Geac Computer (NASDAQ:GEAC)
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Geac announces fourth quarter and year end results for fiscal
year 2005
Full-Year Diluted Net Earnings Per Share Increased to $0.87 in FY 2005 From
$0.66 in FY 2004
MARKHAM, ON and SOUTHBOROUGH, MA, June 22 /PRNewswire-FirstCall/ -- Geac
Computer Corporation Limited (TSX: GAC and NASDAQ: GEAC), a global enterprise
software company dedicated to addressing the needs of CFOs, today announced its
fourth quarter and year end financial results for the three and twelve months
ended April 30, 2005.
Fourth Quarter Revenue Highlights
-------------------------------------------------------------------------
% Change % Change
Over Over
US$ thousands Q4 FY2005 Q3 FY2005 Q4 FY2004 Q3 FY2005 Q4 FY2004
-------------------------------------------------------------------------
Software Revenue $22,270 $18,211 $18,387 22.3% 21.1%
-------------------------------------------------------------------------
Support & Services
Revenue $91,991 $90,596 $93,517 1.5% (1.6%)
-------------------------------------------------------------------------
Hardware Revenue $2,943 $5,083 $4,201 (42.1%) (29.9%)
-------------------------------------------------------------------------
Total Revenue $117,204 $113,890 $116,105 2.9% 0.9%
-------------------------------------------------------------------------
Geac reported total revenue in the fourth quarter of fiscal year (FY) 2005 of
$117.2 million, an increase of $1.1 million, or 0.9%, compared to $116.1
million in total revenue in the fourth quarter of FY 2004, and an increase of
$3.3 million, or 2.9%, compared to $113.9 million in the third quarter of FY
2005. License revenue for the fourth quarter of FY 2005 was $22.3 million, an
increase of $3.9 million, or 21.1%, compared to $18.4 million for the same
period last year, and an increase of $4.1 million, or 22.3%, compared to $18.2
million in the third quarter FY 2005. This reflects a five-year record in
software license growth at Geac. For the fourth quarter, the Company recorded
increases in year-over-year license sales across all of its major enterprise
applications, including Geac Performance Management, Enterprise Server,
System21, Runtime, Anael and SmartStream. As a percentage of total revenue,
license revenue increased from 15.8% in the fourth quarter of FY 2004 to 19.0%
in the fourth quarter of FY 2005 this year.
"Internally developed new products contributed significantly to our software
license revenue growth in the fourth quarter of FY 2005. Overall contracted
sales of these new products amounted to $6.6 million in license fees. This
entire amount, however, did not translate into software license revenue in the
quarter, but will be recognized as revenue in future quarters as all the
criteria for revenue recognition are met. If all contracted sales of internally
developed new products had been recognized as revenue in the quarter, total
fees from these license sales would have represented approximately 28% of
software license revenue," said Charles S. Jones, President and Chief Executive
Officer of Geac.
Net earnings in the fourth quarter of FY 2005 were $18.6 million, or $0.21 per
diluted share, compared to $23.8 million, or $0.27 per diluted share, in the
fourth quarter of FY 2004. The decrease in net earnings during this period
resulted in part from an increase in our effective tax rate, which was 3.7% in
the fourth quarter of FY 2004 and 23.2% in the fourth quarter of FY 2005. The
effective tax rate in the fourth quarter of each of FY 2004 and FY 2005 was
reduced as a result of the release of reserves and valuation allowances, which
positively affected our net earnings in those quarters.
Operating expenses were $54.3 million in the fourth quarter of FY 2005, an
increase of $5.6 million, or 11.5%, from $48.7 million in the fourth quarter of
FY 2004. This increase was due primarily to additional expenditures in sales,
marketing and development and to increased general and administrative expenses
related to non-cash stock-based compensation incentives, Sarbanes-Oxley
compliance, and certain merger and acquisition initiatives.
Full Year Revenue Highlights
-------------------------------------------------------------------------
US$ thousands Fiscal Year 2005 Fiscal Year 2004 % Change
-------------------------------------------------------------------------
Software Revenue $71,040 $65,190 9.0%
-------------------------------------------------------------------------
Support & Services Revenue $360,947 $355,019 1.7%
-------------------------------------------------------------------------
Hardware Revenue $12,405 $25,063 (50.5%)
-------------------------------------------------------------------------
Total Revenue $444,392 $445,272 (0.2%)
-------------------------------------------------------------------------
Revenue for the twelve months ended April 30, 2005 was $444.4 million, a
decline of $0.9 million, or 0.2%, compared to $445.3 million for the year ended
April 30, 2004. Each of support, services and license revenue increased,
largely offsetting a $12.7 million hardware decline. We continue intentionally
to de-emphasize the resale of lower-margin hardware sales. License revenue for
FY 2005 was $71.0 million, an increase of $5.9 million, or 9.0%, compared to
$65.2 million for FY 2004. As a percentage of total revenue, license revenue
increased from 14.6% in FY 2004 to 16.0% in FY 2005.
For the twelve months ended April 30, 2005, operating expenses increased $1.9
million, or 1.0%, to $199.9 million, compared to $197.9 million in the same
period of FY 2004. The increase was primarily caused by an increase in sales
and marketing of $4.0 million, offset by a decline in general and
administrative expenses of $4.3 million.
Earnings from operations for the twelve months ended April 30, 2005 increased
$11.9 million, or 16.5%, to $84.2 million, compared to $72.2 million in the
same period of FY 2004. This increase resulted from an improvement in gross
profit, partially offset by an increase in overall operating expenses.
Net earnings for FY 2005 grew to $77.0 million, or $0.87 per diluted share,
compared to $57.2 million, or $0.66 per diluted share, in FY 2004. The increase
in net earnings during this period resulted in part from a decrease in our
effective tax rate, which was 19.3% in FY 2004 and 12.6% in FY 2005. The
effective tax rate in each of FY 2004 and FY 2005 was reduced as a result of
the release of reserves and valuation allowances positively impacting our net
earnings in those years.
"In FY 2005, we have been able to deliver more than a 34% increase in
profitability to our shareholders by taking deliberate and calculated steps to
innovate to improve our business, our products and our customer relationships,
and by continuing to focus on fiscal discipline," Mr. Jones said. "In the last
quarter of our 2005 fiscal year, we were particularly pleased with the growth
of both license sales and total revenue, as these gains marked the first time
in recent corporate history that our fourth quarter revenue exceeded our third
quarter revenue. Growth in these important areas is notable, particularly when
one considers that hardware revenue was 42.1% less in the fourth quarter than
it was in the third, as we continue to trend away from lower-margin sales. With
targeted expenditures in sales, marketing and development, as we outlined at
the beginning of the year, and with increasing efforts around our enterprise
product integration, we are pleased to have achieved our stated goals of
license revenue growth and enhanced customer retention and acquisition in what
continues to be a very competitive market climate."
"Geac successfully generated cash from operations throughout the year resulting
in $188.2 million on our balance sheet - a $75.7 million increase over our
fiscal year-end position in 2004 in cash and short-term investments. This
strong cash position should assist us in accomplishing our growth strategy as
we continue to examine acquisition opportunities that would enhance our
existing product lines, expand our customer base and build our total revenue,"
said Donna de Winter, Chief Financial Officer of Geac. "As part of our
long-term non-dilutive equity incentive program for management, we have funded
fully the Restricted Share Units (RSU) that vest over the next three years
through open market purchases completed on May 4, 2005 totaling 1,358,250
shares, which are currently held in trust for our employee recipients. The cash
for these post April 30th closing open market purchases has been deducted from
our cash position on the April 30, 2005 balance sheet, and is included in
restricted cash."
Geac's decision to use RSUs instead of dilutive stock options as our management
incentive plan, coupled with the adoption of the expensing of stock-based
compensation per section 3870 of the CICA handbook, will put increasing
pressure on our generally accepted accounting principles ("GAAP") net earnings.
Customers
---------
In the fourth quarter, Geac closed approximately 470 deals in the Enterprise
Applications Systems (EAS) segment of its business. Thirty-eight of these deals
each exceeded $150,000 - a 35.7% increase in the number of deals this size over
Q3 FY 2005 - and the average deal size within this group was more than
$420,000, also a significant increase over the previous quarter, in which the
deals in excess of $150,000 averaged $350,000.
As Geac outlined in its third quarter earnings announcement in March of 2005,
the Company is focused on industry-specific campaigns that capitalize on its
collective expertise and established customer base and partnerships in the
Government and Financial Services sectors. Particularly strong evidence of
Geac's success in the government segment was a fourth quarter contract with a
value in excess of $1 million dollars with Infraero, a Ministry of Defense
agency that manages airports for the government of Brazil. This contract
augments the Company's presence in a notable emerging growth economy and adds
to a long list of government contracts for Geac worldwide. It was one of three
contracts closed this quarter in excess of $1 million. Supporting the Company's
proactive efforts in the Financial Services sector, Geac won contracts with two
global investment banks with total managed assets for each in excess of $1.1
trillion; with one of the oldest mutual life insurers in the U.S.; with a major
bank in the mid-Atlantic region of the U.S. serving customers in 59 countries;
and with a leading bank with regional branches in Australia, New Zealand and
the United Kingdom, among other similar contracts in the fourth quarter.
Geac gained 54 net new EAS customers in the fourth quarter, compared to 52 net
new customers in the third quarter of FY 2005.
In support of Geac's product development efforts, Ventana Research, the leading
Performance Management research and advisory services firm, named Geac its
"Overall Category Winner" for the advances and success of its MPC performance
management product family. To learn more about deals Geac closed in both its
EAS and ISA divisions, please visit
http://www.geac.com/object/customers05.html.
Concluding Remarks
"However strong we feel the fourth quarter results have been, these results do
not indicate for us that we have overcome the seasonality of our revenue and
profits, in which the first quarter has been traditionally the weakest. In the
fourth quarter, we benefited from many parts of our diverse business performing
well at the same time, and, in some areas, from a benefit associated with the
value of the U.S. dollar. Further, while we remain focused on cost control, we
face significantly higher general and administrative costs due to
Sarbanes-Oxley and continued selling and marketing expenses. For these reasons
and as we stated in the second and third quarter announcements, we remain
uncertain about whether we can maintain our current level of profit going
forward," commented Mr. Jones. "That said, however, we are optimistic about the
future, and by far the most encouraging part of this quarter's results was our
ability to grow sales from internally developed products even in a challenging
enterprise software market that is plagued by frugally managed IT budgets and
industry consolidation. We are pleased that in this competitive environment, we
were able to increase the number and the size of our new deals in the fourth
quarter of FY 2005, which, in turn, fueled both license and total revenue
growth and increased earnings. We are hopeful that our increased cash position
will afford us enhanced opportunity as we move forward with internal
development and acquisition initiatives to deliver expanded product suites to
existing and new customers."
To understand better this press release and for more in-depth analysis of these
financial results, please see our Management Discussion and Analysis and our
audited consolidated financial statements and notes for the fiscal years ended
April 30, 2005 and April 30, 2004, which will be filed today with the Canadian
Securities Administrators at http://www.sedar.com/ and the United States
Securities and Exchange Commission at http://www.sec.gov/. They will also be
posted on our website at http://www.geac.com/ later today. A corporate fact
sheet for the quarter and year can be found at
http://www.geac.com/object/factsheetQ405.html.
Earnings Call
Management will discuss the results announced on a conference call scheduled
for later today, Wednesday, June 22, 2005, at 5:15 p.m. Eastern Time.
Listeners may access the conference call at 416.405.9328 / 800.387.6216, or via
webcast at http://www.investors.geac.com/.
A replay of the conference call will be available from June 22, 2005 at
approximately 9:00 p.m. Eastern Time until July 1, 2005 at 11:59 p.m. Eastern
Time. The replay can be accessed at 416.695.5800 or 1.800.408.3053. The pass
code for the replay is 3156079 followed by the number sign.
The conference call will be broadcast over Geac's web site at
http://www.investors.geac.com/. Attendees will need to log in at least 15
minutes prior to the call.
About Geac
Geac (TSX: GAC, NASDAQ: GEAC) is a leading global provider of software and
services for businesses and governmental bodies providing customers with
financial and operational technology solutions to optimize their financial
value chain. Further information is available at http://www.geac.com/ or
through email at .
Geac trades on the Toronto Stock Exchange under the symbol "GAC" and on the
NASDAQ National Market under the symbol "GEAC" and had 86,377,012 common shares
issued and outstanding at April 30, 2005.
This press release contains forward-looking statements of Geac's intentions,
beliefs, expectations and predictions for the future. These forward-looking
statements often include use of the future tense with words such as "will,"
"may," "intends," "anticipates," "expects" and similar conditional or
forward-looking words and phrases. These forward-looking statements are neither
promises nor guarantees. They are only predictions that are subject to risks
and uncertainties, and they may differ materially from actual future events or
results. Geac disclaims any obligation to update any such forward-looking
statements after the date of this release. Among the risks and uncertainties
that could cause a material difference between these forward-looking statements
and actual events include, among other things: our ability to increase revenues
from license sales, cross-sell into our existing customer base and reduce
customer attrition; whether we can identify and acquire synergistic businesses
and, if so, whether we can successfully integrate them into our existing
operations; whether we are able to deliver products and services within
required time frames and budgets to meet increasingly competitive customer
demands and performance guarantees; risks inherent in fluctuating international
currency exchange rates in light of our global operations and the unpredictable
effect of geopolitical world and local events; whether we are successful in our
continued efforts to manage expenses effectively and maintain profitability;
our ability to achieve revenue from products and services that are under
development; the uncertain effect of the competitive environment in which we
operate and resulting pricing pressures; and whether the anticipated effects
and results of our new product offerings and successful product implementation
will be realized. These and other potential risks and uncertainties that relate
to Geac's business and operations are summarized in more detail from time to
time in our filings with the United States Securities and Exchange Commission
and with the Canadian Securities Administrators, including Geac's most recent
quarterly reports available through the website maintained by the SEC at
http://www.sec.gov/ and through the website maintained by the Canadian
Securities Administrators and the Canadian Depository for Securities Limited at
http://www.sedar.com/.
Geac is a registered trademark of Geac Computer Corporation Limited. All other
marks are trademarks of their respective owners.
Geac's financial statements and the financial information included in this
press release have been prepared in accordance with Canadian generally accepted
accounting principles. In addition, the financial statements and the financial
information included in this press release, as well as this press release
itself, have been reviewed and approved by both the Audit Committee and the
Board of Directors of the Company.
Geac Computer Corporation Limited
Consolidated Balance Sheets
As at April 30, 2005 and 2004
(amounts in thousands of U.S. dollars)
April 30,
---------
2005 2004
------------ ------------
(Revised -
Assets see note 1)
Current assets:
Cash and cash equivalents..................... $ 188,242 $ 86,050
Restricted cash............................... 4,808 95
Short-term investments........................ - 26,500
Accounts receivable and other receivables..... 56,853 55,837
Future income taxes........................... 8,292 15,247
Prepaid expenses and other assets............. 8,230 8,437
------------ ------------
Total current assets........................ 266,425 192,166
Restricted cash............................... 3,039 1,781
Future income taxes........................... 34,558 21,741
Property, plant and equipment................. 22,005 23,843
Intangible assets............................. 23,841 32,628
Goodwill...................................... 110,142 128,366
Other assets.................................. 6,156 6,378
------------ ------------
Total assets............................... $ 466,166 $ 406,903
------------ ------------
------------ ------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities...... $ 73,373 $ 79,691
Income taxes payable.......................... 22,997 34,538
Current portion of long term debt............. 424 391
Deferred revenue.............................. 112,605 117,927
------------ ------------
Total current liabilities................... 209,399 232,547
Deferred revenue.............................. 2,058 2,256
Employee future benefits...................... 26,334 23,967
Asset retirement obligations.................. 1,678 1,648
Accrued restructuring......................... 1,769 5,864
Long term debt................................ 4,630 4,550
------------ ------------
Total liabilities........................... 245,868 270,832
Shareholders' Equity
Preference shares; no par value; unlimited
shares authorized; none issued or
outstanding.................................. - -
Common shares; no par value; unlimited
shares authorized; issued and outstanding
as at April 30, 2005-86,377,012
(2004-85,174,785)............................ 131,445 124,019
Treasury shares; issued and outstanding
as at April 30, 2005-816,598 (2004-nil)...... (6,979) -
Common stock options.......................... 12 44
Contributed surplus........................... 6,353 2,368
Retained earnings............................. 111,541 34,517
Cumulative foreign exchange translation
adjustment................................... (22,074) (24,877)
------------ ------------
Total shareholders' equity.................. 220,298 136,071
------------ ------------
Total liabilities and shareholders'
equity..................................... $ 466,166 $ 406,903
------------ ------------
------------ ------------
Approved by the Board of Directors
/s/ C. KENT JESPERSEN /s/ ROBERT L. SILLCOX
C. Kent Jespersen Robert L. Sillcox
Chairman Chair of the Audit Committee
Geac Computer Corporation Limited
Consolidated Statements of Earnings
For the years ended April 30, 2005 and 2004
(amounts in thousands of U.S. dollars, except share and per share data)
Three months ended Year ended
April 30, April 30,
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenue:
Software $ 22,270 $ 18,387 $ 71,040 $ 65,190
Support and services 91,991 93,517 360,947 355,019
Hardware 2,943 4,201 12,405 25,063
----------- ----------- ----------- -----------
Total revenue 117,204 116,105 444,392 445,272
Cost of revenue:
Costs of software 1,903 2,171 7,991 7,663
Costs of support and
services 37,184 37,598 142,634 146,316
Costs of hardware 2,204 3,273 9,732 21,117
----------- ----------- ----------- -----------
Total cost of revenue 41,291 43,042 160,357 175,096
----------- ----------- ----------- -----------
Gross profit 75,913 73,063 284,035 270,176
Operating expenses:
Sales and marketing 21,737 18,810 78,086 74,051
Product development 15,123 14,395 57,878 58,805
General and
administrative 17,063 14,768 58,472 62,774
Net restructuring and
other unusual items (1,969) (1,527) (3,724) (5,281)
Amortization of
intangible assets 2,313 2,226 9,161 7,589
----------- ----------- ----------- -----------
Total operating
expenses 54,267 48,672 199,873 197,938
Earnings from operations 21,646 24,391 84,162 72,238
Interest income 1,266 366 3,318 1,265
Interest expense (404) (447) (1,583) (1,289)
Other income (expense), net 1,770 390 2,252 (1,374)
----------- ----------- ----------- -----------
Earnings from operations
before income taxes 24,278 24,700 88,149 70,840
Income taxes 5,640 920 11,125 13,674
----------- ----------- ----------- -----------
Net earnings $ 18,638 $ 23,780 $ 77,024 $ 57,166
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic net earnings per
share $ 0.22 $ 0.28 $ 0.90 $ 0.68
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted net earnings per
share $ 0.21 $ 0.27 $ 0.87 $ 0.66
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number
of common shares used
in computing basic net
earnings per share
('000s) 85,903 84,977 85,574 84,645
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Weighted average number
of common shares used
in computing diluted
net earnings per share
('000s) 89,773 87,591 88,170 86,233
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Geac Computer Corporation Limited
Consolidated Statements of Cash Flows
For the years ended April 30, 2005 and 2004
(amounts in thousands of U.S. dollars)
Year ended April 30,
2005 2004
------------ ------------
(Revised -
see note 1)
Cash Flows from Operating activities
Net earnings.................................. $ 77,024 $ 57,166
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation................................ 5,930 7,243
Amortization of intangible assets........... 9,161 7,589
Amortization of deferred financing costs.... 943 607
Stock based compensation.................... 6,527 2,385
Employee future benefits.................... 4,370 2,272
Future income tax expense................... 20,649 6,044
Release of tax reserves..................... (14,113) (3,020)
Accrued liabilities and other provisions.... (2,165) (6,015)
Gain on sale of assets...................... - (243)
Other....................................... 64 (46)
Changes in operating assets and
liabilities:
Accounts receivable and other
receivables.............................. 1,844 18,809
Prepaid expenses and other assets......... 788 4,902
Other assets.............................. (627) (2,552)
Accounts payable and accrued liabilities.. (4,947) (16,104)
Accrued restructuring..................... (10,560) (1,685)
Asset retirement obligations.............. (159) -
Income taxes payable...................... (4,216) 4,367
Deferred revenue.......................... (8,952) (12,983)
Other..................................... (1,605) (2,150)
------------ ------------
Net cash provided by operating activities..... 79,956 66,586
------------ ------------
Cash Flows from Investing activities
Acquisition of Comshare less cash acquired.... - (39,147)
Proceeds from sale of assets less cash
divested..................................... - 339
Purchases of investments...................... (4,525) (90,203)
Sales of investments.......................... 31,025 83,703
Additions to property, plant and equipment.... (3,417) (3,907)
Disposals of property, plant and equipment.... 46 278
Change in restricted cash..................... (5,893) 652
------------ ------------
Net cash provided by (used in) investing
activities................................... 17,236 (48,285)
------------ ------------
Cash Flows from Financing activities
Deferred financing costs...................... - (2,828)
Issue of common shares........................ 5,767 2,907
Purchase of common shares..................... (6,979) -
Issuance of long-term debt.................... 180 918
Repayment of long term debt................... (447) (3,793)
------------ ------------
Net cash used in financing activities......... (1,479) (2,796)
------------ ------------
Effect of exchange rate changes on cash
and cash equivalents......................... 6,479 726
------------ ------------
Cash and cash equivalents
Net increase in cash and cash equivalents..... 102,192 16,231
Cash and cash equivalents - Beginning of
year......................................... 86,050 69,819
------------ ------------
Cash and cash equivalents - End of year....... $ 188,242 $ 86,050
------------ ------------
------------ ------------
Geac Computer Corporation Limited
Supplementary Information
April 30, 2005 and 2004
(amounts in thousands of U.S. dollars, except share and per share data)
NOTE 1. RECLASSIFICATION
Short-term Investments
The Company has adjusted its consolidated balance sheet as at April 30,
2004, and its consolidated statements of cash flows for the year ended
April 30, 2004. In February 2005, the Company determined that its
previously issued consolidated balance sheet as at April 30, 2004
required an adjustment to reclassify $26,500 of auction rate securities
from cash and cash equivalents to short-term investments. The auction
rate securities were classified as cash and cash equivalents as a result
of the Company's intent to liquidate them within a 60-day period however,
the original maturities of the securities exceeded 90 days. The
adjustments to the Company's consolidated balance sheet as at April 30,
2004 resulted in a decrease of cash and cash equivalents of $26,500 and
an increase in short-term investments of $26,500. In addition,
adjustments to the Company's consolidated statement of cash flows
resulted in a decrease of $6,500 in cash from investing activities for
the year ended April 30, 2004 as a result of net purchases of the auction
rate securities. These reclassifications had no impact on the Company's
results of operations.
As of August 1, 2004 the Company no longer held any auction rate
securities and ceased investing in these securities given that interest
rates increased on traditional investment vehicles.
NOTE 2. SEGMENTED INFORMATION
The Company reports segmented information according to CICA Handbook
Section 1701, "Segment Disclosures." The Company operates the following
business segments, which have been segregated based on product offerings,
reflecting the way that management organizes the segments within the
business for making operating decisions and assessing performance.
Enterprise Applications Systems (EAS) offer software solutions, which
include cross industry enterprise business applications for financial
administration and human resource functions, and enterprise resource
planning applications for manufacturing, distribution, and supply chain
management.
Industry Specific Applications (ISA) products include applications for
the real estate, construction, banking, local government, hospitality and
publishing marketplaces, as well as a range of applications for libraries
and public safety administration.
Accounting policies for the operating segments are the same as those
described in note 2 to the notes of the consolidated financial statements
for the year ending April 30, 2005. There are no significant inter
segment revenues. Segment assets consist of working capital items,
excluding cash and cash equivalents. Cash and cash equivalents are
considered to be corporate assets.
For the year ended April 30, 2004, approximately $1,800 of general and
administrative expenses has been reallocated from the EAS segment to the
ISA segment to provide a more accurate portrayal of segment contribution.
Year ended April 30, 2005
-------------------------
EAS ISA Total
--- --- -----
Revenue:
Software........................... $ 61,075 $ 9,965 $ 71,040
Support and services............... 281,096 79,851 360,947
Hardware........................... 9,597 2,808 12,405
----------- ----------- -----------
Total revenue........................ $ 351,768 $ 92,624 $ 444,392
----------- ----------- -----------
----------- ----------- -----------
Segment contribution................. $ 93,509 $ 15,017 $ 108,526
Segment goodwill..................... $ 101,864 $ 8,278 $ 110,142
Total identifiable segment assets.... $ 201,530 $ 18,799 $ 220,329
Year ended April 30, 2004
-------------------------
EAS ISA Total
--- --- -----
Revenue:
Software........................... $ 54,826 $ 10,364 $ 65,190
Support and services............... 274,859 80,160 355,019
Hardware........................... 21,574 3,489 25,063
----------- ----------- -----------
Total revenue........................ $ 351,259 $ 94,013 $ 445,272
----------- ----------- -----------
----------- ----------- -----------
Segment contribution................. $ 79,417 $ 9,273 $ 88,690
Segment goodwill..................... $ 120,195 $ 8,171 $ 128,366
Total identifiable segment assets.... $ 225,865 $ 22,677 $ 248,542
Reconciliation of segment contribution to earnings from operations before
income taxes
Year ended April 30,
--------------------
2005 2004
---- ----
Segment contribution............................. $ 108,526 $ 88,690
Corporate expenses............................... (18,927) (14,144)
Amortization of intangible assets................ (9,161) (7,589)
Interest income (expense), net................... 1,735 (24)
Other income (expense), net...................... 2,252 (1,374)
Net restructuring and other unusual items........ 3,724 5,281
----------- -----------
Earnings from operations before income taxes..... $ 88,149 $ 70,840
----------- -----------
----------- -----------
Reconciliation of segment assets to total Company assets
April 30,
2005 2004
---- ----
Total identifiable segment assets................ $ 220,329 $ 248,542
Other assets..................................... 6,156 6,378
Future income taxes.............................. 42,850 36,988
Cash and cash equivalents........................ 188,242 86,050
Short-term investments........................... - 26,500
Restricted cash.................................. 7,847 1,876
Other unallocated assets......................... 742 569
----------- -----------
Total assets..................................... $ 466,166 $ 406,903
----------- -----------
----------- -----------
Geographical information
April 30, 2005 April 30, 2004
-------------- --------------
Property, Property,
Plant and Plant and
Equipment Equipment
Intangible Intangible
Assets Assets
Goodwill and Goodwill and
Revenue Other Assets Revenue Other Assets
------------- ------------- ------------- -------------
Canada........... $ 9,831 $ 9,243 $ 12,956 $ 8,682
U.S.A. .......... 213,699 112,473 213,070 136,349
United Kingdom... 87,650 22,698 84,579 27,697
France........... 50,135 7,249 54,042 7,590
Australia........ 20,607 2,709 21,265 3,615
All other........ 62,470 7,772 59,360 7,282
------------- ------------- ------------- -------------
Total.......... $ 444,392 $ 162,144 $ 445,272 $ 191,215
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Revenues in the above tables are based on the location of the sales
organization, which reflects the location of the customers to which sales
are made. Revenues are derived from the licensing of software, the resale
of hardware and the provision of related maintenance and professional
services.
DATASOURCE: Geac Computer Corporation Limited
CONTACT: Financial Contact: Donna de Winter, Chief Financial Officer,
Geac, (905) 475-0525 ext. 3204, ; Investor and Media
Contact: Alys Scott, Vice President, Corporate Communications, Geac,
(508) 871-5064,