Descartes Systems Group Announces Preliminary Results for Q2 2000.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)-- Aug. 6, 1999 Positive E-business Momentum Continues While Enterprise Applications Market Slows The Descartes Systems Group Inc. (Nasdaq:DSGX DSGX Dynamic Sound Generator Xtra (Sony) DSGX Dynamic Sound Generator Extra ), (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) ) today released preliminary results for the second quarter ended July 31, 1999, indicating that the company anticipates lower than expected revenues and earnings. The company indicated that its performance was impacted by the decline in the enterprise applications market and the early stage of the emerging e-business market it is targeting and investing in aggressively. For the quarter ended July 31, 1999, license and services revenues are expected to be flat to the first quarter of this year while hardware revenues are expected to decline significantly. The company expects to report revenues of between $9.5 to $10 million for the quarter and a net loss of $0.15 per share to $0.18 per share. Gross margins are expected to increase this quarter despite the decline in revenues. "Descartes is focused on the e-business market and this quarter we continued to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our products and positioning against this market opportunity," 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. for Descartes. "Our e-business revenues as a percentage of total revenues increased substantially and we continued to win a number of e-business projects with tremendous roll out potential, such as ShopLink in the internet-based Home Grocery delivery market, a deal which is also being announced today." Schwartz continued, "At the same time, we have experienced a significant decline in revenues from the enterprise applications market which had been an important driver of our top line revenue growth until this year. We believe this revenue decline indicates a decisive market shift, and our reaction has been to aggressively focus on the e-business market opportunity. We have a number of customers up and running on Descartes' e-business solutions and have fully committed (Law) committed to prison for trial, in distinction from being detained for examination. See also: Fully our sales force to address the new e-business market. Further, we expect you will see Descartes aggressively increase its visibility in the e-business market in the next short while." Schwartz added, "In addition, we also noted the dynamics of the e-business sales cycles are different than in the enterprise applications market. E-business solutions represent a new way for our customers to do business and customers are rightly conducting a rigorous analysis before committing their business to these changes. Over the past couple of quarters, we believe we have made the needed investment in these new sales cycles and succeeded in winning new business. We look forward to emerging a leader in the e-business market." Financially, the Company remains sound, with approximately $18.5 million in net cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . These statements regarding estimated results are preliminary and are based on partial information and management assumptions. The Company anticipates announcing final financial results for the quarter ended July 31, 1999 after the close of markets on August 31, 1999. About Descartes Descartes Systems, a leading provider of e-business solutions, offers a product portfolio that can be implemented to manage every phase of the order-to-delivery cycle, and can be integrated with a wide range of business enterprise systems. Descartes solutions are used today by more than 850 companies in 35 vertical industries and 50 countries worldwide. For more information about Descartes, visit http://www.descartes.com. All funds specified in US dollars. This release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc market and customer dynamics, future operating strategy, revenue and expense growth, expectations as to timing and closing of customer orders, 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; 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; 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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