AremisSoft Reports Record Second Quarter Performance.Business Editors NEW YORK--(BUSINESS WIRE)--July 26, 2000 - Revenue climbs 61.3% to record $27.0 million - Pro-forma net income increases 131.4% to $6.0 million, or $0.35 per diluted share AremisSoft Corporation (Nasdaq:AREM AREM All-Random Easy Mode (gaming, Dota Allstars) AREM Avian Richness Evaluation Method ), a leading international supplier of enterprise-wide software and Internet-enabled solutions for the manufacturing, hospitality, healthcare and construction industries, today announced its financial results for the second quarter and six months ended June June: see month. 30, 2000. The Company reported revenue of $27.0 million, a 61.3% increase from $16.7 million reported for the second quarter of 1999 and a sequential One after the other in some consecutive order such as by name or number. increase of 25.5% from $21.5 million in the 2000 first quarter. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, net income for the 2000 second quarter increased 131.4% year-over-year to $6.0 million compared to $2.6 million, and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 70.8% to $0.35 from $0.21 in the year-ago quarter. Pro-forma net income and earnings per share for the periods exclude amortization of goodwill and purchased intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to recent acquisitions, as well as one time costs associated with a postponed secondary financing. As reported net income and earnings per share on a 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. basis for the second quarter of fiscal 2000 were $4.4 million and $0.26, respectively, compared to as reported net income and earnings per share of $2.5 million and $0.20, respectively, for the same period last year. Revenue for the six months ended June 30, 2000 was $48.5 million, 62.5% higher than the $29.9 million reported in the comparable 1999 period. Pro forma net income was $9.4 million, a 172.6% increase from $3.5 million in the comparable 1999 period. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per diluted share for the six months ended June 30, 2000 increased 88.4% to $0.55 from $0.29 in the year ago period. As reported, net income and earnings per diluted share increased 106.4% and 42.6% to $6.9 million and $0.40, respectively, compared to $3.3 million and $0.28, respectively, in the prior year period. Software license revenue increased 73.9% to $15.5 million for the three months ended June 30, 2000, from $8.9 million in the second quarter of 1999, and increased 38.8% from $11.1 million in the first quarter of 2000. Maintenance and services revenue was $10.4 million, a 58.4% increase from $6.6 million in the year-ago quarter, and a 14.3% sequential increase from $9.1 million in the first quarter. As intended, hardware sales decreased 11.0% sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen to $1.1 million from $1.3 million. Roys Poyiadjis, President 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 AremisSoft, stated, "We are quite pleased with our sixth consecutive record quarter of financial performance as a public company. Our superb track record during a challenging period for enterprise application companies is a direct result of the effective execution of our three key strategies. We offer highly competitive products to the under-represented market of midsize customers. Additionally, we target under-penetrated emerging markets that have substantial need for modern Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the based solutions, areas where AremisSoft can sustain a long term competitive advantage. Our third strategy includes leveraging the value of our Indian operations by delivering enterprise solutions with high functionality at a substantially lower cost than our competitors. Going forward, we plan to further leverage our mature, proven Indian development facilities and deliver comprehensive e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. solutions. "Our outstanding performance in the second quarter was due to the successful execution of our strategies in each of our four vertical markets. In manufacturing, we expanded market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of our enterprise wide solution to new geographic areas, including 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. and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . Strength in Hospitality was fueled by our new AREMIS Hotel suite of products, which offers advanced technology and unique integrated Internet functionality to the marketplace. Our healthcare business is being driven by winning major contracts in emerging markets where we offer comprehensive Internet based solutions. In Construction, we benefited from expansion orders from existing customers and new business from the service and maintenance market. "Solid business execution in our second quarter yielded a strong gross margin of 78.6% and a pro-forma operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 26.8%. We continue to maintain stringent financial management disciplines as evidenced by our second quarter DSOs of 80 days, an exceptional level for an international application solutions company." Dr. Lycourgos Kyprianou, Chairman and Founder of AremisSoft, commented, "With the work done towards Internet enabling of our entire product offering, we're we're Contraction of we are. we're we are seeing very strong demand for our Internet-enabled solutions. We are now planning for the next phase of our technological evolution which will leverage our investment in a wide array of Internet technologies, by developing and delivering applications to the marketplace that fully maximize the power of the Internet. "AremisSoft is in a unique position in that we have refined the management processes and research and development infrastructure to fully maximize our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investment in Indian development capabilities. We believe that our large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. software development operation in India enables a paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. in how software is not only developed and maintained, but in how we deliver innovative value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. offerings to customers around the world. We are seeing increasing evidence that we are on the right track based upon our geographically expanding opportunity base and pipeline." Mr. Poyiadjis further remarked, "The second quarter was marked by further implementation of the Company's strategic plan and global expansion initiatives. We developed business in four new markets and rebalanced our executive management responsibilities to gain maximum leverage from our strengths. We're very pleased with the progress we've we've Contraction of we have. we've have already seen with the refinement of management's focus in key areas of the business. We've made great strides in generating increased activity in emerging markets while assisting in the technological advancement of our product lines. Combining my increased CEO focus along with strategic new hires in emerging markets and elsewhere, AremisSoft is even better prepared for continued financial strength and its next stage of growth." Business Highlights ------------------- Roys Poyiadjis appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the position of CEO. Mr. Poyiadjis, who has retained his position as President, succeeds Dr. Lycourgos Kyprianou, who retains his role as Chairman of the Board and Chief Technology Officer. The appointment enables Dr. Kyprianou to increase his focus on technology and the development of large contracts and business activities in emerging markets. It also enables Mr. Poyiadjis to advance the Company's strategic expansion initiatives in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market as well as further penetrate key emerging markets. As the Company continues its rapid global expansion, management is well organized to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. future growth opportunities. Dr. Paul I Paul I, 1754–1801, czar of Russia (1796–1801), son and successor of Catherine II. His mother disliked him intensely and sought on several occasions to change the succession to his disadvantage. . Bloom bloom 1. the general appearance of the surface. In carcass meat it is the glistening, transparent effect and the gentle pink color that gives a good bloom to the carcass. It is the result of proper tissue hydration coupled with the correct proportions of fat, connective tissue and appointed as EVP EVP Executive Vice President EVP EGR (Exhaust Gas Recirculation) Valve Position Sensor EVP Electronic Voice Phenomenon EVP Europäische Volkspartei (Germany) EVP Employee Value Proposition of Corporate Development. Dr. Bloom, who reports directly to Mr. Poyiadjis, is responsible for advancing the Company's North American acquisition strategy, underscoring AremisSoft's goal of expanding its presence in the North American market. He is also responsible for technology partnerships and acquisitions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Update provided on the company's 9.2% interest in GlobalSoft.com. GlobalSoft.com successfully completed its IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. on the Cyprus Stock Exchange The Cyprus Stock Exchange or CSE (Greek: Χρηματιστήριο Αξιών Κύπρου or ΧΑΚ) is a stock exchange located in Nicosia, Cyprus. under the trading symbol Trading symbol See: Ticker symbol "GLC." Based on current exchange rates and the closing price of GLC on July July: see month. 25, 2000, AremisSoft's 11.3 million share investment has a market value of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $50 million, compared to its book value of $1.7 million. Generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting 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. do not permit the Company to reflect the market value of this amount in the balance sheet statement. Joins Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. (c). The Company achieved the milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. of being included in the Russell 2000 Index, which is widely used as a benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. for investment consideration by the financial community. Named to Software Magazine's Top 500 List. AremisSoft was ranked 182, reflecting the success of its business model, with software and related services revenue of $67.7 million in the 1999 calendar year. The ranking is based on total worldwide software and services revenue for 1999. Integration of e-nnovations.com. AremisSoft integrated e-nnovations.com software professionals into the Company's research and development operation. This has resulted in the timely delivery of work in several major projects including the Bulgarian healthcare contract previously announced in the 1999 fourth quarter. Emerging Market Expansion. AremisSoft has successfully developed business in a number of new markets during 2000 including the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. and the Republic of Slovakia Slovakia (slōvă`kēə, slōvä`kēə) or the Slovak Republic, Slovak Slovensko (slô`vĕnskô), republic (2005 est. pop. , Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. and India. Customers in
these markets purchased large-scale systems for healthcare, hospitality
and manufacturing applications with planned delivery through 2001. To
further its East European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market penetration, AremisSoft established a Bulgarian office, which currently has over 25 employees and serves major clients, including the Bulgarian Ministry of Health and Insyst Electronic Ltd. Vasco Vasco could refer to
Famous people with this surname include Ivan Venkov Kolev, Todor Kolev , Victoria Koleva, , who has over 15 years of experience in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , with a major IT firm, heads this operation. Successful HITEC HITEC Highway Innovative Technology Evaluation Center trade show and US expansion. AremisSoft made significant headway head·way n. 1. Forward movement or the rate of forward movement, especially of a ship. 2. Progress toward a goal. 3. The clear vertical space beneath a ceiling or archway; clearance. 4. in its second showing at the key HITEC trade show for the Hospitality industry. The Company had a 200% increase in visitors to its booth compared to last year's event and made contact with eight of the top ten hotel groups worldwide, and showcased its market leading AREMIS Hotel product. HITEC is a leading trade show for the hospitality information technology community. This year HITEC experienced a record attendance level of over 5800 attendees. The Hospitality division appointed three new strategic salespeople sales·peo·ple pl.n. Persons who are employed to sell merchandise in a store or in a designated territory. , each to focus on different regions within the United States: the West Coast, Mid-west and East Coast. Manufacturing Division announces new products, partnerships, and contracts. AremisSoft introduced two enhanced versions of its ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. product, Aremis ease and Aremis evolution. Aremis ease is targeted at Tier 3 manufacturing companies and provides solid functionality for the most common manufacturing applications with a browser-based interface. Aremis evolution supports larger manufacturers who have more complex operations with an extended feature set. AremisSoft established a new marketing partnership between its manufacturing division and Strategic Financial Resourcing (SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) ), an Ohio-based consulting company Noun 1. consulting company - a firm of experts providing professional advice to an organization for a fee consulting firm business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , focused on the Mid-western region of the Unites States. The Company also won new contracts in the US, Australia, and Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. , expanding its market reach. The Manufacturing Division continues to be successful by delivering Internet product enhancements and by focusing on specific vertical markets where the Aremis solution is uniquely suited, including manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. with complex mechanical and electronic products or a critical dimensioning component. Construction Division Plans Knowledge Based Cost Estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. Product. Leveraging extensive experience in the building contracting field and Internet technology, AremisSoft is targeting Q4 delivery of an innovative knowledge based cost estimation system. Using this Internet based product, an organization can remotely interact with an intelligent cost estimation tool, which will provide a construction cost estimate that reflects best practices in the construction industry. The Construction Division is experiencing success based upon the deep functionality of its enterprise wide system and expansion into the service and maintenance market in the UK. About AremisSoft Corporation AremisSoft develops, markets, implements and supports enterprise-wide applications software targeted at mid-sized organizations in the manufacturing, healthcare, hospitality and construction industries. The Company's software products help streamline streamline, path of a fluid flowing steadily and without appreciable turbulence. A body is said to be streamlined if its shape offers the least possible resistance to a current of air, water, or other fluid. and enhance an organization's ability to manage and execute mission-critical functions such as accounting, purchasing, manufacturing, customer service and sales and marketing. AremisSoft reported total revenue of $73.4 million for the twelve months ended December December: see month. 31, 1999 and net income of $12.1 million before extraordinary gains for the same period. AremisSoft has over 500 employees, with sales in 10 countries and a customer base in excess of 5,000. The Company also operates a software development and support facility in India, with over 200 employees, which provides significant organizational efficiencies and cost advantages in software development and support. Cautionary Statement for Purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions 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 of 1995: All statements, other than historical facts, included in the foregoing press release regarding the Company's financial position, business strategy, and plans of management for future operations are "forward looking statements." These statements are based on management's beliefs and assumptions, and on information currently available to management. Forward looking statements include, but are not limited to, statements in which words such as "expect," "see," "anticipate," "intend," "plan," "believe," "estimate," "consider," or similar expressions are used. Forward looking statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions, including risks discussed under "Risk Factors" in 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. , SEC File No. 0-25713, all of which are incorporated herein by reference. The Company's actual results and stockholder values may differ materially from those anticipated or expressed in these forward looking statements. Many of the factors that will determine these results and values are beyond the Company's ability to control or predict. Readers of this press release are cautioned not to put undue reliance on any forward looking statement. The Company undertakes no obligation to publicly update these forward looking statements, whether as a result of new information, future events or otherwise. -0-
AremisSoft Corporation
Pro Forma Statements of Operations (unaudited)
(Excludes the write-off of offering costs and the
amortization of intangible assets)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------------------
2000 1999 2000 1999
--------------------------------------------
Revenues
Software licenses $15,456 $8,890 $26,593 $14,250
Maintenance
and services 10,440 6,590 19,572 12,864
Hardware and other 1,111 1,262 2,359 2,740
------- ------- ------- -------
Total revenues 27,007 16,742 48,524 29,854
------- ------- ------- -------
Cost of revenues
Software licenses 1,610 1,061 2,802 1,777
Maintenance
and services 3,248 2,059 6,070 4,046
Hardware and other 839 884 1,827 1,921
Amortization of
purchased software
and capitalized
software development
costs 76 62 150 124
------- ------- ------- -------
Total cost of revenues 5,773 4,066 10,849 7,868
------- ------- ------- -------
Gross profit 21,234 12,676 37,675 21,986
------- ------- ------- -------
Operating expenses:
Sales and
marketing 9,386 5,774 17,439 10,639
Research and
development 2,256 1,197 4,109 2,661
General and
administrative 2,365 1,496 4,761 2,684
------- ------- ------- -------
Total operating
expenses 14,007 8,467 26,309 15,984
------- ------- ------- -------
Profit from
operations 7,227 4,209 11,366 6,002
Other income
Interest income
(expense), net 269 (341) 269 (848)
Non-operating income -- -- 131 --
------- ------- ------- -------
Income before
income taxes 7,496 3,868 11,766 5,154
Income tax expense 1,499 1,276 2,353 1,701
------- ------- ------- -------
Net income $5,997 $2,592 $9,413 $3,453
======= ======= ======= =======
Pro forma basic net
income per share $0.39 $0.21 $0.62 $0.29
Pro forma diluted net
income per share $0.35 $0.21 $0.55 $0.29
Basic weighted average
shares outstanding 15,298 12,589 15,250 11,849
Diluted weighted
average shares
outstanding 17,075 12,604 17,168 11,864
AremisSoft Corporation
Consolidated Statement of Operations (unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------------------
2000 1999 2000 1999
--------------------------------------------
Revenues
Software licenses $15,456 $8,890 $26,593 $14,250
Maintenance and
services 10,440 6,590 19,572 12,864
Hardware and other 1,111 1,262 2,359 2,740
------- ------- ------- -------
Total revenues 27,007 16,742 48,524 29,854
------- ------- ------- -------
Cost of revenues
Software licenses 1,610 1,061 2,802 1,777
Maintenance and
services 3,248 2,059 6,070 4,046
Hardware and other 839 884 1,827 1,921
Amortization of
purchased software
and capitalized
software development
costs 76 62 150 124
------- ------- ------- -------
Total cost of revenues 5,773 4,066 10,849 7,868
------- ------- ------- -------
Gross profit 21,234 12,676 37,675 21,986
------- ------- ------- -------
Operating expenses:
Sales and marketing 9,386 5,774 17,439 10,639
Research and
development 2,256 1,197 4,109 2,661
General and
administrative 2,365 1,496 4,761 2,684
Write-off of
offering costs 550 550
Amortization of
intangible assets 1,151 88 2,302 176
------- ------- ------- -------
Total operating
expenses 15,708 8,555 29,161 16,160
------- ------- ------- -------
Profit from operations 5,526 4,121 8,514 5,826
Other income
Interest income
(expense), net 269 (341) 269 (848)
Non operating income -- -- 131 --
------- ------- ------- -------
Income before
income taxes 5,795 3,780 8,914 4,978
Income tax expense 1,404 1,247 2,028 1,642
------- ------- ------- -------
Net income $4,391 $2,533 $6,886 $3,336
======= ======= ======= =======
Basic net income
per share $0.29 $0.20 $0.45 $0.28
Diluted net income
per share $0.26 $0.20 $0.40 $0.28
Basic weighted average
shares
outstanding 15,298 12,589 15,250 11,849
Diluted weighted
average shares
outstanding 17,075 12,604 17,168 11,864
AremisSoft Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
As of As of
June 30, December 31,
----------- ------------
2000 1999
----------- ------------
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $18,932 $13,386
Accounts receivable, less allowances
for doubtful accounts of $507 at
June 30, 2000 and Dec. 31, 1999 23,648 18,115
Accounts receivable
- disposition proceeds -- 2,592
Other receivables 959 705
Inventory 1,207 1,603
Deposits paid on services
and maintenance contracts 2,650 3,712
Prepaid expenses and other assets 1,818 2,423
---------- ----------
Total Current Assets 49,214 42,536
Investments 1,689 1,803
Property and equipment, net 2,003 1,847
Purchased and developed software,
net of accumulated amortization of
$6,043 and $5,893 at June 30, 2000 and
Dec. 31, 1999, respectively 798 948
Intangible assets, net of accumulated
amortization of $13,836 and $11,534 and
at June 30, 2000 and
Dec. 31, 1999, respectively 11,508 13,810
---------- ----------
Total assets 65,212 60,944
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payables $3,959 $6,910
Accrued payroll taxes 614 574
Accrued value added taxes 185 1,055
Accrued income taxes 8,452 6,572
Current portion
of capital lease obligations -- 24
Other accrued expenses 2,557 2,371
Deferred revenue 6,359 7,190
---------- ----------
Total current liabilities 22,126 24,696
Capital lease obligations,
less current portion 104 2
Total liabilities 22,230 24,698
Stockholders' equity:
Series-A convertible preferred
stock, par value $0.001; authorized
2,100 shares; and no shares issued
and outstanding
Liquidating preference at par value
Series-B convertible preferred stock,
par value $0.001; authorized
3,500 shares; no shares issued and
outstanding, liquidating
preference at par value
Common stock, par value $0.001,
authorized 85,000 shares; 15,298 and
15,29815,298 and 15,193 shares issued
and outstanding at June 30, 2000 and
Dec. 31, 1999, respectively 15 15
Additional paid-in capital 57,884 57,325
Accumulated deficit (12,035) (18,921)
Accumulated other comprehensive income (2,882) (2,173)
---------- ----------
Total stockholders' equity 42,982 36,246
========== ==========
Total liabilities and stockholders' equity 65,212 60,944
AremisSoft Corporation
Consolidated Statements of Cash Flows (unaudited)
(In thousands)
For the Six Month Period
Ending June 30,
----------- ------------
2000 1999
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $6,886 $3,336
Adjustments to reconcile net
income to net cash used in
operating activities:
Depreciation 326 615
Amortization and write-off
of capitalized software and 2,452 300
intangible assets
Changes in assets and liabilities:
Accounts receivable (5,533) (29)
Accounts receivable
- disposition proceeds 2,592 -
Other receivables (254) (50)
Inventory 396 (303)
Deposits paid on service
and maintenance contract 1,062 2,556
Prepaid expenses and other assets 605 (727)
Accounts payable (2,951) (913)
Deferred revenue (831) (1,346)
Accrued taxes payable 1,050 234
Other accrued expenses 186 (1,371)
---------- ----------
Net cash provided by operating activities 5,986 2,302
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (482) (996)
Investments 114 -
Net cash (used in) investing activities (368) (996)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and
employee stock options 559 12,868
Principal repayments
of long-term borrowings - (7,622)
Loan from related party - (1,793)
Principal payments
of capital lease obligations-net 102 (16)
Short-term demand facility (24) -
Net cash provided by financing activities 637 3,437
---------- ----------
Net increase in cash and cash equivalents 6,255 4,743
Effect of foreign currency
exchange rates on cash and
cash equivalents (709) (48)
Cash and cash equivalents,
at beginning of period 13,386 149
Cash and cash equivalents,
at end of period 18,932 4,844
Supplemental disclosure:
Interest paid - 848
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