Ross Systems (NASDAQ:ROSS)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Ross Systems Charts. Click Here for more Ross Systems Charts.](/p.php?pid=staticchart&s=N%5EROSS&p=8&t=15)
Ross Systems 2nd Quarter Report
Company Reports 26% Increase in Software License Revenue
ATLANTA, Feb. 11 /PRNewswire-FirstCall/ -- Ross Systems, Inc. , a leading
provider of enterprise software solutions for manufacturers, today announced
results for its second fiscal quarter, which ended December 31, 2003. The
Company reported a net loss of $0.4 million or $0.15 per share, after merger
transaction costs and an arbitration settlement charge which totaled $2.1
million. The merger transaction costsare associated with the merger with CDC
Software, a subsidiary of chinadotcom. The arbitration settlement related to a
product distribution agreement with a Dutch software firm which was terminated
by the company in 2001. As previously reported, the Hart Scott Rodino waiting
period for the merger has elapsed without challenge and the merger, subject to
stockholder approval, is now expected to proceed during the second quarter of
calendar 2004.
Revenues for the quarter at $13.5 million increased 11% from $12.2 million in
the prior year's same quarter. Software license revenue for the quarter at $4.4
million increased 26% from $3.5 million in the prior year's same quarter.
Consulting service revenue at $4.0 million increased 14% from $3.5 million in
the prior year's same quarter. Maintenance revenue at $5.1 million declined 1%
from $5.2 million in the prior year's same quarter. The net loss for the quarter
of $0.4 million or $0.15 per share, compared to a net profit of $1.4 million or
$0.45 per diluted share in the prior year's same quarter. Excluding the $2.1
million of settlement and transaction costs noted above the earnings would have
been $1.7 million for a 21% improvement over the prior year's same quarter.
Net cash of $7.4 million this quarter increased $1.3 million over the prior
year's same quarter and declined $0.6 million from the previous quarter,
reflecting the merger transaction and settlement costs incurred during the
quarter.
The Company has no long-term debt, and deferred revenues this quarter increased
to $10.6 million from $10.1 million in the sequential quarter. Accounts
receivable, at $13.9 million, increased from $11.7 million in the sequential
quarter. Accounts receivable turnover at 87 days increased slightly compared to
84 days in the sequential quarter.
For the six month period, the Company reported revenue of $25.3 million or a 7%
increase over the prior year's same period and a net loss of $0.9 million or
$0.34 per share after settlement and transaction costsof $2.9 million compared
to a net profit of $2.0 million or $0.65 per share for the prior year's same
period.
"Contributing to this quarter's software license results were both an increase
in new customer licenses of the complete suite of process manufacturing software
products as well as sales of our Internet Application Framework (IAF) and
related browser capabilities to improve user productivity. We are also pleased
that our existing customers continue to upgrade and implement additional
iRenaissance applications and are excited by the increased activity level in new
account decisions for Ross," said J. Patrick Tinley, Ross' Chairman and CEO.
About Ross Systems
Ross Systems, Inc. (NASDAQ:ROSS) delivers innovative software solutions that
help manufacturers worldwide fulfill their business growth objectives through
increased operational efficiencies, improved profitability, strengthened
customer relationships and streamlined regulatory compliance. Focused on the
food and beverage, life sciences, chemicals, metals and natural products
industries and implemented by over 1,000 customer companies worldwide, the
company's family of Internet-architected solutions is a comprehensive, modular
suite that spans the enterprise, from manufacturing, financials and supply chain
management to customer relationship management, performance management and
regulatory compliance.
Publicly traded on the NASDAQ since 1991, Ross's global headquarters are based
in the U.S. in Atlanta, Georgia, with sales and support operations around the
world. http://www.rossinc.com/ .
STATEMENTS IN THIS ANNOUNCEMENT, WHICH EXPRESS THAT THE COMPANY "BELIEVES",
"ANTICIPATES", "EXPECTS", "PLANS TO..." OR "SHOULD BEGIN TO ... " AS WELL AS
OTHER STATEMENTS, WHICH ARE NOT HISTORICAL FACT, ARE FORWARD LOOKING STATEMENTS
WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
FORWARD LOOKING STATEMENTS IN THIS ANNOUNCEMENT INCLUDE STATEMENTS ABOUT THE
PROPOSED MERGER. ACTUAL EVENTS OR RESULTS MAY DIFFER MATERIALLY AS A RESULT OF
RISKS AND UNCERTAINTIES, INCLUDING THE RISK THAT THE MERGER IS NOT APPROVED
BY ROSS SHAREHOLDERS OR IS OTHERWISE NOT COMPLETED, THE RISK THAT THE
ANTICIPATED BENEFITS OF THE MERGER ARE NOT REALIZED, QUARTERLY FLUCTUATION OF
SOFTWARE PRODUCT LICENSE REVENUE, WEAKENING OF CUSTOMER DEMAND FOR ENTERPRISE
SYSTEMS, THE COMPANY'S MAINTENANCE OF A MINIMAL BACKLOG, THE UNCERTAINTY OF
DEMAND FOR NEW PRODUCT OFFERINGS AND OTHER RISKS AND UNCERTAINTIES DESCRIBED IN
REPORTS FILED BY THE COMPANY WITH THE SEC, INCLUDING THE ANNUAL REPORT ON FORM
10-K FILED FOR THE YEAR ENDED JUNE 30, 2003. YOU ARE CAUTIONED NOT TO PLACE
UNDUE RELIANCE ON ANY FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE
DATE OF THIS ANNOUNCEMENT. WE DO NOT UNDERTAKE ANY OBLIGATION TO PUBLICLY UPDATE
OR RELEASE ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS
OR CIRCUMSTANCES AFTER THE DATE OF THIS ANNOUNCEMENT OR TO REFLECT THE
OCCURRENCE OF UNANTICIPATED EVENTS, EXCEPT AS REQUIRED BY LAW.
ROSS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
December 31, December 31,
2003 2002 2003 2002
Revenues:
Software product licenses $4,388 $3,474 $7,350 $7,206
Consulting and other services 4,022 3,534 7,578 6,305
Maintenance 5,116 5,165 10,347 10,088
Total revenues 13,526 12,173 25,275 23,599
Operating expenses:
Costs of software product licenses 502 521 846 867
Costs of consulting and
maintenance 5,180 4,176 10,178 8,577
Sales and marketing 3,0592,883 5,749 5,305
Product development net of
capitalized and amortized
computer software costs 1,940 1,746 4,040 3,547
General and administrative 930 1,045 2,072 2,406
Litigation settlement cost 1,896 - 1,896 -
Provision for uncollectible
accounts 96 242 231 514
Total operating expenses 13,603 10,613 25,012 21,216
Operating earnings (loss) (77) 1,560 263 2,383
Prospective merger transaction
costs (239) - (997) -
Other financial, net benefit
(expense) (41) (27) (29) (122)
Earnings before taxes (357) 1,533 (763) 2,261
Income tax expense 5 65 83 155
Net (loss) earnings $(362) $1,468$(846) $2,106
Preferred stock dividend (38) (38) (75) (75)
Net (loss) profit available to
common shareholders $(400) $1,430 $(921) $2,031
Net earnings (loss) per common
share - basic $(0.15) $0.54 $(0.34) $0.77
Net earnings (loss) per common
share - diluted $(0.15) $0.45 $(0.34) $0.65
Shares for basic calculation 2,658 2,642 2,696 2,635
Shares for diluted calculation 2,658 3,260 2,696 3,252
ROSS SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share related data)
December 31 June 30
2003 2003
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $7,366 $8,628
Accounts receivable, less
allowance for doubtful
accounts and returns 13,942 12,880
Prepaids and other current assets 489 731
Total current assets 21,796 22,239
Property and equipment 1,243 1,406
Computer software costs 12,832 13,573
Other assets 2,993 2,993
Total assets $38,864 $40,211
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of debt $5,309 $2,800
Accounts payable 2,025 2,978
Accrued expenses 4,654 4,940
Income taxes payable 68 261
Deferred revenues 10,590 12,203
Total current liabilities 22,646 23,182
Shareholders' equity:
Common stock 28 28
Preferred Stock 2,000 2,000
Additional paid-in capital 87,157 87,189
Accumulated deficit (69,940) (69,094)
Accumulated comprehensive income
(deficit) (1,908) (1,749)
Treasury Stock (1,120) (1,345)
Total shareholders' equity 16,217 17,029
Total liabilities and
shareholders' equity $38,864 $40,211
DATASOURCE: Ross Systems, Inc.
CONTACT: Robert B. Webster of Ross Systems, +1-770-351-9600, or
Web site: http://www.rossinc.com/