Indus (NASDAQ:IINT)
Historical Stock Chart
From Jun 2019 to Jun 2024
![Click Here for more Indus Charts. Click Here for more Indus Charts.](/p.php?pid=staticchart&s=N%5EIINT&p=8&t=15)
Indus International, Inc. (NASDAQ: IINT), a leading
Service Delivery Management (SDM)(TM) solution provider, today
announced the results of operations for its fiscal fourth quarter and
year ended March 31, 2006, and provided guidance for future financial
performance.
Total revenue for the fourth quarter of fiscal 2006 was $31.9
million, compared with $37.4 million in the same quarter last year and
$34.7 million in the prior quarter. Revenue from software license fees
totaled $5.1 million, compared to $8.9 million in the same period a
year ago and $8.1 million in the prior quarter. Net income for the
quarter was $2.1 million, or $0.03 per fully diluted share, compared
to $2.5 million, or $0.04 per fully diluted share, in the same quarter
last year and $2.9 million, or $0.05 per fully diluted share, in the
prior quarter. Adjusted net income, which excludes restructuring
benefits and settlement expenses, was $1.9 million, or $0.03 per fully
diluted share, for the fourth quarter of fiscal 2006 compared to $2.4
million, or $0.04 per fully diluted share, in the same quarter last
year and $3.0 million, or $0.05 per fully diluted share, in the prior
quarter. A reconciliation of adjusted net income (loss) is included in
the financial statements that are part of this press release.
Total revenue for fiscal 2006 was $133.2 million, compared with
$142.2 million in fiscal 2005. On a full-year comparison, software
license revenue was $26.0 million; support, outsourcing and hosting
revenue was $59.7 million and consulting, training and other revenue
was $47.5 million in fiscal 2006 compared to $31.9 million, $59.5
million and of $50.1 million, respectively, for fiscal 2005. It is
important to note that license revenues for fiscal 2005 include a
transaction for more than $5 million, which was closed in 2003 but not
recognized until fiscal 2005 when the company completed certain
translation efforts for a customer in Japan. The company's net income
for fiscal 2006 totaled $8.2 million, or $0.14 per fully diluted
share, compared with a net loss of $6.1 million, or $0.11 per fully
diluted share, during the prior year. Adjusted net income, which
excludes the restructuring benefits and settlement expenses, was $8.2
million, or $0.14 per fully diluted share, for fiscal 2006, reflecting
a $3.8 million improvement over the adjusted net income of $4.4
million, or $0.08 per fully diluted share, for fiscal 2005.
Key Quarterly Financial and Business Highlights:
-- Signed new clients in service delivery management space during
the fourth quarter, including Johnson Controls Inc., Salt
River Project and American Tower Corporation
-- Won multiple successful license expansions during the fourth
quarter in utility industry, including Greater Cincinnati
Water Works and several municipalities
-- Signed international license expansions in Central Europe
during the fourth quarter at CEZ in The Czech Republic, as
well as ENTP in Algeria, GE Plastics and Sanofi
Key Annual Financial and Business Highlights:
-- Posted adjusted net income for the year, which excludes
restructuring benefits and settlement expenses, of $8.2
million, or $0.14 per fully diluted share, reflecting an
improvement of 75 percent over the prior year amount of $4.4
million, or $0.08 per fully diluted share
-- Increased cash by $9.1 million over the fiscal year, which is
net of a $2.5 million payment as a result of our lease buyout
-- During fiscal 2006, increased licenses of Service Suite
product by more than 200 percent from the prior year,
including several strategic wins outside of the utility market
-- Had successful license sales during fiscal year 2006 in Europe
at CNE of Romania, La Compagnie Generale Des Matieres
Nuclearires (COGEMA) and Danka, as well as a successful
go-live and license expansion at PAKS in Hungary
-- Continued development of business opportunity in Japan with a
license expansion at Tokyo Electric Power Company (TEPCO) and
the delivery of the translated product to an additional
Japanese electric power company
-- Maintained leadership in the utility market, particularly for
nuclear power generation, as evidenced by a key license
expansion during fiscal 2006 at Entergy, which will lead to
the standardization of Indus products across their entire
fleet of nuclear power plants
Executive Commentary
"Although the software license fees for the fourth quarter of
fiscal year 2006 were not what we had expected, we did meet our annual
projections on adjusted EPS and continued to make progress toward our
business goals," said Indus President and CEO Greg Dukat. "In all of
our key business areas -- utilities, international markets and
commercial SDM opportunities -- we remained focused and successfully
executed our strategy. License transactions for our field service
management product, Indus Service Suite, grew more than 200 percent
for the year, far exceeding growth in the fast-growing field service
market as a whole. So, while we face challenges in certain areas as
all industry-leading companies do, we enter fiscal 2007 in excellent
shape."
Indus Chief Financial Officer Pat Henn added, "Our restructuring
and cost control efforts over the past few years have allowed us to
improve the profitability and financial position of the company
significantly during fiscal 2006. We will continue to look for
opportunities to improve our financial position as we execute our
Service Delivery Management strategy."
Business Outlook
For the fiscal year ending on March 31, 2007, the company
currently projects adjusted net income, which excludes restructuring
charges and benefits and stock option compensation expense under SFAS
123(R), to fall within a range of $0.17 and $0.23 per fully diluted
share. A reconciliation of adjusted net income (loss) is included as
part of this press release. These projections assume the company will
not be subject to income taxes and that there are no significant
changes to the current general economic environment and the capital
spending environments within our markets over the course of the year.
Investor Call
As previously announced, Indus will conduct an investor conference
call to discuss the company's results and other matters related to the
company at 11:00 a.m. EST today. Investors may access the conference
call over the Internet via the Company's Website (investor.indus.com),
or via telephone by dialing 800-938-0653 (International callers dial
973-321-1100). Those listening via the Internet should go to the site
15 minutes early to register, download and install any necessary audio
software.
For those who cannot listen to the live broadcast, a replay will
be available through May 19, 2006, by dialing 877-519-4471
(international callers dial 973-341-3080) and entering conference ID
#7299211; or by going to the Company's Website (Investor.Indus.com).
Like most companies, Indus will be taking live questions from
securities analysts and institutional portfolio managers, but the
complete call is open to all interested parties on a listen-only
basis. Furthermore, individual investors may submit questions at any
time prior to and during the call by sending an email to
investorqa@indus.com.
About Indus International
Indus is a leading Service Delivery Management (SDM) solution
provider, which help clients in a broad array of industries optimize
the management of their customers, workforce, spare parts inventory,
tools and documentation in order to maximize performance and customer
satisfaction while achieving significant cost savings. Indus customer,
asset and workforce management software products, professional
services and hosted service offerings improve our clients'
profitability by reducing costs, increasing capacity and
competitiveness, improving service to their customers, facilitating
billing for services and ensuring regulatory compliance. Indus
solutions have been purchased by more than 400 companies in more than
40 countries, representing diverse industries -- including
manufacturing, utilities, telecommunications, government, education,
transportation, facilities and property management, consumer packaged
goods and more. For more information, visit our Website at
http://www.indus.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains statements, estimates or projections
that are not historical in nature and that may constitute
"forward-looking statements" as defined under U.S. federal securities
laws. These statements include, but are not limited to, estimated
operating results for fiscal year ending March 31, 2007, and
sustaining leadership in our target markets. These statements, which
speak only as of the date given, are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our Company's historical experience and our expectations or
projections. These risks include, but are not limited to, projected
growth in the emerging service delivery management market, market
acceptance of our service delivery management strategy, current market
conditions for our products and services, our ability to achieve
growth in our asset management and customer management offerings,
market acceptance and the success of our new products and enhancements
and upgrades to our existing products, the success of our product
development strategy, our competitive position, the ability to
establish and retain partnership arrangements, our ability to develop
our indirect sales channels, changes in our executive management team,
uncertainty relating to and the management of personnel changes, the
ability to realize the anticipated benefits of our recent
restructurings, timely development and introduction of new products,
releases and product enhancements, current economic conditions,
heightened security and war or terrorist acts in countries of the
world that affect our business, and other risks identified from
time-to-time in the Company's SEC filings. Investors are advised to
consult the Company's filings with the SEC, including its 2005 Annual
Report on Form 10-K filed with the SEC on June 13, 2005, and its
subsequent quarterly reports on Form 10-Q filed with the SEC for a
further discussion of these and other risks.
The information presented in this press release includes financial
measures using accounting principles generally accepted in the U.S.
("GAAP") and using adjustments to GAAP. In particular, we have shown
certain GAAP measures adjusted to eliminate restructuring and
settlement expenses as well as subsequent revisions of the estimates
used in the determination of such charges which relate to excess lease
costs for vacated space and severance costs in the periods discussed
herein. We have presented such non-GAAP financial measures because we
believe that they allow management to view trends and changes in
operating performance excluding the effects of certain items, they are
helpful for a period-to-period comparison of our results and are
frequently used by securities analysts, investors and other interested
parties, in addition to and not in lieu of GAAP results, to compare
the performance of companies.
Indus is a registered trademark of Indus International Inc. Other
company and product names may be trademarks of the respective
companies with which they are associated.
-0-
*T
INDUS INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
March 31, March 31,
2006 2005
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 37,165 $ 27,779
Restricted cash 2,793 194
Billed accounts receivable, net 14,020 16,844
Unbilled accounts receivable 6,257 14,293
Other current assets 3,683 3,672
---------- ----------
Total current assets 63,918 62,782
Property and equipment, net 26,990 30,755
Capitalized software, net 3,760 5,014
Goodwill 7,442 7,442
Acquired intangible assets, net 9,066 10,536
Restricted cash, noncurrent 2,976 5,821
Other assets 681 427
---------- ----------
Total assets $ 114,833 $ 122,777
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 767 $ 767
Accounts payable 3,836 4,208
Accrued liabilities 14,051 19,213
Deferred revenue 30,233 34,911
---------- ----------
Total current liabilities 48,887 59,099
Income taxes payable 2,553 3,137
Mortgage and other liabilities 13,312 20,128
Stockholders' equity:
Common stock 59 58
Additional paid-in capital 163,218 165,280
Treasury stock, at cost - (4,681)
Deferred compensation (480) -
Accumulated deficit (113,142) (121,322)
Accumulated other comprehensive income 426 1,078
---------- ----------
Total stockholders' equity 50,081 40,413
---------- ----------
Total liabilities and stockholders'
equity $ 114,833 $ 122,777
========== ==========
*T
-0-
*T
INDUS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except per share data)
Three Months Twelve Months
Ended Ended
March 31, March 31,
---------------- --------------------
2006 2005 2006 2005
-------- -------- --------- ---------
Revenue:
Software license fees $ 5,104 $ 8,850 $ 25,971 $ 31,866
Services:
Support, outsourcing
and hosting 15,442 15,276 59,694 59,543
Consulting, training
and other 11,387 13,254 47,491 50,760
-------- -------- --------- ---------
Total revenue 31,933 37,380 133,156 142,169
-------- -------- --------- ---------
Cost of revenue:
Software license fees 568 488 2,041 3,737
Services:
Support, outsourcing
and hosting 3,860 3,678 14,474 16,975
Consulting, training
and other 9,432 9,593 37,398 38,995
-------- -------- --------- ---------
Total cost of revenue 13,860 13,759 53,913 59,707
-------- -------- --------- ---------
Gross margin 18,073 23,621 79,243 82,462
-------- -------- --------- ---------
Operating expenses:
Research and development 6,741 8,711 29,357 31,956
Sales and marketing 6,286 8,190 27,234 30,619
General and administrative 3,373 4,062 15,187 15,125
Restructuring and settlement
(benefits)/expenses (153) (118) (24) 10,430
-------- -------- --------- ---------
Total operating
expenses 16,247 20,845 71,754 88,130
-------- -------- --------- ---------
Operating income (loss) 1,826 2,776 7,489 (5,668)
Other income (expense), net 147 (232) 529 (285)
-------- -------- --------- ---------
Pre-tax income (loss) 1,973 2,544 8,018 (5,953)
Provision (benefit) for income
taxes (89) 32 (162) 112
-------- -------- --------- ---------
Net income (loss) $ 2,062 $ 2,512 $ 8,180 $ (6,065)
======== ======== ========= =========
Net income (loss) per share:
Basic $ 0.04 $ 0.04 $ 0.14 $ (0.11)
======== ======== ========= =========
Diluted $ 0.03 $ 0.04 $ 0.14 $ (0.11)
======== ======== ========= =========
Shares used in computing per
share data:
Basic 58,410 57,456 57,951 57,259
Diluted 61,512 58,131 60,195 57,259
*T
-0-
*T
INDUS INTERNATIONAL, INC.
RECONCILIATION OF ADJUSTED NET INCOME (LOSS)
(In Thousands, except per share data)
Three Months Twelve Months
Ended Ended
March 31, March 31,
--------------- ----------------
2006 2005 2006 2005
------- ------- ------- --------
Reconciliation of adjusted net income (loss)*:
Net income (loss) $2,062 $2,512 $8,180 $(6,065)
Restructuring and settlement
(benefits)/expenses (153) (118) (24) 10,430
Income tax effect - - - -
------- ------- ------- --------
Adjusted net income* $1,909 $2,394 $8,156 $ 4,365
======= ======= ======= ========
------- ------- ------- --------
Adjusted net income per diluted
share* $ 0.03 $ 0.04 $ 0.14 $ 0.08
======= ======= ======= ========
*T