Artemis Reports Strong Fourth Quarter 2004 Financial Results.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. Achieves Positive Operating Results for Q4, with Software Revenue up 45% from Prior Year and up 90% from Last Quarter 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 ), the leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the fourth quarter and the fiscal year ended December December: see month. 31, 2004. Artemis reported $14.4 million in total revenue for the fourth quarter ended December 31, 2004, up 30.7% from $11.0 million in the third quarter of 2004 and up 3.1% from the same quarter of 2003. Software license revenue was $4.5 million, up 90.2% from $2.4 million in the third quarter of 2004 and up 44.6% from $3.1 million in the same quarter of 2003. Software license and support revenue increased to 61.9% of total revenue compared to 49.8% in the same quarter of 2003. The company reported non-GAAP income of $1.6 million, or $0.16 per common share, for the fourth quarter of 2004, compared to a non-GAAP loss of $(1.3) million, or $(0.13) per common share, in the third quarter of 2004 and $(0.6) million, or $(0.06) per common share, in the fourth quarter of 2003. Non-GAAP income for the fourth quarter of 2004 excludes $1.9 million in amortization and impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and $0.7 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. . Non-GAAP loss for the third quarter of 2004 excludes $1.0 million in amortization and $0.7 million in restructuring charges, while excluding $1.0 million in amortization charges for the fourth quarter of 2003. On a U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis, the Company's net loss for the fourth quarter of 2004 was $(1.0) million, or $(0.10) per common share. This compares to a net loss of $(3.0) million, or $(0.30) per common share, in the preceding quarter and $(1.6) million, or $(0.16) per common share, for the fourth quarter of 2003. "Our strategy is paying off," 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 achieved strong growth in software revenue in Q4 and further expanded our customer base, particularly in New Product Development and 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. . Our improved financial performance is a result of solid sales execution combined with the 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. of our cost structure." For the full year 2004, Artemis reported $52.4 million in revenue, a non-GAAP loss of $(1.9) million, and a U.S. GAAP net loss of $(9.7) million or $(0.97) per common share. This compares to $57.3 million in revenue, a non-GAAP loss of $(3.8) million, and a U.S. GAAP net loss of $(7.9) million or $(0.79) per common share for the full year 2003. Non-GAAP loss for 2004 and 2003 exclude amortization, impairment and restructuring charges of $7.7 million and $4.1 million, respectively. In addition to strong software revenue, the following are highlights of the Quarter: Additional success for the industry optimized solutions approach through the addition of leading new customers from all four regions including:
-- New Product Development: China Telecom, Hitachi Kenki Business
Frontier Co., Jatco, Nuovo Pignone, Ogihara, Olympus Medical
Systems, Pfizer, PT Telekom, Telecom Italia Sparkle, Tanabe
Seiyaku, Unomedical, Wind Telecom
-- IT Management and Governance: AGF-Allianz, Axa Life Insurance,
Atos Origin Integration, Casino IT, Certegy, Credit Lyonnais,
Credit Agricole, Linea Directa Insurance, SBC Services, Tchibo
Gmbh, Unedic, USAA
-- Public Investment Management: Acqua Latina, TAFE Australia,
Mato Grosso State
-- Fleet Asset Optimization: Exelon Energy Delivery, General
Electric Oil & Gas, Southern Company Generation
-- Aerospace and Defense Program Management: Air Tanker Ltd.,
Alcatel Space Industries, Lockheed Martin IS&S, Lockheed
Missile and Space, Norvegian Defense Ministry
--Major new release of Artemis 7, with Version 6.0 offering unique Performance Based Budgeting Adopting Public Sector’s Performance Based Budgeting to the private sector using the CPM framework. [1] [2] Introduction Today, when the management of money is more important than ever for public and private entities, budgeting plays an capabilities to allow investments funding to be dynamically optimized and linked to financial and non-financial benefits, allowing organizations to effectively execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution strategy. --Worldwide rollout of our Consulting Partner program to increase the Artemis Partner network. --First major return on our active presence in China with the addition of the R&D Institute of China Telecom in Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. to our Asian and worldwide user base.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
Consolidated Financial Highlights
(in thousands, except per share amounts)
(Unaudited)
Quarter Ended December 31,
Percent Percent
2004 of Total 2003 of Total
Revenues Revenues
Statement of Operations Data:
Revenue:
Software $4,542 32% $3,140 23%
Support 4,370 30% 3,815 27%
Services 5,477 38% 7,006 50%
14,389 100% 13,961 100%
Cost of revenue:
Software 86 1% 169 1%
Support 1,334 9% 1,228 9%
Services 4,220 29% 4,944 35%
5,640 39% 6,341 45%
Gross margin 8,749 61% 7,620 55%
Operating expenses:
Selling and marketing 3,760 26% 3,728 27%
Research and development 1,913 13% 2,006 14%
General and administrative 2,226 15% 2,805 20%
Amortization expense 1,029 8% 1,030 8%
Impairment charges 913 6% - 0%
Restructuring charges 691 5% - 0%
10,532 73% 9,569 69%
Operating loss (1,783) -12% (1,949) -14%
Net interest expense 58 1% 107 1%
Other non-operating (income), net (671) -5% (295) -2%
(613) -4% (188) -1%
Loss before income taxes (1,170) -8% (1,761) -13%
Income tax expense (benefit) (150) -1% (156) -2%
Net Loss $(1,020) -7% $(1,605) -11%
Basic and diluted loss per
common share $(0.10) $(0.16)
Weighted average common shares
used in computing basic and
diluted loss per common share 10,059 9,965
Reconciliation of net loss to
non-GAAP income (loss):
Net loss $(1,020) $(1,605)
Amortization 1,029 1,030
Impairment charges 913 -
Restructuring charges 691 -
Non-GAAP income (loss) (1) $1,613 $(575)
Basic non-GAAP income (loss)
per common share $0.16 $(0.06)
Weighted average common shares
used in computing basic
non-GAAP income (loss) per
common share 10,059 9,965
Year Ended December 31,
Percent Percent
2004 of Total 2003 of Total
Revenues Revenues
Statement of Operations Data:
Revenue:
Software $13,055 25% $13,286 23%
Support 17,186 33% 16,568 29%
Services 22,204 42% 27,437 48%
52,445 100% 57,291 100%
Cost of revenue:
Software 232 0% 677 1%
Support 5,676 11% 5,102 9%
Services 17,582 34% 20,250 35%
23,490 45% 26,029 45%
Gross margin 28,955 55% 31,262 55%
Operating expenses:
Selling and marketing 14,327 27% 15,942 29%
Research and development 7,710 15% 8,152 14%
General and administrative 8,701 17% 11,142 19%
Amortization expense 4,117 8% 4,118 7%
Impairment charges 913 2% - 0%
Restructuring charges 2,740 5% - 0%
38,508 73% 39,354 69%
Operating loss (9,553) -18% (8,092) -14%
Net interest expense 502 1% 192 0%
Other non-operating (income), net (538) -1% (692) -1%
(36) 0% (500) -1%
Loss before income taxes (9,517) -18% (7,592) -13%
Income tax expense (benefit) 168 0% 299 1%
Net Loss $(9,685) -18% $(7,891) -14%
Basic and diluted loss per
common share $(0.97) $(0.79)
Weighted average common shares
used in computing basic and
diluted loss per common share 9,988 9,965
Reconciliation of net loss to
non-GAAP income (loss):
Net loss $(9,685) $(7,891)
Amortization 4,117 4,118
Impairment charges 913 -
Restructuring charges 2,740 -
Non-GAAP income (loss) (1) $(1,915) $(3,773)
Basic non-GAAP income (loss)
per common share $(0.19) $(0.38)
Weighted average common shares
used in computing basic
non-GAAP income (loss) per
common share 9,988 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 commonly used 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 the 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 optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , 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 Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
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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