(COMTEX) B: Gensym Releases Second Quarter Results
B: Gensym Releases Second Quarter Results
BURLINGTON, Mass., Jul 30, 2002 (BUSINESS WIRE) -- Gensym Corporation (OTC
Bulletin Board: GNSM), a leading provider of software and services for expert
operations management, today reported revenues of $4.5 million and net income of
$571,000, or $0.08 per diluted share, for the quarter ended June 30, 2002. In
the corresponding quarter of 2001, Gensym had revenues of $5.0 million and a net
loss of $3.0 million, or a loss of $0.46 per diluted share, including
restructuring charges of $1.1 million, or $0.17 per diluted share.
"I am pleased to report a third consecutive profitable quarter. Despite the
difficult economic conditions, particularly in the telecommunications industry,
we managed to increase our revenues by 4% over the first quarter of 2002 and
remain on target with our revenue and profit goals for 2002," said Lowell
Hawkinson, Gensym's chairman, president and CEO. "Since our restructuring last
year, we have managed to keep our costs contained, and this quarter's revenue
growth, albeit modest, bodes well for the remainder of the year.
"Our flagship G2 platform has recently had a significant update release. Product
enhancements in this release have been directly responsive to requests from our
customers, and we are optimistic that they will lead to increased buying
interest. We have also incorporated these enhancements in our G2-based
applications. Our existing customers remain loyal to us, and, with renewed
investment in marketing and a planned strengthening of our channel capabilities,
we expect to see an increase in our license revenues.
"We continue to believe that the decision to focus on our established and
well-known core products was the correct one, and we will continue to build upon
our existing customer base and focus on key markets where our development tools
and applications fulfill demonstrated market needs.
"Our cash position continues to improve. Cash and cash equivalents at the end of
June increased to $3.7 million compared to $2.0 million at December 2001. Except
for capital leases, the company continues to have no debt. Looking ahead, we
anticipate operating profitably for the remainder of the year, as we had
indicated earlier."
About Gensym
Gensym Corporation (www.gensym.com) is a provider of software products and
services that enable organizations to automate aspects of their operations that
have historically required the direct attention of human experts. Gensym's
product and service offerings are all based on or relate to Gensym's flagship
product G2, which can emulate the reasoning of human experts as they assess,
diagnose, and respond to unusual operating situations or as they seek to
optimize operations.
With G2, organizations in manufacturing, communications, transportation,
aerospace, and government maximize the performance and availability of their
operations. For example, Fortune 1000 manufacturers such as Alcan, ExxonMobil,
DuPont, El Paso, Hitachi, Lafarge, Eli Lilly, and Seagate use G2 to help
operators detect problems early and to provide advice that avoids
off-specification production and unexpected shutdowns. Manufacturers and
government agencies use G2 to optimize their supply chain and logistics
operations, while communications companies such as AT&T, Ericsson Wireless, and
Nokia use G2 to troubleshoot network faults so that network availability and
service levels are maximized. Gensym has numerous partners who help meet the
specific needs of customers. Gensym and its partners deliver a range of
services, including training, software support, application consulting and
complete solutions. Through partners and through its direct sales force, Gensym
serves customers worldwide.
Gensym and G2 are registered trademarks of Gensym Corporation
This press release contains forward- looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Any statements
contained in this press release that relate to prospective events or
developments are deemed to be forward-looking statements. Words such as
"believes," "anticipates," "plans," "expects," "will" and similar expressions
are intended to identify forward-looking statements. These forward-looking
statements are subject to important risks and uncertainties, which could cause
actual results to differ materially from those anticipated. These important
risks and uncertainties include the impact of intense competition, the
effectiveness of our indirect distribution channel and strategic partnerships,
fluctuations in our customers' demand for our products, and the other risks
which we describe under the caption "Factors That May Affect Future Results" in
our Annual Report on Form 10-K for the fiscal year ended December 31, 2001.
Although we believe the expectations reflected in the forward-looking statements
are based on reasonable assumptions, we can give no assurance that our
expectations will be attained. We disclaim any intention or obligation to update
any forward-looking statements as a result of developments occurring after the
date of this press release.
GENSYM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(Unaudited)
June 30, December 31,
2002 2001
ASSETS
Current Assets:
Cash and cash equivalents $ 3,719 $ 1,967
Accounts receivable, net 3,079 5,465
Other current assets 592 470
Total current assets 7,390 7,902
Property and equipment, net 1,247 1,472
Deposits and other assets 601 558
Total assets $ 9,238 $ 9,932
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current Liabilities:
Other current liabilities $ 2,938 $ 3,493
Deferred revenue 4,997 6,181
Total current liabilities 7,935 9,674
Deferred revenue 449 667
Other liabilities 12 27
Total stockholders' equity (deficit) 842 (436)
Total liabilities and
stockholder's equity (deficit) $ 9,238 $ 9,932
GENSYM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2002 2001 2002 2001
REVENUES:
Product $ 1,711 $ 1,427 $ 3,149 $ 3,203
Services 2,769 3,574 5,649 7,231
Total revenues 4,480 5,001 8,798 10,434
COST OF REVENUES:
Product 177 264 349 454
Services 771 1,005 1,544 2,139
Total cost of
revenues 948 1,269 1,893 2,593
Gross profit 3,532 3,732 6,905 7,841
OPERATING EXPENSES:
Sales and marketing 1,187 2,772 2,428 5,865
Research and
development 830 1,489 1,534 3,194
General and
administrative 951 1,262 1,796 2,139
Restructuring charge -- 1,131 -- 1,732
2,968 6,654 5,758 12,930
Operating income
(loss) 564 (2,922) 1,147 (5,089)
OTHER INCOME (LOSS), NET 37 (4) 19 (22)
Income (loss) before
provision for income
taxes 601 (2,926) 1,166 (5,111)
PROVISION FOR INCOME
TAXES 30 81 94 109
Net income (loss) $ 571 $ (3,007) $ 1,072 $ (5,220)
Basic earnings
(loss) per share $ 0.09 $ (0.46) $ 0.16 $ (0.80)
Diluted earnings
(loss) per share $ 0.08 $ (0.46) $ 0.15 $ (0.80)
Weighted average
common shares
outstanding, basic 6,691 6,510 6,662 6,489
Weighted average
common shares
outstanding, diluted 7,061 6,510 7,005 6,489
CONTACT: Gensym Corporation
John Belchers, 781/265-7100
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KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
INTERNET
NETWORKING
SOFTWARE
EARNINGS
SOURCE:
Gensym
Corporation
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