ARI Reports Fourth Quarter and Year-End Results; Company Expects to Return to Profitability in Fiscal 2004.Business Editors MILWAUKEE--(BUSINESS WIRE)--Oct. 9, 2003 ARI ARI Acute respiratory infection, see there (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ARIS ARIS American Religious Identification Survey ARIS Architecture of Integrated Information Systems ARIS Active Rack Isolation System ARIS Aggregate Route-based IP Switching ARIS Agentia Romana pentru Investitii Straine ), a leading provider of catalog-enabled business solutions that connect equipment manufacturers with their service and distribution networks, today reported results for the fourth quarter and fiscal year ended July July: see month. 31, 2003. Revenues for the fourth quarter of fiscal 2003 were $3.2 million, compared to revenues of $3.3 million for the same quarter in the prior fiscal year. The company reported a loss of $74,000 or $0.01 per share for the fourth quarter of fiscal 2003, compared to net income of $73,000 or $0.01 per share for the comparable prior period. For fiscal 2003, ARI reported revenues of $12.6 million, compared to revenues of $13.9 million in fiscal 2002. The company reported a loss of $1.3 million or $0.21 per share for fiscal 2003, compared to a profit of $188,000 or $0.03 per share in the prior year. "Recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues in our core electronic catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. business increased 11% in fiscal 2003, a significant accomplishment given the continued economic challenges faced by our primary customer base of equipment manufacturers. We increased the number of catalog subscriptions and the number of dealers we serve during the year through the addition of several major new customers and the expansion of our business with current customers," said Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. E. Dearing Dearing, as a name, may refer to:
Dearing said net income was significantly affected by large legal and advisory fees related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and expenses for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of common stock, warrants and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. from ARI's largest shareholder, WITECH Corporation. "Without these special expenses which we do not expect to continue to occur, our total expenses for fiscal 2003 would have been lower than in the previous year, reflecting the progress we have made in increasing efficiency and reducing operating costs operating costs npl → gastos mpl operacionales . In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these special expenses and an initial debt re-payment of $500,000, we increased our overall cash balance by $1.2 million in fiscal 2003. Furthermore, our year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. cash balance of $2.1 million includes an amount reserved for the first payment on the restructured debt, which actually isn't is·n't Contraction of is not. isn't is not isn't be due until March 2004," Dearing said. "Fiscal 2003 was a transition year for ARI. We restructured our debt, began to improve our capital structure and reduced on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" operating costs. At the same time, while total company revenues declined 9%, both recurring and total revenues in the core electronic catalog business increased by 11% and 3%, respectively. We believe we are well positioned to improve our bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance in fiscal year 2004 without requiring significant top-line growth. With reduced interest payments, strong cash flow and our lean operating structure, we expect fiscal 2004 to be once again a profitable year for ARI," said Dearing. ARI is a leading provider of electronic catalog-enabled business solutions for sales, service and life-cycle life-cycle - software life-cycle product support in the manufactured equipment market. ARI currently provides approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80 parts catalogs Noun 1. parts catalog - a list advertising parts for machinery along with prices parts catalogue catalogue, catalog - a complete list of things; usually arranged systematically; "it does not pretend to be a catalog of his achievements" (many of which contain multiple lines of equipment) for approximately 60 equipment manufacturers in the U.S. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . More
than 75,000 catalog subscriptions are provided through ARI to over
20,000 dealers and distributors in more than 100 countries in a dozen
segments of the worldwide manufactured equipment market including
outdoor power, recreation vehicle, floor maintenance, auto and truck
parts aftermarket AftermarketSee: Secondary market. aftermarket See secondary market. , power sports, marine and construction. The Company builds and supports a full suite of multi-media electronic catalog publishing and viewing software for the Web or CD and provides expert catalog publishing and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . ARI e-Catalog systems support a variety of electronic pathways for parts orders, warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. claims and other transactions between manufacturers and their networks of sales and service points. In addition, ARI also provides a template-based dealer website service that makes it quick and easy for an equipment dealer to have a professional and attractive website. ARI currently operates three offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and one in Europe and has sales and service agents in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. and France providing marketing and support of its products and services. Fourth Quarter Earnings Conference Call ARI's Fourth Quarter Conference Call is scheduled for Thursday Thursday: see week. , October October: see month. 9, 2003 at 3:30 p.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time/4:30 p.m. Eastern Time. If you would like to participate on a listen-only basis, please dial in five to ten minutes prior to the starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first at 1-800-915-4836 (International callers dial 1-973-317-5319) and request to be connected to Brian Dearing's conference call. A rebroadcast is available beginning at 5:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October 10, 2003 by calling 1-800-428-6051 (International callers dial 1-973-709-2089) and enter passcode #309436. A replay of ARI's conference call as well as notes and financial information presented in the call will be available on ARI's website, www.arinet.com, after 6:00 p.m. Central Daylight Time on October 10. Click on the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " tab to access the information. Statements in this news release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The forward-looking statements can generally be identified by words such as "believes," "anticipates," "expects" or words of similar meaning. Forward-looking statements also include statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future performance, such as future prospects, revenues, profits and cash flows. The forward-looking statements are subject to risks and uncertainties, which may cause actual results to be materially different from any future performance suggested in the forward-looking statements. Such risks and uncertainties include those factors described under "Forward Looking Statements Disclosure" in Exhibit 99.1 of the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal year ended July 31, 2002 filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company undertakes no obligation to publicly release the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
ARI Network Services, Inc.
Balance Sheets
(In thousands, except share and per share data)
(Audited)
July 31 July 31
ASSETS 2003 2002
--------- --------
Current Assets:
Cash $2,120 $879
Trade receivables, less allowance for doubtful
accounts of $98 at July 31, 2003 and $140 at
July 31, 2002 1,088 1,743
Prepaid expenses and other 115 84
--------- --------
Total Current Assets 3,323 2,706
Equipment and leasehold improvements:
Computer equipment 4,475 4,394
Leasehold improvements 73 73
Furniture and equipment 1,372 1,292
--------- --------
5,920 5,759
Less accumulated depreciation and amortization 5,474 5,262
--------- --------
Net equipment and leasehold improvements 446 497
Other assets - 105
Capitalized software product costs 9,602 23,585
Less accumulated amortization 7,721 20,519
--------- --------
Net capitalized software product costs 1,881 3,066
--------- --------
Total Assets $5,650 $6,374
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current portion of notes payable to shareholder $- $50
Current portion of notes payable 400 3,490
RFC line of credit 346 360
Accounts payable 401 567
Deferred revenue 5,280 4,619
Accrued payroll and related liabilities 1,088 1,140
Other accrued liabilities 601 1,042
Current portion of capital lease obligations 20 151
--------- --------
Total Current Liabilities 8,136 11,419
Long term liabilities:
Notes payable (net of discount) 3,769 -
Accrued restructure expense 319 359
Long term portion of accrued payroll related
expenses 240 176
Capital lease obligations 16 26
--------- --------
Total Long Term Liabilities 4,344 561
Shareholders' equity (deficit):
Cumulative preferred stock, par value $.001 per
share, 1,000,000 shares authorized; 20,350 shares
issued and outstanding at July 31, 2003 and
July 31, 2002 - -
Common stock, par value $.001 per share,
25,000,000 shares authorized; 6,645,191 and
6,329,301 shares issued and outstanding
at July 31, 2003 and July 31, 2002,
respectively 6 6
Common stock warrants and options 141 2,459
Additional paid-in-capital 94,295 91,853
Accumulated deficit (101,272) (99,924)
--------- --------
Total Shareholders' Equity (Deficit) (6,830) (5,606)
--------- --------
Total Liabilities and Shareholders' Equity
(Deficit) $5,650 $6,374
========= ========
ARI Network Services, Inc.
Statements of Operations
(In thousands, except per share data)
(Audited)
Three months Twelve months
ended ended
July 31 July 31
2003 2002 2003 2002
----------- ------- -------- -------
Net revenues:
Subscriptions, support and other
services fees $2,049 $2,126 $8,217 $8,915
Software licenses and renewals 619 593 2,332 2,721
Professional services 547 598 2,068 2,227
----------- ------- -------- -------
3,215 3,317 12,617 13,863
Operating expenses:
Cost of products and services sold:
Subscriptions, support and
other services fees 150 206 603 387
Software licenses and
renewals (a) 440 269 1,768 1,523
Professional services 233 112 819 738
----------- ------- -------- -------
823 587 3,190 2,648
Depreciation and amortization (exclusive
of amortization of software products
included in cost of products and
services sold) 48 61 212 223
Customer operations and support 278 318 1,190 1,220
Selling, general and
administrative 1,914 1,661 7,273 6,835
Software development and
technical support 395 412 1,634 2,056
----------- ------- -------- -------
Operating expenses before amounts
capitalized 3,458 3,039 13,499 12,982
Less capitalized portion (172) (134) (541) (717)
----------- ------- -------- -------
Net operating expenses 3,286 2,905 12,958 12,265
----------- ------- -------- -------
Operating income (loss) (71) 412 (341) 1,598
Other income (expense)
Interest expense (66) (353) (1,036) (1,435)
Other, net 63 14 29 25
----------- ------- -------- -------
Total other expense (3) (339) (1,007) (1,410)
----------- ------- -------- -------
Net income (loss) $(74) $73 $(1,348) $188
=========== ======= ======== =======
Average common shares outstanding 6,645 6,223 6,499 6,238
Basic and diluted net income
(loss) per share ($0.01) $0.01 ($0.21) $0.03
=========== ======= ======== =======
(a) includes amortization of software products of $419, $407, $1,723,
and $1,612 and excluding other depreciation and amortization shown
separately
Earnings before Interest, Taxes, Depreciation and Amortization
Net Income $(74) $73 $(1,348) $188
Plus: Interest 66 353 1,036 1,435
Amortization of software
products 419 407 1,723 1,612
Other depreciation and
amortization 48 61 212 223
----------- ------- -------- -------
Earnings before interest, taxes,
depreciation and amortization $459 $894 $1,623 $3,458
=========== ======= ======== =======
ARI Network Services, Inc.
Statements of Cash Flows
(In thousands)
(Audited)
Three months Twelve months
ended ended
July 31 July 31
2003 2002 2003 2002
------------- ---------------
Operating activities
Net income (loss) $(74) $73 $(1,348) $188
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Amortization of software products 419 407 1,723 1,612
Amortization of goodwill - 5 - 15
Amortization of deferred financing
costs and debt discount (19) 263 682 973
Depreciation and other amortization 48 56 212 208
Interest expense converted to
subordinated debt - - 229 -
Stock issued as consideration to
vendor - - 44 -
Stock issued as contribution to
401(k) plan 39 38 39 38
Net change in receivables, prepaid
expenses and other current assets 221 (424) 624 397
Net change in accounts payable, deferred
revenue, accrued liabilities and
long term liabilities 272 (178) 466 (788)
------------- ---------------
Net cash provided by operating activities 906 240 2,671 2,643
Investing activities
Purchase of equipment and leasehold
improvements (104) (341) (146) (341)
Software product costs capitalized (169) (134) (538) (717)
------------- ---------------
Net cash used in investing activities (273) (475) (684)(1,058)
Financing activities
Borrowings (repayments) under line of
credit - - - (200)
Borrowings under notes payable (42) - 16 -
Payments under notes payable (16) (137) (650) (608)
Payments of capital lease obligations (31) (45) (156) (178)
Debt issuance costs incurred - (51) - (51)
Proceeds from issuance of common stock - 4 44 18
------------- ---------------
Net cash used in financing activities (89) (229) (746)(1,019)
------------- ---------------
Net increase (decrease) in cash 544 (464) 1,241 566
Cash at beginning of period 1,576 1,343 879 313
------------- ---------------
Cash at end of period $2,120 $879 $2,120 $879
============= ===============
Cash paid for interest $17 $22 $82 $394
============= ===============
Noncash investing and financing activities
Capital lease obligations incurred for:
Computer equipment $- $- $15 $24
Conversion of accrued interest to
subordinated debt - - 493 -
Issuance of common stock warrants in
connection with refinancing debt - - 36 -
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