STOCKHOLM, Sweden, Aug. 28, 2002 (PRIMEZONE) -- Industri-Matematik International Corp. (Nasdaq:IMIC) - the Order Company - today announced results for its first fiscal quarter ended July 31, 2002.
Revenues for the first quarter were $10.5 million, compared to $13.5 million for the same period in fiscal 2002. License revenue was $0.3 million versus $0.6 million for the same period in the prior year, and service and maintenance revenue was $9.8 million versus $12.2 million for the same period in the prior year. The net loss for the three months ended July 31, 2002 was $4.4 million, or $0.14 per share. For the same period a year earlier, the Company had a net loss of $1.4 million, or $0.05 per share. General and administrative expenses for the quarter ended July 31, 2002 include a one-time charge of $1.0 million for the cost associated with the change in executive management in July 2002.
"Our decline in revenues this quarter is largely due to weak general economic conditions and reduced IT spending. We continue to aggressively manage our expense structure to preserve our cash position, and focus our efforts on creating value for our customers, with the goal of improved financial results," said Lin Johnstone, President and Chief Executive Officer of Industri-Matematik.
"We have a strong product offering that addresses the critical order management and replenishment needs facing companies today and provides compelling returns on investment. Our domain expertise to deliver these world-class solutions are second to none," said Johnstone.
Management will host a conference call to discuss its results for the first quarter of fiscal 2003 at 10 a.m. Eastern Time, today, August 28, 2002. Please access the Industri-Matematik site on the World Wide Web at: http:// www.industri-matematik.com for further details.
About Industri-Matematik
Industri-Matematik International - The Order Company - is a provider of high-performance supply chain solutions for the retail value chain which turn supply chain friction into smooth order flows. Its software enables companies to manage order and replenishment business processes based on actual customer demand to enable best-in-class, pull-driven supply chain practices. The Company's software includes collaborative order management, fulfillment, customer relationship management (CRM), distribution center and store replenishment, supply chain analytics, visibility, and event management capabilities.
Industri-Matematik customers cover the entire retail value chain from manufacturers to logistics and business service providers to wholesalers and retailers. They include some of the world's leading brands such as AstraZeneca, British Airways, Campbell Soup, Canadian Tire, Foster's, Kellogg's, Royal Ahold, Schenker, Starbucks, Flextronics, TNT Express, 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 its software products, the achievements of which involve certain risks and uncertainties, including, but not limited to, the success of its reorganization, product demand and market acceptance risks, the effect of economic conditions particularly in its target markets, 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 its Annual Report on Form 10-K filed in July 2002. The information in this release is as of August 28, 2002. Industri- Matematik undertakes no duty to update any `forward-looking' statement to conform the statement to actual results or changes in its expectations.
For Industri-Matematik company and product information, and press releases, please access the Industri-Matematik site on the World Wide Web at: http:// www.industri-matematik.com
For more information, contact:Industri-Matematik International Corp., Stockholm, SwedenLin Johnstone (CEO)/Sue Salvesen (CFO) at: ir@im.se US: +1-856-793-3269Europe: +46-8-676-5696
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(U.S. Dollar in thousands, except per share data)
Three Months Ended
07/31/02 07/31/01
Revenues:
$ 277 $ 643
Licenses
Services and maintenance 9,825 12,187
Other 353 658
Total revenues 10,455 13,488
Cost of revenues:
160 16
Licenses
Services and maintenance 6,647 8,285
Other 233 164
Total cost of revenues 7,040 8,465
Gross profit 3,415 5,023
Operating expenses:
Product development 2,504 2,493
Sales and marketing 2,359 2,163
General and administrative 2,814 1,855
Amortization of goodwill and other -- 185
intangible assets
Total operating expenses 7,677 6,696
Loss from operations (4,262) (1,673)
Other income (expense):
Interest income 116 245
Interest expense -- --
Miscellaneous income (expense) (277) (17)
Loss before income taxes (4,423) (1,445)
Benefit for income taxes - --
Net loss $ (4,423) $ (1,445)
Net loss per share - assuming dilution $ (0.14) $ (0.05)
Weighted average number of
shares outstanding - assuming 31,952,654 32,303,436
dilution
INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
07/31/02 04/30/02
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 15,036 $ 16,422
Short-term investments --
Accounts receivable, less allowance
for doubtful accounts 6,329 7,953
Accrued income 1,299 2,218
Prepaid expenses 1,832 1,688
Income taxes receivable -- 3
Other current assets 335 384
Total current assets 24,831 28,668
Non-current assets:
Property and equipment, net 3,082 3,135
Goodwill and other intangible assets 3,095 2,989
Long-term cash deposit 2,858 2,728
Other non-current assets 901 889
Total non-current assets 9,936 9,741
Total assets $ 34,767 $ 38,409
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,153 $ 1,341
Accrued expenses and other current 6,134 6,136
liabilities
Accrued payroll and employee benefits 5,088 4,562
Deferred revenue 5,000 5,148
Total current liabilities 17,375 17,187
Long-term liabilities:
Accrued pension liability 2,322 2,093
Other long-term liabilities 153 153
Total long-term liabilities 2,475 2,246
Total liabilities 19,850 19,433
Stockholders' equity:
Common Stock 320 319
Additional paid-in capital 120,860 120,849
Accumulated deficit (99,046) (94,623)
Accumulated other comprehensive loss (5,862) (6,214)
Note receivable from stockholders (1,355) (1,355)
Total stockholders' equity 14,917 18,976
Total liabilities and stockholders' $ 34,767 $ 38,409
equity
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