Descartes Reports Fourth Quarter And Fiscal Year 2003 Results.Business Editors/High-Tech Writers 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)--March 12, 2003 The Descartes Systems Group Inc., (Nasdaq:DSGX DSGX Dynamic Sound Generator Xtra (Sony) DSGX Dynamic Sound Generator Extra ), (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :DSG DSG Direct Shift Gearbox (Audi) DSG Dosage DSG Deputy Secretary General DSG Dressing DSG Designate DSG Desmoglein DSG Duke Student Government (Duke University) ), a trusted provider of logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. solutions, today announced its financial results for the fourth quarter (Q4FY03) and fiscal year 2003 (FY03) ended January January: see month. 31, 2003. Amounts are in U.S. dollars and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results are 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 U.S. GAAP (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 ). "We are pleased we achieved network growth this year despite a weak overall spending environment," said Peter Schwartz Schwartz is a Canadian spices brand. It is also a common surname and may refer to:
Added Manuel Manuel may refer to:
The Pietra Brewery opened in 1996 with a desire to develop a modern and innovative project for the future of Corsica. It is the only Corsican brewery. , Descartes' co-chief executive officer and president, "Our results this year were driven by tough decisions made to improve efficiencies across the company and build a strong foundation for future growth. While significantly reducing our cost structure, we have continued to invest in our sales organization, expand our presence in global regions, and bring new products to market. Our organization is now properly aligned to deliver customer value and this will enable Descartes to remain the market leader in logistics management Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet technology and a trusted provider to both users and providers of logistics." FINANCIAL SUMMARY Fourth Quarter Performance: For the fourth quarter ended January 31, 2003, total revenues were $18.0 million compared with total revenues in the fourth quarter last year of $18.1 million. Network-Based Logistics revenues increased 15 percent to $10.8 in Q4FY03 from $9.4 million in Q4FY02. Software license revenues reached $4.2 million in Q4FY03 down 26 percent from $5.7 million in Q4FY02. Service revenues remain essentially unchanged at $3.0 million. In Q4FY03 virtually all amortized license revenue from transactions concluded in earlier periods has expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. . For comparative purposes, excluding $3.1 million of such amortized revenues from the results of Q4FY02, total revenues increased by 20 percent in Q4FY03 to $18.0 million from $15.0 million in Q4FY02 and software license revenues increased by 62 percent in Q4FY03 to $4.2 million from $2.6 million in Q4FY02. The Company reported a loss of $108.5 million, or $2.08 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in Q4FY03. Included in the U.S. GAAP loss for Q4FY03 were non-cash write-downs of goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. in the amount of $104.7 million in accordance with the new business combination standards. In the fourth quarter of last year, the Company reported a loss on a U.S. GAAP basis of $11.2 million, or 22 cents per basic and diluted share. Reference should be made to the supplementary information attached for an analysis of the impact of the new business combination standards on GAAP losses. For Q4FY03 the Company reported adjusted earnings(1) of $964,000, or 2 cents per basic and diluted share. This compares with an adjusted loss of $2.7 million, or 5 cents per basic and diluted share, recorded in the same quarter one year ago. Reference should be made to the supplementary financial information attached for reconciliation between the U.S. GAAP and the adjusted results. Fiscal Year 2003: Total revenues for FY03 were $70.4 million, a decrease of 11 percent from total revenues of $79.5 million in FY02. Network-Based Logistics revenues reached $41.9 million, software license revenues were $17.4 million and service revenues were $11.1 million. Total Network-Based Logistics revenues increased 20 percent from $35.1 million in FY02, while software license revenues declined 46 percent from $32.2 million for the same period last year reflecting the Company's shift in its pricing model, the expiry of amortized revenues from license sales in prior years and the general softness in the software license market. Service revenues declined 10 percent from $12.2 million in the same period last year as a result of the Company's increasing shift to less service-intensive Network-Based Logistics revenues. The Company reported a loss of $138.2 million, or $2.65 per basic and diluted share in FY03, compared to a loss of $58.7 million, or $1.15 per basic and diluted share in FY02. Included in the loss for FY03 were non-cash write-downs of goodwill and intangible assets in the amount of $104.7 million in accordance with the new business combination standards. Reference should be made to the supplementary information attached for an analysis of the impact of the new business combination standards on GAAP losses. In FY03, the Company reported an adjusted loss(1) of $6.3 million, or 12 cents per basic and diluted share. This compares with an adjusted loss of $3.7 million, or 7 cents per basic and diluted share, recorded in FY02. Reference should be made to the supplementary financial information for reconciliation between the U.S. GAAP and the adjusted results. FINANCIAL HIGHLIGHTS Continued Concentration on Collections: Descartes collected $17.0 million during the quarter. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). (DSOs) at the end of Q4FY03 were 70. Service Margins Higher: By moving profit and loss responsibilities to the regions, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. margins continued to improve this quarter. For Q4FY03 service margins grew to 36 percent, showing improvement on margins of 5 percent in the same quarter last year. Concentrated Control Over Expenses: Concentrated efforts on cost control saw a reduction in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of 23 percent for Q4FY03 from $21.7 million Q4FY02 to $16.7 million in Q4FY03. In a year over year comparison, expenses were reduced by 11 percent from $88.8 million in FY02 to $79.3 million in FY03. Balance Sheet Strength: At the end of FY03, cash and investments totaled $174.1 million, down $26.9 million from fiscal year 2002. COMPANY HIGHLIGHTS Customer Sign-ups Near 500: During Fiscal Year 2003 Descartes had 495 sign-ups for its solutions representing services sold to both new customers and additional services sold to existing customers. Q4FY03 saw 159 sign-ups with 84 sign-ups representing services sold to new customers and 75 sign-ups additional services sold to existing customers. - Sign-ups for Network-Based Logistics: There were 134 sign-ups for the quarter of which more than half of these customers were new to Descartes' network solutions. Notable customer additions for Network-Based Applications include Top Container (1) Software that acts as a parent program to hold and execute a set of commands or to run other software routines. (2) A data structure that holds one or more different types of data. See metafile and OLE. Line and Sinotrans Sinotrans (HK) Shipping Limited (commonly referred to as Sinotrans)(HKSE: 0598 ) is one of the largest liner shipping companies in Asia. It is based in HongKong, People's Republic of China. Express. Customer sign-ups for Logistics Connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. included AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. Time Warner, DaVita DaVita Inc, NYSE: DVA, is a large for-profit renal dialysis provider in the United States. External links
Yankee Candle Company was started in South Hadley, Massachusetts when Michael Kittredge created his first . - Sign-ups for Logistics Software: There were 25 sign-ups during the fourth quarter of fiscal year 2003 in the Logistics Software business that includes Descartes Routing and Scheduling(TM) solutions. Customer sign-ups included such companies as AmeriPride, Kane's Furniture and SSD See solid state disk. Distribution System and The Schwan Food Company The Schwan Food Company is a multibillion-dollar privately owned company with 22,000 employees worldwide. Based in Marshall, Minnesota, the company sells frozen foods from home-delivery trucks, in grocery-store freezers, by mail and to the foodservice industry. . Product Innovation: Continuing its commitment to be at the forefront of technological advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. Descartes took eight new products to market during FY2003. Solutions introduced in Q4FY03 included: - Descartes Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Manifest manifest 1) adj., adv. completely obvious or evident. 2) n. a written list of goods in a shipment. MANIFEST, com. law. A written instrument containing a true account of the cargo of a ship or commercial vessel. 2. Service(TM) - To address the market need for ocean manifest A detailed listing of the entire cargo loaded into any one ship showing all pertinent data which will readily identify such cargo and where and how the cargo is stowed. messaging under the U.S. Customs Service Container Security Initiative The Container Security Initiative (CSI) was launched in 2002 by the U.S. Bureau of Customs and Border Protection (CBP), an agency of the Department of Homeland Security. Its purpose was to increase security for container cargo shipped to the United States. (CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International ), 20 companies signed-up for this service offering in Q4FY03 enabling trading partners certified See certification. messaging services for the CSI initiative. - Enhanced 20/20 Visibility(TM) for retail - Designed to better address the specific needs of the retail market, Descartes released enhancements to its visibility solution, Descartes 20/20 Visibility(TM). - Descartes Cargo 2000 Solution(TM) - Assisting users in complying with the Cargo 2000 initiative set out by the International Air Transport Association (IATA IATA International Air Transport Association, which sets the rules for air transport, including those concerning air transport of animals. ), this solution allows users to monitor shipments at a master air waybill Master Air Waybill (MAB) A document issued by the originating airline when and if a shipment involves more than one air carrier. level from airport to airport. Growth in Network Transactions: Realizing a 70 percent growth in transactions on the Descartes Global Logistics Services Network(TM), more than 351 million transactions were processed in FY2003 up from 204 million transactions in FY2002. Organizational 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.
v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. back office operations and organized customer-facing activities by regions. General managers were appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. for the Americas A·mer·i·cas , the See America. , EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets. and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). with full operational responsibilities for regional performance and the Company's 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). of its operations aligned its cost structure with its subscription and transaction based revenue model. Investment in Asia Pacific: Recognizing the market opportunity for Descartes' solutions in the Asia Pacific region, the Company developed several key partnerships and opened two new offices in Asia. Tradevision: The Company completed the acquisition of the remainder of Tradevision during FY03 resulting in significant anticipated cost-savings through the consolidation of operations and potential market opportunities for the reselling of Tradevision products by the established Descartes sales force. CONFERENCE CALL Company management will discuss these results and its business outlook in a live conference call and audio Web cast with the financial community at 8:00 a.m. ET today, March 12, 2002. The live audio Web cast, slide presentation and supplementary information to accompany To go along with; to go with or to attend as a companion or associate. A motor vehicle statute may require beginning drivers or drivers under a certain age to be accompanied by a licensed adult driver whenever operating an automobile. the call can be accessed at www.descartes.com/investors. Replays will also be available in two formats shortly after the completion of the conference call. A telephone replay will be accessible for 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock by dialing 1-888-203-1112 or 719-457-0820 and quoting reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 486219. An archived replay of the Web cast will also be available through the Descartes Web site at www.descartes.com/investors. About Descartes The Descartes Systems Group Inc. (Nasdaq:DSGX) (TSX:DSG) is a trusted provider of logistics management technology. In over 60 countries Descartes' leading logistics solutions drive operational efficiency, enhance customer responsiveness responsiveness Medtalk The ability to respond to a stimulus. See Airway responsiveness. and improve precision in purchasing for global organizations. For more information, visit www.descartes.com. All registered and unregistered trademarks mentioned in this release are the property of their respective owners. Statements in this release, other than historical performance, include 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future financial performance made under the 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. provisions of 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. These forward looking statements include statements regarding Descartes' continued execution against key operational initiatives, revenue and profit expectations, customer acceptance and continued use of Descartes' solutions, future business strategies and opportunities, and expectations as to Descartes' pricing and revenue model. These statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from expectations; in particular, the successful implementation and market acceptance of Descartes' pricing and revenue model, demand for network-based logistics solutions and logistics software solutions, success in closing customer orders, ability to control expenses, realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of operating cost reductions resulting from cost reduction initiatives, integration of acquisitions and consolidation of operations. For further information regarding risks and uncertainties associated with Descartes' business, please refer to Descartes' 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. . Any forward-looking statements should be considered in light of these factors. (1) Adjusted earnings reflect U.S. GAAP-based earnings as adjusted to exclude goodwill and intangible 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, acquisition-related charges and other non-recurring and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gains or losses.
THE DESCARTES SYSTEMS GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(US dollars in thousands,
except per share amounts; US GAAP;
quarterly data unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
2003 2002 2003 2002
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REVENUES
License and network 15,024 15,070 59,311 67,256
Service and maintenance 3,006 3,031 11,072 12,266
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18,030 18,101 70,383 79,522
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COSTS AND EXPENSES
Cost of license
and network 3,138 4,436 16,573 16,223
Cost of service
and maintenance 1,910 2,882 10,058 11,478
Sales and marketing 6,040 5,836 29,943 29,543
Research and development 2,741 6,476 15,223 25,385
General and administrative 2,904 2,136 12,895 10,751
Amortization of goodwill - 6,385 - 24,521
Amortization of intangibles 2,659 2,453 10,100 8,039
Write-off of goodwill 86,689 - 86,689 -
Write-off of intangibles 17,980 - 17,980 -
Write-down of long-term
investments - - - 9,783
Purchased in-process
research and development - - - 4,500
Restructuring cost 2,027 - 11,712 3,984
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126,088 30,604 211,173 144,207
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LOSS FROM OPERATIONS (108,058) (12,503) (140,790) (64,685)
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OTHER INCOME (EXPENSE)
Interest expense (1,158) (1,252) (4,619) (5,012)
Investment income 841 2,185 6,493 10,705
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(317) 933 1,874 5,693
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LOSS BEFORE UNDERNOTED (108,375) (11,570) (138,916) (58,992)
INCOME TAX RECOVERY
(EXPENSE) - CURRENT (80) (9) 362 (78)
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LOSS BEFORE MINORITY
INTEREST AND EXTRAORDINARY
ITEM (108,455) (11,579) (138,554) (59,070)
MINORITY INTEREST - - 448 -
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LOSS BEFORE EXTRAORDINARY
ITEM (108,455) (11,579) (138,106) (59,070)
EXTRAORDINARY ITEM
Gain (loss) on purchase
of convertible debentures (19) 352 (89) 352
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LOSS (108,474) (11,227) (138,195) (58,718)
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LOSS PER SHARE BEFORE
EXTRAORDINARY ITEM
Basic and diluted (2.08) (0.22) (2.64) (1.16)
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LOSS PER SHARE AFTER
EXTRAORDINARY ITEM
Basic and diluted (2.08) (0.22) (2.65) (1.15)
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WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic and diluted
(thousands) 52,224 52,180 52,234 50,858
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SUPPLEMENTAL FINANCIAL INFORMATION
ADJUSTED EARNINGS (LOSS)
(US dollars in thousands,
except per share amounts;
unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
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2003 2002 2003 2002
LOSS AS REPORTED
UNDER US GAAP (108,474) (11,227) (138,195) (58,718)
Adjustments:
Amortization of goodwill (1) - 6,385 - 24,521
Amortization
of intangibles (1) 2,659 2,453 10,100 8,039
Write-off of goodwill (1) 86,689 - 86,689 -
Write-off of intangibles (1) 17,980 - 17,980 -
Write-down of long-term
investments (1) - - - 9,783
Purchased in-process
research and development (1) - - - 4,500
Amortization of deferred
compensation (1) 64 77 467 1,071
Restructuring cost (2) 2,027 - 11,712 3,984
Special reserve
for doubtful accounts (2) - - 2,907 3,500
(Gain) loss on purchase
of convertible debentures(2) 19 (352) 89 (352)
Arbitration award
and related costs (2) - - 1,970 -
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EARNINGS (LOSS) AS ADJUSTED (3) 964 (2,664) (6,281) (3,672)
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EARNINGS (LOSS) PER SHARE
AS ADJUSTED
Basic and diluted 0.02 (0.05) (0.12) (0.07)
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WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic (thousands) 52,224 52,180 52,234 50,858
Diluted (thousands) 52,263 52,180 52,234 50,858
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Notes:
(1) Earnings (loss) as prescribed by US GAAP have been adjusted by
these items as they represent acquisition-related charges which
vary substantially from period to period due to the Company's
acquisition activities as well as its impairment assessments.
(2) Earnings (loss) as prescribed by US GAAP have been adjusted by
these items as they represent one-time and non-recurring charges
and gains.
(3) Adjusted earnings (loss) do not have any standardized meaning
prescribed by US GAAP and are therefore unlikely to be comparable
to similar measures presented by other companies.
SUPPLEMENTAL FINANCIAL INFORMATION
IMPACT OF THE NEW BUSINESS COMBINATIONS STANDARDS ON GAAP LOSSES
(US dollars in thousands,
except per share amounts;
quarterly data unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
2003 2002 2003 2002
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LOSS AS REPORTED
UNDER US GAAP (108,474) (11,227) (138,195) (58,718)
GOODWILL AMORTIZATION
ADJUSTMENT (1) - 6,385 - 24,521
WRITE-OFF OF GOODWILL (2) 86,689 - 86,689 -
WRITE-OFF
OF INTANGIBLES (3) 17,980 - 17,980 -
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LOSS EXCLUDING AMORTIZATION
AND WRITE-OFFS (3,805) (4,842) (33,526) (34,197)
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LOSS PER SHARE AS REPORTED
Basic and diluted (2.08) (0.22) (2.65) (1.15)
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LOSS PER SHARE EXCLUDING
AMORTIZATION AND WRITE-OFFS
Basic and diluted (0.07) (0.09) (0.64) (0.67)
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WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic and diluted
(thousands) 52,224 52,180 52,234 50,858
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Notes:
(1) The amortization of goodwill ceased effective February 1, 2002
in accordance with the new business combinations standards.
(2) Goodwill write-off resulted from the annual impairment test as
of February 1, 2003.
(3) Intangible write-off resulted from the valuation of intangibles
as of January 31, 2003.
THE DESCARTES SYSTEMS GROUP INC.
CONSOLIDATED BALANCE SHEETS
(US dollars in thousands; US GAAP)
January 31, January 31,
2003 2002
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ASSETS
CURRENT ASSETS
Cash and cash equivalents 21,195 36,101
Marketable securities 8,521 82,485
Accounts receivable
Trade 14,036 18,434
Other 2,819 7,540
Prepaid expenses and other 3,020 4,220
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49,591 148,780
MARKETABLE SECURITIES 144,386 82,444
CAPITAL ASSETS 12,151 10,261
LONG-TERM INVESTMENTS 3,300 3,250
GOODWILL 17,603 103,456
INTANGIBLE ASSETS 13,606 37,967
DEFERRED CHARGES 1,638 2,364
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242,275 388,522
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 3,964 3,376
Accrued liabilities 8,673 10,428
Deferred revenue 2,923 5,616
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15,560 19,420
CONVERTIBLE DEBENTURES 71,995 73,500
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87,555 92,920
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SHAREHOLDERS' EQUITY
Common shares
Issued - 52,224,511
(January 31, 2002 - 52,229,333) 468,618 468,445
Additional paid-in capital 5,201 5,201
Unearned deferred compensation (690) (1,157)
Accumulated other comprehensive loss (1,506) (200)
Accumulated deficit (316,903) (176,687)
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154,720 295,602
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242,275 388,522
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THE DESCARTES SYSTEMS GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(US dollars in thousands;
US GAAP; quarterly data
unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
2003 2002 2003 2002
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OPERATING ACTIVITIES
Loss (108,474) (11,227) (138,195) (58,718)
Adjustments to reconcile
loss to cash provided by
(used in) operating
activities:
Bad debt charge - - 2,907 3,500
Depreciation 321 869 2,514 3,161
Amortization of goodwill - 6,385 - 24,251
Amortization
of intangibles 2,659 2,453 10,100 8,039
Write-off of goodwill 86,689 - 86,689 -
Write-off of intangibles 17,980 - 17,980 -
Write-down
of long-term investments - - - 9,783
Purchased in-process
research and development - - - 4,500
Restructuring cost (1,699) (572) 1,069 1,802
Amortization of convertible
debenture costs 169 151 726 701
Amortization
of deferred compensation 64 77 467 1,071
Minority Interest - - 448 -
(Gain) loss on purchase
of convertible debentures 19 (352) 89 (352)
Changes in operating
assets and liabilities:
Accounts receivable
Trade (979) 2,272 381 1,605
Other (776) (554) 4,180 555
Prepaid expenses and other (15) (666) 851 (1,736)
Accounts payable 1,181 (432) 1,306 (2,349)
Accrued liabilities (2,064) (1,636) (5,956) (4,406)
Deferred revenue (909) (980) (2,375) (7,275)
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(5,834) (4,212) (16,819) (15,598)
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INVESTING ACTIVITIES
Short-term marketable
securities, net change 1,292 (6,109) 73,964 86,502
Long-term marketable
securities, net change (4,234) 14,212 (61,942) (82,444)
Additions
to capital assets (1,872) (2,603) (5,287) (5,356)
Long-term investments (50) - (50) (1,833)
Acquisition
of subsidiaries,
net of cash acquired (443) (2,551) (2,175) (9,540)
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(5,307) 2,949 4,510 (12,671)
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FINANCING ACTIVITIES
Purchase of convertible
debentures (19) (1,098) (1,545) (1,098)
Issuance of common
shares for cash 3 296 223 2,530
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(16) (802) (1,322) 1,432
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Decrease in cash and cash
equivalents (11,157) (2,065) (13,631) (26,837)
Cash and cash
equivalents at
beginning of period 32,352 38,166 34,826 62,938
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Cash and cash
equivalents at end
of period 21,195 36,101 21,195 36,101
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