Artemis Reports Second Quarter 2005 Financial Results; Artemis 7-Based Solutions Grow to 70% of the Company's Software Revenue.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 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). :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 second quarter ended June June: see month. 30, 2005. Artemis reported $12.4 million in total revenue for the second quarter ended June 30, 2005, with software license revenue of $3.3 million, at levels comparable to the second quarter of 2004. Software license and support revenue increased to 62.7% of total revenue, compared to 55.5% in the same quarter of 2004. The Company's strategic product platform, Artemis 7, grew by 63% and represented 70% of total software license revenue, compared to 42% for the second quarter of 2004. The Company reported a non-GAAP loss of $(0.2) million, or $(0.02) per common share, for the second quarter of 2005, compared to a non-GAAP loss of $(0.6) million, or $(0.06) per common share, in the second quarter of 2004. Non-GAAP loss for the second quarter of 2005 excludes $0.6 million in amortization expenses, while non-GAAP loss for the second quarter of 2004 excludes $1.0 million in amortization expenses and $0.1 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 second quarter of 2005 was $(0.9) million, or $(0.08) per common share. This compares to a net loss of $(1.8) million, or $(0.18) per common share, for the second quarter of 2004. "Sales generated by our 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, continue to grow strongly," 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. "From a license perspective, we have now reached an inflection point Inflection Point An event that changes the way we think and act. -Andy Grove, Founder of Intel. Notes: For example, the fall of the Berlin Wall was an inflection point in global politics and the commercialization of the Internet was an inflection point in technology. where the growth in Artemis 7-based solutions coupled with our EVMS EVMS Enterprise Volume Management System EVMS Eastern Virginia Medical School EVMS Earned Value Management System EVMS Earned Value Management Standard EVMS Embedded Voice Mail System EVMS Enterprise Vulnerability Management System solution should outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, the decline in other areas, setting the stage for future software growth. That would be combined with the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of our services revenue and some growth in our recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. support revenue," Ternier added. "These results have been achieved, although we have not yet capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. on the measures we have taken over the last months to improve our sales performance in the US, including hiring an experienced executive to lead the region. Those steps should help rebalance our geographical revenue mix." Mr. Ternier further stated, "Whilst we have taken significant steps in restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). the company, we are continuing to review our worldwide operations for additional efficiencies to further improve our bottom line and strengthen our balance sheet, without compromising our commitment to customer satisfaction." For the six months ended June 30, 2005, Artemis reported $24.3 million in revenue, a non-GAAP loss of $(0.9) million, and a US GAAP net loss of $(2.1) million or $(0.20) per common share. This compares to $27.0 million in revenue, a non-GAAP loss of $(2.2) million, and a US GAAP net loss of $(5.7) million or $(0.57) per common share for the same period in 2004. Non-GAAP loss for the six months ended June 30, 2005 excludes amortization expense of $1.3 million. Non-GAAP loss for the six months ended June 30, 2004 excludes amortization expense of $2.0 million and restructuring charges of $1.4 million. During the quarter, Artemis continued to add significant new software sales for its solutions in the Americas A·mer·i·cas , the See America. , 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). , Asia Pacific,
and Japan, including:--New Product Development: LG Chem, Turbomeca, JATCO, Tanabe Seiyaku, Maruho, Cummins, Gambro --IT Management and Governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. : France Telecom Transpac, Calyon, HSH HSH abbr. Her (or His) Serene Highness Nordbank, SOGEI, SSB SSB Statistisk Sentralbyrå (Statistics Norway) SSB Super Smash Bros (video game) SSB Space Studies Board SSB Single Side Band SSB Single Stranded DNA-Binding Protein SSB Salomon Smith Barney , 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. , Telefonica Moviles Spain, Hitachi Construction Machinery --Strategic Asset Optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. : PSEG PSEG Public Service Enterprise Group , Michels Kenny, Ergon Energy, Knolls Atomic Power Laboratory Knolls Atomic Power Laboratory (KAPL) is a research and development facility dedicated to the support of the US Naval Nuclear Propulsion Program — a joint program of the United States Navy and United States Department of Energy, responsible for the research, design, --Public Investment Management: Parliamentary & Health Service Ombudsman ombudsman (äm`bədzmən) [Swed.,=agent or representative], public official appointed to deal with individual complaints against government acts. The Company also announced that, effective immediately, Steve Yager has resigned as the Chairman of the Company's Board of Directors and Board member Pekka Pere père n. 1. Used after a man's surname to distinguish a father from a son: Dumas père primarily wrote novels, while dramas occupied Dumas fils. 2. has accepted the position. Mr. Yager stated: "I have encountered intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: time pressures in my role as Company chairman, finding it increasingly difficult to balance my Chairman's role with my other professional commitments. Mr. Pere is well positioned to help the Company move to its next level of performance." The Company thanks Mr. Yager for his years of service on the Board, and wishes him continued success in his professional endeavors. Artemis has scheduled a conference call to discuss the Q2 2005 results today, Wednesday, August 10, 2005 at 4:30 PM (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). Dial (877) 246-9127 or (206) 902-3257. For those unable to participate, there will be a telephonic replay available from August 10, 2005 at 5:30 PM (EDT), through September 10, 2005 11:59 PM (EDT). Dial: (800) 207-7077 or (913) 383-5767. Enter PIN: 4140.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
Consolidated Financial Highlights
(Unaudited)
Three Months Ended June 30,
----------------------------------
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
------- -------- -------- --------
(in thousands, except per share
data)
Statement of Operations Data:
Revenue:
Software $3,306 26.7% $3,329 24.8%
Support 4,446 35.9% 4,118 30.7%
Services 4,617 37.4% 5,984 44.5%
------- --------
12,369 100.00% 13,431 100.0%
Cost of revenue:
Software 88 0.7% 2 0.0%
Support 1,290 10.4% 1,383 10.3%
Services 3,755 30.4% 4,812 35.8%
------- --------
5,133 41.5% 6,197 46.1%
------- --------
Gross margin 7,236 58.5% 7,234 53.9%
Operating expenses:
Selling and marketing 3,961 32.1% 3,754 28.0%
Research and development 1,968 15.8% 2,041 15.2%
General and administrative 1,851 15.0% 2,000 14.9%
Amortization expense 639 5.2% 1,029 7.7%
Restructuring charge - 0.0% 148 1.0%
------- --------
8,419 68.1% 8,972 66.8%
------- --------
Operating loss (1,183) -9.6% (1,738) -12.9%
Net interest expense 257 2.1% 117 0.9%
Other non-operating expense
(income), net (207) -1.8% (123) -0.9%
Foreign exchange (gain) loss (489) -4.0% (13) -0.1%
------- --------
(439) -3.6% (19) -0.1%
------- --------
Loss before income taxes (744) -6.0% (1,719) -12.8%
Income tax expense (benefit) 143 1.2% 81 0.6%
------- --------
Net loss $(887) -7.2% $(1,800) -13.4%
======= ========
Basic and diluted loss per
common share $(0.08) $(0.18)
======= ========
Weighted average common
shares used in computing
basic and diluted loss per
common share 10,712 9,965
Reconciliation of net loss to non-
GAAP income (loss):
-----------------------------------
Net loss $(887) $(1,800)
Amortization 639 1,029
Restructuring charges - 148
------- --------
Non-GAAP income (loss) (1) $(248) $(623)
======= ========
Basic non-GAAP income (loss)
per common share $(0.02) $(0.06)
======= ========
Weighted average common
shares used in computing
basic non-GAAP income
(loss) per common share 10,712 9,965
Six Months Ended June 30,
-----------------------------------
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
-------- -------- -------- --------
(in thousands, except per share
data)
Statement of Operations Data:
Revenue:
Software $6,121 25.1% $6,125 22.6%
Support 8,807 36.2% 8,517 31.5%
Services 9,413 38.7% 12,405 45.9%
-------- --------
24,341 100.0% 27,047 100.0%
Cost of revenue:
Software 161 0.7% 93 0.3%
Support 2,548 10.5% 2,861 10.6%
Services 7,752 31.8% 9,548 35.3%
-------- --------
10,461 43.0% 12,502 46.2%
-------- --------
Gross margin 13,880 57.0% 14,545 53.8%
Operating expenses:
Selling and marketing 7,820 32.2% 7,598 28.1%
Research and development 3,904 16.0% 4,108 15.2%
General and administrative 3,721 15.3% 4,677 17.3%
Amortization expense 1,277 5.2% 2,058 7.6%
Restructuring charge - 0.0% 1,395 5.2%
-------- --------
16,722 68.7% 19,836 73.3%
-------- --------
Operating loss (2,842) -11.7% (5,291) -19.6%
Net interest expense 314 1.3% 208 0.8%
Other non-operating expense
(income), net (976) -4.1% (279) -1.0%
Foreign exchange (gain) loss (394) -1.6% 91 0.3%
-------- --------
(1,056) -4.3% 20 0.1%
-------- --------
Loss before income taxes (1,786) -7.3% (5,311) -19.6%
Income tax expense (benefit) 354 1.5% 381 1.4%
-------- --------
Net loss $(2,140) -8.8% $(5,692) -21.0%
======== ========
Basic and diluted loss per
common share $(0.20) $(0.57)
======== ========
Weighted average common
shares used in computing
basic and diluted loss per
common share 10,586 9,965
Reconciliation of net loss to non-
GAAP income (loss):
----------------------------------
Net loss $(2,140) $(5,692)
Amortization 1,277 2,058
Restructuring charges - 1,395
-------- --------
Non-GAAP income (loss) (1) $(863) $(2,239)
======== ========
Basic non-GAAP income
(loss) per common share $(0.08) $(0.22)
======== ========
Weighted average common
shares used in computing
basic non-GAAP income
(loss) per common share 10,586 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 elsewhere 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 meaningful 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 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" 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 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. "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 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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