
Total stockholders' equity 64 255 83 881
Total liabilities
and stockholders' equity 90 945 115 085
*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 |
