EXE Technologies Reports 2003 First Quarter Results
DALLAS--April 24, 2003--EXE Technologies(R) Inc. (Nasdaq:EXEE), a leading global supply chain execution solutions provider, today announced financial results for the first quarter ended March 31, 2003.
First quarter 2003 total revenues were approximately $15.4 million, compared to $18.9 million in the fourth quarter of 2002 and $19.6 million in the first quarter of 2002. The decline in total revenues from the fourth quarter of 2002 was primarily due to a $3.3 million reduction in resale equipment sales. Software license revenues were approximately $2.7 million in the first quarter of 2003, compared to $2.6 million in the fourth quarter of 2002 and $4.1 million in the first quarter of 2002. Resale equipment sales were approximately $1.3 million in the 2003 first quarter compared to $4.6 million in the fourth quarter of 2002 and $3.1 million in the first quarter of 2002.
The company reported a net loss of $3.2 million, or $0.49 per share, in the first quarter of 2003 compared to a net loss of $8.1 million, or $1.23 per share, in the fourth quarter of 2002 and $3.3 million, or $0.51 per share, in the first quarter of 2002. Excluding a provision for estimated losses associated with resale equipment sold to a customer of approximately $0.5 million, the net loss would have been $2.7 million, or $0.42 per share. The company sold resale equipment early in the first quarter to a customer who subsequently filed bankruptcy in April 2003. As a result, the company did not recognize the revenue from the equipment sale and provided an estimated loss for the cost of the equipment. The net loss for the fourth quarter of 2002 included approximately $3.3 million of employee severance and facility closure costs.
The non-GAAP adjusted net loss was $2.4 million, or $0.36 per share, in the first quarter of 2003, compared to $4.2 million or $0.63 per share, and $2.8 million or $0.43 per share, in the fourth quarter and first quarter of 2002, respectively. The non-GAAP adjusted net loss and adjusted net loss per share figures exclude the provision for resale equipment previously discussed as well as amortization of intangibles, warrant and stock compensation expense and, in the 2002 fourth quarter, employee severance and facility closure costs. Management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparison to prior periods and to competitors and other companies. The method the company uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. (See Note A following the accompanying financial statements to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results.)
"Despite the challenging global economic environment, we are encouraged that we made significant progress in our business turnaround in the latest quarter," said Joe Cowan, EXE president and chief executive officer. "Our loss was much lower than we experienced in the fourth quarter of 2002, even though our revenues declined. Our service and maintenance margins grew to 35% in the first quarter of 2003 compared to the 27% we experienced in the fourth quarter of 2002. Additionally, our operating costs (selling and marketing, research and development, and general and administrative) of $9.2 million were reduced 14% from the fourth quarter of 2002.
"Although we are not satisfied with our continued losses, we believe that the strategy we have put in place has positioned the company to return to profitability. Our aggressive cost controls have significantly lowered the company`s breakeven point. We appreciate the continued support of our employees, customers and vendors," Cowan concluded.
Conference Call Information
Investors are invited to listen to a live webcast of our conference call at 5:00 p.m. EDT today through the Investor Relations section of the EXE web site, www.exe.com. To listen to the live call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. Investors may also listen to a telephone replay of the conference call by dialing 888/286-8010 in the US, or 617/801-6888 from international locations, then entering passcode 61625365, starting at 6:00 p.m. Eastern on April 24th until 11:59 p.m. Eastern on May 1st.
About EXE Technologies, Inc.
EXE Technologies, Inc. (Nasdaq:EXEE) is a leading provider of supply chain execution software solutions that deliver the vital, frontline supply chain intelligence to drive customer execution decisions and processes. EXE`s products and services help customers worldwide reduce inventory and operational costs while increasing customer loyalty and satisfaction. The company provides global service and support from offices located in North America, Europe, the Middle East, Asia, and Australia. For more information about EXE Technologies, Inc., call 214/775-6000 or visit www.exe.com.
EXE Technologies, EXE and EXceed are trademarks, registered trademarks or service marks of EXE Technologies, Inc. in the United States and/or other countries. All other trademarks or service marks contained herein are the properties of their respective owners.
Statements contained in this press release related to EXE that are not historical facts may be forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. The forward-looking statements contained in this press release include, among other things, statements relating to the company`s ability to return to profitability, to significant progress in our business turnaround and to future financial performance. Any and all of our forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks and uncertainties, including, among others, continued weakening of economic conditions; a potential slowdown in, or cancellation of customer purchasing decisions for supply chain execution software; our ability to successfully integrate our new CEO into the company; the potential inability of our sales force to perform to expectations; our ability to control and reduce costs timely or effectively or to realize planned cost savings; our ability to develop new or updated products on a timely basis or to gain market acceptance for such products; our ability to expand our offshore development activities successfully; our ability to continue to expand internationally and into new markets and to extend our relationships with alliance partners; competitive factors and other risks set forth in the annual report on Form 10-K for fiscal 2002. Our actual future results may vary materially.
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