Industri-Matematik International Announces Second Quarter Results
STOCKHOLM, SWEDEN--(BUSINESS WIRE)--Nov. 30, 2000--
- Company Reports Significantly Improved Bottom Line; 6 Launches Strategic New Products -
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 second fiscal quarter ended October 31, 2000.
Revenues for the second quarter were $18.5 million, compared to $18.3 million for the same period in fiscal 2000. License revenue was $3.8 million versus $1.0 million a year earlier, and service and maintenance revenue was $14.1 million versus $16.9 million. The reported net loss for the three months ended October 31, 2000 was $650 thousand or $0.02 per share, compared to a net loss of $6.9 million or $0.22 per share in the same period last year.
Stig Durlow, President and Chief Executive Officer of Industri-Matematik, said, "We have had a goal as an organization to bring our quarterly operating cash flow back into positive territory and with the second quarter results we are presenting today, I believe that we have substantially achieved this goal. EBITDA was only a few thousand dollars short of breakeven for the quarter. Industri Matematik has brought this together during the past year by streamlining its cost structure, remaining focused on the development of new products and maintaining revenue streams."
Commenting further on the progress in the quarter Mr. Durlow said, "We closed several important deals in the second quarter, the most important of which was with Canadian Tire. The Canadian Tire agreement is significant because it represents the first deal for our new VivaldiNet(TM) product suite, a suite of B2B e-business components for the Supply Chain Event Management (SCEM) market. Our strategy for this market is to leverage early adopters, work with them to continue developing new components, and then bring a suite to a broadened customer base. Canadian Tire is an ideal example of an early adopter of our SCEM capabilities.
"In addition to buying our first SCEM applications, Canadian Tire has agreed to exchange knowledge and experience with us to accelerate the development of our future SCEM products. By working with Canadian Tire, we plan to develop a blueprint for retailers to gain supply chain visibility over the extended, virtual enterprise."
The Company also closed a deal with TNT Post Group N.V. (TPG), one of the world's largest logistics service providers. TPG is deploying the VIVALDI(TM) CRM solution to provide customers and suppliers globally with the ability to access real-time order status via the Web. TPG is also using VIVALDI marketing and sales automation software to identify, profile and segment customers, as well as to measure, monitor and modify sales campaigns. The first stage of implementation is already underway in Germany with a planned site of 1000 users.
Another new customer won during the quarter was Kramp Group, a wholesale distributor of spare parts and accesories for the agricultural market throughout Europe. Kramp Group will deploy the complete suite of VIVALDI products.
The Company has also made progress in its strategy of forming partnerships with leading technology companies. First, IBM and Industri-Matematik expanded their strategic alliance to jointly market and sell Industri-Matematik's VIVALDI software running on the IBM WebSphere platform, the first web infrastructure software to help companies at each stage of e-business development. Second, the Company entered into an agreement with Blue Martini Software to integrate Blue Martini's Customer Interaction system with Industri-Matematik's fulfillment solution and provide a combined e-business solution that addresses requirements to control the quality and velocity of transactions across a supply chain.
Commenting on these partnership agreements, Mr. Durlow said, "These partnership agreements augment our product offering enabling us to deliver complete e-business solutions to existing and potential customers."
Mr. Durlow concluded, "Overall, I am very pleased with the steady progress we are making as we move closer to profitability and continue to expand our product footprint. With a focused organization, I am confident in our ability to continue improving our financial results."
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 and Electronic Business Partners (EBP).
VIVALDI and VivaldiNet are trademarks of Industri-Matematik International Corp. Other product and company names may be the trademarks of their respective owners.
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. Dollar in thousands, except share and per share data)
Six Months Ended Three Months Ended
10/31/00 10/31/99 10/31/00 10/31/99
-------- -------- -------- --------
Revenues
Licenses $ 7,968 $ 2,664 $ 3,836 $ 1,019
Services and
maintenance 26,561 31,676 14,131 16,856
Other 951 624 520 413
------------ ------------ ----------- ------------
Total revenues 35,480 34,964 18,487 18,288
Cost of
revenues:
Licenses 496 530 178 184
Services and
maintenance 18,467 24,876 9,357 12,722
Other 300 159 132 101
------------ ------------ ----------- ------------
Total cost
of revenues 19,263 25,565 9,667 13,007
------------ ------------ ----------- ------------
Gross profit 16,217 9,399 8,820 5,281
------------ ------------ ----------- ------------
Operating expenses:
Product
development 7,763 8,938 3,626 4,497
Sales and
marketing 8,393 10,516 3,971 5,429
General and
administrative 4,446 4,510 1,995 2,348
Amortization
of goodwill
and other
intangible
assets 749 692 373 346
------------ ------------ ----------- ------------
Total operating
expenses 21,351 24,656 9,965 12,620
------------ ------------ ----------- ------------
Loss from
operations (5,134) (15,257) (1,145) (7,339)
------------ ------------ ----------- ------------
Other income
(expense):
Interest income 918 1,200 452 568
Interest expense (11) (41) (5) (13)
Miscellaneous
income
(expense) 97 (99) 48 (66)
------------ ------------ ----------- ------------
Loss before
income taxes (4,130) (14,197) (650) (6,850)
Benefit from
income taxes 0 0 0 0
------------ ------------ ----------- ------------
Net loss $ (4,130) $ (14,197) $ (650) $ (6,850)
============ ============ =========== ============
Net loss
per share
- assuming
dilution ($0.13) ($0.45) ($0.02) ($0.22)
============ ============ =========== ============
Weighted
average number
of shares
outstanding
- assuming 31 964 046 31 569 384 32 033 395 31 604 118
dilution
============ ============ =========== ============
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(U.S. Dollar in thousands)
10/31/00 04/30/00
----------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 12,466 $ 12,036
Short-term investments 15,536 19,821
Accounts receivable, less allowance
for doubtful accounts 16,597 20,176
Contract receivables 1 ,081 1,089
Prepaid expenses 2,150 2,727
Income taxes receivable 496 646
Other current assets 864 698
--------- ---------
Total current assets 49,190 57,193
Non-current assets:
Property and equipment, net 6,170 6,595
Deferred income taxes 15,070 15,520
Goodwill and other intangible assets 7,502 8,359
Other non-current assets 971 1,265
--------- ---------
Total non-current assets 29,713 31,739
--------- ---------
Total assets $ 78,903 $ 88,932
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of notes payable $ 18 $ 303
Accounts payable 1,502 2,031
Accrued expenses and other
current liabilities 5,915 7,978
Accrued payroll and employee benefits 4,328 5,702
Deferred revenue 7,451 8,529
--------- ---------
Total current liabilities 19,214 24,543
Long-term liabilities:
Accrued pension liability 2,818 2,930
--------- ---------
Total long-term liabilities 2,818 2,930
--------- ---------
Total liabilities 22,032 27,473
Stockholders' equity:
Common Stock 321 318
Additional paid-in capital 124,945 124,310
Accumulated deficit (56,901) (52,771)
Accumulated other comprehensive loss (5,612) (4,476)
Note receivable from stockholders (5,882) (5,922)
--------- ---------
Total stockholders' equity 56,871 61,459
--------- ---------
Total liabilities and stockholders' equity $ 78,903 $ 88,932
========= =========
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
KEYWORD: NEW YORK
BW2254 NOV 30,2000
6:14 PACIFIC
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