4Front Technologies, Inc. Announces Second Quarter and Six Months Results.Business Editors LONDON, England--(BUSINESS WIRE)--Sept. 6, 2000 4Front Technologies, Inc. ("4Front") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM/ EASDAQ See European Association of Securities Dealers Automated Quotation. Symbol: FFTI FFTI Federazione Field Target Italia (Italian) FFTI Feel Free to Ignore ) announced its results for the second quarter and six months ended July 31, 2000.
HIGHLIGHTS(a)
(in $000s, except share and per share data)
Second Quarter Ended July 31, 2000
2000 1999
---- ----
(unaudited) (unaudited)
Service revenues $ 57,167 $ 39,166
Product revenues $ 3,514 $ 19,150
-------- ------
Total revenues $ 60,681 $ 58,316
Income/(loss) before tax $ (1,825) $ 3,622
Net income/(loss) $ (2,332) $ 2,050
Net income/(loss)
per share (basic) $ (0.19) $ 0.19
Net income/(loss)
per share (diluted) $ (0.19) $ 0.17
Fully diluted shares outstanding 12,774,485 12,019,330
Six Months Ended July 31, 2000
2000 1999
---- ----
(unaudited) (unaudited)
Service revenues $ 112,366 $ 77,595
Product revenues $ 6,394 $ 38,047
--------- --------
Total revenues $ 118,760 $ 115,642
Income/(loss) before tax $ (5,665) $ 7,002
Net income/(loss) $ (6,859) $ 4,035
Net income/(loss)
per share (basic) $ (0.57) $ 0.38
Net income/(loss)
per share (diluted) $ (0.57) $ 0.34
Fully diluted shares outstanding 13,165,724 11,942,645
(a) A substantial part of the company's growth in the past three years has been achieved through acquisition. Accordingly, the results of operations from period to period are not necessarily comparable. For the second quarter ended July 31, 2000 total revenues increased 4% to $60.7 million from $58.3 million reported for the comparable year-ago quarter. Within this increase, service revenues increased by 46%. Net loss for the quarter, after one-time items, was $2.3 million, or $0.19 per share (based on 12,774,485 shares), versus net income of $2 million, or $0.17 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. (based on 12,019,330 shares) for the comparable year-ago quarter. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its previously stated aim to further integrate and rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear its operations, 4Front was expected to record a reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet charge of approximately $10 million for the quarter. However, in contemplation Contemplation Compleat Angler, The Izaak Walton’s classic treatise on the Contemplative Man’s Recreation. [Br. Lit.: The Compleat Angler] Thinker, The sculpture by Rodin, depicting contemplative man. of the recently announced merger with NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers , which was the subject of negotiation during the quarter, much of the reorganisation originally expected to occur during the quarter was suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. pending the outcome of the NCR negotiations. As such, the reorganisation charge in the quarter was significantly less than anticipated, amounting to approximately $1.5 million. However, the less than expected reorganisation charge resulted in greater than anticipated operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . In addition, 4Front's success in leasing out property included in prior reorganisation charges resulted in a total write-back of approximately $2.4 million. Advanced negotiations in progress at present with a prospective lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). may lead to a further write-back of approximately $2.4 million in the current third quarter. No further reorganisation charges are contemplated pending completion of the NCR merger. Anil Doshi, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 4Front, said, "During the quarter, 4Front successfully exceeded its dollar revenue targets despite a slow IT spending period and despite continued weakness in both the Euro and British Pound versus the dollar. Just after the close of the second quarter we announced that we had entered into a definitive agreement to merge with NCR, a leading US technology solutions provider. Under the terms of the agreement, NCR will pay each 4Front Technologies stockholder $18.50 per share in cash for each outstanding share of common stock held. This turning point in 4Front's development, which was being negotiated with NCR during the second quarter, impacted the management of our operations, particularly with regard to our reorganisation plans. As a result of the ongoing negotiations with NCR, we decided to postpone post·pone tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. the implementation of a large part of the final stages of the planned reorganisation. While our overall operating results after one-time items were over 50 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. better than originally targeted, the postponement of the reorganisation had a negative impact on operating costs operating costs npl → gastos mpl operacionales . Operating costs were further hit by general business disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. and unbudgeted costs arising in connection with the NCR merger process. This pressure on operating costs also occurred at a time of increasing investment in new activities. Looking at our business environment, signs are that the difficulties caused in some areas of the European IT service sector by the millennium slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. during the year to date are easing. Notwithstanding these difficulties, and the management and operational challenges caused by the NCR transaction, 4Front exceeded its revenue targets in the quarter and has entered the second half of its fiscal year with a very strong IT service order pipeline. With regard to the NCR transaction, good progress has been made and we are working hard with NCR to ensure that the transaction can be completed as anticipated during the fourth calendar quarter." Mark Ellis Mark Ellis is the name of:
For the six months ended July 31, 2000, total revenues increased 3% to $118.8 million from $115.6 million reported for the comparable year-ago period. Within this increase, service revenues increased by 45%. Net loss for the quarter, after one-time items, was $6.9 million, or $0.57 per share (based on 13,165,724 shares), versus net income of $4.0 million, or $0.34 per share diluted (based on 11,942,645 shares) for the comparable year-ago period. 4Front Technologies, Inc., is a leading provider and integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. of information technology, consisting of specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. computer services Data processing (timesharing, batch processing), software development and consulting services. See service bureau, SaaS and ASP. and web-based solutions, primarily to blue-chip corporations throughout Europe. 4Front's services and solutions include help-desk services, education services, network services, e-business and software solutions, and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . 4Front's customers include General Electric, British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. , Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy. Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. , Lucent, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Phillips, Nokia, Ericsson Radio, Siemens, Sony, Cegedim, Renault, Pfizer, PaineWebber, Societe Generale and the UK Ministry of Defence. Additional information on 4Front can be found on the Company's website at www.4fti.com.
4FRONT TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For The Six Months Ended
July 31, 2000 July 31, 1999 July 31, 2000 July 31, 1999
$ `000's $ `000's $ `000's $ `000's
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUES
Services $ 57,167 $ 39,166 $ 112,366 $ 77,595
Products 3,514 19,150 6,394 38,047
------- ------ --------- --------
60,681 58,316 118,760 115,642
------ ------ ------- -------
Cost of Services 32,184 18,659 62,659 37,145
Cost of Products 3,217 16,584 5,811 32,826
----- ------ ------- ------
35,401 35,243 68,470 69,971
------ ------ ------ ------
GROSS PROFIT
Services 24,983 20,507 49,707 40,450
Products 297 2,566 583 5,221
-------- ------- -------- -------
25,280 23,073 50,290 45,671
------ ------ ------ ------
OPERATING EXPENSES
Selling, general and
administrative expenses 25,702 18,249 47,222 36,273
Depreciation 824 404 1,705 838
Amortization 1,476 798 2,907 1,558
Reorganisation and
restructuring costs 2001 1,527 - 6,545 -
Reorganisation and
restructuring costs 2000 (2,424) - (2,424) -
------- ------
Total operating expenses (27,105) 19,451 55,955 38,669
------ ------
INCOME/(LOSS) BEFORE
INTEREST, INCOME TAXES: (1,825) 3,622 (5,665) 7,002
Interest income 120 220 383 484
Interest expense (456) (246) (1,169) (468)
---- ------- ----
INCOME/(LOSS) BEFORE
INCOME TAXES: (2,161) 3,596 (6,451) 7,018
INCOME TAXES 171 1,546 408 2,983
--- ----- --- -----
NET INCOME/(LOSS) $ (2,332) $ 2,050 $(6,859) $ 4,035
----- -----
NET INCOME/(LOSS) PER
COMMON SHARE (Basic) $ (0.19) $ 0.19 $ (0.57) $ 0.38
NET INCOME/(LOSS) PER
COMMON SHARE (Diluted) $ (0.19) $ 0.17 $ (0.57) $ 0.34
4FRONT SELECT BALANCE SHEET INFORMATION
July 31, 2000 January 31, 2000
------------- ----------------
(unaudited) (audited)
$ `000's $ `000's
Current assets $ 120,658 $ 127,722
Current liabilities 117,445 120,578
Total assets 199,433 209,008
Long-term debt 23,455 25,976
Shareholders' equity $ 58,532 $ 62,454
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion