PREMIS Corporation Reports 2nd Quarter Earnings of 52 Cents per Share Company Completes Strategic Repositioning Aimed at Commercial Retail Market
MINNEAPOLIS, Oct. 27 /PRNewswire/ -- PREMIS Corporation (OTC Bulletin Board: PMIS - news) today reported sharply higher revenues and record earnings for the second quarter and six months ended Sept. 30, 1998, reflecting the first of two major payments under a software license agreement with NCR Corporation [NYSE:NCR - news].
PREMIS, which over the last two years has repositioned itself as a supplier of enterprise-wide systems for the retail industry, had revenues of $3,764,000 for the second quarter of fiscal 1999, compared with $1,643,000 in the same period a year earlier. Net income was $2,606,000 vs. a net loss of $442,000 in the second quarter of fiscal 1998. Diluted earnings per share for the second quarter were 52 cents vs. a net loss per share of 9 cents in the prior year.
Second-quarter results included license fees of $3,250,000 under an agreement with NCR Corporation permitting NCR to employ PREMIS' commercial OpenStore technology in the U.S. Postal Service's POS ONE program. NCR received the Postal Service's conditional acceptance of POS ONE application software during the second quarter. A second equal installment of $3,250,000 is payable by NCR no later than June 1, 1999, upon NCR's receipt of an order for Stage II from the Postal Service.
PREMIS ended the second quarter with approximately $3.6 million in cash, up from $593,000 in the first quarter of this year.
For the six months ended Sept. 30, revenues were $4,328,000, compared with $3,719,000 for the same period in the previous year. Net income was $1,754,000 vs. a net loss of $653,000 during the first six months of the previous year. Diluted earnings per share were 36 cents vs. a net loss per share of 14 cents in the prior year.
''Several key developments have come together for us in the past few months to drive our penetration of the commercial retail marketplace,'' said Fritz Biermeier, president and chief executive officer. ''We have added both the funding and the strategic partnerships we need to aggressively market and support our offering of enterprise-wide solutions to multi-store specialty and general merchandise retailing chains. This is our future, and we are extremely pleased with the progress we have made since the close of the first quarter.
''In a particularly important development earlier this month, Siemens Nixdorf Information Systems selected PREMIS as its solution partner for the general merchandise and specialty retailing marketplace -- a combination of hardware and software that will significantly increase the market visibility of PREMIS OpenEnterprise.
''Under another agreement announced this month, we are now offering ANT USA's Buyer's Toolbox(TM) line of merchandise- and assortment-planning software to retailers as an integral component of PREMIS OpenEnterprise.'' As announced during the second quarter, Cotton Ginny, a large Canadian specialty retailer, became the first retailer to place into production the entire PREMIS OpenEnterprise solution. PREMIS has also licensed the OpenEnterprise suite of products to LA Weight Loss Centers, Inc., for use in its operations throughout the United States.
The Postal Service has begun what is believed to be the largest POS rollout of all time, eventually to involve up to 35,000 locations. The technology used in the commercial PREMIS OpenStore product is currently being installed in approximately 11,000 Postal Service POS terminals as part of Stage I of the POS ONE program. With completion of Stages II and III, the Postal Service's POS rollout is expected to be the largest ever, involving an estimated 75,000 terminals.
PREMIS Corporation, based in Minneapolis, markets and supports a line of enterprise-wide retail automation solutions to meet the information needs of multi-store specialty and general merchandise retailing chains. PREMIS retail applications include PREMIS OpenEnterprise, which has three primary components: PREMIS OpenStore, a comprehensive in-store point-of-sale and back office system; PREMIS OpenNet, a unified family of communications and PREMIS networking products to expand headquarters operations out to the stores, and PREMIS OpenOffice, an integrated head office retail management system. For more company information, refer to the PREMIS web site at www.premis.com.
The press release may contain forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Future events may involve risks and uncertainties, among which are uncertainties related to the final development and market acceptance of proposed new products, conducting a successful sales and marketing program, actions by competitors which could affect sales, pricing and profitability of the Company's products, management of product transitions and the Company's ability to control costs. These forward-looking statements involve risks and uncertainties, and actual results may be different. In addition, the results of the Company continue to be highly dependent upon the timing of customer orders. The delay in any customer order could have a material adverse impact on the results of the company. Please also refer to the Company's Securities and Exchange Commission reports, including but not limited to the Form 10-KSB for the year ended March 31, 1998, the Form S-2 dated Sept. 26, 1996, Fiscal 1998 and Fiscal 1999 quarterly reports on Form 10-QSB, and other documents filed with the Securities and Exchange Commission.
•PREMIS CORPORATION •Condensed Consolidated Statements of Operations •(In thousands, except per share data) •(unaudited)
Three months ended Six months ended
September 30, September 30,
1998 1997 1998 1997
Revenues $3,764 $1,643 $4,328 $3,719
Gross profit 3,645 683 3,964 1,528
Operating expenses:
Selling, general and administrative 531 694 1,085 1,421
Research and development 432 448 1,112 833
Operating income (loss) 2,682 (459) 1,767 (726)
Net income (loss) before income taxes 2,606 (442) 1,750 (651)
Income tax expense (benefit) -- -- (4) 2
Net income (loss) $2,606 $(442) $1,754 $(653)
Basic earnings (loss) per share $0.55 $(0.09) $0.37 $(0.14)
Diluted earnings (loss) per share $0.52 $(0.09) $0.36 $(0.14)
Shares used to compute:
Basic earnings (loss) per share 4,734 4,712 4,732 4,714
Diluted earnings (loss) per share 5,027 4,712 4,878 4,714
PREMIS CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
September 30, March 31,
1998 1998
ASSETS (unaudited)
Current assets
Cash and cash equivalents $3,586 $1,360
Accounts receivable, net 415 610
Other current assets 493 570
Total current assets 4,494 2,540
Property and equipment, net 1,174 1,316
Other assets 383 488
Total assets $6,051 $4,344
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses 403 608
Unearned revenue 1,009 858
Current portion of notes payable 53 82
Current portion of capital lease
obligations 67 63
Total current liabilities 1,532 1,611
Total long-term liabilities 810 871
Total stockholders' equity 3,709 1,862
Total liabilities and
stockholders' equity $6,051 $4,344
For more information, contact Tom Langenfeld of Swenson NHB Investor Relations, Minneapolis, 612-370-0000, or Rich Peterson of PREMIS Corp., 612-550-1999. |
