Industri-Matematik International Announces Second Quarter Results
STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 2, 1999--
Industri-Matematik International Corp. (www.im.se and NASDAQ-NM
Symbol: IMIC), a leader in advanced supply chain management solutions,
today reported revenues of $18.3 million for its second fiscal
quarter, which ended on October 31, 1999. This compares with revenues
of $23.3 million for the same quarter last year.
The revenue total for fiscal 2000's second quarter included
license revenue of $1.0 million and service and maintenance revenue of
$16.9 million. A year earlier, in the three months ended on October
31, 1998, the comparable figures were $6.0 million for license revenue
and $17.0 for service and maintenance revenue.
Industri-Matematik had a net loss of $6.9 million or $0.22 per
share in this year's second quarter, compared with a net loss of $11.0
million or $0.33 per share a year earlier.
In the six months ended October 31, 1999, the company had a net
loss of $14.2 million or $0.45 per share with total license revenue
and service and maintenance revenue amounting to $2.7 million and
$31.7 million respectively. A year earlier, in the first half of
fiscal 1999, the company reported a net loss of $14.7 million or $0.45
per share with total license revenue and service and maintenance
revenue amounting to $10.3 million and $35.8 million, respectively.
Stig Durlow, president and chief executive officer, said the
second quarter results were in line with expectations. He said he is
encouraged by growing market interest in the company's newest
applications in supply chain execution, customer relationship
management (CRM), and e-business.
"The investment that we made in CRM in December 1998 with our
acquisition of the Abalon software operations has already been a
significant success," Mr. Durlow said. "CRM is an important part of
the momentum that our new VIVALDI(TM) suite of applications is
beginning to generate. We are also seeing a strong increase in
interest in our warehouse management and replenishment management
applications.
"While market demand for big enterprise systems continues to be
limited, Industri-Matematik is making real headway in repositioning
itself as a provider of a suite of point solutions across a wide
spectrum," he said. "The repositioning process necessarily takes time,
and at this stage its effects are not seen in new license sales.
However, we're making solid progress. We're on track with the
expectations we had when we began this process." Significant recent
events include:
- The selection of Industri-Matematik in late September, 1999 as a
key application component of IBM's new Global Supply Chain
Management initiative for e-business. In this alliance, the two
organizations are working together on marketing, sales, service
and product development of integrated, high-velocity supply chain
solutions for e-businesses. Industri-Matematik was chosen along
with i2 Technologies. Mr. Durlow said this initiative is moving
forward rapidly, with heavy emphasis currently on educating the
IBM sales force with Industri-Matematik's capabilities and
offerings.
- Major success in the CRM market, including two new contracts in
North America. In one of these, Industri-Matematik's VIVALDI CRM
Contact Center solution was selected by Volvo Action Service, the
call center arm of Volvo Parts, which supports Volvo truck, bus
and marine equipment around the world.
During the second fiscal quarter a number of major customers also
"went live" with their Industri-Matematik applications. Among those
completing implementations in North America were units of Land O'
Lakes, Brunswick Outdoor Recreation Group, Smuckers, Zurn Industries,
Starkist and Kellogg NA Frozen Food. In Europe, Telia, Sun Valley
Foods and Gelia, a company in the Ahlsell Group, also went live.
Also during the second fiscal quarter, Industri-Matematik
licensed its advanced order management and supply chain execution
software to its first pure e-tail customer, a U.S.-based start-up that
intends to sell goods directly to consumers and small retailers via
the Internet. In exchange for the license, Industri-Matematik has
received a small equity interest in the company. To date, this company
has not completed its required financing, has not commenced
operations, and has no market for its equity securities, and
accordingly Industri-Matematik has recognized no revenue or net asset
value related to this transaction.
About Industri-Matematik
Industri-Matematik International Corp. (www.im.se) provides
high-performance fulfillment and customer service software solutions
for e-commerce. Its VIVALDI software suite enables companies to move
to a Zero Inventory/100 Percent Visibility business model by replacing
inventory with information to speed the movement of goods through the
supply chain. The company has implemented enterprise applications
worldwide at market-leading organizations such as British Airways,
Campbell Soup, Canadian Tire, Canon, Carlton & United Breweries,
Ericsson, Hartz Mountain, Kellogg, Starbucks, Sun Microsystems 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 success of the implementation of the cost cutting plan, the
impact to the company as a result of its participation in IBM's Global
SCM initiative, 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 Annual Report on
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)
10/31/99 04/30/99
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents 13 851 29 065
Short-term investments 27 742 24 848
Accounts receivable, less allowance
for doubtful accounts 16 228 23 772
Contract receivables 775 703
Prepaid expenses 2 985 2 742
Income taxes receivable 943 733
Other current assets 813 558
Total current assets 63 337 82 421
Non-current assets:
Property and equipment, net 6 366 6 682
Deferred income taxes 16 139 16 042
Goodwill 8 405 9 084
Other non-current assets 2 593 856
Total non-current assets 33 503 32 664
Total Assets 96 840 115 085
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital
lease obligations 28 110
Current portion of notes payable 559 534
Accounts payable 2 883 3 177
Accrued expenses and other
current liabilities 10 207 12 853
Accrued payroll and employee benefits 4 143 6 243
Deferred revenue 4 900 5 317
Total current liabilities 22 720 28 234
Long-term liabilities:
Notes payable 18 303
Accrued pensions liability 2 850 2 476
Other long-term liabilities 796 191
Total long-term liabilities 3 664 2 970
Total liabilities 26 384 31 204
Stockholders' equity:
Common stock 316 315
Additional paid-in capital 124 161 123 945
Retained earnings (44 169) (29 972)
Accumulated other comprehensive loss (2 959) (3 514)
Notes receivable from stockholders (6 893) (6 893)
--------- --------
Total stockholders' equity 70 456 83 881
Total Liabilities and
Stockholders' Equity 96 840 115 085
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollar in thousands, except per share data)
Six Months Ended Three Months Ended
10/31/99 10/31/98 10/31/99 10/31/98
Revenue:
Licenses 2 664 10 339 1 019 5 984
Services and maintenance 31 676 35 825 16 856 16 974
Other 624 666 413 380
Total revenues 34 964 46 830 18 288 23 338
Cost of revenues:
Licenses 530 427 184 223
Services and maintenance 24 876 37 514 12 722 22 447
Other 159 230 101 106
Total cost of revenues 25 565 38 171 13 007 22 776
Gross profit 9 399 8 659 5 281 562
Operating expenses:
Product development 8 938 13 354 4 497 8 113
Sales and marketing 10 516 13 299 5 429 6 987
General and administrative 4 510 6 411 2 348 3 005
Amortization of goodwill and
other intangible assets 692 28 346 57
Total operating expenses 24 656 33 092 12 620 18 162
Loss from operations (15 257) (24 433) (7 339) (17 600)
------ ------ ------ ------
Other income (expense):
Interest income 1 200 2 745 568 1 304
Interest expense (41) (75) (13) (35)
Miscellaneous income (expense) (99) 29 (66) 72
Loss before income taxes (14 197) (21 734) (6 850) (16 259)
Benefit from income taxes 0 (6 996) 0 (5 303)
------ ------ ------ ------
Net loss (14 197) (14 738) (6 850) (10 956)
====== ====== ====== ======
Net loss per share
- assuming dilution ($0.45) ($0.45) ($0.22) ($0.33)
====== ====== ====== ======
Weighted average number
of shares outstanding
- assuming dilution 31 569 384 32 924 724 31 604 118 32 873 871
*T
CONTACT:
Industri-Matematik International Corp.
Stig Durlow, email: stdu@im.se
Karl Asp, email: kaas@im.se
phone: +46 8 676 5000
or
Lippert/Heilshorn & Associates
John Heilshorn, email: john@lhai.com
Jody Burfening, email: jody@lhai.com
212/838-3777 |
