QRS Achieves Key Turnaround Objectives for 2002
Company Reports Second Consecutive Quarter of Profitability
RICHMOND, Calif., Feb. 18 /PRNewswire-FirstCall/ --
QRS Corporation (Nasdaq: QRSI) announced today the results of its fourth
quarter and fiscal year ended December 31, 2002.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000508/QRSLOGO )
The Company reported net income for the fourth quarter of $1.0
million, or
$0.06 per share, diluted, up from the net income of $0.6 million, or
$0.04 per
share, diluted, reported for the third quarter of 2002. For the full
year, the
Company reported a net loss of $4.1 million, or $0.26 per share,
comprised of
a net loss of $5.6 million in the first half of 2002 and net income of
$1.5 million in the second half.
In 2001, the Company reported a net loss of $141.2 million, or $9.08
per
share, for the fourth quarter and $173.3 million, or $11.26 per share,
for the
full year. Net losses for the fourth quarter and full year 2001,
exclusive of
restructuring charges and impairment losses, would have been $12.4
million, or
$0.79 per share, and $28.4 million, or $1.84 per share, respectively.
The Company reported revenues of $32.0 million for the fourth
quarter
2002, compared to revenues of $33.5 million for the third quarter and
$34.6 million for the year earlier quarter. Full year revenue was
$136.0 million for 2002, compared to $143.1 million for the prior year.
"We`re very pleased to have executed on our turnaround plans for
2002,"
said Liz Fetter, President and CEO of QRS. "We significantly improved
our
financial performance, strengthened our operational fundamentals,
aligned the
product portfolio, and built a seasoned management team. We delivered
these
results despite the challenging economy and now, QRS is ready to
capitalize on
the opportunities we see in the marketplace. I am confident we have the
foundation for future growth."
The Company reported a fourth quarter gross margin of 49%, which
compares
to 48% in the third quarter and 25% for the year earlier quarter. Full
year
gross margin increased from 38% in 2001 to 47% in 2002.
Operating expenses were down for the quarter and the year. Fourth
quarter
operating expenses were $14.9 million, compared to $15.6 million for the
third
quarter and $150.1 million for the year earlier quarter. Full year
operating
expenses were $69.0 million, compared to $235.6 million reported for the
prior
year. 2001 operating expenses, exclusive of restructuring charges and
impairment losses, would have been $26.0 million for the fourth quarter
and
$97.3 million for the full year.
Cash and marketable securities increased by $2.2 million for the
fourth
quarter and $1.0 million for the full year 2002 to $39.6 million. Days
sales
outstanding at the end of 2002 were 42 days, compared to 47 days at the
end of
the third quarter and 58 days at the end of 2001.
Revenues from Software Applications, which include both enterprise
and
hosted applications, were $8.1 million for the fourth quarter compared
to
$8.6 million for the third quarter and $9.5 million for the fourth
quarter
last year. Software Applications revenues for the full year 2002 totaled
$35.5 million, compared to $39.0 million for the prior year. Gross
margins for
Software Applications were 73% for the fourth quarter and 69% for the
full
year 2002, compared to 72% for the third quarter and 50% for the prior
year.
Revenues for Trading Community Management were $17.6 million for the
fourth quarter, compared to $18.8 million for the third quarter and
$19.5 million for the fourth quarter last year. Trading Community
Management
revenues for the full year 2002 totaled $73.7 million, compared to
$80.7 million for the prior year. Gross margins for Trading Community
Management were 52% for the fourth quarter and 49% for the full year
2002,
compared to 49% for the third quarter and 46% for the prior year.
Revenues for Global Services were $6.3 million for the fourth
quarter,
compared to $6.1 million for the third quarter and $5.6 million for the
fourth
quarter last year. Global Services revenues for the full year 2002
totaled
$26.9 million, compared to $23.5 million for the prior year. Gross
margins for
Global Services were 12% for the fourth quarter and 11% for the full
year
2002, compared to 11% for the third quarter, and (11%) for the prior
year.
In addition to the Company`s improved financial and operational
performance, strategic highlights from 2002 and 2003 year to date
include:
-- Secured customer wins and renewals. QRS secured more than 75 wins
and
agreement extensions in the fourth quarter of 2002 with retailers
and
suppliers across multiple retail verticals, including Gottschalks
Inc.,
L`Oreal USA Inc., Duane Reade Inc., The Kroger Company, OskKosh
B`Gosh,
Inc., Ingram Micro Inc., StrideRite Corporation, Lego Systems and
Huffy
Bicycle Company.
-- Broadened product set. The Company continued to enhance its
Trading
Community Management capabilities in 2002 to better accommodate
collaboration between trading partners of any size and any
infrastructure. QRS signed an agreement with Cyclone Commerce in
the
first half of the year to sell its AS2 software to QRS customers.
QRS
also launched a collaborative exceptions management offering, QRS
Insight(TM), at the National Retail Federation trade show in
January 2003.
-- Expanded strategic relationships. QRS signed a strategic
agreement with
UCCnet in the fourth quarter of 2002 that makes QRS a preferred
partner
in its InSync Partner Program for item registry and data
synchronization with UCCnet`s GLOBALregistry. Earlier in 2002,
QRS
entered into a new multi-year reseller agreement with IBM, which
expands QRS` service offerings and generates significant cost
improvements. In 2002, QRS also focused on developing key channel
partners for the European market, resulting in an agreement with
Tibbett & Britten, a leading international logistics service
provider,
and, in the first quarter of 2003, an agreement with Influe,
Europe`s
leading provider of EDI services.
-- Strengthened the Company`s leadership. In 2002, the Company
developed
and implemented a plan to increase the independence of its Board
of
Directors. In addition, QRS brought in a new management team in
2002
with broad technology, industry and functional experience.
Overall, the Company expects to remain profitable in the first
quarter of
2003, with revenues between $31 and $32 million.
Conference Call Information
In conjunction with the earnings release, QRS will hold a conference
call
at 2:00 p.m. PST (5:00 p.m. EST) on February 18, 2003. The conference
call can
be accessed via telephone at 1-877-580-9103 with passcode QRS. The call
will
also be webcast and can be accessed at www.qrs.com. Telephone replay
will be
available beginning February 18, 2003 after 7:00 p.m. EST at
1-888-566-0565
(toll-free) and 402-998-1636 (international); a replay of the webcast
will be
available at www.qrs.com.
About QRS
With headquarters in Richmond, California, QRS has been building
solutions
that automate the way companies connect, transact, collaborate and
differentiate since 1988.
QRS delivers collaborative commerce software and services that
enable
retail companies to bring products to market quickly and profitably.
With a
full suite of commerce solutions for the entire global trading
community, only
QRS combines the benefits of total electronic communication with the
retail
industry`s leading source of product information for accurate partner
transactions between companies of any size or technology infrastructure.
QRS
allows companies to see and manage processes across the supply chain so
that
problems can be detected and resolved, and offers services that provide
insight to the store floor so that companies can enhance the customer
experience and improve store operations. More than 8,000* customers from
over
20 vertical markets -- including Sears, Roebuck and Co., The Kroger
Company,
Selfridges plc and Jones Apparel Group -- use QRS to meet customer
needs,
compress cycle times, reduce costs and improve sales margins. Learn more
about
QRS at www.qrs.com.
* Based on total, unique QRS corporate customers that purchased or
licensed QRS products and services between January and December 2002.
Safe Harbor Statement under the Private Securities Litigation Reform
Act
of 1995:
This release contains forward-looking statements regarding future
events
and the future financial performance of QRS Corporation that involve
risks and
uncertainties. Readers are cautioned that these forward-looking
statements are
only predictions and may differ materially from actual future events or
results. Readers are referred to the documents filed by QRS Corporation
with
the SEC, specifically the most recent reports on Form 10-K, 8-K, and
10-Q,
each as it may be amended from time to time, which identify important
factors
that could cause actual results to differ from those contained in the
forward-looking statements, including risks associated with general
economic
conditions; specific conditions in the retail industry; competition;
changes
in our senior management; rapid technological change in our industry;
dependence upon key customers and their trading partners; ability to
introduce
and market acceptance of new products and services; the ability to
successfully integrate and manage acquired businesses and technologies;
customers` willingness to purchase services offered through or in
conjunction
with third parties; and dependence upon IBM for e-commerce services,
among
others. QRS assumes no obligation to update the forward-looking
information
contained in this news release.
NOTE: QRS, the QRS logo and QRS Insight are trademarks or
registered
trademarks of QRS Corporation in the United States and other countries.
All
other trademarks belong to their respective owners.
Back...
