Genesys Conferencing Reports Financial Results

Genesys Conferencing Reports Financial Results For The Fourth Quarter And Fiscal Year Ended December 31, 2001 -Gross Margins Reach All-Time Highs- -EBITDA Results At High-end of Pre-announced Range- MONTPELLIER, France, March 6, 2002 - Genesys Conferencing (Euronext: 3955) (Nasdaq: GNSY), the world's leading conferencing specialist, today reported revenue and earnings for the fourth quarter and fiscal year ended December 31, 2001. Highlights for the fourth quarter relative to the prior period results included: · Total call volumes reached 237 million minutes, up 35% · Automated services volumes increased 108%, representing 59% of volume · Total revenue rose 6.7% to E54.5 ($48.0) million · EBITDA excluding non-recurring charges increased 70.3% to E9.2 (US$8.1) million Highlights for fiscal 2001 compared to fiscal 2000 were as follows: · Total call volumes reached 868 million minutes, up 41.7% · Automated services volumes increased 158%, representing 51% of volume · Total revenue rose 16.6% to E212 (US$186.8) million · EBITDA excluding non-recurring charges increased 13.7% to E28.7 (US$25.3) million The results reflect the combined performance of Genesys Conferencing, Vialog Corporation, which was acquired by Genesys on April 26, 2001, and Astound Incorporated, which was acquired by Genesys on March 28, 2001 as if these acquisitions were completed on January 1, 2000. Automated Services Drives Record Performance In the Fourth Quarter Total call volumes were 237 million minutes for the fourth quarter, up 35% from the prior year period and almost 10% sequentially. Automated services call volumes were up 108% from the fourth quarter of 2000 and increased 23% sequentially. Automated services represented approximately 41% of revenue and 59% of call volumes in the fourth quarter compared to 25% of revenue and 39% of call volumes in the prior year period. Revenues increased 6.7% to E54.5 (US$48.0) million for the fourth quarter of 2001, from E51.0 (US$45.0) million in the fourth quarter of 2000. Revenue growth illustrated the continuing shift to automated services, which carry higher margins but generate lower per-minute revenues. Increased call volumes, the continued shift toward automated services and improved cost controls led to significant margin expansion, before non-recurring charges, in the fourth quarter. Gross margin rose 400 basis points from the same period last year, to 57.4% compared to 53.4%. Earnings before interest, taxes, depreciation and amortization (EBITDA), before non-recurring charges, increased to E9.2 (US$8.1) million, or 16.8% of revenue, in the fourth quarter, an increase of 70.3%, compared to E5.4 (US$4.7) million, or 10.5% of revenue, in the prior year period. The 2001 fourth quarter excludes E1.1 million (US$ 1 million) in costs associated with employee-related separations. EBITDA results for the fourth quarter ended December 31, 2001 caps the second consecutive quarter of EBITDA improvement since the completion of the Vialog and Astound acquisitions. As previously reported, the Company evaluated the carrying value of its long-lived assets, consisting primarily of goodwill. For the fourth quarter of 2001, a reduction of E51.9 (US$45.7) million in the carrying value of goodwill and other long-lived assets was recorded as a result of this assessment. Record Year for 2001 Total call volumes were 868 million minutes for 2001, up 41.7% from the prior year. Automated services call volumes were up 158% from the prior year. Automated services represented approximately 35% of revenue and 51% of call volumes in 2001 compared to 20% of revenue and 28% of call volumes in the prior year. For the year, revenues increased 16.6% to E212.0 million (US$186.8) from E181.8 million (US$160.2) in 2000. EBITDA, before non-recurring charges, increased to E28.7 (US$25.3) million, or 13.5% of revenue, in 2001, an increase of 13.7%, compared to E25.2 (US$22.2) million, or 13.9% of revenue, in the prior year. Francois Legros, Chairman and Chief Executive Officer stated, "We believe the significant improvement in fourth quarter margins reflects our progress in more efficiently managing the business since the Astound and Vialog acquisitions closed. We expect the additional cost savings initiatives announced earlier this year combined with the continued favorable shift to higher margin automated services revenue to further contribute to margin improvements in 2002." Genesys Meeting Center/Genesys Event and Managed Services "We are very pleased with the early success of Genesys Meeting Center (GenMC), our web conferencing platform, and our ongoing strategy of launching innovative conferencing services. In just three months, GenMC has become the fastest growing web conferencing service in the world, based on the number of seats sold. This validates our strategy of offering a complete integration of audio, web and video conferencing into a single service and interface for our customers" Legros stated. Genesys is now preparing to deploy new Event and Managed Services Technology (GEMS), a similar feature-rich integration of audio, web and video, intended to transform the Investor-relations and Event Conferencing business into true multimedia experiences. "GEMS represents a key step in the full integration of all conferencing technologies in our call-centers and will enable Genesys to enhance the value of web- presentations and video over IP, thereby maximizing our revenue per conference with minimal incremental costs. Ultimately, these high margin services will drive revenue and solidify our position as a leader in the conferencing market," Legros added. Robust Outlook for 2002 "The plan that Genesys management put in place is paying off in expanded margins, increased profitability and margins now growing faster than the rate of revenue," Legros stated. "We believe the business environment is going to remain favorable for the conferencing and collaboration industry in 2002. With uniquely positioned services, a commitment to drive automated services and a strong focus on controlling SG&A costs, we are well positioned to further improve margins." The Company reiterated previously announced guidance for the fiscal year ending December 31, 2002: - Revenue is projected between E230million and E250million - EBITDA, excluding the non-recurring call center charge, is projected to grow between 27% and 33% on a proforma basis, compared to 2001. - On Monday, March 4 Genesys was informed that a group of shareholders led by John Hassett filed a Schedule 13D with the US Securities and Exchange Commission, indicating that the group has acquired 5.9% of the outstanding shares of Genesys, and suggesting that an unidentified party might be considering an acquisition of the company. Genesys is concerned by the statements in the Schedule 13D and by the impressions that they appear to have created. Genesys believes it is important to clarify the situation to ensure that no misleading impressions are allowed to continue. In particular: Genesys is not seeking acquisition proposals, and does not anticipate doing so. Mr. Hassett and his group are acting exclusively on their own initiative, and not on behalf of Genesys. The group has not been given any authorization to negotiate or discuss any transaction on behalf of Genesys. Genesys has not received any offer for an acquisition transaction, whether at 30 euros per share or at any other price, nor has Genesys received any indication from a potential acquiror that any transaction is being studied. Genesys intends to request that the COB initiate an investigation relating to recent fluctuations in Genesys' share price and take action in case of violation of any French laws or regulations. About Genesys Conferencing Founded in 1986, Genesys Conferencing is a global communications specialist, providing practical and innovative real-time collaborative and managed event services to over 17,000 clients worldwide. Working in a rapidly growing market and enjoying unique worldwide coverage as a result of its geographic expansion policy, Genesys Conferencing has established its advanced technology in 18 countries throughout Europe, Asia Pacific and the United States. Genesys Conferencing's ordinary shares are listed on the Nouveau Marche in Paris (Euronext: 3955) and its ADSs are listed on the Nasdaq National Stock Market (Nasdaq: GNSY - news). www.genesys.com At Genesys Conferencing Michael E. Savage Executice Vice President Chief Financial Officer Direct Line: +33 4 99 13 27 34 mike.savage@genesys.com Marine Pouvreau Direct Line: + 33 4 99 13 25 17 marine.pouvreau@genesys.com Madeleine Bardlow, verkställande direktör Genesys Conferencing Sweden AB Tel: 0707 - 82 02 23 E-post: madeleine.bardlow@genesys.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/03/06/20020306BIT00600/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/06/20020306BIT00600/wkr0002.pdf