Retek’s Strong Growth Continued in Fourth Quarter
Software License Revenues up 72%
Minneapolis - January 22, 2002 -- Retek Inc., the leading provider of software to help retailers create, manage, and fulfill consumer demand, announced that its fourth quarter revenues rose 60% to $51.3 million compared with the year earlier quarter. Software license revenue rose 72% to $38.7 million. After tax operational income, which excludes non-cash and other charges, was $0.06 per share in the fourth quarter compared with a loss of $0.08 per share in the year earlier quarter. Compared with the third quarter of 2001, total revenue rose 8% and software license revenue rose 10%. For all of 2001, total revenue rose 95% to $179.5 million and the Company reported after tax operational income of $0.08 per share compared with a loss of $0.55 per share in 2000. For GAAP purposes, the fourth quarter 2001 net income was $0.5 million, or $0.01 per diluted and basic share and for all of 2001, the net loss was $14.3 million or $0.29 per diluted and basic share.
The Company added seven new customers in the fourth quarter and expanded relationships with several others. New customers included Fast Retailing in Japan, one of Asia`s fastest growing and most respected retailers; leading children`s retailer Gymboree; BHV, a division of France`s Galeries Lafayette; and Mitre 10, Australia`s largest home improvement retail chain. Significant additional business was signed with Kroger, Williams-Sonoma, Long`s Drug, Best Buy, WH Smith, and Sainsbury`s.
The Company`s financial metrics continued strong with gross margins improving to 64.2% from 62.4% in the third quarter. Days sales outstanding (DSO) improved to 73 from 75 in the previous quarter while cash flow from operations totaled $6 million.
Commenting on the results, Steve Ladwig, President and CEO of Retek said, "This is another excellent quarter for Retek and shows again that we have solid value propositions to offer our customers. The Company`s results were strong across all geographies and I am especially pleased with our entry into the Japanese market with the signing of Fast Retailing. Our U.S. business substantially grew several existing relationships and continued to move sales efforts forward at a number of key accounts. The upcoming release of Retek 10 late in the first quarter will provide a terrific platform for us to grow our business.
We continue to have good visibility on our financial performance. We entered the first quarter of 2002 with over 75% of our software license objective under contract for the quarter and have over 65% of that objective under contract for the next six months."
The Company is maintaining its guidance for 2002 revenues of $245 to $270 million and after tax operational income, which excludes non-cash and other charges, of $0.40 to $0.50 per share.
About Retek Inc.
Retek Inc. is a leading provider of collaborative software solutions and services that help the retail industry create, manage and fulfill consumer demand. The RIS News Leaderboard 2001 ranked Retek the #1 software vendor for retail. Retek`s offering, Retek 10, encompasses Retek`s proven strategies, sophisticated software applications, patented predictive technology, unparalleled services, and the best practices of its customers and partners. Retek 10 provides retailers with the fastest path to sustainable business value. Many of the world`s leading retailers use Retek solutions, including Best Buy, A&P, Tesco, Family Dollar Stores, Gap, Sainsbury`s, Eckerd Corp. and Kohl`s Department Stores. For more information, visit http://www.retek.com, or call 1-888-61-RETEK. Retek can be contacted in Europe at +44 20 7563 4646.
Retek is a trademark of Retek Inc. Other names may be trademarks of their respective owners. Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such factors are described from time to time in the company`s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
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