Island Pacific Reports Fourth Quarter and Year-End Results
Irvine, California, June 29, 2004 -- Island Pacific, Inc. (AMEX:IPI) a leading global provider of multi-channel application software technology and services for the retail industry, today announced fiscal results for the fourth quarter and year-ended March 31, 2004.
For the fourth fiscal quarter, the company reported revenue of $4.7 million, a decrease of 27.6% compared to $6.5 million reported in the same period of the prior fiscal year. For the three months ended March 31, 2004, the company reported a loss from continuing operations of ($4.6) million compared with an income from continuing operations of $1.2 million for the same period of the prior fiscal year. The fourth fiscal quarter included a total of $2.0 million of non-recurring acquisition related costs, stock based compensation expenses, beneficial conversion charges related to convertible debentures and write-down of a development project. Excluding these items, loss from continuing operations would have been $2.6 million. Included in the fiscal 2003 period is an extraordinary gain on debt forgiveness of $1.5 million. The company reported a net loss available to common stockholders of ($4.9) million, or ($0.10) per share versus net income available for common stockholders of $0.9 million, or $0.03 per share.
For the fiscal year ended March 31, 2004, the company reported revenue of $21.7 million, a decrease of 2.8% compared to $22.3 million reported for the fiscal year ended March 31, 2003. For the year ended March 31, 2004, the company reported a loss from continuing operations of ($4.2) million compared with a loss from continuing operations of ($3.7) million for the prior year. Fiscal 2004 included a total of $2.7 million of non-recurring acquisition related costs, stock based compensation expenses, beneficial conversion charges related to convertible debentures, write-down of a development project and a loss on disposal of fixed assets. Excluding these items, loss from continuing operations would have been $1.5 million. Included in the fiscal 2003 period is an extraordinary gain on debt forgiveness of $1.5 million and a non-cash impairment charge of $0.6 million relating to goodwill resulting from a change in accounting principle. The company reported a net loss available to common stockholders of ($5.3) million, or ($0.13) per share versus net loss available for common stockholders of ($3.7) million, or ($0.13) per share. The company reported EBITDA of $0.6 million for fiscal 2004 versus $1.5 million in the prior year.
The Company will also file shortly an amended 10Q for the third quarter ended December 31, 2003 to reflect the deferral of certain revenues recognized on professional services contracts as well as the reversal of certain revenues from sale of alliance products. These adjustments are reflected in the year end numbers. Accordingly, third quarter revenues will be $4.9 million versus $5.1 million originally reported. Net loss available to common stockholders will be ($768,000), or ($0.02) per share versus a net loss available to common stockholders of ($530,000), or ($0.01) per share previously reported.
Mike Tomczak, Island Pacific`s President and Chief Operating Officer, stated, "The year-end numbers reflect several issues which have been addressed by the Board of Directors. We have taken an extremely conservative look at our financials and have made the necessary adjustments to create a stronger balance sheet from which to build in fiscal 2005. We have also added a new management team, a greatly expanded sales channel, and diversified our product line."
A conference call will be held at 4:30 p.m. (Eastern time) today to discuss the earnings. Those interested in participating in the conference call may dial in to 800.218.9073. A brief question and answer period will be held at the end of the call. A replay of the call will be available two hours after the call. To access the replay, dial 800.405.2236 and enter access code 11002137#. Web users may hear the conference via the internet by going to www.actioncast.acttel.com and entering the event id 23481.
About Island Pacific
For more than 25 years, Island Pacific has developed a reputation for delivering high-quality, high-reliability software to the retail industry. Recently, the company has transformed itself into the low-cost, high-value provider of retail enterprise solutions by developing breakthrough technologies, and by partnering with leading consulting organizations to provide next-generation services. In addition, Island Pacific leverages its years of experience with emerging and established retailers to craft creative solutions tailored for each customer`s needs. As a result, Island Pacific is the definitive resource for scalable, flexible and affordable solutions for retailers around the world.
Island Pacific, incorporating the recently acquired Retail Technologies International (RTI) and Page Digital, serves over 9,000 retail clients in more than 70 countries. Represented in more than 55,000 stores worldwide and available in 14 languages, the company`s technology managers billions of transactions annually under the brand names of IPMS, IP synaro, OnePointe and Retail Pro, and is the thought leader in multi-channel retailing.
Founded in 1978, the company is headquartered in Irvine, California, and has offices in the United States and the United Kingdom, and is represented by business partners in over 30 countries. For more information, please visit www.islandpacific.com and www.retailpro.com.
Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company`s future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company`s (SVI) Form 10-KA for the fiscal year ended March 31, 2003 and other risk factors identified from time to time in the Company`s filings with the Securities and Exchange Commission. IPI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.
Media Relations Contact
Danny Zeibert
Island Pacific, Inc.
+1.916.605.7200
Email: media@islandpacific.com
Investor Relations Contact
Tricia Skoda
Island Pacific, Inc.
+1.949.399.3816
Email: ir@islandpacific.com
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