AremisSoft Y/Y Q4 Revenue Increases 86% to Record $43.4 Million; Y/Y Pro forma EPS increases 105% to $0.33; 8th Consecutive Quarter of Record Performance.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 21, 2001 AremisSoft Corporation (Nasdaq:AREM AREM All-Random Easy Mode (gaming, Dota Allstars) AREM Avian Richness Evaluation Method ) an 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 fourth quarter and twelve months ended December December: see month. 31, 2000. The Company reported revenue of $43.4 million, a 86.5% increase from $23.3 million reported for the fourth quarter of 1999 and a sequential increase of 36.7% from $31.7 million in the 2000 third 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 fourth quarter increased 125.9% year-over-year to $12.1 million compared to $5.3 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 104.7% to $0.33 from $0.16 in the year-ago quarter, exceeding the consensus estimate of $0.27. Pro forma net income and earnings per share for the stated 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. and non-recurring 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. related to recent acquisitions, as well as one time gains associated with the sale of the UK healthcare business, and one time costs associated with a postponed secondary financing. Pro forma results also exclude the tax benefit realized from the reversal of prior periods accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. taxes. During the fourth quarter, AremisSoft recorded a reversal of accrued income taxes as a result of a decision by the relevant tax authorities that a large portion of the taxes accrued in prior periods are not payable, leading to a $5.64 million positive adjustment to income taxes in the fourth quarter. AremisSoft intends to use an effective tax rate of 15% for 2001. As reported net income and earnings per share on a fully 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 2000 fourth quarter were $17.0 million and $0.46, respectively, compared to as reported net income and earnings per share of $6.7 million and $0.20, respectively, for the same period last year. Revenue for the twelve months ended December 31, 2000 was $123.6 million, which is 68.4% higher than the $73.4 million reported in the comparable 1999 period. Pro forma net income was $29.2 million, a 141.2% increase from $12.1 million in the prior year 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 twelve months ended December 31, 2000 increased 84.5% to $0.83 from $0.45 in the year ago period. As reported net income and earnings per diluted share increased 146.3% and 89.2% to $32.7 million and $0.93, respectively, compared to $13.3 million and $0.49, respectively, in the prior year period. Software license revenue increased 98.9% to $23.7 million for the three months ended December 31, 2000, from $11.9 million in the fourth quarter of 1999, and increased 34.7% from $17.6 million in the third quarter of 2000. Maintenance and services revenue was $17.0 million, a 87.5% increase from $9.1 million in the year-ago quarter, and a 32.0% sequential increase from $12.9 million in the third quarter. Hardware sales for the quarter were $2.7 million as compared to $2.3 million in the prior year period. Roys Poyiadjis, AremisSoft's Co-CEO and President of the US Group, stated, "We closed our second year as a public company with our eighth consecutive quarter of record performance. These exemplary financial results are based upon the hard work of the AremisSoft team as well as effective execution of our sound growth model, which includes targeting Tier 3 customers, emerging market expansion, strategic acquisitions and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. operations in 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. . Our fourth quarter success was the result of the same factors that have fueled our progress throughout the year -- a solid extensible product line and strength in emerging markets, where our solutions have been extremely well received. In addition, our 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). and US business Groups performed well during the
fourth quarter. The integration of the acquired hospitality and lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a business (Eltrax hospitality) from Verso ver·so n. pl. ver·sos 1. A left-hand page of a book or the reverse side of a leaf, as opposed to the recto. 2. The back of a coin or medal. Technologies has gone particularly smooth, providing us with a US based management team that is intended to form the nucleus nucleus, in physics nucleus, in physics, the extremely dense central core of an atom. The Nature of the Nucleus Composition of our worldwide hospitality business. "During the fourth quarter, strong license revenue growth drove AremisSoft to achieve a historic high pro forma operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 33.9%, despite absorption of the Eltrax hospitality business which is in a building phase. This clearly attests to the economies of scale implicit in Adj. 1. implicit in - in the nature of something though not readily apparent; "shortcomings inherent in our approach"; "an underlying meaning" underlying, inherent our operating model Operating Model is a term that is used in many contexts. In essence an operating model describes how an organization operates across both business and technology domains. The Operating Model describes what is important for the organization. , which relies heavily on our cost-effective India based development facilities." Dr. Lycourgos Kyprianou, AremisSoft's Founder, Chairman of the Board, and Co-CEO, stated, "We now have in place the organizational infrastructure, technology and financial resources, to aggressively pursue the market consolidation part of our strategic plan. We believe that AremisSoft has an unparalleled opportunity to consolidate sectors of the worldwide enterprise application software market. AremisSoft has a unique operating model that enables the Company to cost-effectively integrate application software companies, without disadvantaging any customer base with respect to future product enhancement and new functionality. Clearly our low cost development facilities in India will play a key role in this process. Our recent organizational changes were designed to create a management structure that is aligned with this goal. In addition, we will continue to look for product, technology, and other acquisition opportunities to further our position in emerging markets. "The fourth quarter marked success in a number of new geography endeavors. AremisSoft continues to expand 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. , the Middle East and the Far East with key projects in Bulgaria Bulgaria (bŭlgâr`ēə), Bulgarian Balgarija, officially Republic of Bulgaria, republic (2005 est. pop. 7,450,000), 42,823 sq mi (110,912 sq km), SE Europe, on the E Balkan Peninsula. (healthcare), 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. (manufacturing), Croatia Croatia (krōā`shə), Croatian Hrvatska, officially Republic of Croatia, republic (2005 est. pop. 4,496,000), 21,824 sq mi (56,524 sq km), in the northwest corner of the Balkan Peninsula. (manufacturing), Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. (healthcare), Ukraine Ukraine (y`krān, ykrān`), Ukr. Ukraina, republic (2005 est. pop. (manufacturing), Kazakhstan Kazakhstan or Kazakstan (kä'zäkstän`), officially Republic of Kazakhstan, republic (2005 est. pop. 15,186,000), c.1,050,000 sq mi (2,719,500 sq km), central Asia. (manufacturing); United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. (retail), Kuwait Kuwait (kwīt`, –wāt) or Kowait (kō`–), officially State of Kuwait, independent sheikhdom (2005 est. pop. (retail), Jordan Jordan, country, AsiaJordan, officially Hashemite Kingdom of Jordan, kingdom (2005 est. pop. 5,760,000), 35,637 sq mi (92,300 sq km), SW Asia. It borders on Israel and the West Bank in the west, on Syria in the north, on Iraq in the northeast, and on Saudi (healthcare), Oman Oman (ōmän`), officially Sultanate of Oman, independent sultanate (2005 est. pop. 3,002,000), c.82,000 sq mi (212,380 sq km), SE Arabian peninsula, on the Gulf of Oman and the Arabian Sea. It was formerly known as Muscat and Oman. (retail), Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. (healthcare) and Philippines Philippines officially Republic of the Philippines Island country, western Pacific Ocean, on an archipelago off the southeast coast of Asia. Area: 122,121 sq mi (316,294 sq km). Population (2005 est.): 84,191,000. (healthcare). Currently there are approximately 105 personnel operating out of our offices in Bulgaria, which is the hub for our Eastern European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. business, and Dubai Dubai (d bī`), sheikhdom (1995 pop. 674,101), c.1,500 sq mi (3,890 sq km), part of the federation of seven United Arab Emirates, SE Arabia, on the Persian Gulf. , which is the hub for our business in the
Middle East. Our Bulgarian Healthcare project has been an excellent
reference site for us in targeting healthcare related business in
emerging market countries."
Mr. Poyiadjis concluded, "Finally, AremisSoft currently has a very strong cash position in excess of $60 million, which is the result of our positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , issuance of common stock, and the exercise of stock options by officers, directors and employees." During the fourth quarter, the days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSO See CSO. ) was 82 days, which includes a full quarter of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed from Eltrax hospitality of $6.3 million, while the Company recorded $3.3 million of Eltrax related revenue, reflecting less than a full quarter of operating results. Excluding from the DSO calculation receivables attributable to Eltrax, as well as E-chaRM and Denon Denon (株式会社デノン Kabushiki Kaisha Denon International, which provided a similar distortion distortion, in electronics, undesired change in an electric signal waveform as it passes from the input to the output of some system or device. In an audio system, distortion results in poor reproduction of recorded or transmitted sound. , the DSO was 72 days in the fourth quarter. AremisSoft had strong positive operating cash flow, which amounted to $11.0 million in the fourth quarter and $19.0 million for the year. Recent Highlights AremisSoft Partners with InternetINNS.com. AremisSoft has become the exclusive information technology systems provider for InternetINNS.com, the world's first Internet-based global hospitality brand membership company. The partnership underscores the opportunities arising from the new worldwide AremisSoft Hospitality division. AremisSoft will provide member hotels with the AREMIS Central Reservation central reservation Noun Brit & NZ the strip that separates the two sides of a motorway or dual carriageway central reservation n (BRIT) (AUT) → mediana System and Web Booking Engine, allowing visitors to the InternetINNS.com web site to book and confirm hotel rooms online using the actual information on room inventory and rates. Organizational, Executive and Board Member Realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. . Designed to position the Company for future growth, AremisSoft created three operating groups under a new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. in order to enhance its ability to deliver key strategic and financial goals. The US Group, Emerging Markets Group, and Europe Group will work together to coordinate product and business development as well as market strategy to maximize business opportunities. Dr. Lycourgos Kyprianou, Founder and Chairman of the Board, assumed the role of Co-Chief Executive Officer. Roys Poyiadjis, assumed the position of Co-CEO and President of the US Group. Dr. Kyprianou and Mr. Poyiadjis will share responsibility for the executive management of AremisSoft. The Co-CEO structure is intended to provide maximum top executive involvement in the business while enabling AremisSoft to pursue an increasingly wide range of geographic and product-based growth opportunities. M.C. Mathews Mathews is the name of several places in the United States of America:
See also Matthews. and Noel Voice, were appointed Presidents of the Emerging Markets Group and Europe Group, respectively. Mr. Bala Gopal-Karat has been appointed Chief Technology Officer, replacing Dr. Kyprianou while Mr. Alex (language) Alex - 1. A polymorphic language being developed by Stephen Crawley <sxc@itd.dtso.oz.au> of Defence Science & Tech Org, Australia. Alex has abstract data types, type inference and inheritance. 2. Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Tymvios, Chief Financial Officer of AremisSoft, and Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network J. Patey, Managing Director of Capital Strategies Inc. Departures from the Board of Directors include M.C. Mathews and Noel Voice. In addition, Mr. George Ellis George Ellis, FRS, (born August 11, 1939) is the Distinguished Professor of Complex Systems in the Department of Mathematics and Applied Mathematics at the University of Cape Town in South Africa. has left the Board and will work in an advisory capacity with AremisSoft on acquisitions and operations. Mr. Theodoros Fessas of Info-quest S. A. has also left the Board in order to rebalance Board representation from the wide range of AremisSoft constituencies. AremisSoft Expands its Geographic Market Presence in the Middle East. By acquiring Denon International Ltd., AremisSoft further broadened its vertical market enterprise product offering to include comprehensive retail, trading, distribution, and construction management applications. The acquisition brings over 40 customers primarily located in the Middle East as well as Romania, Turkey, Greece, and the Ukraine. Denon International has a total of approximately 87 employees, including 55 developers in Dubai and India, and a complete sales and marketing, and management staff. AremisSoft is integrating the India-based development personnel into its India facilities. The Company projects the acquisition will add $6.0 million in revenue and $0.01 to pro forma earnings per share in 2001. AremisSoft Expands its e-business Offering of CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. . AremisSoft recently acquired e-ChaRM India Pvt Ltd. e-ChaRM is a supplier of web-based Customer Relationship Management (CRM), and Hospital Management Systems (HMS HMS abbr. Her (or His) Majesty's Ship HMS (Brit) abbr (= His (or Her) Majesty's Ship) → Namensteil von Schiffen der Kriegsmarine ). The acquisition positions AremisSoft to address and benefit from the rapidly expanding market for e-business solutions and next generation e-health E-health Informatics A philosophy that empowers–E = electronic–health care consumers by bringing information, products and services online systems. It also brings over 200 customers including approximately 40 hospitals to the Company. In addition, AremisSoft will deliver a proven comprehensive web-enabled HMS system to market quicker than originally planned. e-ChaRM has a full compliment Not to be confused with Complement. Compliment may be
Hospitality Doubles Customer Base and Becomes World's Second Largest Hospitality Systems Provider. AremisSoft acquired assets and assume liabilities of Atlanta-based Verso Technologies' lodging and international hospitality business (Eltrax hospitality), a leading supplier of property management systems to the hospitality industry, for $10 million in cash. With this acquisition, AremisSoft has more than 3100 Property Management System customers and a revenue run rate of approximately $50 million in hospitality products and services. AremisSoft expects the acquisition will add approximately $0.04 to pro forma earnings per share in 2001 and revenue of $20+ million. On October 18, 2000, AremisSoft closed the acquisition of the U.S. based operations of Eltrax hospitality with the international entities closing in the fourth quarter. AremisSoft Stock Splits 2-for-1. On January 8, 2001, AremisSoft stock split 2-for-1, giving shareholders one additional share of common stock for each share held on the record date December 28, 2000. The stock split doubled the number of shares outstanding to approximately 35 million, allowing increased marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. , liquidity, and distribution of the stock. All share and per share amounts have been restated to reflect the effects of the split. AremisSoft Files Shelf Registration. AremisSoft filed a Form S-3 "shelf" registration statement with the Securities and Exchange Commission to periodically sell up to 6 million shares of its common stock, which was declared effective on February 8, 2001. The Company may sell the securities in one or more separate offerings in amounts, at prices and on terms to be determined at the time of sale. The Company believes that the "shelf" registration may afford it flexibility in accessing capital in the future. AremisSoft Comments on Indian Operations. The earthquake in western India's Gujarat state has had no impact on its operations in India. Management expressed their sincerest condolences to the numerous families devastated dev·as·tate tr.v. dev·as·tat·ed, dev·as·tat·ing, dev·as·tates 1. To lay waste; destroy. 2. To overwhelm; confound; stun: was devastated by the rude remark. by the horrific hor·rif·ic adj. Causing horror; terrifying. [Latin horrificus : horr  re, to tremble + -ficus, -fic. earthquake, and were relieved to
report that no AremisSoft employees were directly affected. Furthermore,
the earthquake caused no damage to the facilities in Bangalore and New
Delhi New Delhi (dĕl`ē), city (1991 pop. 294,149), capital of India and of Delhi state, N central India, on the right bank of the Yamuna River. and there has been no disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in the Company's satellite
communications.
Notice of Conference Call As a reminder, AremisSoft will be hosting a conference call to discuss earnings on Wednesday, February 21, at 4:45 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. . To participate in the conference call, local and international callers can dial 212-676-5262. Callers from 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 Canada can dial 800-847-8127. A replay is available approximately one hour after the call until midnight on February 28. The replay number is 858-812-6440, passcode: 17937335. The conference call will also be available via the 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 by accessing the AremisSoft web site: www.aremissoft.com. Follow the directions on the main page to link to the audio. The call will also be available on the Vcall web site: www.vcall.com. 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 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 $123.6 million for the twelve months ended December 31, 2000 and pro forma net income of $29.2 million for the same period. AremisSoft has over 835 employees, with sales in over 20 countries and a customer base in excess of 7,200. The Company also operates a software development and support facility in India, with over 325 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.
AremisSoft Corporation
Pro Forma Statements of Operations
(Excludes write-off of offering costs, amortization of intangible
assets, and certain non-recurring operating income and
expenses)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues
Software licenses $23,672 $11,903 $67,842 $37,224
Maintenance and services 17,036 9,085 49,517 30,435
Hardware and other 2,656 2,266 6,250 5,727
Total revenues 43,364 23,254 123,609 73,386
Cost of revenues
Software licenses 2,468 1,318 7,181 4,468
Maintenance and services 4,649 1,842 14,454 8,620
Hardware and other 1,502 1,138 4,188 3,625
Amortization of purchased
software and capitalized
software development
costs 79 116 301 298
------------- --------------
Total cost of revenues 8,698 4,414 26,124 17,011
Gross profit 34,666 18,840 97,485 56,375
Operating expenses:
Sales and marketing 13,678 7,550 41,842 25,518
Research and development 2,088 2,050 8,568 5,916
General and administrative 4,194 2,651 11,513 7,108
Total operating expenses 19,960 12,251 61,923 38,542
Profit from operations 14,706 6,589 35,562 17,833
Other income
Interest income (expense),
net 393 477 969 (661)
Non-operating income -- 42 -- 42
Income before income taxes 15,099 7,108 36,531 17,214
Income tax expense 3,020 1,762 7,306 5,097
Net income $12,079 $5,346 $29,225 $12,117
Pro forma basic earnings
per share $0.37 $0.18 $0.93 $0.47
Pro forma diluted earnings
per share $0.33 $0.16 $0.83 $0.45
Basic weighted average shares
outstanding 32,908 30,260 31,262 25,524
Diluted weighted average
shares outstanding 36,626 33,188 35,042 26,926
AremisSoft Corporation
Consolidated Statement of Operations
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues
Software licenses $23,672 $11,903 $67,842 $37,224
Maintenance and services 17,036 9,085 49,517 30,435
Hardware and other 2,656 2,266 6,250 5,727
Total revenues 43,364 23,254 123,609 73,386
Cost of revenues
Software licenses 2,468 1,318 7,181 4,468
Maintenance and services 4,649 1,842 14,454 8,620
Hardware and other 1,502 1,138 4,188 3,625
Amortization of purchased
software and capitalized
software development
costs 79 116 301 298
Total cost of revenues 8,698 4,414 26,124 17,011
Gross profit 34,666 18,840 97,485 56,375
Operating expenses:
Sales and marketing 13,678 7,550 41,842 25,518
Research and development 2,088 2,050 8,568 5,916
General and administrative 4,194 2,651 12,063 7,108
Amortization of intangible
assets 1,962 (264) 5,415 --
Non-recurring operating
expenses 166 -- 166 --
Profit on disposition of
subsidiary (42) (42)
Total operating expenses 22,088 11,945 68,054 38,500
Profit from operations 12,578 6,895 29,431 17,875
Other income
Interest income (expense),
net 393 477 969 (661)
Non-operating income (397) -- 1,926 --
Income before income taxes 12,574 7,372 32,326 17,214
Income tax expense
(benefit) (4,378) 1,850 (376) 5,097
Income after taxes before
extraordinary item $16,952 $5,522 $32,702 $12,117
Extraordinary item --
gain on debt forgiveness -- 1,163 -- 1,163
Net Income $16,952 $6,685 $32,702 $13,280
Basic earnings per share
before extraordinary item $0.52 $0.18 $1.05 $0.47
Diluted earnings per share
before extraordinary item $0.46 $0.17 $0.93 $0.45
Basic earnings per share
after extraordinary item $0.52 $0.22 $1.05 $0.52
Diluted earnings per share
after extraordinary item $0.46 $0.20 $0.93 $0.49
Basic weighted average shares
outstanding 32,908 30,260 31,262 25,524
Diluted weighted average
shares outstanding 36,626 33,188 35,042 26,926
AremisSoft Corporation
Consolidated Balance Sheets
(In thousands, except share and per share data)
As of As of
December 31, December 31,
2000 1999
ASSETS
Current Assets
Cash and cash equivalents $33,331 $13,386
Accounts receivable, net of allowances
for doubtful accounts at
Dec. 31, 1999 and Dec. 31, 2000 38,660 18,115
Accounts receivable - disposition proceeds -- 2,592
Other receivables 2,229 705
Inventory 1,413 1,603
Deposits paid on services and maintenance
contracts 4,719 3,712
Prepaid expenses and other assets 3,885 2,423
Total Current Assets 84,237 42,536
Investments 1,803 1,803
Property and equipment, net 3,402 1,847
Purchased and developed software, net of
accumulated amortization of
$5,893 and $6,194 at Dec. 31, 1999
and Dec. 31, 2000, respectively 783 948
Intangible assets, net of accumulated
amortization of $11,534 and $16,949 and
at Dec. 31, 1999 and Dec. 31, 2000,
respectively 34,799 13,810
Total Assets $125,024 $60,944
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payables $4,290 $6,910
Accrued payroll taxes 1,479 574
Accrued value added taxes 1,181 1,055
Accrued income taxes 6,006 6,572
Current portion of capital lease
obligations 34 24
Other accrued expenses 2,348 2,371
Deferred revenue 12,056 7,190
Total Current Liabilities 27,394 24,696
Capital lease obligations, less
current portion 45 2
Total Liabilities $27,439 $24,698
Stockholders' equity:
Series-A convertible preferred stock,
par value $0.001; authorized 2,100
shares; and no shares issued and
outstanding -- --
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; 15,193 and 35,198 shares
issued and outstanding at Dec. 31, 1999
and Dec. 31, 2000, respectively 35 15
Additional paid-in capital 85,831 57,325
Accumulated deficit 13,781 (18,921)
Accumulated other comprehensive income (2,062) (2,173)
Total stockholders' equity 97,585 36,246
Total Liabilities and Stockholders'
Equity $125,024 $60,944
AremisSoft Corporation
Consolidated Statements of Cash Flows
(In thousands)
For the Twelve Month Period
Ending December 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $32,702 $13,280
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation 867 1,093
Amortization and write-off of capitalized
software and intangible assets 5,716 298
Extraordinary item -- (1,163)
Gain on disposition of subsidiary (2,309) (42)
Changes in assets and liabilities, net of
disposition
Accounts receivable (18,944) (6,477)
Other receivables 1,446 (129)
Inventory 368 (723)
Deposits paid on service and maintenance
contract (1,272) (283)
Prepaid expenses and other assets (1,326) (1,210)
Accounts payable (3,105) 3,867
Deferred revenue 4,021 692
Accrued taxes payable 893 4,298
Other accrued expenses (43) (447)
Net cash provided by operating activities 19,014 13,054
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (1,725) (1,355)
Proceeds from disposition 3,018 --
Capitalized software development costs (137) --
Loan to related party (net) -- (1,781)
Payment for acquisition, net of cash
acquired (28,266) (14,537)
Proceeds from disposal of property and
equipment 28 82
Net cash provided by (used in) investing
activities (27,082) (17,591)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of stock 27,526 30,223
Principal repayments of long-term
borrowings (24) (9,204)
Principal payments of capital lease
obligations (22) (61)
Loan from related party -- 1,886
Short-term demand facility -- (4,705)
Net cash provided by financing activities 27,480 18,139
Effect of foreign currency exchange rates
on cash and cash equivalents 533 (365)
Net increase in cash and cash equivalents 19,945 13,237
Cash and cash equivalents, at beginning of
period 13,386 149
Cash and cash equivalents, at end of
period $33,331 $13,386
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