Aris Corporation Announces First Quarter 2001 Results.Business Editors BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash.--(BUSINESS WIRE)--April 26, 2001 Aris Corporation (Nasdaq:ARSC ARSC Arctic Region Supercomputing Center ARSC Association for Recorded Sound Collections ARSC Accounting and Review Services Committee ARSC Aircraft Repair and Supply Center (USCG) ARSC Arizona Remote Sensing Center ), a provider of integrated eBusiness See e-business. and IT solutions, today announced its results for the quarter ended March 31, 2001. For the first quarter of 2001, Aris reported total net revenue of $14.4 million, compared to $17.3 million for the first quarter of 2000, which included revenue from the Company's former software division. Consulting revenue from Aris' operations in the UK was $5.0 million for the first quarter of 2001, up sequentially from $4.7 million in the previous quarter. The Company's 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 results exclude amortization of intangibles, certain non-cash items, charges related to acquisitions and income related to the sale of Noetix warrants. The pro forma loss for the quarter was $923,000 or $0.08 per 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. share, compared to a pro forma loss of $1.6 million or $0.13 per diluted share for the first quarter of 2000. During the first quarter, Aris continued to expand its strategic relationships with BEA Systems BEA Systems, Inc. (NASDAQ: BEAS) is one of the major companies developing enterprise infrastructure software. BEA makes middleware, products that help software run on top of databases. , Crystallize crys·tal·lize also crys·tal·ize v. crys·tal·lized also crys·tal·ized, crys·tal·liz·ing also crys·tal·iz·ing, crys·tal·liz·es also crys·tal·iz·es v.tr. 1. , Intel, Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. , Rational Software, Seeristic and Thinkmap. The Company also began new projects with AT&T Broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , Integrated Measurement Systems, Jet Propulsion Laboratories “JPL” redirects here. For other uses, see JPL (disambiguation). Jet Propulsion Laboratory (JPL) is a NASA research center located in the cities of Pasadena and La Cañada Flintridge, near Los Angeles, California, USA. , Arch Coal Arch Coal (NYSE: ACI) is a United States coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. , the Navy and the City of Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. , and signed contract extensions with Xerox (Xerox Corporation, Stamford, CT, www.xerox.com) A major manufacturer of analog and digital copy machines, computer printers and document management systems. Corporate headquarters are in Stamford, CT, while manufacturing and marketing is in Rochester, NY. , Matsushita, the State of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and other customers. "While Aris has not been immune to economic and IT spending shifts, we continue to have a strong customer base and a continuing pipeline of new business," said Kendall Ken·dall , Edward Calvin 1886-1972. American biochemist. He shared a 1950 Nobel Prize for discoveries concerning the hormones of the adrenal cortex. Kunz, 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. . "We are pleased with our low employee turnover, the improved effectiveness of our consulting teams and sales force, and the continued growth in our consulting operations in the UK. We believe that the current fallout fallout, minute particles of radioactive material produced by nuclear explosions (see atomic bomb; hydrogen bomb; Chernobyl) or by discharge from nuclear-power or atomic installations and scattered throughout the earth's atmosphere by winds and convection currents. of web-centric IT consulting firms Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that were dependent on dot-com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or customers will benefit Aris over the longer term. "We are benefiting from our loyal Global 2000 customer base and the end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. expertise of our dedicated staff and we are well positioned for a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. of corporate IT spending, particularly involving enterprise applications that streamline operations and reduce costs. The most important objective for 2001 will be conservation of our strong cash position, preparing for renewed growth in our business and a return to profitability." A listen-only broadcast of Aris Corporation's first quarter 2001 conference call (2:00 PM Pacific/5:00 PM Eastern) will be available today on 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 at www.aris.com or by calling 888/323-2711 or +1 312/470-0008 (conference ID No. 2983). A 48-hour replay will be available by calling 800-294-0344 or at www.aris.com. About Aris With a focus on innovation, Aris Corporation delivers end-to-end eBusiness 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" , integrated strategy and technology-enabled solutions that foster interactive business. Aris has offices across the U.S. and in the United Kingdom, with over 400 employees worldwide, and is headquartered in Bellevue, Washington Bellevue is a rapidly growing city in King County, Washington, U.S., across Lake Washington from Seattle. Long known as a suburb or satellite city of Seattle,[1] it is now categorized as an edge city or a boomburb. . For more information about Aris, see its Web site at www.aris.com. Results reported in this press release are preliminary and unaudited. This press release also contains forward looking statements such as those including the words "believe", "continue", "growing" and similar words regarding the Company's anticipated future earnings and results of operations, its eBusiness strategy, future hiring patterns, and the Company's ability to expand its eBusiness solutions. These 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. cover subjects that are inherently difficult to predict. Actual results may vary materially for a number of reasons, including future client demand for integrated eBusiness and IT solutions; the rate of growth of the internet; competition from other businesses providing similar services to that of the Company; the Company's ability to successfully execute its business strategy and management and operational re-alignment of its consulting business; the Company's ability to attract, retain and motivate highly skilled eBusiness and IT professionals; its dependence upon key vendors of software technology; fluctuations in foreign currency exchange rates; and issues that may arise in product and service development and possible decisions by third parties to delay or cancel the release of products under development. More information about these factors and other risks that could potentially affect our operating results are disclosed in the "Risk Factors" and "Factors Affecting Our Business" of our filings with the Securities and Exchange Commission, including Forms 10K and 10Q. These reports are available at www.sec.gov.
ARIS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, EXCEPT FOR SHARE AND PER SHARE DATA) (Unaudited)
For the quarter ended
March 31, March 31,
2001 2000
---------- ----------
Revenue, net:
Consulting $ 13,913 $ 15,495
Software and royalties 447 1,801
---------- ----------
Total revenue 14,360 17,296
Cost of net revenues 8,761 10,944
---------- ----------
Gross profit 5,599 6,352
Selling, general and
administrative 7,499 9,181
Amortization of intangible assets 835 924
Charges related to reorganization 194 -
---------- ----------
Loss from operations (2,929) (3,753)
Loss from equity investment in Noetix
Corporation (52) -
Other income 2,863 200
---------- ----------
Loss from continuing operations before
income tax (118) (3,553)
Income tax expense (benefit) 69 (1,252)
---------- ----------
Loss from continuing operations after tax (187) (2,301)
Discontinued operations loss, net of tax (80) (4,205)
---------- ----------
Net loss $ (267) $ (6,506)
========== ==========
Basic and diluted loss per share $ (0.02) $ (0.51)
========== ==========
Weighted average number of common
shares outstanding 11,319,000 12,780,000
========== ==========
Pro forma data (1):
Loss from continuing operations before
income tax $ (118) $ (3,553)
Amortization of intangibles and non-cash
reductions to revenue 967 924
Loss on equity investment in
Noetix Corporation 52 -
Charges related to reorganization 194 -
Income from sale of
Noetix Corporation warrants (2,500) -
---------- ----------
Adjusted loss from continuing operations
before income tax (1,405) (2,629)
Estimated income tax benefit (482) (999)
---------- ----------
Adjusted loss from continuing operations $ (923) $ (1,630)
========== ==========
Adjusted diluted loss per share from
continuing operations $ (0.08) $ (0.13)
========== ==========
Weighted average number of common
and common equivalent shares
outstanding 11,319,000 12,780,000
========== ==========
(1) The pro forma data excludes: amortization of intangibles and
non-cash reductions of revenue related to warrants issued, losses
from equity investment in Noetix Corporation, charges related to
reorganization costs and income related to sale of Noetix
warrants. This pro forma data does not purport to be prepared in
accordance with generally accepted accounting principles.
ARIS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, EXCEPT FOR SHARE DATA) (Unaudited)
March 31, Dec. 31,
2001 2000
-------- --------
Assets
Current assets:
Cash and cash equivalents $ 5,337 $ 7,367
Investments in marketable securities 5,503 6,501
Accounts receivable, net of allowance for
doubtful accounts of $2,223 and $2,675 16,648 14,640
Other current assets 6,671 5,670
-------- --------
Total current assets 34,159 34,178
Property and equipment, net 8,798 9,258
Intangible and other assets, net 10,025 11,069
-------- --------
Total assets $ 52,982 $ 54,505
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,603 $ 1,272
Accrued liabilities and other 6,579 7,876
Deferred revenue 25 27
-------- --------
Total current liabilities 8,207 9,175
Commitments and contingencies
Shareholders' equity:
Preferred stock, 5,000,000 shares authorized,
none issued and outstanding
Common stock, no par value;
100,000,000 shares authorized
Additional paid-in-capital 51,341 51,199
Accumulated deficit (5,562) (5,295)
Accumulated other comprehensive loss (1,004) (574)
-------- --------
Total shareholders' equity 44,775 45,330
-------- --------
Total liabilities and shareholders' equity $ 52,982 $ 54,505
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