Artemis Reports $15.8M in Revenues for Third Quarter; Software revenues increase 18% over prior year's quarter.Business Editors/High-Tech Writers NEWPORT BEACH Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , Calif.--(BUSINESS WIRE)--Nov. 13, 2002 Artemis Artemis (är`təmĭs), in Greek religion and mythology, Olympian goddess, daughter of Zeus and Leto and twin sister of Apollo. Artemis' early worship, especially at Ephesus, identified her as an earth goddess, similar to Astarte. International Solutions Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AISC AISC American Institute of Steel Construction AISC Army Information Systems Command AISC Assessment and Information Services Center AISC The Art Institute of Southern California AISC Academic Information Services Cooperative ), one of the leading providers of enterprise portfolio and project management applications, today reported financial results for the third quarter 2002. Artemis reported revenue of $15.8 million for the third quarter of 2002 versus the $15.9 million generated for the quarter ended September September: see month. 30, 2001. Software revenue increased by 18%, totaling $3.2 million in the third quarter of this year compared to $2.7 million in software revenue in the third quarter a year ago. Net income for the quarter excluding the amortization of 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. was $(0.7) million, compared to $(3.8) million for the prior year period. Net cash provided by operating activities during the quarter was $0.4 million versus $(2.2) million for the third quarter in 2001. US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). reported net loss for the quarter ended September 30, 2002 was $1.8 million, or $(0.01) per share, an improvement of $5.9 million from the net loss of $7.7 million, or $(0.03) per share, for the comparable 2001 period. Lower amortization expense, organizational 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. measures and improved operational efficiency contributed to decreased cost of revenue and 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. compared to the same period a year ago. Total revenue for the third quarter of 2002 was broadly distributed across Artemis' geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. regions, with 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). , the U.S., and Asia
Pacific generating 47%, 41% and 12% of total revenues, respectively.
Selected customers of note who purchased new or additional software
licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. or services for the third quarter 2002 include Household
International, Siemens (Siemens AG, Munich, Germany, www.siemens.com) A leading European electrical and electronics firm founded in 1847. Siemens has more than 430,000 employees in nearly 200 countries, and more than 50,000 professionals are engaged in research and development. , Telecom Italia Telecom Italia is formerly a partially state-owned Italian telco. It was once known as SIP, and it has the largest user base in Italy.Telecom Italia also owns shares in Telecom Argentina and Telecom Personal, fixed and cellular networks in Argentina. , La Poste La Poste is a company name. It can refer either to mail service of France, Belgium, Switzerland or Tunisia. See also
Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. , and BAE.
FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF OPERATIONS
----------------------------------------------------------------------
Three Months
Ended Nine Months Ended
September 30, September 30,
----------------- ------------------
2002 2001 2002 2001
-------- -------- -------- ---------
(in thousands except, per share
amounts)
(unaudited)
Revenue:
Software $3,228 $2,731 $9,537 $10,757
Support 3,850 4,382 11,942 12,246
Services 8,712 8,802 27,639 27,373
-------- -------- -------- ---------
15,790 15,915 49,118 50,376
-------- -------- -------- ---------
Cost of revenue:
Software 460 546 1,385 1,423
Support 1,569 1,848 4,764 5,547
Services 5,988 5,968 17,983 18,349
-------- -------- -------- ---------
8,017 8,362 24,132 25,319
-------- -------- -------- ---------
Gross margin 7,773 7,553 24,986 25,057
Operating expenses:
Selling and marketing 2,984 4,357 8,708 12,910
Research and development 1,919 3,223 5,961 8,225
General and administrative 3,607 3,202 10,942 7,036
Amortization expense 1,051 3,858 3,137 12,154
Management fees - - - 806
Acquisition costs - 363 - 363
-------- -------- -------- ---------
9,561 15,003 28,748 41,494
-------- -------- -------- ---------
Operating loss (1,788) (7,450) (3,762) (16,437)
Net interest (income) expense (74) 201 7 537
Equity in loss of unconsolidated
affiliates 203 55 274 169
Other (income) expense (339) 11 (196) (54)
Foreign exchange loss 77 - 154 -
-------- -------- -------- ---------
(133) 267 239 652
-------- -------- -------- ---------
Loss before income taxes (1,655) (7,717) (4,001) (17,089)
Income tax expense (benefit) 131 (15) 501 135
-------- -------- -------- ---------
Loss before minority interest (1,786) (7,702) (4,502) (17,224)
Minority interest in (earnings)
losses of unconsolidated
subsidiary - - - (95)
-------- -------- -------- ---------
Net loss $(1,786) $(7,702) $(4,502) $(17,129)
======== ======== ======== =========
Basic and diluted net loss per
share $ (0.01) $ (0.03) $ (0.02) $ (0.08)
======== ======== ======== =========
Weighted average common shares used in
computing basic and diluted
net loss per share 249,125 232,638 249,125 210,505
======== ======== ======== =========
C0NSOLIDATED BALANCE SHEETS
September December
30, 2002 31, 2001
----------- ---------
(Unaudited) (Audited)
(in thousands, except
share amounts)
Current assets:
Cash $ 4,352 $ 5,081
Accounts receivable, net of allowance for
doubtful accounts of $287 at September 30,
2002 and $223 at December 31, 2001 12,532 13,088
Other accounts receivable 609 952
Prepaid expenses 2,102 2,528
Other current assets 329 268
----------- ---------
Total current assets 19,924 21,917
Property and equipment, net of accumulated
depreciation of $6,670 at September 30, 2002
and $5,194 at December 31, 2001 1,694 2,725
Intangible assets, net of amortization and
writeoffs of $3,088 at September 30, 2002
and 25,286 at December 31, 2001 11,667 14,755
Investment in affiliates and other assets 348 796
----------- ---------
Total assets $ 33,633 $ 40,193
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,404 $ 5,292
Accrued liabilities 5,753 5,954
Accrued payroll and taxes 5,512 6,678
Deferred revenue 8,115 7,471
Line of credit 2,193 1,062
Current portion of long-term debt 1,053 1,245
----------- ---------
Total current liabilities 27,030 27,702
Accrued pension and other liabilities 729 941
Deferred taxes 547 547
Long-term debt, less current portion 418 1,421
----------- ---------
Total liabilities 28,724 30,611
Stockholders' equity:
Preferred shares, $0.001 par value, 25,000,000
shares authorized - -
Common stock, $0.001 par value, 500,000,000
shares authorized, 249,124,566 issued and
outstanding 249 249
Additional paid-in capital 80,248 79,948
Accumulated deficit (75,654) (71,152)
Accumulated other comprehensive income 66 537
----------- ---------
Total stockholders' equity 4,909 9,582
----------- ---------
Total liabilities and stockholders'
equity $ 33,633 $ 40,193
=========== =========
CONSOLIDATED STATEMENT OF CASH FLOWS
Nine Months Ended
September 30,
------------------
2002 2001
-------- ---------
(Unaudited)
(in thousands)
Cash flow from operating activities:
Net loss $(4,502) $(17,129)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 4,656 12,906
Equity in loss of unconsolidated subsidiaries 275 169
Deferred income taxes and other - (452)
Changes in operating assets and liabilities
Decrease in trade accounts receivable 899 4,117
Decrease (increase) in prepaid expenses and
other assets 538 (2,246)
Increase (decrease) in deferred revenues 644 (1,843)
Decrease in accounts payable (888) (2,070)
(Decrease) increase in accrued expense, other
liabilities and equity (1,895) 493
-------- ---------
Net cash used in operating activities (273) (6,055)
-------- ---------
Cash flow from investing activities:
Capital expenditures, net (537) (552)
Cash provided by former parent contribution of
subsidiaries - 848
Cash provided from acquisitions - 13,554
-------- ---------
Net cash (used in) provided by investing
activities (537) 13,850
-------- ---------
Cash flow from financing activities:
Funding from debt and lines of credit, net of
repayments 1,131 2,747
Parent company dividends - (2,056)
Payments of debt and capital leases (1,195) (5,360)
-------- ---------
Net cash used in financing activities (64) (4,669)
-------- ---------
Effect of exchange rate changes on cash 145 (73)
-------- ---------
Net (decrease) increase in cash (729) 3,053
Cash at the beginning of the period 5,081 3,200
-------- ---------
Cash at the end of the period $ 4,352 $ 6,253
======== =========
About Artemis International Solutions Corporation Artemis International Solutions Corporation is one of the world's leading providers of customer-driven enterprise portfolio and project management applications for all levels of the enterprise -- from the executive to the knowledge worker. Artemis' solutions are supported by industry-leading 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" and an international distribution network of 41 offices in 27 countries. Artemis has over 465,000 users around the world, and services key vertical markets such as Aerospace and Defense, Utilities, Manufacturing, Government, and Financial Institutions. The common stock of the company trades under the symbol "AISC" on the OTCBB. For more information, visit www.aisc.com. Forward Looking Statements "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. " Statement under 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: This press release contains or may contain 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. such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reduction and trends in the industry in which the Company operates. These forward-looking statements are based on current expectations and are subject to a number of risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by these forward-looking statements are detailed in the documents filed by the Company with the Securities and Exchange Commission including but not limited to those contained under the Risk Factors section of 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 the year ended December December: see month. 31, 2001. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements or for prospective events that may have a retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effect. |
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