Indus (NASDAQ:IINT)
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Indus International Inc. (NASDAQ: IINT), a leading
Service Delivery Management (SDM) solution provider, today announced
its preliminary earnings results for the first fiscal quarter ended
June 30, 2006.
For the first quarter, the Company expects its GAAP earnings per
share to be a loss in the range of $0.04 to $0.05 per fully diluted
share and non-GAAP adjusted earnings per share to be a loss of
approximately $0.03 per fully diluted share. Adjusted earnings per
share for the quarter exclude approximately $0.01 per share of charges
incurred in the quarter, comprised of approximately $11,000 of
restructuring charges and benefits and approximately $600,000 of stock
compensation expense. The Company reiterates its previous guidance for
fiscal 2007 for non-GAAP adjusted earnings of $0.17 to $0.23 per fully
diluted share, excluding an estimated $0.05 per share of charges
expected to be incurred in fiscal 2007, comprised of approximately
$100,000 of restructuring charges and benefits and approximately $3
million of stock compensation expense. For fiscal year 2007, the
Company expects GAAP earnings of $0.12 to $0.18 per fully diluted
share.
The Company reported that the loss for the quarter is due to
continuing timing challenges in closing licensing deals with large
organizations, which has caused lower than anticipated license fees
during the quarter. Typically, license arrangements with large
organizations involve longer sales cycles. Since these arrangements
also involve significant license revenues for the Company, any delays
in securing these deals can materially affect our financial results
for a quarter. In addition, the delay in closing these license
transactions has resulted in delays in the related implementation
services and a shortfall in the expected consulting services for the
quarter. The Company expects to report license revenue of
approximately $2.6 million for the quarter.
Commenting on the update, Indus President and Chief Executive
Officer Greg Dukat stated, "While we understand our many stakeholders
are disappointed by the news of license closing delays, our pipeline
visibility indicates that this is a timing issue. We have a handful of
multi-million-dollar license transactions with large key customers
where we have been selected, and we anticipate that these contracts
will close in our favor in the near future. These transactions
represent a significant portion of license revenue we expect in the
fiscal year to achieve our unchanged annual EPS guidance. We look
forward to providing a full update of our results of operations with
the release of our first quarter earnings."
The Company is currently in the process of finalizing its results
for the quarter ended June 30, 2006, and the Company's independent
registered public accounting firm has not yet completed its review of
the Company's quarterly results. As such, there can be no assurance
that actual GAAP and adjusted earnings per fully diluted share for the
quarter ended June 30, 2006, will not be different than expected. The
Company expects to report full financial results for its fiscal first
quarter ending June 30, 2006, during the first week of August 2006.
Conference Call Information
The Company will hold a teleconference call today at 10:00 a.m.
Eastern Time to update its shareholders on the status of the quarter.
To access the call dial 888-889-5345 a few minutes prior to the
start of the call at 10:00 a.m. Eastern Time/7:00 a.m. Pacific Time.
International callers dial 973-935-8516.
Note: If the number of lines allocated to the call is exhausted,
the Webcast or replay should be utilized.
Internet Simulcast*:
Investor.Indus.com
*Those listening via the Internet should go to the site 15 minutes
prior to register, download and install any necessary audio software.
Replay:
The teleconference will be available for replay until midnight
Eastern Time, Friday, July 28, 2006, and can be accessed by dialing
877-519-4471 (international callers dial 973-341-3080) and entering
conference ID # 7600673, or the call can be accessed on the Company's
Website at Investor.Indus.com.
About Indus International
Indus is a leading Service Delivery Management (SDM) solution
provider, helping 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, high tech,
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, estimates of
GAAP earnings per share and non-GAAP adjusted earnings per share for
the first fiscal quarter ended June 30, 2006, license revenue for the
first quarter, as well as statements regarding the Company's sales
pipeline and competitive position and the expected timing of
transaction closures. 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 close licensing transactions for
which we have been selected or we are negotiating arrangements, 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 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 fiscal 2006
Annual Report on Form 10-K 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 incurred under restructuring plans over the last
few years by the Company to bring its operating expenses more in line
with its operations, as well as stock compensation expenses incurred
during the period. We have presented such non-GAAP financial measures
because our management believes that they provide meaningful
information regarding those aspects of the Company's current operating
performance that it can manage. Consequently, management uses these
measures in our internal reporting, planning and compensation systems
and to view trends and changes in operating performance excluding the
effects of certain items that do not correlate to operating expenses
of the Company's continuing operations. As a result, our public
disclosure of these measures enables investors to evaluate our
operating performance in a manner consistent with that used by
management. We also believe that these measures are helpful for a
period-to-period comparison of our results and are frequently used by
securities analysts, investors and other interested parties to compare
the performance of companies in our industry. These non-GAAP measures
should not be used as a substitute for measures calculated in
accordance with GAAP and may not be directly comparable to similarly
titled measures of other 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.