Industri-Matematik announces Q302 Earnings

Industri-Matematik International Announces Third Quarter 2002 Results STOCKHOLM, Sweden - March 5, 2002 - Industri-Matematik International Corp. (Nasdaq: IMIC) - The Order Company - today announced results for its third fiscal quarter ended January 31, 2002. Revenues for the third quarter of fiscal 2002 were $13.8 million, compared to $15.4 million for the same period in fiscal 2001. License revenue was $1.5 million versus $2.0 million a year earlier, and service and maintenance revenue was $11.8 million versus $12.6 million in the prior year. The net loss for the three months ended January 31, 2002 was $1.4 million or $0.04 per share. A year earlier the Company had a net loss of $4.3 million or $0.13 per share. The Company had cash and cash equivalents of $18.8 million as of January 31, 2002, compared to $19.3 million at the end of the previous quarter. Stig Durlow, President and Chief Executive Officer of Industri- Matematik, said, "Industri-Matematik made significant progress this quarter in generating increased market awareness and sales activity as the result of the recently announced go-to-market branding strategy. Fiscal 2002 has been about focus and execution of a strategy of tailoring our business process solutions to specific industries within each of our target geographic markets. I am pleased to report that the hard work and effort in every area of the business is showing results." Continued Mr. Durlow, "Recently, Industri-Matematik launched its Retail Value Chain initiative, generating strong backing among industry influencers, customers and prospects. Through this initiative, we enable distribution-intensive companies to optimize their order and replenishment business processes. Increasingly, industry experts believe the best way to improve supply chain performance is by focusing on actual demand - the order - and this positioning plays to our strengths and heritage. "Industri-Matematik is the Order Company. We are unmatched in helping organizations manage the customer order life cycle and replenishment orders across the retail value chain, which extends from manufacturers to logistics and business service providers to wholesalers and retailers. This initiative is strategic in demonstrating our company's unique supply chain capabilities and ability to work with back-office business systems such as SAP, Oracle, legacy and others. "Industri-Matematik has also stepped up its marketing and sales activities to support our retail value chain initiative. For example, in the United States, we launched a new web site - www.imiamericas.com - to support our Americas go-to-market efforts. Also, IMI Americas has launched multiple marketing activities including selective advertising, trade show participation and creative direct mail campaigns. We are encouraged by the early results of these activities and they have increased our lead flow in the United States. Additionally, the Company has continued its marketing programs in Europe. As an example, in the Netherlands we have invested in advertising campaigns to strengthen awareness of Industri-Matematik among business executives, focusing on high travel areas such as Schiphol Airport in Amsterdam. Also, we are leveraging our strong partnerships with IBM and other integration solutions providers in marketing programs." Mr. Durlow concluded, "We have streamlined our global organization to manage costs more effectively. The Company has a solid financial foundation with no debt, a clean balance sheet and approximately $19 million in cash on hand. Additionally, we are generating momentum among key market influencers and customers with a sharpened brand focus centered on our retail value chain initiative, which is building demand in our sales pipeline. We expect to produce results from this initiative and move to profitability." About Industri-Matematik Industri-Matematik International - The Order Company - is a provider of high-performance supply chain solutions for the retail value chain and 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, British Airways, Campbell Soup, Canadian Tire, Foster's, Kellogg's, Price Chopper, Royal Ahold, Schenker-BTL, Sherwin Williams, 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. Editors: For Industri-Matematik company and product information and press releases, access the Industri-Matematik site on the World Wide Web at http://www.im.se. For more information, contact: Industri-Matematik International Corp., Stockholm, Sweden Stig Durlow, stdu@im.se Karl Asp, kaas@im.se + 46 8 676 5000 - 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 Nine Months Ended 01/31/02 01/31/01 01/31/02 01/31/01 Revenu es: $ 1,479 $ 2,039 $ 4,070 $ 10,007 Licens es Services and maintenance 11,777 12,613 36,749 39,174 Other 593 738 1,868 1,689 Total revenues 13,849 15,390 42,687 50,870 Cost of revenues: 141 192 277 688 Licens es Services and maintenance 7,904 8,999 24,483 27,466 Other 223 113 690 413 Total cost of revenues 8,268 9,304 25,450 28,567 Gross profit 5,581 6,086 17,237 22,303 Operating expenses: Product development 2,424 3,741 7,755 11,504 Sales and marketing 2,999 3,424 7,702 11,817 General and 1,912 2,164 5,598 6,610 administrative Amortization of goodwill and other intangible assets 185 374 555 1,123 Total operating expenses 7,520 9,703 21,610 31,054 Loss from operations (1,939) (3,617) (4,373) (8,751) Other income (expense): Interest income 75 353 478 1,271 Interest expense (1) (1) (2) (12) Miscellaneous income 485 (989) 276 (892) (expense) Loss before income taxes (1,380) (4,254) (3,621) (8,384) Benefit from income taxes 0 0 0 0 Net $ $ $ $ loss (1,380) (4,254) (3,621) (8,384) Net loss per share - ($0.04) ($0.13) ($0.11) ($0.26) assuming dilution Weighted average number of shares outstanding - 32 309 32 019 32 305 31 974 assuming 366 747 413 739 dilution INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) 01/31/02 04/30/01 (unaudite d) ASSETS Current assets: Cash and cash equivalents $ 18,786 $ 12,053 Short-term investments 0 12,866 Accounts receivable, less allowance for doubtful accounts 8,257 10,952 Contract receivables 2,036 1,861 Prepaid expenses 1,922 1,726 Income taxes receivable 301 217 Other current assets 671 640 Total current assets 31,973 40,315 Non-current assets: Property and equipment, net 3,285 4,753 Goodwill and other intangible assets 3,148 3,739 Long-term cash deposit 2,824 2,794 Other non-current assets 886 909 Total non-current assets 10,143 12,195 Total assets $ 42,116 $ 52,510 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,295 $ 1,129 Accrued expenses and other current 6,436 8,071 liabilities Accrued payroll and employee benefits 3,920 7,595 Deferred revenue 5,393 7,045 Total current liabilities 17,044 23,840 Long-term liabilities: Accrued pension liability 2 ,806 2,880 Total long-term liabilities 2,806 2,880 Total liabilities 19,850 26,720 Stockholders' equity: Common Stock 324 323 Additional paid-in capital 120,857 125,206 Accumulated deficit (91,643) (88,022) Accumulated other comprehensive loss (5,917) (5,835) Note receivable from stockholders (1,355) (5,882) Total stockholders' equity 22,266 25,790 Total liabilities and stockholders' $ 42,116 $ 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/2002/03/05/20020305BIT00520/wkr0001.doc http://www.waymaker.net/bitonline/2002/03/05/20020305BIT00520/wkr0002.pdf