Message #30 From:
Stock News Bot Date: November 13, 2006 05:44:00 AM
PPID News Prescient Applied Intelligence Reports Third Quarter 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, reported today financial results for the third quarter ended
September 30, 2006.
Subscription revenue in the third quarter was $1,456,000, which
represents a 10% increase over the third quarter of 2005, and a 5%
increase over the second quarter of 2006. For the nine months ended
September 30, 2006 subscription revenue was $4,269,000 which was an 8%
increase over the same period prior year.
“The continued increase in subscription
revenue comes from expansion within our install base as well as adoption
of our technology by new clients,” said Jane
Hoffer, president and CEO of Prescient. “This
quarter, we signed one of the nation’s leading
drug store chains as our newest retail client, who will be conducting
scan based trading (SBT) with a number of its direct store delivery
(DSD) vendors, and will also utilize Prescient’s
Visibility and Analytics solution to track and monitor shrink. This is
significant for many reasons. It supports one of Prescient’s
primary goals, which is to expand our scan based trading footprint
beyond the traditional grocery channel. It also represents a wide-scale
adoption of our new Visibility and Analytics solution, which will allow
the drug store chain to use insights gathered from SBT to positively
impact sales across its 6000-plus stores.”
Total operating expenses in the third quarter were $2.3 million,
including $0.1 million of depreciation and amortization. Operating
expenses decreased $454,000 or 17% from the third quarter of 2005 and
decreased $545,000 or 19% from the second quarter of 2006. These expense
decreases over the prior quarter are primarily a result of the
relocation of our data center and our Dallas, TX office, as well as
other continuing cost cutting initiatives.
For the third quarter of 2006, the company reported a net operating loss
of $0.3 million which compares to an operating loss of $0.4 million for
the third quarter of 2005 and $0.5 million for the second quarter of
2006. The net loss applicable to common stockholders reported was $3.0
million, or $0.08 per share loss. The net loss applicable to common
stockholders includes a $1.2 million loss from a settlement with Tak
Investments LLC, a deemed dividend to the Series E Preferred
stockholders of $0.3 million also in connection with the settlement, and
accumulated undeclared dividends to the Series E Preferred stockholders
of $1.2 million.
License revenue in the third quarter was $5,000; maintenance revenue was
$369,000; and services revenue was $156,000. As compared to the third
quarter of 2005, license revenue decreased 91%, maintenance revenue
decreased 15%, and services revenue decreased 71%.
“At the beginning of the third quarter, we
announced a fundamental change in our business model –
we began transitioning from traditional supply chain licensing to
subscription services offerings,” said
Hoffer. “We anticipated a lag in third
quarter license and services revenue because of this fundamental shift,
and continue to institute company-wide cost-cutting measures to help
offset the reduction in this revenue. The shift from one-time license
revenue to longer term subscriptions will provide a more stable revenue
base for the company going forward.”
Total revenue in the third quarter was $1,986,000, which represents a
15% decrease over the third quarter of 2005 and a 17% decrease over the
second quarter of 2006.
For the nine months ended September 30, 2006 subscription revenue was
$4,269,000, license revenue was $442,000, maintenance revenue was
$1,166,000 and services revenue was $900,000. As compared to the same
nine months of 2005, subscription revenue increased 8%, license revenue
increased 4%, maintenance revenue increased 1% and services revenue
decreased 42%.
Cash used in operations was $0.6 million during the nine months ended
September 30, 2006 as compared to $1.8 million used in the prior year
nine month period. Cash and cash equivalents were $327,000 as of
September 30, 2006, down from $716,000 as of December 31, 2005.
About Prescient Applied Intelligence:
Prescient, founded in 1982 (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, Wegmans,
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2006 and December 31, 2005
September 30,
December 31,
2006
2005
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
327,147
$
716,345
Accounts receivable, net of allowance for doubtful accounts of
$77,600 at September 30, 2006 and $168,000 at December 31, 2005
1,709,720
1,957,173
Prepaid and other current assets
134,586
138,009
Total current assets
2,171,453
2,811,527
Furniture, equipment and leasehold improvements, net
171,762
224,419
Intangible assets, net
1,843,750
2,143,750
Goodwill
17,380,456
17,380,456
Other assets
49,342
49,342
Total Assets
$
21,616,763
$
22,609,494
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings under accounts receivable financing arrangement
$
252,919
$
-
Current portion note payable
103,374
-
Accounts payable
230,054
299,514
Accrued expenses
728,509
1,340,864
Deferred revenues
1,097,340
1,083,216
Total current liabilities
2,412,196
2,723,594
Deferred maintenance - long-term portion
30,412
12,672
Long term portion note payable, net of discount of $27,806 at
September 30, 2006
2,419,440
-
2,449,852
12,672
Stockholders' equity
Series E Preferred Stock, $.001 par value; 1,660 shares
authorized; 1,657 shares issued and outstanding at September 30,
2006 and December 31, 2005 (liquidation value $17,726,128 and
$16,567,747 at September 30, 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 September 30, 2006 and
December 31, 2005 (liquidation value $4,798,838 at September 30,
2006 and December 31, 2005)
4,798,838
4,798,838
Common stock, $.001 par value; 400,000,000 shares authorized;
33,414,091 and 43,645,703 shares issued and outstanding at
September 30, 2006 and December 31, 2005, respectively
33,413
43,645
Additional paid-in-capital
103,343,065
103,501,178
Accumulated deficit
(107,982,270)
(105,034,162)
Cumulative translation adjustment
(6,078)
(4,018)
Total stockholders' equity
16,754,715
19,873,228
Total Liabilities and Stockholders' Equity
$
21,616,763
$
22,609,494
Prescient Applied Intelligence Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
For the Three and Nine Months Ended September 30, 2006 and 2005
