Growth for Leading Global Supply Chain Solutions Provider Driven by Record Number of Deals Covering All Product Lines
Waukesha, WI - RedPrairie Corporation, a leader in global supply chain technology solutions, today announced financial results for 2003 that included record levels of license revenue and profitability. License revenue was $14.8 million, up 44% over 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $16.3 million, up 20% over the prior year, and 22.4% of sales.
Comments John Jazwiec, RedPrairie Company Leader, “RedPrairie has proven itself a leader in supply chain technology solutions through growth, financial success and thought leadership during two years of considerable contraction and consolidation in our marketplace. What is particularly noteworthy in our 2003 results was our strong growth in license revenue fueled by a record 34 new customers, representing 61% of total deals closed. This positions us well for increased growth as the market picks up steam in 2004.”
Validating the importance of its end-to-end supply chain solutions approach, RedPrairie reported strong results across all of its product lines, with record revenues in both its productivity management and extended enterprise applications. These applications enable organizations to streamline and optimize distribution across their entire supply chain.
RedPrairie Financial Highlights for Fiscal Year 2003 ended 12/31/03
• License revenue of $14.8 million, up 44% over 2002
• Record revenues from Productivity Management and extended enterprise applications, and solid results across all product lines
• Signed 10 major retail clients, a fast-growing segment for RedPrairie
• EBITDA of $16.3 million, up 20% over 2002, and 22.4% of sales
• Gross profit was 56.1% of sales, compared to 53.2% in 2002
• Cash flow before financing was $6.3 million, adding to RedPrairie’s strong cash position with no debt
• Total revenue was $72.7 million
• Completed 223 system implementations during the year
RedPrairie achieved its record license revenue by closing 56 deals across all of its key vertical markets, including consumer goods, retail, food & beverage, high tech, pharmaceuticals and third party logistics. New customers also showed a good mix of Tier one and mid-market companies. A sampling of 2003 wins includes: Bear Creek, Bacou-Dalloz, Tyson Foods, Kellogg, Sears, Roebuck & Co., TJX Companies, Nice-Pak Products, Kaplan Early Learning Company, L&M; Optical Disc, Alcon Laboratories, American Musical Supply, Bio-Rad, Kohl’s Department Stores, Toys ‘R’ Us, Corporate Express and Sony.
Other RedPrairie highlights in 2003 include:
• Introduced RFID Accelerator™, an RFID compliance application that can be seamlessly integrated with virtually any existing ERP, WMS or legacy host system to meet the RFID information-sharing requirements of Wal-Mart, the Department of Defense and other leading retailers.
• Entered into a valued-added reseller (VAR) agreement with Matrics to integrate and sell their RFID readers and tags.
• Formed an exclusive reseller partnership with Kurt Salmon and Associates (KSA) under which KSA has incorporated RedPrairie’s labor productivity software into its Base Plusâ performance improvement program.
• Arranged VAR agreements with Voxware and Vocollect to integrate and sell their respective voice technology solutions with RedPrairie’s supply chain execution suite.
• Revolutionized transportation planning by introducing the industry’s first real-time optimization engine, COPLEX™.
• Provided a new level of business intelligence for logistics management with the introduction of DLx® Dashboard, a real-time supply chain information portal.
• Streamlined shipment loading and increased distribution center throughput with the introduction of Dock Door Scheduler, a constraint-based optimization technology that coordinates distribution center work with transportation arrival and departure schedules.
• Expanded productivity management capabilities with the release of DLx® CompTrak, a new advanced labor tracking and reporting module that includes payroll calculation capabilities for incentive pay and other labor requirements.