GNSM...1.17...read carefully...boat arriving:
(COMTEX) B: Gensym Releases Fourth-Quarter and Year-End Results; Earnings
onference Call Set for Wednesday, March 31, 2004
B: Gensym Releases Fourth-Quarter and Year-End Results; Earnings Conference Call
Set for Wednesday, March 31, 2004
BURLINGTON, Mass., Mar 30, 2004 (BUSINESS WIRE) -- Gensym Corporation (OTC
Bulletin Board: GNSM), a leading provider of software and services for expert
operations management, today announced revenues of $3,945,000 and net income of
$382,000, or $0.05 per diluted share, for the quarter ended December 31, 2003.
For the corresponding quarter of 2002, Gensym had revenues of $4,578,000 and net
income of $464,000, or $0.07 per diluted share.
For the year ended December 31, 2003, Gensym had revenues of $14,623,000 and a
net loss of $1,783,000, or $0.26 per diluted share. In 2002, the company had
revenues of $17,451,000 and net income of $1,644,000, or $0.23 per diluted
share.
Management will hold a conference call on Wednesday, March 31 at 5:00 p.m. EST
to discuss its financial results for the quarter and year ended December 31,
2003. Individuals who wish to participate should call 866-866-1333 (U.S. and
Canada) or +1 404-260-1421 (International). A replay of the call will be
available through Tuesday, April 6, 2004 at 888-430-1300 (U.S. and Canada) or +1
404-260-1414 (International). When prompted, please enter pin 8145966#; at
system prompt, enter 4; when prompted again, enter confirmation number
20040319213200#.
"I am encouraged that our fourth quarter revenues were up sequentially from the
third quarter and that we achieved profitability in the quarter," said Lowell
Hawkinson, Gensym's chairman, president and CEO. "I believe we have begun to
establish momentum for revenue growth with profitability. We have been managing
our expenses carefully while maintaining strong levels of investment in our next
generation of products and effective support of our installed based of users.
"Although 2003 was a financially disappointing year overall for Gensym, I am
pleased that we completed the year with a profitable quarter," continued
Hawkinson. "We kept to our roadmap for product innovation, with important
releases of our G2(R) and G2-based products. Over the past several months, we
have experienced an increase in partner activity. For example, during the latter
half of the year, existing partners such as Siemens, MinnovEX Technologies, CTC,
Ericsson, Motorola, and Pivetal continued to drive new business with their end
users. New partners recently recruited include ENGlobal, a leading engineering
services company; SNC Lavalin Automation, a group within one of the world's
largest engineering services companies; and EMA Inc., a specialized operations
consultant to the utility industries.
"We are off to a good start in 2004 and expect to maintain our growth momentum.
In particular, we see strength in our direct sales pipeline within the
government and water utility markets. Through our partner channels, we see
significant opportunities in various manufacturing sectors and in
telecommunications.
"As announced recently, Stephen Allison has joined our company as our new vice
president of finance and chief financial officer. He has more than 25 years
experience in finance, including 15 years as a chief financial officer. I am
very pleased to have someone of Steve's background and talent join Gensym. He
will be a valuable asset to our management team."
About Gensym Corporation
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, Eli Lilly, Ford, Hitachi, Lafarge, Procter & Gamble, and Toyota
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 can 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 news release contains forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties, which could cause actual
results to differ materially from those anticipated. Such risks and
uncertainties include, but are not limited the intensely competitive market for
expert operations systems, the possibility that stockholders may face an
illiquid market for our securities, the effectiveness of our indirect
distribution channel and strategic relationships and the ability of our partners
to effectively market and deliver their Gensym-based solutions, fluctuations in
demand for our products, and the other risks which we describe under the caption
"Factors That May Affect Future Results" in our Quarterly Report on Form 10-Q
for the quarter ended September 30, 2003 filed with the Securities and Exchange
Commission. Although Gensym believes the expectations reflected in the
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. Gensym Corporation disclaims
any intent or obligation to update any forward-looking statement.
GENSYM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share data
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
REVENUES:
Product $1,459 $2,023 $4,728 $6,473
Services 2,486 2,555 9,895 10,978
Total revenues 3,945 4,578 14,623 17,451
COST OF REVENUES:
Product 128 260 707 787
Service 817 669 3,093 2,800
Total cost of revenues 945 929 3,800 3,587
Gross profit 3,000 3,649 10,823 13,864
OPERATING EXPENSES:
Sales and marketing 1,265 1,675 5,580 5,300
Research and development 756 871 3,303 3,217
General and administrative 698 731 3,708 3,405
Restructuring charge (34) - 216 -
2,685 3,277 12,807 11,922
Operating income (loss) 315 372 (1,984) 1,942
OTHER INCOME (EXPENSE), NET (84) 63 245 (162)
Income (loss) before provision
for income taxes 231 435 (1,739) 1,780
PROVISION FOR INCOME TAXES (151) (29) 44 136
Net income (loss) $382 $464 $(1,783) $1,644
Basic earnings (loss) per share $0.05 $0.07 $(0.26) $0.24
Diluted earnings (loss) per
share $0.05 $0.07 $(0.26) $0.23
Weighted average common
shares outstanding, basic 7,061 6,798 6,964 6,715
Weighted average common
shares outstanding, diluted 7,498 7,061 6,964 7,042
GENSYM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands
(Unaudited)
December 31, December 31,
2003 2002
ASSETS
Current Assets:
Cash and cash equivalents $1,818 $3,884
Accounts receivable, net 4,015 3,876
Other current assets 872 688
Total current assets 6,705 8,448
Property and equipment, net 908 1,276
Intangible assets 188 -
Deposits and other assets 485 599
Total assets $8,286 $10,323
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Other current liabilities $2,452 $2,842
Deferred revenue 4,991 5,045
Total current liabilities 7,443 7,887
Long term deferred revenue 150 336
Other long term liabilities 41 70
Total stockholders' equity 652 2,030
Total liabilities and stockholder's equity $8,286 $10,323
SOURCE: Gensym Corporation
CONTACT: Gensym Corporation
Stephen Allison, 781-265-7100
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KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: MANUFACTURING
TELECOMMUNICATIONS
SOFTWARE
HARDWARE
COMPUTERS/ELECTRONICS
CONFERENCE
CALLS
EARNINGS
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