AMSI Artemis Reports First Quarter 2005 Financial Results; Artemis 7 Sales Increase by 120%, Positive Cash Flow from Operations and Improved Financial Performance
Artemis Reports First Quarter 2005 Financial Results; Artemis 7 Sales Increase by 120%, Positive Cash Flow from Operations and Improved Financial Performance
NEWPORT BEACH, Calif.
Artemis International Solutions Corporation
Robert Stefanovich, 949-660-6555
robert.stefanovich@us.aisc.com
or
Deborah Pettigrew, 949-660-6554
deborah.pettigrew@us.aisc.com
Artemis International Solutions Corporation (OTCBB:AMSI), a leading provider of Investment Planning and Control(TM) solutions, today reported its financial results for the first quarter ended March 31, 2005.
Artemis reported $12.0 million in total revenue for the first quarter ended March 31, 2005, with software license revenue of $2.8 million, at levels comparable to the first quarter of 2004. Software license and support revenue increased to 59.9% of total revenue, compared to 52.8% in the same quarter of 2004.
The Company's flagship product, Artemis 7, grew by 120% and represented 60.3% of total software license revenue, compared to 27.7% for the first quarter of 2004.
The Company reported a non-GAAP loss of $(0.6) million, or $(0.06) per common share, for the first quarter of 2005, compared to a non-GAAP loss of $(1.6) million, or $(0.16) per common share, in the first quarter of 2004. Non-GAAP loss for the first quarter of 2005 excludes $0.6 million in amortization expenses, while non-GAAP loss for the first quarter of 2004 excluded $1.0 million in amortization expenses and $1.2 million in restructuring charges.
On a US GAAP basis, the Company's net loss for the first quarter of 2005 was $(1.3) million, or $(0.12) per common share. This compares to a net loss of $(3.9) million, or $(0.39) per common share, for the first quarter of 2004.
"Sales generated by our strategic platform, Artemis 7, continue to grow strongly, our margins are improving and we are generating positive cash flow from operations," said Patrick Ternier, President and CEO of Artemis. "We are pleased that the strategy we implemented in 2004 to restructure the company and focus our global sales teams on well-defined solutions is beginning to bear fruit and believe it will continue to lead to growth in Artemis 7 as well as improved profitability and cash flow. As indicated in our Q4 earnings call, we remain optimistic about the outlook for the first half of the year," Ternier added. "As a leaner and more focused company, Artemis is well positioned to capture its fair share of the growing market for project portfolio management solutions."
During the quarter, Artemis continued to add significant new customers for its solutions in the Americas, Europe, Asia Pacific, and Japan, including:
-- New Product Development: Cummins, LG Micron, Toyota Techno Service, Denso, Shionogi Pharma, Siemens, Saab
-- IT Management and Governance: Pfizer, AIU, Singapore Immigration Custom authority, Atos Origin Integration, La Poste DIAQ, Ministere des Transports du Quebec, INAIL, ISBAN, Sogei (Agenzia della Entrate)
-- Public Investment Management: Metropolitan Police Property Services
-- Strategic Asset Optimization: Tuas Power Pte Ltd
-- Aerospace and Defense Program Management: BAE Systems - Avionics, BAE Systems - Submarines
Artemis has scheduled a conference call to discuss the Q1 2005 results today, Wednesday, May 11, 2005 at 4:30 PM (EST). Dial (877) 246-9127 or (206) 902-3257. For those unable to participate, there will be a telephonic replay available from May 11, 2005 at 5:30 PM (EST), through June 10, 2005 11:59 PM (EST). Dial: (800) 207-7077 or (913) 383-5767. Enter PIN: 4140.
ARTEMIS INTERNATIONAL SOLUTIONS CORPORATION
Consolidated Financial Highlights
(Unaudited)
Three Months Ended March 31,
Percent Percent
of Total of Total
2005 Revenues 2004 Revenues
(in thousands, except per
share data)
Statement of Operations Data:
Revenue:
Software $2,815 23.5% $2,796 20.5%
Support 4,361 36.4% 4,399 32.3%
Services 4,796 40.1% 6,421 47.2%
11,972 100.0% 13,616 100.0%
Cost of revenue:
Software 73 0.6% 91 0.7%
Support 1,258 10.5% 1,478 10.8%
Services 3,997 33.4% 4,736 34.8%
5,328 44.5% 6,305 46.3%
Gross margin 6,644 55.5% 7,311 53.7%
Operating expenses:
Selling and marketing 3,859 32.3% 3,844 28.2%
Research and development 1,936 16.2% 2,067 15.2%
General and administrative 1,870 15.6% 2,677 19.7%
Amortization expense 638 5.3% 1,029 7.6%
Restructuring charge - 0.0% 1,247 9.2%
8,303 69.4% 10,864 79.8%
Operating loss (1,659) -13.9% (3,553) -26.1%
Net interest expense 57 0.5% 91 0.7%
Other non-operating expense
(income), net (769) -6.5% (156) -1.2%
Foreign exchange (gain) loss 95 0.8% 104 0.8%
(617) -5.2% 39 0.3%
Loss before income taxes (1,042) -8.7% (3,592) -26.4%
Income tax expense (benefit) 211 1.8% 300 2.2%
Net Loss $(1,253) -10.5% $(3,892) -28.6%
Basic and diluted loss per
common share $(0.12) $(0.39)
Weighted average common
shares used in
computing basic and diluted
loss per common share 10,519 9,965
Reconciliation of net loss to
non-GAAP income (loss):
Net loss $(1,253) $(3,892)
Amortization 638 1,029
Restructuring charges - 1,247
Non-GAAP income (loss) (1) $(615) $(1,616)
Basic non-GAAP income (loss)
per common share $(0.06) $(0.16)
Weighted average common
shares used in computing
basic non-GAAP income (loss)
per common share 10,519 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 elsewhare 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 meaningfull 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.
For more information visit www.aisc.com
Forward Looking Statements
"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.
