Artemis Reports First Quarter 2005 Financial Results; Artemis 7 Sales Increase by 120%, Positive Cash Flow from Operations and Improved Financial Performance.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. -- Artemis International Solutions Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMSI AMSI Australian Mathematical Sciences Institute AMSI Ambient Surround Imaging AMSI Atlantic Merchant Shipping Instructions AMSI Ameritech Message Signal Interface ), a leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the first quarter ended March 31, 2005. Artemis reported $12.0 million in total revenue for the first quarter ended March 31, 2005, with software license revenue of $2.8 million, at levels comparable to the first quarter of 2004. Software license and support revenue increased to 59.9% of total revenue, compared to 52.8% in the same quarter of 2004. The Company's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Artemis 7, grew by 120% and represented 60.3% of total software license revenue, compared to 27.7% for the first quarter of 2004. The Company reported a non-GAAP loss of $(0.6) million, or $(0.06) per common share, for the first quarter of 2005, compared to a non-GAAP loss of $(1.6) million, or $(0.16) per common share, in the first quarter of 2004. Non-GAAP loss for the first quarter of 2005 excludes $0.6 million in amortization expenses, while non-GAAP loss for the first quarter of 2004 excluded $1.0 million in amortization expenses and $1.2 million in restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . On a US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the Company's net loss for the first quarter of 2005 was $(1.3) million, or $(0.12) per common share. This compares to a net loss of $(3.9) million, or $(0.39) per common share, for the first quarter of 2004. "Sales generated by our strategic platform, Artemis 7, continue to grow strongly, our margins are improving and we are generating positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses ," said Patrick Ternier, 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 Artemis. "We are pleased that the strategy we implemented in 2004 to restructure the company and focus our global sales teams on well-defined solutions is beginning to bear fruit and believe it will continue to lead to growth in Artemis 7 as well as improved profitability and cash flow. As indicated in our Q4 earnings call, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the outlook for the first half of the year," Ternier added. "As a leaner and more focused company, Artemis is well positioned to capture its fair share of the growing market for project portfolio management solutions." During the quarter, Artemis continued to add significant new customers for its solutions in the Americas, Europe, Asia Pacific, and Japan, including: --New Product Development: Cummins, LG Micron, Toyota Techno Service, Denso, Shionogi Pharma, Siemens, Saab --IT Management and Governance: Pfizer, AIU AIU American Intercontinental University AIU Allegheny Intermediate Unit (Homestead, PA) AIU Atlantic International University AIU Association of Indian Universities AIU Association Internationale des Universités , Singapore Immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. Custom authority, Atos Origin Atos Origin, SA (Euronext: ATO) is an international IT corporation which operates in 40 countries worldwide, with over 50,000 employees. The corporate headquarters are located in Paris, France and Zaventem, Belgium. Integration, La Poste La Poste is a company name. It can refer either to mail service of France, Belgium, Switzerland or Tunisia. See also
--Public Investment Management: Metropolitan Police Property Services --Strategic Asset Optimization: Tuas Power Pte Ltd PTE LTD Private Limited --Aerospace and Defense Program Management: BAE Systems BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. - Avionics, BAE Systems - Submarines Artemis has scheduled a conference call to discuss the Q1 2005 results today, Wednesday, May 11, 2005 at 4:30 PM (EST EST electroshock therapy. EST abbr. electroshock therapy ). Dial (877) 246-9127 or (206) 902-3257. For those unable to participate, there will be a telephonic replay available from May 11, 2005 at 5:30 PM (EST), through June 10, 2005 11:59 PM (EST). Dial: (800) 207-7077 or (913) 383-5767. Enter PIN: 4140.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
Consolidated Financial Highlights
(Unaudited)
Three Months Ended March 31,
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
(in thousands, except per
share data)
Statement of Operations Data:
Revenue:
Software $2,815 23.5% $2,796 20.5%
Support 4,361 36.4% 4,399 32.3%
Services 4,796 40.1% 6,421 47.2%
11,972 100.0% 13,616 100.0%
Cost of revenue:
Software 73 0.6% 91 0.7%
Support 1,258 10.5% 1,478 10.8%
Services 3,997 33.4% 4,736 34.8%
5,328 44.5% 6,305 46.3%
Gross margin 6,644 55.5% 7,311 53.7%
Operating expenses:
Selling and marketing 3,859 32.3% 3,844 28.2%
Research and development 1,936 16.2% 2,067 15.2%
General and administrative 1,870 15.6% 2,677 19.7%
Amortization expense 638 5.3% 1,029 7.6%
Restructuring charge - 0.0% 1,247 9.2%
8,303 69.4% 10,864 79.8%
Operating loss (1,659) -13.9% (3,553) -26.1%
Net interest expense 57 0.5% 91 0.7%
Other non-operating expense
(income), net (769) -6.5% (156) -1.2%
Foreign exchange (gain) loss 95 0.8% 104 0.8%
(617) -5.2% 39 0.3%
Loss before income taxes (1,042) -8.7% (3,592) -26.4%
Income tax expense (benefit) 211 1.8% 300 2.2%
Net Loss $(1,253) -10.5% $(3,892) -28.6%
Basic and diluted loss per
common share $(0.12) $(0.39)
Weighted average common
shares used in
computing basic and diluted
loss per common share 10,519 9,965
Reconciliation of net loss to
non-GAAP income (loss):
Net loss $(1,253) $(3,892)
Amortization 638 1,029
Restructuring charges - 1,247
Non-GAAP income (loss) (1) $(615) $(1,616)
Basic non-GAAP income (loss)
per common share $(0.06) $(0.16)
Weighted average common
shares used in computing
basic non-GAAP income (loss)
per common share 10,519 9,965
(1) Non-GAAP income (loss) represents net earnings (loss) before
amortization, impairment and restructuring charges. Non-GAAP income
(loss) is not indicative of cash provided by or used in operating
activities and may differ from comparable information provided by
other companies. Non-GAAP income (loss) 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. Non-GAAP income
(loss) is used elsewhare in the industry and is presented because
Artemis believes it provides relevant and useful information to
investors. Artemis utilizes non-GAAP income (loss) 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. Although
restructuring charges represent a cash requirement for the Company,
management believes that "non-GAAP income (loss)", which excludes
restructuring charges, is more meaningfull to investors than EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization), a
financial metric reported by the Company in previous earnings
releases. Investors could use such a measure to analyze and compare
companies on the basis of current period operating performance.
About Artemis International Solutions Corporation Artemis International Solutions Corporation (OTCBB: AMSI) is a global provider of Investment Planning and Control(TM) solutions that help organizations execute strategy through effective portfolio and project management. Artemis has refined 30 years experience into a suite of industry optimized solutions and packaged consulting services that combine to establish an overall planning and control framework encompassing IT management, new product development, public investment management, program management, fleet asset optimization, and detailed project management. With a global network covering 44 countries, Artemis has helped thousands of companies to improve their business performance through better alignment of strategy, investment planning and project execution. 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. 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 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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