Industri-Matematik International Announces Fourth Quarter and Year End Results; Continued Gains in License Revenue New Internet Business Solution Cornerstone for Strategy
STOCKHOLM, Sweden--(BUSINESS WIRE)--May 30, 2000--
Industri-Matematik International Corp. (www.im.se and Nasdaq: IMIC), a
recognized leader in customer-driven supply chain management solutions,
today announced results for the fourth quarter and fiscal year ended
April 30, 2000.
Revenues for the fourth quarter were $21.2 million, compared to
$20.1 million for the same period in 1999. License revenue was $5.2
million versus $2.6 million a year earlier, and service and
maintenance revenue was $15.5 million versus $17.1 million. The
reported net loss for the three months ended April 30, 2000 was $2.7
million or $0.09 per share. A year earlier the company had a net loss
of $11.6 million or $0.36 per share.
Revenues for fiscal year 2000 were $75.0 million, compared to
$87.0 million for fiscal 1999. License revenue was $12.2 million,
compared to $17.0 million in fiscal 1999. Reported net loss for fiscal
2000 was $22.8 million, or $0.72 per share, compared to a net loss of
$35.3 million, or $1.09 per share a year earlier.
Stig Durlow, president and chief executive officer of
Industri-Matematik, said that in the fourth quarter of the 2000 fiscal
year Industri-Matematik made significant progress in both of its
primary target markets, B2B enterprise solutions and Internet
e-commerce.
"License revenues were up both in dollars and as a percent of
revenue," Mr. Durlow said. "Also noteworthy is the fact that our wins
in the quarter involved the whole spectrum of our product offerings:
advanced order management and fulfillment, warehousing, CRM and a new
solution package that combines fulfillment and customer relationship
management for both B2B and B2C Internet businesses."
Significant events of the fourth quarter included:
- A large, multi-year B2B enterprise systems sale to the Sherwin
Williams company, a large manufacturer and retailer based in
Cleveland. Sherwin Williams Consumer Group will use
Industri-Matematik's VIVALDI(TM) software to streamline order
processing and fulfillment for its 2,400 retail stores and wide
range of consumer paint brands. Sherwin Williams will use several
components of the VIVALDI suite including advanced order
management, warehousing and customer relationship management. The
agreement also includes e-Replenishment(TM), a solution that
Industri-Matematik is offering jointly with IBM.
- A significant enterprise deal was signed with J. R. Hillebrand, a
German company that handles 30 percent of the world's
transportation and distribution of wines and spirits. Hillebrand
also will use multiple components of Industri-Matematik's VIVALDI
suite.
- Multiple sales of the company's new solution for B2B and B2C
Internet businesses. New customers for the integrated
eCRM/eFulfillment software include: FULLeCOM, a U.S.-based
provider of business-to-business and business-to-consumer
logistics services; Yellowrent.com, an e-business portal for
European vacation rentals; and CoShopper.com, a market aggregator
serving consumers and small businesses in Europe and Asia.
- The creation by Industri-Matematik of a new business unit focused
on providing an integrated eCRM/eFulfillment package to Internet
businesses.
Mr. Durlow said, "By creating a new business unit for
eCRM/eFulfillment, Industri-Matematik will be able to focus on the
different needs of its two primary market segments. The changes will
impact sales, marketing and product development. The two markets have
different characteristics and we are aligning our organization to
reflect that. These changes will accelerate our ability to respond to
rapidly changing market conditions, accelerate new product development
efforts and increase sales and marketing effectiveness. The new
solution for Internet businesses positions Industri-Matematik as a
leader in the e-commerce revolution and is the cornerstone of our
strategy."
Additionally, Durlow sees a change in the company's revenue model.
"You will see our revenue base continue to shift from a pattern of a
small number of very large deals each quarter to a more balanced mix
of large and small deals along with repeat orders from existing
customers," he said. "Traditionally, we have sold a large enterprise
solution with a multi-million-dollar price tag. Over the past two
years, we have been breaking this solution down into individual
components such as advanced order management and adding and developing
new components like warehousing and CRM. We now have a broader
footprint of solutions tailored to the needs of different market
segments. This increases our market appeal and potential customer
base."
Components such as the VIVALDI Advanced Order Management,
Warehouse Management and CRM will be targeted at large retailers,
wholesalers, manufacturers and third party logistics providers with
fast-moving, high-volume, order fulfillment requirements. The new
eFulfillment and eCRM solution will be targeted at B2B and B2C
Internet businesses.
"We enter the new fiscal year with a new structure, new momentum
in key market segments, and a positive outlook about the future of our
business," said Durlow. "The restructuring implemented last year has
brought our costs back in line and enabled us to move toward
profitability without sacrificing important sales, marketing and
product development initiatives. With cash balances and short-term
investments in excess of $30 million at the end of fiscal year 2000,
we have a strong balance sheet and the resources to continue extending
our presence in the supply chain management and e-business
marketplaces."
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, 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 impact to the Company
as a result of its participation in IBM's Global Supply Chain
Management initiative, 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
and 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 Balance Sheets
(U.S. Dollar in thousands)
04/30/00 04/30/99
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 12,036 29,065
Short-term investments 19,821 24,848
Accounts receivable, less allowance
for doubtful accounts 20,176 23,772
Contract receivables 1,089 703
Prepaid expenses 2,727 2,742
Income taxes receivable 646 733
Other current assets 698 558
Total current assets 57,193 82,421
Non-current assets:
Property and equipment, net 6,595 6,682
Deferred income taxes 15,520 16,042
Goodwill and other intangible assets 8,359 9,084
Other non-current assets 1,265 856
Total non-current assets 31,739 32,664
Total assets 88,932 115,085
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Capital lease obligations - 110
Current portion of notes payable 303 534
Accounts payable 2,031 3,177
Accrued expenses and
other current liabilities 8,024 11,959
Accrued payroll & employee benefits 5,656 7,137
Deferred revenue 8,529 5,317
Total current liabilities 24,543 28,234
Long-term liabilities:
Notes payable - 303
Accrued pension liability 2,930 2,476
Other long-term liabilities - 191
Total long-term liabilities 2,930 2,970
Total liabilities 27,473 31,204
Stockholders' equity:
Common Stock 318 315
Additional paid-in capital 124,310 123,945
Accumulated deficit (52,771) (29,972)
Accumulated other comprehensive loss (4,476) (3,514)
Note receivable from stockholders (5,922) (6,893)
---------- --------
Total stockholders' equity 61,459 83,881
Total liabilities
and stockholders' equity 88,932 115,085
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollar in thousands, except per share data)
Twelve Three
Months Ended Months Ended
04/30/00 04/30/99 04/30/00 04/30/99
Revenues:
Licenses 12,167 17,039 5,159 2,572
Services and maintenance 61,318 68,233 15,533 17,055
Other 1,540 1,696 490 442
Total revenues 75,025 86,968 21,182 20,069
Cost of revenues:
Licenses 1,916 2,212 509 875
Services and maintenance 48,528 68,670 11,477 15,820
Other 429 752 164 115
Total cost of revenues 50,873 71,634 12,150 16,810
Gross profit 24,152 15,334 9,032 3,259
Operating expenses:
Product development 17,784 24,267 4,190 5,880
Acquired in-process
research and development - 2,500 - -
Sales and marketing 20,555 27,295 5,070 6,928
General and administrative 9,251 12,332 2,424 3,181
Amortization of goodwill
and other intangible assets 1,383 486 345 293
Restructuring costs - 3,522 - 3,522
Total operating expenses 48,973 70,402 12,029 19,804
Loss from operations (24,821) (55,068) (2,997) (16,545)
------ ------- ------ -------
Other income (expense):
Interest income 2,183 4,446 332 725
Interest expense (65) (128) (10) (16)
Miscellaneous expense, net (96) (931) (34) (960)
------- -------- ------ ------
Loss before income taxes (22,799) (51,681) (2,709) (16,796)
Benefit for income taxes - (16,422) - (5,201)
------- ------- ------ -------
Net loss (22,799) (35,259) (2,709) (11,595)
======= ======== ======= =======
Net income (loss) per share
- assuming dilution ($0.72) ($1.09) ($0.09) ($0.36)
======== ======== ======= =======
Weighted average number of
shares outstanding
- assuming dilution 31,671,870 32,431,260 31,789,827 31,833,663
*T
--30--mj/ny*
CONTACT: Company Contact:
Industri-Matematik International Corp.
Stig Durlow, email: stdu@im.se
Karl Asp, email: kaas@im.se
phone: +46 8 676 5000
or
Contact:
Lippert/Heilshorn & Associates
John Heilshorn, email: john@lhai.com
Jody Burfening, email: jody@lhai.com
phone: 212-838-3777 |
