Artemis Reports First Quarter 2003 Financial Results; Software Revenue up 46 Percent over Prior Year's Quarter.Business Editors NEWPORT BEACH, Calif.--(BUSINESS WIRE)--May 14, 2003 Artemis International Solutions Corporation (OTCBB:AMSI), one of the leading providers of enterprise project and portfolio management software solutions, today reported its financial results for the first quarter 2003. Artemis reported $16.2 million in total revenue for the first quarter of 2003, compared with $15.7 million for the first quarter of 2002 -- an increase of 3 percent, reflecting favorable changes in foreign currency exchange rates. Software license revenue totaled $4.6 million in the first quarter of 2003, compared with $3.1 million in the same quarter of 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $0.6 million for the quarter ended March 31, 2003, compared with an EBITDA loss of $0.5 million for the prior year quarter. US GAAP reported net loss for the quarter ended March 31, 2003, was $0.9 million, or $(0.09) per common share, an improvement of $1.2 million from the net loss of $(2.1) million, or $(0.21) per common share, for the comparable 2002 period. The Company generated $1.4 million in positive cash flow from operations during the first quarter of 2003, which represented the third consecutive quarter of positive cash flows from operations; ending the quarter with $7.4 million in cash. The 46 percent year over year increase in software revenues was largely attributable to the new Artemis Portfolio Management product and favorable changes in foreign currency exchange rates. The increase in software revenues and more efficient customer support deliver helped gross margins improve to 55 percent of revenues as compared to 50 percent of revenues for the prior year's quarter. G&A expenses dropped to by over $1 million versus the prior year's quarter to 16 percent of revenues, as a result of aggressive, worldwide cost cutting and head count reductions, and divestitures of non-core assets being realized. The Company has scheduled a conference call to discuss its results for the quarter on May 14, 2003, at 5:00 p.m. (EDT). Michael Rusert, President and Chief Executive Officer of Artemis, and Robert Stefanovich, Chief Financial Officer of Artemis, will host the call and will be available to answer questions. To participate, please call the following teleconferencing number: 1 (847) 619-6818. Reference 'Artemis First Quarter 2003 Financial Results Call'. Please begin placing your calls at least 5 minutes before the conference call is scheduled to begin. For those unable to participate in the call, there will be a telephonic replay available from May 14, 2003 at 7:00 p.m. (EDT), through May 22, 2003 11:59 p.m. (EDT). Dial 1 (630) 652-3000. Reference ID: 7174235. About Artemis International Solutions Corporation Artemis International Solutions Corporation is one of the world's leading providers of enterprise project and portfolio management software solutions for all levels of the enterprise. Artemis' solutions are supported by industry-leading consulting services and an international distribution network of 40 offices in 27 countries. Artemis has over 500,000 users around the world, and services key vertical markets such as Aerospace and Defense, Energy, Telecommunications, High Technology, Pharmaceutical, Government, Automotive and Financial Services. The common stock of the company trades under the symbol "AMSI" on the OTCBB. For more information, visit www.aisc.com. Forward-Looking Statements "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. 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 effect.
FINANCIAL INFORMATION
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands, except share amounts)
March 31, December 31,
2003 2002
----------- ------------
(Unaudited)
Current assets:
Cash $7,378 $7,766
Trade accounts receivable, net of allowance
for doubtful
accounts of approximately $258 at March
31, 2003
and $296 at December 31, 2002 12,572 17,320
Other accounts receivable 520 461
Prepaid expenses 1,240 1,618
Other current assets 1,103 1,647
----------- ------------
Total current assets 22,813 28,812
Property and equipment, net of accumulated
depreciation and
amortization of $7,457 at March 31, 2003
and $7,197 at
December 31, 2002 1,536 1,588
Intangible assets, net of amortization of
$5,147 at March 31, 2003
and $4,118 at December 31, 2002 9,608 10,637
Investment in affiliates and other assets 1,299 836
----------- ------------
Total assets $35,256 $41,873
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,850 $4,468
Accrued liabilities 5,441 7,254
Accrued payroll and taxes 6,255 7,226
Deferred revenue 9,990 10,842
Line of credit 2,226 3,486
Current portion of long-term debt 488 950
----------- ------------
Total current liabilities 28,250 34,226
Accrued pension and other liabilities 888 832
Deferred taxes 800 800
Long-term debt, less current portion 338 235
----------- ------------
Total liabilities 30,276 36,093
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 10 10
Additional paid-in capital 80,833 80,833
Accumulated deficit (76,008) (75,100)
Accumulated other comprehensive income 145 37
----------- ------------
Total stockholders' equity 4,980 5,780
----------- ------------
Total liabilities and stockholders'
equity $35,256 $41,873
=========== ============
ARTEMIS INTERNATIONAL SOLUTIONS
CORPORATION.
Consolidated Financial Highlights
(Unaudited)
Three Months Ended March 31,
----------------------------------
Percent Percent
of Total of Total
2003 Revenues 2002 Revenues
------- -------- -------- --------
Statement of Operations Data: (in thousands, except share data)
Revenue:
Software $4,610 28% $3,152 20%
Support 4,294 27% 3,973 25%
Services 7,291 45% 8,611 55%
------- --------
16,195 100% 15,736 100%
Cost of revenue:
Software 260 2% 485 3%
Support 1,343 8% 1,677 11%
Services 5,624 35% 5,742 36%
------- --------
7,227 45% 7,904 50%
------- --------
Gross margin 8,968 55% 7,832 50%
Operating expenses:
Selling and marketing 3,963 24% 2,712 17%
Research and development 2,142 13% 2,064 13%
General and administrative 2,669 16% 3,660 23%
Amortization expense 1,029 6% 1,036 7%
------- --------
9,803 61% 9,472 60%
------- --------
Operating loss (835) -5% (1,640) -10%
Net interest expense 26 0% 26 0%
Other non-operating (income)
expense, net (57) 0% 398 3%
------- --------
(31) 0% 424 3%
------- --------
Loss before income taxes (804) -5% (2,064) -13%
Income tax expense 104 1% 49 0%
------- --------
Net Income (loss) $(908) -6% $(2,113) -13%
======= ========
Basic and diluted loss per
common share $(0.09) $(0.21)
======= ========
Weighted average common shares
used in
computing basic and diluted
net loss per common share 9,965 9,965
======= ========
Reconciliation of net loss to
EBITDA:
-----------------------------
Net income (loss) $(908) $(2,113)
Depreciation and Amortization 1,345 1,569
Interest 26 26
Taxes 104 49
------- --------
EBITDA (1) $567 $(469)
======= ========
Net cash provided by (used in)
operating activities $1,387 $(830)
(1) Represents net income (loss) before depreciation and amortization,
interest income and expense and income tax expense/benefit. EBITDA
is not indicative of cash provided or used by operating activities
and may differ from comparable information provided by other
companies, and it should not be considered in isolation, as an
alternative to, or more meaningful than measures of financial
performance determined in accordance with accounting principles
generally accepted in the United States. EBITDA is commonly used
in the industry and is presented because Artemis believes it
provides relevant and useful information to investors. Investors
would use such a measure to analyze and compare companies on the
basis of current period operating performance. Artemis utilizes
and has disclosed EBITDA to provide additional information with
respect to its ability to meet future capital expenditures and
working capital requirements, to incur indebtedness if necessary,
and to fund continued growth.
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