MPSI Liquidates Bank Debt.
TULSA, Okla.--(BUSINESS WIRE)--Nov. 18, 2002
MPSI Systems Inc. (OTCBB:MPSI) is pleased to announce that with a recent final payment of $500,000 to its bank, it has completed a debt liquidation objective initiated two years ago. Over the last 24 months, MPSI has generated sufficient internal cash flow from operations to service and repay debt of approximately $2,309,000. Liquidation of MPSI's bank debt should relieve the pressure on MPSI's liquidity going forward and permit the Company to focus its resources on profitable growth.
MPSI has faced and continues to face challenges as it rides out the economic turmoil that is affecting its retail petroleum client base. MPSI has continually adjusted its cost structure through organizational and process changes at an aggregate expense of approximately $950,000 over the last 24 months. The organizational changes related to closure of certain foreign offices as the Company's business shifted geographically and to severance associated with conversion of fixed staffing costs into variable costs. While the organizational changes are positive in the opinion of management, the up-front effects of such changes are significant components of operational losses reported during the period. "Despite downsizing, MPSI has continued its technical investment at annual rates commensurate with prior years," said MPSI's chairman, Ron Harper. "We believe that we currently have a three-year technology advantage over any other competitor in our target markets.
"Downstream operations of most integrated petroleum companies are suffering from extremely weak margins. The business climate has worked against us for much of 2002," said Harper. "That environment has reduced capital spending and market study orders (a key driver of MPSI revenues). In response, MPSI has developed new technology solutions that will help clients through this period and also provide new revenue sources going into 2003." In addition to continual investment in our suite of pricing products, MPSI's Technology Group has produced four new retail analytic sets. These are:
1. RETAIL EXPLORER PLUS(TM) - MPSI has released an enhanced
version of Retail Explorer(TM) known as Retail Explorer Plus.
Retail Explorer Plus is designed as a seamless upgrade to
Retail Explorer, providing greater analytical and retail
planning power. Available commencing Q3 2002, the offer of
Retail Explorer Plus has independently generated new orders
for MPSI product and services.
2. CAPITAL OPTIMIZATION SOLUTION - A new generation analytical
tool designed to manage a portfolio of retail assets over a
wide geographical area using client proprietary network
planning rules tailored to their specific environment,
marketing strategies, economic constraints, etc. This
technology uses components of RETAIL EXPLORER(TM), combined
with cutting-edge optimization algorithms, permitting our
customers to optimize capital returns on their portfolio of
retail assets. This tool is available today as a retail
analytics consulting service and will be offered as a software
solution in early 2003.
3. OPERATIONAL OPTIMIZATION SOLUTION- A new analytical tool set
designed to take the sales or territory manager to a new level
of knowledge, sophistication and productivity. Our clients can
use this tool with their own set of rules and proprietary
categories to better focus their personnel and marketing
resources at individual category level and network level for
improved profitability. The tool identifies categories
performing below target in order to address remedies and above
target to help spread best practices through the network. The
tool was designed to enlarge the span of control of the
territory manager, thus reducing costs and improving the
revenue and margin of the retail network on a same store,
year-to-year basis, thus lifting the top and bottom lines of
our client. The tool will be offered as a software solution
and will be available early next year.
4. RETAIL EMERGENCE - A forward looking analytical tool that
captures the facilities, strategies and practices of
non-traditional retailers and the dynamic nature of consumers,
enabling MPSI to develop scenarios of how the retail
marketplace will change and new patterns will emerge over
time. This product enables our clients to better understand
and evaluate how robust or brittle a brand, a retail offering,
or a retail network will be in the future. Retail Emergence
Studies are available today as a retail analytics consulting
"Fortunately for MPSI, our geographic diversification has helped offset the weakness in the US and Japan. Over the past three months, MPSI has received more than $4 million in orders from international clients. This coupled with our new product set and the return of two major clients, gives us cause for cautious optimism concerning the outlook for 2003," continued Harper. The returning customers, one of which is a US company, had previously left MPSI to explore `cheaper' technologies. Their return validates MPSI's technology superiority and commitment to quality and customer service.
MPSI is a global provider of spatial decision support systems (featuring proprietary software and databases), retail analytic consulting services, and information services. Its products and services are designed to meet the business planning needs of its convenience retail clients. The Company's common stock trades on the Pink Sheets under the symbol MPSI.
Portions of this document may include "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results include, among others, uncertainties inherent in the development and successful application of products, product demand, service demand, market acceptance, the effect of economic conditions particularly in target markets and within this industry, the impact of competitive products and pricing, commercialization and technological difficulties, and the ability of the Company to implement its business strategy.
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|Date:||Nov 18, 2002|
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