Industri-Matematik International Announces Fourth Quarter 2002 Results

Industri-Matematik International Announces Fourth Quarter 2002 Results STOCKHOLM, Sweden - June 11, 2002 - Industri-Matematik International Corp. (Nasdaq:IMIC) - the Order Company - today announced results for its fourth fiscal quarter and fiscal year ended April 30, 2002. Revenues for the fourth quarter and fiscal year were $12.6 million and $55.3 million, respectively, as compared to $18.5 million and $69.4 million for the same period in 2001. License revenue for the fourth quarter was $0.4 million as compared to $3.5 million for the same period in 2001, and service and maintenance revenue was $11.5 million as compared to $14.1 million for the same period in 2001. License revenue for the fiscal year was $4.5 million as compared to $13.5 million for the same period in 2001, and service and maintenance revenue was $48.2 million as compared to $53.3 million for the same period in 2001. The reported net loss for the fourth quarter and fiscal year was $3.0 million and $6.6 million, respectively, as compared to $26.9 million and $35.3 million for the same period in 2001. Stig Durlow, President and Chief Executive Officer of Industri- Matematik, said, "While our pipeline continues to grow with new opportunities, we are seeing a reluctance by companies to commit their investment dollars. Deals are maturing through our pipeline but the closing process is often being postponed. We believe this is due to an underlying general uncertainty in the direction of the economy." "Industri-Matematik continues to make progress in creating expanded market visibility and sales activity in all our global markets, especially in the Americas. Pivotal to this progress is the Company's strategy of focus and execution, where we have tailored our order and replenishment business process solutions to specific industries in the retail value chain across target geographic markets. Also important is our initiative to sell our expanded product line to existing customers. "This strategy is reflected in our go-to-market branding of Industri- Matematik as the Order Company. We believe that the best way for companies to achieve supply chain and business success is to focus on actual demand - the order. Industry experts, customers and prospects have all responded favorably to our strategy and solutions that help companies optimize their order life cycles and replenishment processes, building our sales pipeline," continued Mr. Durlow. "On the customer front, the fourth quarter saw Warner/Electra/Atlantic Corp. go live with a collaborative order management application and Canadian Tire go live with a visibility and event management application to improve multi-channel distribution. "Organizationally, the Company continues to tailor its organization to drive revenue and keep costs in alignment. As part of this process, we have reduced overheads and increased Sales and Marketing resources. In addition, we have pushed more marketing and sales decision making out to the regions where our teams are closer to customers and can react faster to new opportunities and changing market conditions. During the fourth quarter we have taken steps to make our product direction more market focused with substantial input coming from the local regions. Other examples of our stepped up marketing include unveiling an exciting, new corporate web site, the launch of our retail initiative at an industry conference in Barcelona and a highly successfully forum which brought a number of leading U.S. customers together with industry analysts. We are well positioned to produce results from these and other marketing and sales initiatives," said Mr. Durlow. About Industri-Matematik Industri-Matematik International - The Order Company - is a provider of high-performance supply chain solutions for the retail value chain which turns 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, AT&T, British Airways, Campbell Soup, Canadian Tire, Foster's, GE Plastics, Kellogg's, Royal Ahold, Schenker-BTL, Starbucks, Telia, 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 2001. All information in this release is as of June 11, 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. Stig Durlow (CEO) or Karl Asp (CFO) at: ir@im.se Phone US: +1-856-793-3269 Phone Europe: +46-8-676-5696 - tables to follow - INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (U.S. Dollars in thousands, except share and per share data) Three Months Ended Twelve Months Ended 04/30/02 04/30/01 04/30/02 04/30/01 Revenu es: $ 410 $ 3,471 $ 4,479 $ 13,478 Licens es Services and maintenance 11,489 14,139 48,239 53,313 Other 694 875 2,562 2,564 Total revenues 12,593 18,485 55,280 69,355 Cost of revenues: 30 647 307 1,336 Licens es Services and maintenance 7,387 9,909 31,870 37,375 Other 245 107 935 520 Total cost of revenues 7,662 10,663 33,112 39,231 Gross profit 4,931 7,822 22,168 30,124 Operating expenses: Product development 2,703 3,975 10,458 15,479 Sales and marketing 2,956 4,061 10,658 15,878 General and 1,982 2,416 7,579 9,026 administrative Amortization of goodwill 185 3,383 741 4,506 and other intangible assets Restructuring costs 0 5,391 0 5,391 Total operating expenses 7,826 19,226 29,436 50,280 Loss from operations (2,895) (11,404) (7,268) (20,156) Other income (expense): Interest income 82 291 560 1,561 Interest expense (1) (1) (3) (13) Miscellaneous income (167) (328) 109 (1,219) (expense) Loss before income taxes (2,981) (11,442) (6,602) (19,827) Provision from income 0 (15,424) 0 taxes (15,424) Net $ $ $ $ loss (2,981) (26,866) (6,602) (35,251) Net loss per share - ($0.09) ($0.84) ($0.20) ($1.10) assuming dilution Weighted average number of shares outstanding - 31 871 32 019 32 195 31 985 assuming dilution 436 747 436 991 INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) 04/30/02 04/30/01 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 16,422 $ 12,053 Short-term investments 12,866 Accounts receivable, less allowance for doubtful accounts 7,953 10,952 Accrued income 2,218 1,861 Prepaid expenses 1,688 1,726 Income taxes receivable 3 217 Other current assets 384 640 Total current assets 28,668 40,315 Non-current assets: Property and equipment, net 3,135 4,753 Goodwill and other intangible assets 2,989 3,739 Long-term cash deposit 2,728 2,794 Other non-current assets 889 909 Total non-current assets 9,741 12,195 Total assets $ 38,409 $ 52,510 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,341 $ 1,129 Accrued expenses and other current 6,136 8,071 liabilities Accrued payroll and employee benefits 4,562 7,595 Deferred revenue 5,148 7,045 Total current liabilities 17,187 23,840 Long-term liabilities: Accrued pension liability 2 ,093 2,880 Other long-term liabilities 153 0 Total long-term liabilities 2,246 2,880 Total liabilities 19,433 26,720 Stockholders' equity: Common Stock 319 323 Additional paid-in capital 120,849 125,206 Accumulated deficit (94,623) (88,022) Accumulated other comprehensive loss (6,214) (5,835) Note receivable from stockholders (1,355) (5,882) Total stockholders' equity 18,976 25,790 Total liabilities and stockholders' $ 38,409 $ 52,510 equity ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/06/10/20020610BIT01310/wkr0001.doc http://www.waymaker.net/bitonline/2002/06/10/20020610BIT01310/wkr0002.pdf