Retek’s Q1 revenue rises 165%, software license revenues rise 300%

Retek Inc., provider of software to help retailers create, manage, and fulfill consumer demand, reported first quarter revenues of $37 million, up 165% from the year earlier quarter and up 16% from the fourth quarter of 2000. The company reported a loss of $0.03 per share excluding non-cash charges compared with a loss of $0.18 per share in the first quarter of 2000. Software license revenues in the first quarter were $26.2 million, up 308% from the year earlier quarter and up 17% from the fourth quarter of 2000.

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New customer additions in the first quarter included The Kroger Co. and Sainsbury`s, and a major contract expansion was signed with Gap Inc. Gross margin increased nearly 200 basis points to 58.7% with software license margins improving 250 basis points to 71.8%. "While our revenue growth remained robust, operating expenses were flat with the fourth quarter of 2000, reflecting the company`s ability to leverage its existing infrastructure,” said John Buchanan, chairman and CEO. “We are managing the business carefully, balancing expense management with the investments we need to close new business and maintain market leadership.

For the balance of 2001, Retek anticipates total revenues of $170 million to $180 million and earnings of 5 to 10 cents per share. The company also expects to be profitable, excluding non-cash charges, in the second quarter of 2001. For 2002, the company is expecting revenues of $245 million to $270 million and earnings of 40 to 50 cents per share.