Message #33 From:
Stock News Bot Date: March 28, 2007 05:45:00 AM
PPID News Prescient Applied Intelligence Reports Fourth Quarter and Full Year 2006 Results
WEST CHESTER, Pa.--(BUSINESS WIRE)--Prescient Applied Intelligence, Inc. (OTCBB:PPID), a leading provider of supply chain and advanced commerce solutions for retailers and suppliers, today reported financial results for the fourth quarter and full year ended December 31, 2006.
“In 2006, we completed the integration efforts from the viaLink merger, which resulted in significant reductions in operating expenses,” said Jane Hoffer, president and CEO, Prescient. “We also de-emphasized certain non-performing offerings to concentrate on initiatives that will grow the bottom line. This has contributed to Prescient’s revenue growth across all categories during the fourth quarter, as well as our fourth quarter profitability.”
“The initiatives that we introduced in 2006 – Store Level Replenishment (SLR) and Visibility & Analytics (V&A) – fulfill Prescient’s vision of providing solutions that couple supply chain planning with retail programs to drive results at the store shelf,” continued Hoffer.
According to Bill Bishop, chairman of Willard Bishop, improving efficiencies in the direct store delivery (DSD) process is one of the ways in which retailers and suppliers can drive more profitable sales through better performance at the store shelf. Willard Bishop is widely recognized for its expertise in strategies that improve the retail customer experience. “Prescient helps retailers and suppliers focus on shelf conditions and leverage the insights from scan based trading to positively impact sales in leading DSD categories,” said Bishop.
HIGHLIGHTS – Fourth Quarter 2006
Revenues
Total revenues were $2.5 million for the fourth quarter of 2006, which represented an increase of 24% compared to the third quarter of 2006 and an 8% increase over the fourth quarter of 2005.
Subscription revenues for the 2006 fourth quarter were $1.5 million, which is an increase of 5% over the third quarter of 2006 and a 14% increase compared to the same period in 2005.
License revenues for the fourth quarter of 2006 were $0.2 million, representing an increase of more than 100% compared to the third quarter of 2006 and a 56% increase over the fourth quarter of 2005.
Operating Expenses
Total operating expenses in the fourth quarter were $2.3 million, including $0.2 million of depreciation and amortization. Operating expenses decreased $0.9 million or 28% compared to the same period in 2005 and remained flat, with a less than 1% change, from the third quarter of 2006.
“Successful cost-cutting measures such as the relocation of our data center to a more economical facility, the downsizing of our Dallas office space, and significant reductions in personnel-related costs contributed to fourth quarter profitability and puts us in a stronger position for 2007, said Hoffer.”
“We continue to focus on opportunities that are strategic to our business. In 2006, Prescient expanded its retail business through the addition of two retail hubs, including one that represents a new channel for our business, chain drug stores,” continued Hoffer.
Income
Operating income for the fourth quarter of 2006 was $0.2 million which was an increase of 159% compared to the third quarter loss and a 119% increase over the same period in 2005.
The net loss applicable to common stockholders for the 2006 fourth quarter was $0.1 million (Q306: 3.0 million; Q405: $1.1 million), or $0.0 per share (Q306: $(0.07) per share; Q405: $(0.03) per share) representing a 96% improvement compared to the third quarter of 2006 and a 90% improvement from the fourth quarter of 2005.
HIGHLIGHTS – Year ending December 31, 2006
Revenues
Total revenues were $9.2 million in 2006, which represented a 2% decrease from 2005.
Subscription revenues for 2006 were $5.8 million, which is an increase of 9% from the $5.3 million reported in 2005.
License revenues in 2006 were $0.6 million; maintenance revenues were $1.6 million and services revenues were $1.2 million. As compared to 2005, these represented increases of 16%, 3% and a decrease of 40%, respectively.
Operating Expenses
Total Operating expenses in 2006 were $10.4 million as compared to $11.6 million in 2005, an 11% decrease year over year.
Income
The Company reported a net operating loss of $1.1 million for the year ended December 31, 2006 which compares to an operating loss of $2.2 million for the year ended December 31, 2005.
The net loss applicable to common stockholders reported for 2006 was $4.3 million (2005: $2.4 million), or $(0.11) per share (2005: $(0.07) per share). The net loss applicable to common stockholders for 2006 includes a $1.2 million loss from a settlement with Tak Investments, LLC, a deemed dividend to the Series E Preferred stockholders of $0.4 million also in connection with the settlement, and accumulated undeclared dividends to the Series E Preferred stockholders of $1.3 million.
Cash & Cash Equivalents
Cash provided byoperationswas $0.1 million during the year ended December 31, 2006 as compared to ($2.3) million used in the prior year. Cash and cash equivalents were $1,016,000 as of December 31, 2006, up from $716,000 at December 31, 2005.
About Prescient Applied Intelligence:
Prescient, founded in 1985 (OTCBB:PPID), is a leading provider of supply chain and advanced commerce solutions for retailers and suppliers. Prescient’s solutions capture information at the point of sale, provide greater visibility into real-time demand and turn data into actionable information across the entire supply chain. As a result, the company’s products and services enable trading partners to compete effectively, increase profitability and excel in today’s retail business climate. Household brand names like Ahold, AutoZone, Coors, Domino’s Pizza, Rite Aid, Sara Lee, Schwan’s and Wyeth rely on Prescient. For more information, go to www.prescient.com.
Forward-Looking Statement:
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,”“believe,”“estimate,”“expect,”“forecast,”“intend,”“may,”“plan,”“project,”“predict,”“if”, “should” and “will” and similar expressions as they relate to Prescient Applied Intelligence, Inc. are intended to identify such forward-looking statements. Prescient may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see “Risk Factors” in Prescient’s report on Form 10-KSB filed with the Securities and Exchange Commission and its other filings under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
(Tables Follow)
PRESCIENT APPLIED INTELLIGENCE, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
2006
2005
ASSETS
Current assets:
Cash and cash equivalents
$ 1,016,568
$ 716,345
Accounts receivable - net of allowance for doubtful accounts of $135,000 in 2006 and $168,000 in 2005
1,437,218
1,957,173
Prepaid and other current assets
108,624
138,009
Total current assets
2,562,410
2,811,527
Furniture, equipment and leasehold improvements, net
183,311
224,419
Intangible assets, net
1,700,000
2,143,750
Goodwill
17,257,483
17,380,456
Other assets
50,342
49,342
Total Assets
$ 21,753,546
$ 22,609,494
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings under accounts receivable financing arrangement
Long term portion note payable, net of discount of $25,422 at December 31, 2006
2,394,128
-
2,424,540
12,672
Stockholders' equity:
Series E Preferred Stock, $.001 par value; 1,660 shares authorized; 1,657 shares issued and outstanding at December 31, 2006 and 2005 (liquidation value $17,893,167 and $16,567,747 at December 31, 2006 and December 31, 2005, respectively)
16,567,747
16,567,747
Series G Preferred Stock, $.001 par value; 480 shares authorized; 479.9 shares issued and outstanding at December 31, 2006 and 2005 (liquidation value $4,798,838 at December 31, 2006 and 2005)
4,798,838
4,798,838
Common stock, $.001 par value; 400,000,000 shares authorized; 33,326,670 and 43,558,282 shares issued and outstanding at December 31, 2006 and December 31, 2005, respectively
33,326
43,558
Additional paid-in-capital
103,348,018
103,501,265
Accumulated deficit
(107,886,943)
(105,034,162)
Cumulative translation adjustment
(7,732)
(4,018)
Total stockholders' equity
16,853,254
19,873,228
Total liabilities and stockholders' equity
$ 21,753,546
$ 22,609,494
Prescient Applied Intelligence, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended
For the year ended
December 31,
December 31,
2006
2005
2006
2005
Revenue:
Subscription services
$ 1,523,339
$ 1,334,887
$ 5,792,739
$ 5,306,092
Licenses
206,857
132,500
649,081
558,621
Maintenance
454,709
419,581
1,621,330
1,572,241
Professional services
281,215
391,709
1,181,075
1,953,385
Total revenue
2,466,120
2,278,677
9,244,225
9,390,339
Operating expenses:
Customer operations and support
710,542
1,304,228
3,305,164
4,571,792
Development
331,052
303,116
1,354,044
1,393,375
Selling and marketing
399,569
570,664
2,124,975
2,171,666
General and administrative
695,693
860,877
3,087,015
2,938,728
Depreciation and amortization
153,189
153,997
506,366
517,549
Total operating expenses
2,290,045
3,192,882
10,377,564
11,593,110
Income/(Loss) from operations
176,075
(914,205)
(1,133,339)
(2,202,771)
Other income (expense):
Interest income (expense),net
(80,748)
(870)
(121,069)
4,123
Accrued damages to stockholders
-
(135,000)
(45,000)
(135,000)
Loss on Tak Settlement
-
-
(1,193,896)
-
Total other income (expense)
(80,748)
(135,870)
(1,359,965)
(130,877)
Net Income/(Loss)
95,327
(1,050,075)
(2,493,304)
(2,333,648)
Deemed Dividend on Series E Preferred Stock
-
-
(359,477)
-
Undeclared Dividend on Series E preferred Stock
(167,039)
-
(1,325,420)
-
Payment of damages to certain preferred shareholders
(40,500)
(47,250)
(76,250)
(87,750)
Net loss applicable to common stockholders
$ (112,212)
$ (1,097,325)
$(4,252,451)
$(2,421,398)
Net loss applicable per common share - basic and diluted
$ (0.00)
$ (0.03)
$ (0.11)
$ (0.07)
Weighted average common shares outstanding - basic and diluted
