Descartes Systems Group Announces Record Fourth Quarter And Year-End Descartes Systems Group Announces Record Fourth Quarter And Year-End Results.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 26, 1998--he Descartes Systems(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) .) --Fourth quarter revenue increased 450 percent-- --Fiscal 1998 revenue increased 238 percent-- The Descartes Systems Group Inc. (TSE:DSG), a leading supplier of supply chain execution software for the consumer, process and transportation industries, today announced record revenue for the fourth quarter and year ended January 31, 1998. All dollar amounts are expressed in Canadian 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). ), except where indicated. Revenue for the fourth quarter ended January 31, 1998 increased 450 percent to $13.8 million, compared to $2.5 million in the same period a year ago. Operating results for the fourth quarter, reflected in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the year ended January 31, 1998, revenue increased 238 percent to $29.8 million, from $8.8 million for the prior fiscal year. Software license revenue for fiscal 1998 increased 346 percent to $12.5 million from $2.8 million and increased as a percentage of total revenue to 42 percent in fiscal 1998 from 31.4 percent for the prior year. Operating results for the year ended January 31, 1998, also reflected in EBITDA, and excluding a one-time write off for in-process research and development, increased by $2.4 million or $0.46 per share to $15,518 or $0.00 per share, as compared to a loss of $2.4 million or $0.46 per share, in the previous fiscal year. Peter J. Schwartz, Descartes' 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. commented, "Fiscal 1998 was a threshold year for The Descartes Systems Group. We executed well against our strategic objectives from both a financial and product perspective, and made major progress in executing on our vision to deliver an integrated software Separate software components or applications that have been combined into one package. See integrated software package. suite to Global Fortune 1000 companies in the consumer, process and transportation industries. In terms of our financial performance, we more than tripled our revenue, earned money on an EBITDA basis - net of in-process R&D write offs, and raised more than $100 million in three successful financings. We also finished the year with a strong balance sheet and over $50 million in 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 ." "Specifically, our product accomplishments have been significant," Schwartz noted. "We began commercializing the object-oriented, applet-based version of our Energy supply chain suite, which comprises one of the industry's broadest supply chain execution solutions. We now have a complete suite for several of our core vertical markets. By providing a scalable, component architecture, we are able to adapt our solution to reflect the diverse execution requirements of industries we support." Mr. Schwartz continued, "We are now well-positioned to integrate with, and extend, our clients' enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. solutions. Our success in broadening the Energy suite is reflected in an increasing number of six and seven figure license transactions, including Weston Bakeries Ltd., Stroehmann's Bakeries, Inc., The Earthgrains Company, Buffalo Rock Buffalo Rock is an independent Pepsi bottler based in Birmingham, Alabama and founded in 1901. In addition to bottling Pepsi products, the company produces Grapico, a grape soda, and a ginger ale under its own brand name. , the Brazilian Post Office (Correios) and Emery Worldwide Emery Worldwide was a cargo airline, once was one of the leading carriers in the cargo airline world. Emery started in 1946 and was the first freight forwarder to receive a carrier certificate from the United States Government. ." Acquisition Highlights Descartes completed two key acquisitions in fiscal 1998. The acquisition of Michael Mead Michael Mead is a professional ballroom dance champion and choreographer. Biography Michael Mead, born in Croydon, England, spent his early years traveling with his family and attending schools overseas. & Associates brought the company complementary technology in the area of mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings for direct-store-delivery environments, while the acquisition of Roadshow International broadened the company's product suite footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. to include routing and scheduling. The Roadshow acquisition also helped to complete Descartes' supply chain execution suite for the Company's core vertical markets. Descartes has been successful in leveraging each acquired company's customer base, selling the Energy suite or its components to such customers as Weston Bakeries Ltd., Stroehmann's Bakeries, Inc., The Earthgrains Company, and Buffalo Rock Beverages. Other Financial Highlights Descartes completed two major acquisitions during fiscal 1998, which, after one-time write offs related to purchased in-process research and development of $47 million, generated approximately $18 million of 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. left to be amortized over a five-year period from the date of acquisition. The aggregate quarterly amortization of intangible assets from these acquisitions will be $1,013,818 for the next sixteen quarters and $713,361 for the remaining three quarters. Accordingly, after interest, taxes, depreciation, amortization of intangible assets and a $47 million one-time in-process R&D write off, Descartes reported a fiscal 1998 loss of $50.3 million or $5.04 per share, compared to a loss of $2.5 million or $0.49 per share in fiscal 1997. Treatment of these acquisitions is different under Canadian GAAP, resulting in approximately $51.6 million of intangible assets left to be amortized over a two-year period from the date of acquisition. The aggregate quarterly amortization of intangible assets from these acquisitions under Canadian GAAP will be $8.4 million for the next four quarters and $6.0 million for the remaining three quarters. Accordingly, after interest, taxes, depreciation, amortization of intangible assets and foreign exchange loss on consolidation, Descartes reported a loss of $17 million or $1.70 per share in fiscal 1998, compared to a loss of $1.8 million or $.36 per share in fiscal 1997. Gross margins reached 84 percent in the fourth quarter and 78 percent for fiscal 1998, up 16 percent from last year's gross margin of 62 percent. Increasing gross margins reflect a decrease in hardware sales as a total percentage of revenue, in favor of upon the side of; favorable to; for the advantage of. See also: favor an increase in higher margin software license revenues. Sales outside of Canada represented 93 percent of revenue for fiscal 1998, while North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Sales represented 86 percent of revenue. In the fourth quarter, sales outside of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. represented 25 percent of revenue. At the end of the fourth quarter, receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed day sales outstanding were approximately 72 days. About Descartes The Descartes Systems Group Inc. (www.descartes.com) is a leading provider of supply chain execution software. With more than 800 customers worldwide in more than 45 countries, Descartes' Energy solutions are particularly well-suited to improving efficiencies in the consumer, process and transportation industries. These businesses often manage complex order-to-delivery processes with short time-to-plan horizons, and therefore must respond rapidly to changes in demand. Within the rapidly emerging supply chain execution marketplace, customers increasingly require integrated and comprehensive applications suites from a single vendor. Descartes addresses this market trend by providing a functionally rich suite of applications based on a three-tier, object-oriented foundation that supports heterogeneous Not the same. Contrast with homogeneous. heterogeneous - Composed of unrelated parts, different in kind. Often used in the context of distributed systems that may be running different operating systems or network protocols (a heterogeneous network). platforms and industry standards. Descartes' Energy suite allows world-class integration of processes throughout the supply chain while exploiting the robust benefits of mobile computing solutions. This release may contain statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future operating strategy, revenue and margin growth, product integration plans, and other matters which 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 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; the lack of a prior trading market 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 the prospectus dated January 8, 1998 and other documents filed with 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. . All product names used are trademarks or registered trademarks of their respective owners. -0-
THE DESCARTES SYSTEMS GROUP INC.
Consolidated Balance Sheets US GAAP
Year End January 31, 1998 and 1997
---------------------------------------------------------------
Fiscal Fiscal
1998 1997
---------------------------------------------------------------
ASSETS
CURRENT
Cash and short-term investments $ 37,876,221 $ 3,797,675
Marketable securities 13,870,912
Accounts receivable 13,522,796 2,942,338
Investment tax credits receivable 358,914 358,914
Prepaid expenses & Inventory 4,472,402 100,220
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$ 70,101,244 $ 7,199,147
CAPITAL ASSETS (net of amortization) $ 3,442,195 $ 816,252
GOODWILL (net of amortization) $ 17,955,174 $ 468,001
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$ 91,498,614 $ 8,483,400
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES
CURRENT
Bank indebtedness $ 373,450 $ 995,031
Accounts payables 3,861,202 1,471,534
Accrued liabilities 7,971,972 1,951,140
Income taxes payable 59,218 59,218
Deferred revenue 9,615,232 710,586
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$ 21,881,074 $ 5,187,509
SHAREHOLDERS EQUITY
Share Capital $ 122,489,724 $ 5,526,056
Cumulative translation adjustments (355,305)
Retained Earnings (52,516,879) (2,230,165)
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$ 69,617,540 $ 3,295,891
$ 91,498,614 $ 8,483,400
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THE DESCARTES SYSTEMS GROUP INC.
Consolidated Statement of Operations
Quarters Ended Jan 31, 1998 and 1997 US GAAP
---------------------------------------------------------------
Quarter Ended Quarter Ended Year Ended
Jan 31 Jan 31 January 31
1998 1997 1998 1997
---------------------------------------------
Revenues
Hardware 2,118,491 1,162,627 7,747,970 3,939,233
Software 7,546,548 669,214 12,516,267 2,766,937
Services 4,110,282 696,347 9,511,636 2,097,395
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Total Revenues $13,775,320 $ 2,528,188 $29,775,872 $ 8,803,565
------------------------------------------------
Cost of revenue 2,259,831 996,001 6,504,114 3,345,226
------------------------------------------------
Gross Profit 11,515,489 1,532,187 23,271,758 5,458,339
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Expenses
Research and
development 2,059,169 614,749 5,420,060 2,049,405
Sales and
marketing 4,138,602 994,496 7,259,831 2,309,115
Operations 3,961,568 600,417 8,439,209 1,826,715
General and
administration 877,161 1,155,509 2,137,139 1,623,605
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Total Expenses 11,036,500 3,365,171 23,256,239 7,808,840
------------------------------------------------
EARNINGS (LOSS) BEFORE
ITEMS BELOW $ 478,989 $(1,832,984) $ 15,519 $(2,350,501)
Purchased in-process
research and
development 33,747,234 - 46,982,381 -
Amortization
of goodwill 1,013,819 7,313 2,383,193 29,250
Depreciation 285,144 61,090 524,088 165,885
Interest Expense 150,155 10,361 183,401 35,519
Interest Income (79,837) (35,637) (176,831) (47,645)
Provision for Income Taxes
Current 406,000 (24,200) 406,000 (24,200)
------------------------------------------------
NET (LOSS) EARNINGS
FOR THE
PERIOD $(35,043,526) $(1,851,911) $(50,286,714) $(2,509,310)
----------------------------------------------------
----------------------------------------------------
(Loss) Earnings
per share
- basic $ (1.78) $ (0.28) $ (5.04) $ (0.49)
---------------------------------------------------------------
Weighted Shares
Outstanding 19,708,594 6,530,000 9,968,784 5,093,288
CONTACT: George Cohen George Reginald Cohen MBE (born 22 October 1939, Kensington, London) was the right back for England in the side which won the 1966 World Cup. He is the uncle of Rugby Union World Cup winner, Ben Cohen. Communications George Cohen, 617/325-0011 george.cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. @mcione.com or The Descartes Systems Group Inc. Paul Laufert, 519/746-8110 plaufert@descartes.com or The Barnes Organization Karen Goulet, 416/367-5000 kgoulet@barnesir.com |
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