Industri-Matematik International Announces First Quarter Results
STOCKHOLM, Sweden--(BUSINESS WIRE)--Aug. 26, 1999--
Industri-Matematik International Corp. (www.im.se and NASDAQ-NM
Symbol: IMIC), a recognized leader in advanced customer-driven supply
chain management solutions, today announced unaudited results for its
first quarter ended July 31, 1999.
Revenues for the three months ended July 31, 1999 were
$16,676,000 compared to $23,492,000 for the same period in fiscal
1999. License revenue was $1,645,000 versus $4,355,000 for the first
quarter in fiscal 1999. Service and maintenance revenue was
$14,820,000 compared to $18,851,000 for the same period last year.
Reported net loss for the three months ended July 31, 1999 was
$(7,347,000) or $(0.23) per share, compared to net loss of
$(3,782,000) or $(0.11) per share, for the same period last year.
Commenting on the results, Stig Durlow, President and Chief
Executive Officer of Industri-Matematik stated, "We continue to see
the market's reluctance to invest in large-scale enterprise systems
pending Y2K concerns. Instead, we see an increased interest in point
solutions such as supply chain execution, customer relationship
management and e-commerce, both business-to-business and
business-to-consumer. As evidence, the majority of license deals we
are engaged in are for point solutions such as our advanced warehouse
management, marketing, sales force automation and call center
management. We expect this trend to continue for the remainder of the
calendar year.
"These market shifts have caused us to make several changes in
our product strategy including the strengthening of our core supply
chain execution offering, and the introduction in June of Vivaldi(TM),
our new suite of fulfillment and customer service applications.
Additionally, we are organizing new multi-functional groups of product
development, marketing and sales people to work together to bring new
point solutions to market more quickly. We will shift resources to
these various product initiatives depending on customer demand and
sales success.
"Regarding implementations, we are seeing new customers "go live"
such as Brunswick Outdoor Recreation Group, Land O'Lakes, Zurn
Industries, Starkist and Smuckers. With Land O'Lakes, Starkist,
Smuckers and Sun Valley, we added four more names to the growing
number of successful installations in the CPG space."
Concluded Durlow, "On the expense side, our operating expenses
this quarter are lower than last quarter and the same period last
year, reflecting the successful efforts of our cost restructuring plan
that we implemented in the fourth quarter of fiscal year 1999.
"By improving our execution capability so that we are more agile
in our new product development and more focused in the marketing and
selling of our products, we are adapting our business model to new
market realities. With the combination of continued successful
customer implementations, enhancements to our point solutions and a
strong financial position, I firmly believe in our ability to succeed
in this dynamic marketplace."
Industri-Matematik International Corp. provides high-performance
fulfillment and customer service software solutions for e-commerce.
The company specializes in advanced supply chain environments with
complex logistics, information-rich high transaction volumes and
rigorous demands for customer responsiveness. Industri-Matematik has
implemented enterprise systems worldwide at market-leading
organizations such as British Airways, Campbell Soup, Canadian Tire,
Canon, Carlton & United Breweries, Hartz Mountain, Kellogg's, Skyway
Systems, Starbucks, VWR and Warner/Elektra/Atlantic.
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 the Vivaldi(TM) Software Suite, including 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 1999.
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 Balance Sheets
(U.S. Dollar in thousands)
07/31/99 04/30/99
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $19,940 $29,065
Short-term investments 29,808 24,848
Accounts receivable, less allowance
For doubtful accounts 17,956 23,772
Contract receivables 987 703
Prepaid expenses 3,344 2,742
Income taxes receivable 818 733
Other current assets 822 558
Total current assets 73,675 82,421
Non current assets:
Property and equipment, net 5,920 6,682
Deferred income taxes 16,274 16,042
Goodwill and other intangible assets 8,754 9,084
Other non current assets 1,025 856
Total non current assets 31,973 32,664
Total Assets $105,648 $115,085
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital
lease obligations $69 $110
Current portion of notes payable 408 534
Accounts payable 3,843 3,177
Accrued expenses and other
current liabilities 11,132 12,853
Accrued payroll and employee benefits 4,210 6,243
Deferred revenue 5,989 5,317
Total current liabilities 25,651 28,234
Long-term liabilities:
Capital lease obligations 0 0
Notes payable 300 303
Accrued pensions liability 2,575 2,476
Other long-term liabilities 137 191
Total long-term liabilities 3,012 2,970
Total liabilities 28,663 31,204
Stockholders' equity:
Common Stock 316 315
Additional paid-in capital 124,161 123,945
Accumulated deficit (37,319) (29,972)
Cumulative translation adjustment (3,280) (3,514)
Note receivable from stockholders (6,893) (6,893)
----------- ------------
Total stockholders' equity 76,985 83,881
Total Liabilities and Stockholders' Equity $105,648 $115,085
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollar in thousands, except per share data)
Three Months Ended
07/31/99 07/31/98
Revenues:
Licenses $1,645 $4,355
Services and maintenance 14,820 18,851
Other 211 286
Total revenues 16,676 23,492
Cost of revenues:
Licenses 346 204
Services and maintenance 12,154 15,067
Other 58 124
Total cost of revenues 12,558 15,395
Gross profit 4,118 8,097
Operating expenses:
Product development 4,441 5,241
Sales and marketing 5,087 6,312
General and administrative 2,162 3,349
Amortization of goodwill and
other intangible assets 346 28
Total operating expenses 12,036 14,930
Loss from operations (7,918) (6,833)
----------------- -------------
Other income (expense):
Interest income 632 1,441
Interest expense (28) (40)
Miscellaneous expense (33) (43)
----------------- -------------
Loss before income taxes (7,347) (5,475)
Benefit for income taxes 0 (1,693)
----------------- -------------
Net loss $(7,347) $(3,782)
================= =============
Net loss per share - assuming dilution $(0.23) $(0.11)
================= =============
Weighted average number of
shares outstanding - assuming dilution 31,534,651 32,975,576
*T
--30--et/ny*
CONTACT: Agency Contact:
Lippert/Heilshorn & Associates
John Heilshorn, email: john@lhai.com
Jody Burfening, email: jody@lhai.com
phone: 212/838-3777
or
Contact:
Industri-Matematik International Corp.
Stig Durlow, email: stdu@im.se
Karl Asp, email: kaas@im.se
phone: +46 8 676 5000 |
