Message #12 From:
Stock News Bot Date: August 10, 2005 09:00:00 AM
AMSI News Artemis Reports Second Quarter 2005 Financial Results; Artemis 7-Based Solutions Grow to 70% of the Company's Software Revenue
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Aug. 10, 2005--Artemis International Solutions Corporation (OTCBB:AMSI), a leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the second quarter ended June 30, 2005.
Artemis reported $12.4 million in total revenue for the second quarter ended June 30, 2005, with software license revenue of $3.3 million, at levels comparable to the second quarter of 2004. Software license and support revenue increased to 62.7% of total revenue, compared to 55.5% in the same quarter of 2004.
The Company's strategic product platform, Artemis 7, grew by 63% and represented 70% of total software license revenue, compared to 42% for the second quarter of 2004.
The Company reported a non-GAAP loss of $(0.2) million, or $(0.02) per common share, for the second quarter of 2005, compared to a non-GAAP loss of $(0.6) million, or $(0.06) per common share, in the second quarter of 2004. Non-GAAP loss for the second quarter of 2005 excludes $0.6 million in amortization expenses, while non-GAAP loss for the second quarter of 2004 excludes $1.0 million in amortization expenses and $0.1 million in restructuring charges.
On a US GAAP basis, the Company's net loss for the second quarter of 2005 was $(0.9) million, or $(0.08) per common share. This compares to a net loss of $(1.8) million, or $(0.18) per common share, for the second quarter of 2004.
"Sales generated by our flagship product, Artemis 7, continue to grow strongly," said Patrick Ternier, President and CEO of Artemis. "From a license perspective, we have now reached an inflection point where the growth in Artemis 7-based solutions coupled with our EVMS solution should outpace the decline in other areas, setting the stage for future software growth. That would be combined with the stabilization of our services revenue and some growth in our recurring support revenue," Ternier added. "These results have been achieved, although we have not yet capitalized on the measures we have taken over the last months to improve our sales performance in the US, including hiring an experienced executive to lead the region. Those steps should help rebalance our geographical revenue mix."
Mr. Ternier further stated, "Whilst we have taken significant steps in restructuring the company, we are continuing to review our worldwide operations for additional efficiencies to further improve our bottom line and strengthen our balance sheet, without compromising our commitment to customer satisfaction."
For the six months ended June 30, 2005, Artemis reported $24.3 million in revenue, a non-GAAP loss of $(0.9) million, and a US GAAP net loss of $(2.1) million or $(0.20) per common share. This compares to $27.0 million in revenue, a non-GAAP loss of $(2.2) million, and a US GAAP net loss of $(5.7) million or $(0.57) per common share for the same period in 2004. Non-GAAP loss for the six months ended June 30, 2005 excludes amortization expense of $1.3 million. Non-GAAP loss for the six months ended June 30, 2004 excludes amortization expense of $2.0 million and restructuring charges of $1.4 million.
During the quarter, Artemis continued to add significant new software sales for its solutions in the Americas, Europe, Asia Pacific, and Japan, including:
-- New Product Development: LG Chem, Turbomeca, JATCO, Tanabe Seiyaku, Maruho, Cummins, Gambro
-- IT Management and Governance: France Telecom Transpac, Calyon, HSH Nordbank, SOGEI, SSB, Telecom Italia, Telefonica Moviles Spain, Hitachi Construction Machinery
-- Public Investment Management: Parliamentary & Health Service Ombudsman
The Company also announced that, effective immediately, Steve Yager has resigned as the Chairman of the Company's Board of Directors and Board member Pekka Pere has accepted the position. Mr. Yager stated: "I have encountered intensifying time pressures in my role as Company chairman, finding it increasingly difficult to balance my Chairman's role with my other professional commitments. Mr. Pere is well positioned to help the Company move to its next level of performance." The Company thanks Mr. Yager for his years of service on the Board, and wishes him continued success in his professional endeavors.
Artemis has scheduled a conference call to discuss the Q2 2005 results today, Wednesday, August 10, 2005 at 4:30 PM (EDT). Dial (877) 246-9127 or (206) 902-3257. For those unable to participate, there will be a telephonic replay available from August 10, 2005 at 5:30 PM (EDT), through September 10, 2005 11:59 PM (EDT). Dial: (800) 207-7077 or (913) 383-5767. Enter PIN: 4140.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
Consolidated Financial Highlights
(Unaudited)
Three Months Ended June 30,
----------------------------------
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
------- -------- -------- --------
(in thousands, except per share
data)
Statement of Operations Data:
Revenue:
Software $3,306 26.7% $3,329 24.8%
Support 4,446 35.9% 4,118 30.7%
Services 4,617 37.4% 5,984 44.5%
------- --------
12,369 100.00% 13,431 100.0%
Cost of revenue:
Software 88 0.7% 2 0.0%
Support 1,290 10.4% 1,383 10.3%
Services 3,755 30.4% 4,812 35.8%
------- --------
5,133 41.5% 6,197 46.1%
------- --------
Gross margin 7,236 58.5% 7,234 53.9%
Operating expenses:
Selling and marketing 3,961 32.1% 3,754 28.0%
Research and development 1,968 15.8% 2,041 15.2%
General and administrative 1,851 15.0% 2,000 14.9%
Amortization expense 639 5.2% 1,029 7.7%
Restructuring charge - 0.0% 148 1.0%
------- --------
8,419 68.1% 8,972 66.8%
------- --------
Operating loss (1,183) -9.6% (1,738) -12.9%
Net interest expense 257 2.1% 117 0.9%
Other non-operating expense
(income), net (207) -1.8% (123) -0.9%
Foreign exchange (gain) loss (489) -4.0% (13) -0.1%
------- --------
(439) -3.6% (19) -0.1%
------- --------
Loss before income taxes (744) -6.0% (1,719) -12.8%
Income tax expense (benefit) 143 1.2% 81 0.6%
------- --------
Net loss $(887) -7.2% $(1,800) -13.4%
======= ========
Basic and diluted loss per
common share $(0.08) $(0.18)
======= ========
Weighted average common
shares used in computing
basic and diluted loss per
common share 10,712 9,965
Reconciliation of net loss to non-
GAAP income (loss):
-----------------------------------
Net loss $(887) $(1,800)
Amortization 639 1,029
Restructuring charges - 148
------- --------
Non-GAAP income (loss) (1) $(248) $(623)
======= ========
Basic non-GAAP income (loss)
per common share $(0.02) $(0.06)
======= ========
Weighted average common
shares used in computing
basic non-GAAP income
(loss) per common share 10,712 9,965
Six Months Ended June 30,
-----------------------------------
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
-------- -------- -------- --------
(in thousands, except per share
data)
Statement of Operations Data:
Revenue:
Software $6,121 25.1% $6,125 22.6%
Support 8,807 36.2% 8,517 31.5%
Services 9,413 38.7% 12,405 45.9%
-------- --------
24,341 100.0% 27,047 100.0%
Cost of revenue:
Software 161 0.7% 93 0.3%
Support 2,548 10.5% 2,861 10.6%
Services 7,752 31.8% 9,548 35.3%
-------- --------
10,461 43.0% 12,502 46.2%
-------- --------
Gross margin 13,880 57.0% 14,545 53.8%
Operating expenses:
Selling and marketing 7,820 32.2% 7,598 28.1%
Research and development 3,904 16.0% 4,108 15.2%
General and administrative 3,721 15.3% 4,677 17.3%
Amortization expense 1,277 5.2% 2,058 7.6%
Restructuring charge - 0.0% 1,395 5.2%
-------- --------
16,722 68.7% 19,836 73.3%
-------- --------
Operating loss (2,842) -11.7% (5,291) -19.6%
Net interest expense 314 1.3% 208 0.8%
Other non-operating expense
(income), net (976) -4.1% (279) -1.0%
Foreign exchange (gain) loss (394) -1.6% 91 0.3%
-------- --------
(1,056) -4.3% 20 0.1%
-------- --------
Loss before income taxes (1,786) -7.3% (5,311) -19.6%
Income tax expense (benefit) 354 1.5% 381 1.4%
-------- --------
Net loss $(2,140) -8.8% $(5,692) -21.0%
======== ========
Basic and diluted loss per
common share $(0.20) $(0.57)
======== ========
Weighted average common
shares used in computing
basic and diluted loss per
common share 10,586 9,965
Reconciliation of net loss to non-
GAAP income (loss):
----------------------------------
Net loss $(2,140) $(5,692)
Amortization 1,277 2,058
Restructuring charges - 1,395
-------- --------
Non-GAAP income (loss) (1) $(863) $(2,239)
======== ========
Basic non-GAAP income
(loss) per common share $(0.08) $(0.22)
======== ========
Weighted average common
shares used in computing
basic non-GAAP income
(loss) per common share 10,586 9,965
1) Non-GAAP income (loss) represents net earnings (loss) before
amortization, impairment and restructuring charges. Non-GAAP income
(loss) is not indicative of cash provided by or used in operating
activities and may differ from comparable information provided by
other companies. Non-GAAP income (loss) should not be considered in
isolation, as an alternative to, or more meaningful than measures of
financial performance determined in accordance with accounting
principles generally accepted in the United States. Non-GAAP income
(loss) is used elsewhere in the industry and is presented because
Artemis believes it provides relevant and useful information to
investors. Artemis utilizes non-GAAP income (loss) to provide
additional information with respect to its ability to meet future
capital expenditures and working capital requirements, to incur
indebtedness if necessary, and to fund continued growth. Although
restructuring charges represent a cash requirement for the Company,
management believes that "non-GAAP income (loss)", which excludes
restructuring charges, is more meaningful to investors than EBITDA
(Earnings Before Interest, Taxes, Depreciation and Amortization), a
financial metric reported by the Company in previous earnings
releases. Investors could use such a measure to analyze and compare
companies on the basis of current period operating performance.
About Artemis International Solutions Corporation
Artemis International Solutions Corporation (OTCBB:AMSI) is a global provider of Investment Planning and Control(TM) solutions that help organizations execute strategy through effective portfolio and project management. Artemis has refined 30 years experience into a suite of industry optimized solutions and packaged consulting services that combine to establish an overall planning and control framework encompassing IT management, new product development, public investment management, program management, fleet asset optimization, and detailed project management. With a global network covering 44 countries, Artemis has helped thousands of companies to improve their business performance through better alignment of strategy, investment planning and project execution.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company's growth and profitability, growth strategy, liquidity and access to public markets, operating expense reduction and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements or for prospective events that may have a retroactive effect.
