Industri-Matematik International Announces Third Quarter Results
MARLTON, N.J.--(BUSINESS WIRE)--Feb. 25, 1999--Industri-Matematik
International Corp. (NASDAQ-NM Symbol: IMIC), a recognized leader in
customer-driven supply chain management solutions, today announced
unaudited results for the third quarter ended January 31, 1999.
Revenues for the three months ended January 31, 1999 were $20.1
million compared to $27.0 million for the same period in 1998. License
revenues were $4.1 million versus $11.4 million for the quarter ended
January 31, 1998. Net loss for the quarter was $(8.9) million, or
$(0.28) per share, compared to net income of $4.1 million, or $0.13
per share, for the same period last year. Excluding the one-time
charge for in-process research and development, the net loss for the
quarter would have been ($7.2) million, or $(0.23) per share.
Revenues for the nine months ended January 31, 1999 were $66.9
million compared to $66.0 million for the same period in 1998. License
revenues for the first nine months of 1999 were $14.5 million compared
to $27.2 million for the first nine months of 1998. Net loss for the
nine months ended January 31, 1999 was $(23.7) million, or $(0.73) per
share, as compared to net income of $8.0 million, or $0.26 per share,
for the same period in 1998.
"Our license revenue performance this quarter has led us to
reassess our business in terms of both the financial picture and also
our strategic initiatives. Despite our progress in rebuilding our
sales pipeline, we are seeing a lengthening of the sales cycle as
potential customers scrutinize their enterprise application purchases
to a far greater degree than in the past," said Stig Durlow, President
and Chief Executive Officer of Industri-Matematik. "Although we have
made progress in penetrating our target markets, notably the
fast-moving durables and wholesale/retail markets, we are finding that
we still do not have a sufficiently strong brand recognition outside
of our partnership with Oracle in the CPG space.
"Our immediate task is to close deals in the fourth quarter,
and we are working closely with a few of our strategic partners to
help us in this area. We also plan to leverage these relationships
more often in our sales process in the future. In addition to
addressing revenue issues, we will re-align our costs in order to
restore long-term profitability as soon as possible. Longer term, we
will aggressively enhance our market presence in our target verticals,
beginning with a very visible direct marketing campaign to create
awareness about the customer benefits of our supply chain management
solution.
"We recognize that these are difficult times for
Industri-Matematik and that the challenge is on us to address and
correct some difficult issues to succeed. We are committed to take
whatever action necessary to move the company forward," concluded Mr.
Durlow.
Industri-Matematik International Corp., with worldwide revenues
for the fiscal year ended April 1998 of $95 million, is a leading
supplier of customer-driven supply chain management solutions for
manufacturers, distributors and third-party logistics providers of
fast-moving, high-volume products. Industri-Matematik has offices in
Australia, Canada, France, Germany, The Netherlands, Sweden, United
Kingdom and United States. Industri-Matematik has more than 200
logistics management systems implemented worldwide at organizations
such as Ahlsell, British Airways, Campbell Soup, Canadian Tire, Canon,
Carlton and United Breweries, Hartz Mountain, Kellogg's, VWR, Skyway
Freight Systems, Spicers and Starbucks.
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 System ESS(R), the occurrence of which involve certain
risks and uncertainties, including, but not limited to, product demand
and market acceptance risks, the effect of economic conditions, 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 the Form 10-K filed
in July 1998.
Editors: For Industri-Matematik company and product information,
and press releases, access the Industri-Matematik site on the World
Wide Web at im.se.
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INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollar in thousands, except per share data)
Nine Months Ended
01/31/99 01/31/98
Revenues
Licenses 14,467 27,208
Services and maintenance 51,178 37,903
Other 1,254 781
Total revenues 66,899 65,892
Cost of revenues:
Licenses 1,337 416
Services and maintenance 52,850 27,547
Other 637 482
Total cost of revenues 54,824 28,445
Gross profit 12,075 37,447
Operating expenses:
Product Development 18,387 9,428
Acquired In-process
Research and 2,500 0
Development
Sales and marketing 20,367 14,145
General & administrative 9,344 5,127
Total operating expenses 50,598 28,700
Income (loss) from operations (38,523) 8,747
Other income (expense):
Interest income 3,721 1,817
Interest expense (112) (79)
Miscellaneous
income (expense) 29 (122)
-------------- --------------
Income (loss) from
continuing operations
before income taxes (34,885) 10,363
Provision (benefit)
for income taxes (11,221) 2,402
Net income (loss) (23,664) 7,961
Earnings per share ($0.73) $0.26
Weighted average number of
shares outstanding 32,630,458 30,091,074
Three Months Ended
01/31/99 01/31/98
Revenues
Licenses 4,128 11,381
Services and maintenance 15,353 15,094
Other 588 477
Total revenues 20,069 26,952
Cost of revenues:
Licenses 910 135
Services and maintenance 15,336 10,613
Other 407 308
Total cost of revenues 16,653 11,056
Gross profit 3,416 15,896
Operating expenses:
Product Development 5,033 4,037
Acquired In-process
Research and 2,500 0
Development
Sales and marketing 7,068 5,740
General & administrative 2,905 1,595
Total operating expenses 17,506 11,372
Income (loss) from operations (14,090) 4,524
Other income (expense):
Interest income 976 1,310
Interest expense (37) (44)
Miscellaneous
income (expense) 0 (23)
-------------- --------------
Income (loss) from
continuing operations
before income taxes (13,151) 5,767
Provision (benefit)
for income taxes (4,225) 1,626
Net income (loss) (8,926) 4,141
Earnings per share ($0.28) $0.13
Weighted average number of
shares outstanding 32,041,928 32,867,320
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(U.S. Dollar in thousands)
01/31/99 04/30/98
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $51,770 $41,982
Short-term investments 19,916 69,416
Accounts receivable,
less allowance
for doubtful accounts 22,001 24,289
Contract receivables 2,124 2,034
Prepaid expenses 2,557 2,824
Income taxes receivable 487 402
Other current assets 452 647
Total current assets 99,307 141,594
Non current assets:
Property and equipment, net 7,239 5,011
Deferred income taxes 11,337 5
Goodwill 9,555 1,002
Other non-current assets 1,678 1,717
Total non current assets 29,809 7,735
Total Assets 129,116 149,329
LIABILITIES AND
SHAREHOLDER'S EQUITY
Current liabilities:
Current portion of
capital lease obligations 85 274
Current portion of
notes payable 449 486
Accounts payable 3,316 2,439
Accrued expenses and
other current liabilities 11,093 6,016
Accrued payroll &
employee benefits 6,866 5,938
Deferred revenue 6,637 5,962
Total current liabilities 28,446 21,115
Long-term liabilities:
Capital lease obligations 67 281
Notes payable 514 840
Accrued pensions
liability 2,517 2,132
Other long-term
liabilities 204 388
Total long-term
liabilities 3,302 3,641
Total liabilities 31,748 24,756
Shareholders' equity:
Common Stock 322 329
Additional paid-in
capital 124,872 127,886
Retained earnings (18,377) 5,287
Cumulative translation
adjustment (2,946) (2,426)
Note receivable
from stockholders (6,503) (6,503)
Total shareholders' equity 97,368 124,573
Total Liabilities and
Shareholders' Equity 129,116 149,329
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CONTACT:
Industri-Matematik International Corp.
Stig Durlow
E-mail: stdu@im.se
or
Lars-Goran Peterson
E-mail: lgpe@im.se
46 8 676 5000
or
Lippert/Heilshorn & Associates
John Heilshorn
E-mail: john@lhai.com
or
Jody Burfening
E-mail: jody@lhai.com
212/838-3777 |
