RedPrairie Achieves Third Consecutive Record Quarter, Solidifies Market Leadership Position
Company Continues Rapid Growth in License Sales, Profitability and Market Share
WAUKESHA, Wis.--Nov. 4, 2002--Supply chain execution company RedPrairie(TM) today announced its third consecutive record quarter, despite the continuing slump in the global software market. For third quarter 2002, RedPrairie recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of 19 percent, an increase of 183 percent over the same quarter last year, and bookings152 percent higher than the previous year quarter. With this continued growth, RedPrairie has established itself as one of the top two vendors in the supply chain execution (SCE) industry.
Fueling the company`s record growth and profitability was a 105 percent gain in software license revenue and total revenue of $18 million, representing a 14 percent increase from the same quarter last year. RedPrairie`s record results were achieved despite the continued slowdown in the software market, which has fallen six percent this year, according to research firm META Group. The company achieved higher gross margins driven by increasing license revenue and service margins. At the same time, RedPrairie committed an additional 13 percent to research and development, compared to third quarter 2001.
RedPrairie Financial Highlights for the Third Quarter Include:
-- Success across all of RedPrairie`s DigitaLogistix(TM) product lines, the broadest solution set in the industry, including: transportation, productivity and warehouse management, as well as visibility and collaboration solutions. Major new business was closed and delivered in each product area.
-- Substantial growth in software license revenue of 105 percent, with bookings up 152 percent over third quarter 2001.
-- Total revenues of $18 million, representing growth of more than 14 percent over the same quarter last year.
-- Gross profit up 72 percent.
-- Earnings before interest, taxes, depreciation and amortization (EBITDA) of 19 percent, an increase of 183 percent from the previous year.
-- $5.0 million in cash generated from operations in the quarter, up $2.5 million from third quarter 2001.
-- 24 system implementations in the third quarter.
RedPrairie is winning major new business across all of its product lines. In the third quarter alone, RedPrairie earned key customer wins at, among others: Advance Stores Company; Briggs & Stratton Corporation; DB Hess Company; Eveready; Foster Farms; Hatfield Quality Meats; Kroger Company; Longaberger; LuK Inc.; Nutricia; Pella Corporation; and J.M. Smucker Company.
Other Third Quarter Highlights Include:
-- The introduction of DLx(R) Xpress, RedPrairie`s rapid WMS
implementation program, based on Six Sigma methodologies,
which accelerates customer time to value and enables
mid-market companies to affordably adopt an advanced WMS
solution.
-- RedPrairie released a new version of its warehouse management
software, providing third party logistics companies (3PLs) the
industry`s first solution to meet distribution needs across
multiple verticals, including Consumer Goods, Food & Beverage,
High Tech, Service Parts, Pharmaceutical and other industries.
-- Released a new version of RedPrairie`s productivity management
software, adding support for voice recognition systems and new
decision support and analytic tools to better understand
distribution cost and value drivers.
-- Transport Technology Today named RedPrairie transportation
management customer Nestle "IT Enterprise of the Year".
-- For the second year in a row, a RedPrairie customer was
honored as "Warehouse of the Year" by Warehousing Management
magazine; shoe distributor ADS was selected this year,
following JC Penney in 2001.
-- RedPrairie customers DuPont, General Electric and Unilever
were named to Supply Chain Technology News`s list of "Top 10
Best Supply Chains."
RedPrairie Company Results Leader John Jazwiec commented, "RedPrairie`s momentum continues to accelerate in a financially stagnant economy as our solutions gain wider acceptance and market share. As one of the most successful privately held software companies, we are positioned to succeed long-term, while others succumb to an inevitable software shakeout."
About RedPrairie Corporation.
RedPrairie has a 28-year history of delivering superior logistics results by driving out more logistics costs than anyone in the industry, and enabling customers to consistently achieve their supply chain objectives. This is accomplished through an integrated suite of DigitaLogistix(TM) solutions that provide the industry`s leading transportation, productivity, and distribution management capabilities, enhanced with action-oriented components for real-time control and performance measurement. These solutions are deployed through an end-to-end value delivery system (the RedPrairie Approach) that ensures results achievement. RedPrairie delivers measurable results for customers in many markets, including high tech and electronics, consumer goods, food and beverage, third party logistics, retail and wholesale, service parts, and make-to-order manufacturing. Customers include Compaq Computer, Procter & Gamble, Nestle, Panasonic, Georgia-Pacific, Eveready, Unilever, Exel, General Electric, Amazon.com, and many others.
For additional information, call 1.888.624-8448, or access www.RedPrairie.com.
RedPrairie and DigitaLogistix are trademarks, and DLx is a registered trademark of RedPrairie Corporation. (c) 2002 RedPrairie Corporation. All Rights Reserved.
CONTACT:
RedPrairie Corporation
J.J. Berrall
262/317-2410
jj.berrall@RedPrairie.com
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