Descartes Announces Revenue And Profitability Milestones Achieved In Record Third Quarter.Business Editors WATERLOO Waterloo, town, Belgium Waterloo (vä`tərlō), commune (1991 pop. 27,860), Walloon Brabant prov., central Belgium, near Brussels. The battle of Waterloo (see Waterloo campaign) was fought just south of there on June 18, 1815. , Ontario--(BUSINESS WIRE)--Nov. 21, 2000 Descartes (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSG DSG Direct Shift Gearbox (Audi) DSG Dosage DSG Deputy Secretary General DSG Dressing DSG Designate DSG Desmoglein DSG Duke Student Government (Duke University) .)(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DSGX DSGX Dynamic Sound Generator Xtra (Sony) DSGX Dynamic Sound Generator Extra ) The Descartes Systems Group Inc. (NASDAQ:DSGX)(TSE:DSG.), a leading provider of global Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the logistics solutions, announced today its Fiscal 2001 third quarter results (Q3 FY01) for the period ended October October: see month. 31, 2000. All dollar amounts are expressed in US currency and are reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Third Quarter Highlights Highlights of the quarter include achieving record top-line revenue of $17.4 million, generating $.02 per share operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. , generating positive cash flow of $1.1 million and experiencing an 80% increase over last quarter in transaction volume over the Descartes Global Logistics Network. In addition, new brick and mortar See bricks and mortar. customer sign-ups in the third quarter include prominent North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. firms Ryder Logistics and North Supply Company, a division of Sprint Corporation. In addition, Descartes is pleased to announce today a definitive agreement with Katalyx, a division of Telefonica S.A., for the creation of an online business-to-business e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. transportation solution for the Ibero-American market. Financial Results License and network revenue increased 188% to $13.8 million in Q3 FY01, from $4.8 million in the third quarter of Fiscal 2000 (Q3 FY00) and representing a sequential increase of 25% over license and network revenue of $11 million in the second quarter of Fiscal 2001 (Q2 FY01). Excluding the legacy direct store delivery operations spun off in March 2000, license and network revenue increased 393% or $11 million over Q3 FY00. Revenue for Q3 FY01 reached $17.4 million, up 66% from revenue of $10.5 million in Q3 FY00. Excluding the legacy direct store delivery operations, revenue increased by $11.2 million or 181% over Q3 FY00. Operating profit (net profit before acquisition-related charges) for the quarter was $733,000 or $.02 per share compared to a net loss in Q3 FY00 of $3.6 million or ($.10) per share and a net loss in Q2 FY01 of $961,000 or ($.02) per share. Net loss for the quarter was $2.8 million or ($.06) per share compared to a net loss in Q3 FY00 of $4.0 million or ($.11) per share. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the quarter increased by over $1 million to $1.1 million as compared to ($88,000) in the second quarter. The company had net cash and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments at the end of the quarter of $258 million. "The third quarter represents a watershed watershed, elevation or divide separating the catchment area, or drainage basin, of one river system or group of river systems from another system or group of systems. The term is also often used synonymously with drainage basin. for Descartes," said Peter Schwartz, Chairman 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. at Descartes. "On the financial front, we have for the first time generated both an operating profit and positive operating cash flow. For the Global Logistics Network, our success is reflected in new customers, new relationships established within the Descartes Global Logistics Network business community, and significantly increased transaction volumes. In addition, we are pleased to welcome brand names like Ryder, Sprint, and Telefonica to the Descartes Global Logistics Network." Conference Call The Management of Descartes invites the public to participate in an audio webcast of the Q3 FY01 financial results. The public can access the webcast from Descartes' Web site at http://www.descartes.com/investors/overview.html. RealPlayer 7 must be installed on your machine and can be downloaded free from this site. For those unable to participate on the webcast, a taped rebroadcast will be available to listeners upon completion of the conference call until midnight on Tuesday, November 28, 2000. To access the rebroadcast, please dial (416) 695-5800, (reservation number 579579). About Descartes Descartes is a leading provider of global Internet logistics solutions that facilitate B2B e-commerce (Business to Business Electronic-COMMERCE) Refers to one business selling to another business via the Web. See e-commerce. . Descartes' logistics network technology and network-based services enable companies to create high-speed, high-performance fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. networks called DeliveryNets. DeliveryNet solutions empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems organizations to deliver reliable, responsive customer service in a profitable manner and to create innovative new products and services. DeliveryNet solutions leverage Descartes' Internet-based Global Logistics Network, an open, worldwide network of shippers, receivers, carriers, logistics service providers, e-marketplaces, vertical portals A Web site that provides news, articles and services to a particular industry such as IT, finance and retail. It is the industry-specific equivalent of the general-purpose portal on the Web. Also called a "vortal." See portal, corporate portal, business intelligence portal and Web hub. , and transportation exchanges. The result is a global logistics community connected to Descartes' technological infrastructure that provides cost savings and revenue opportunities for businesses that need to manage physical product movement.
THE DESCARTES SYSTEMS GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS US GAAP
(in thousands) (IN US$)
---------------------------------------------------------------
October 31, October 31,
2000 1999
---------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 144,122 $ 6,425
Short-term investments 114,263 8,472
Accounts receivable - trade 17,326 17,299
Accounts receivable - other 2,260 666
Prepaid expenses and deferred charges 2,264 4,394
--------------------------------------------------------------
280,235 37,256
--------------------------------------------------------------
CAPITAL ASSETS, net 6,541 5,078
LONG-TERM INVESTMENTS 7,500 -
INTANGIBLE ASSETS, net 58,060 5,275
--------------------------------------------------------------
$ 352,336 $ 47,609
==============================================================
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 5,104 $ 4,321
Accrued liabilities 9,413 6,030
Deferred revenue 12,534 4,635
--------------------------------------------------------------
27,051 14,986
--------------------------------------------------------------
CONVERTIBLE DEBENTURES 71,618 -
--------------------------------------------------------------
98,669 14,986
--------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common shares 367,849 113,470
Additional paid-in capital 3,126 3,126
Unearned deferred compensation (212) (449)
Accumulated other
comprehensive gain (loss) 95 (682)
Deficit (117,191) (82,842)
--------------------------------------------------------------
253,667 32,623
--------------------------------------------------------------
$ 352,336 $ 47,609
==============================================================
THE DESCARTES SYSTEMS GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS US GAAP
(in thousands, except share and per share data) (IN US$)
---------------------------------------------------------------
Three Months Ended Nine Months Ended
October 31 October 31
2000 1999 2000 1999
---------------------------------------------------------------
REVENUE
License and
network $ 13,786 $ 4,787 $ 33,527 $ 12,215
Services 3,650 5,263 11,859 16,586
Hardware - 421 221 2,679
--------------------------------------------------------------
Total revenue 17,436 10,471 45,607 31,480
--------------------------------------------------------------
COSTS AND EXPENSES
Cost of license,
network and
hardware 2,671 675 6,492 3,319
Cost of services 2,969 4,394 9,663 15,406
Sales and marketing 5,666 4,074 15,918 15,169
Research and
development 3,820 3,664 11,909 11,086
General and
administration 2,340 1,444 6,026 4,199
Amortization of
intangibles 3,559 352 9,545 1,056
Purchased in-process
research and
development - - 19,033 -
--------------------------------------------------------------
Total costs and
expenses 21,025 14,603 78,586 50,235
--------------------------------------------------------------
LOSS FROM OPERATIONS (3,589) (4,132) (32,979) (18,755)
OTHER INCOME (EXPENSE)
Interest expense (1,238) (112) (1,746) (326)
Interest revenue 2,074 248 4,116 813
--------------------------------------------------------------
836 136 2,370 487
--------------------------------------------------------------
LOSS BEFORE INCOME
TAXES (2,753) (3,996) (30,609) (18,268)
INCOME TAXES
Current 73 - 239 -
Deferred - - - -
--------------------------------------------------------------
73 - 239 -
--------------------------------------------------------------
NET LOSS $ (2,826) $ (3,996) $ (30,848) $ (18,268)
--------------------------------------------------------------
NET LOSS PER SHARE
- BASIC AND
DILUTED $ (0.06) $ (0.11) $ (0.72) $ (0.50)
--------------------------------------------------------------
WEIGHTED AVERAGE
SHARES OUTSTANDING
- BASIC AND
DILUTED 43,820,741 36,453,779 43,004,625 36,418,610
--------------------------------------------------------------
Excluding
acquisition-related
expenses:
NET PROFIT (LOSS) $ 733 $ (3,644) $ (2,270) $ (17,212)
--------------------------------------------------------------
NET LOSS PER SHARE
- BASIC AND
DILUTED $ (0.10) $ (0.05) $ (0.47)
NET PROFIT PER SHARE
- BASIC $ 0.02
NET PROFIT PER SHARE
- DILUTED $ 0.02
--------------------------------------------------------------
WEIGHTED AVERAGE
SHARES
OUTSTANDING
- DILUTED 46,201,252
--------------------------------------------------------------
For more information about Descartes, visit www.descartes.com. All registered and unregistered trademarks mentioned in this release are the property of their respective owners. This release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc expected financial performance, including expected profitability, market and customer dynamics, future operating strategy, revenue and expense growth, revenue composition and other matters that constitute 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. that involve risks and uncertainties. The Company's actual results may differ from the results discussed in the forward-looking statements. Factors that may cause such a difference include, but are not limited to: risks associated with uncertainty and unanticipated delays in closing customer orders; uncertainty associated with the shift from enterprise applications to e-business markets; dependence on and increasing use of the Internet and the growth of electronic commerce, risks associated with acceptance of licensing models for electronic commerce market, competition or consolidation within the industry; management of growth; the Company's dependence on certain industries, markets and clients; the Company's dependence on key personnel, proprietary technology and a limited number of products; acquisitions; software defects; the ability to enhance current products and to introduce new products in a timely fashion at competitive prices; third party claims of infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. ; reliance on third party licenses; limited profitability; lengthy sales and implementation cycles and increasing size of orders; and the potential volatility of share prices; potential fluctuations in quarterly results; the need to enhance management systems; currency risk; and international sales; and other factors discussed in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: , "Risk Factors'' in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. and other securities commissions across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. . |
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