EXE Technologies Announces Improved Third Quarter Operating Performance
Dallas, Texas – October 24, 2003 – EXE Technologies®, Inc. (NASDAQ: EXEE), a leading global supply chain execution (SCE) solutions provider, today reported continued improvement in its operating performance in the third quarter of 2003. The company announced third quarter 2003 revenues of $19.1 million, an operating loss of $0.2 million and a net loss of $0.9 million, or $0.14 per share. The net loss includes approximately $0.8 million of expenses associated with the pending merger with SSA Global Technologies, Inc., which is expected to be completed later this year.
Third quarter 2003 revenues were approximately $19.1 million, compared to $19.8 million in the second quarter of 2003 and $16.7 million in the third quarter of 2002. Software license revenues were approximately $2.8 million in the third quarter of 2003, compared to $3.5 million in the second quarter of 2003 and $2.7 million in the third quarter of 2002. Revenues for the first nine months of 2003 were approximately $54.3 million, compared to $54.8 million for the nine months ended September 30, 2002.
The company reported an operating loss of approximately $0.2 million compared to an operating loss of $1.0 million in the second quarter of 2003 and $3.6 million in the 2002 third quarter. The company had a net loss of $0.9 million, or $0.14 per share, for the third quarter of 2003, compared to net losses of $0.8 million, or $0.12 per share, in the second quarter of 2003 and $3.5 million, or $0.54 per share, in the third quarter of 2002. The net loss for the first nine months of 2003 was approximately $5.0 million, or $0.75 per share, compared to a net loss of $15.7 million, or $2.39 per share, for the nine months ending September 30, 2002. The net loss for the first nine months of 2002 included approximately $6.5 million of charges for estimated losses on lease abandonment and employee severance and facility closure costs.
"We continue to be encouraged by our progress toward profitability" said Joe Cowan, President and Chief Executive Officer. "Excluding the merger related costs recorded in the third quarter, we have narrowed our net loss to $0.1 million. Service margins have continued to improve and the company’s global cost structure has been reduced. We believe the company is now poised to return to profitability with modest revenue growth." Mr. Cowan concluded.
On August 18, 2003 the company announced the signing of a definitive agreement with SSA Global Technologies, Inc. (SSA GT), under which SSA GT would acquire the company. Under the agreement, a subsidiary of SSA GT will merge into EXE and all holders of EXE outstanding common stock will receive $7.10 per share in cash. The acquisition is subject to approval of a majority of EXE shareholders and certain other customary conditions. It is anticipated that the acquisition will be consummated by the end of the year.
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