Meets Quarterly Guidance While Building Service Delivery Management Leadership and Restructuring for Future Performance
ATLANTA, July 28, 2004 – Indus International Inc. (NASDAQ: IINT), a leading provider of Service Delivery Management (SDM)™ solutions, today announced results of operations for its fiscal first quarter ended June 30, 2004, and provided guidance for future financial performance. Total revenue for the first quarter of fiscal 2005 increased to $38.6 million from $38.2 million for the first quarter of fiscal 2004.
Net loss for the quarter, which includes $10.5 million of charges relating to previously announced rationalizations of facilities and headcount, was $9.9 million, or $0.17 per share, compared to a net loss of $4.9 million, or $0.12 per share, in the first quarter of fiscal 2004.
Excluding the $10.5 million of charges, adjusted net income for the first quarter of 2005 was $529,000, or $0.01 per share.
Key Quarterly Financial and Business Highlights:· Achieved highest quarterly software license revenue in more than four years at $9.4 million, reflecting 7 percent year-over-year growth and 38 percent sequential growth· Solidified our market presence in Asia-Pacific with the general release of the double-byte character-enabled Japanese version of our PassPort product following product acceptance by Tokyo Electric Power Company (TEPCO), our flagship customer in Japan· Worked with IBM to implement and take “live” TEPCO and recognized significant license fees previously deferred· Continued our strategic shift toward sales of software licenses over services, consistent with our business plans to achieve a model with more leverage· Met guidance and achieved profitability, before restructuring charges· Completed our previously announced restructuring plans by vacating office space in Atlanta and San Francisco and eliminating approximately 70 positions, which should further lower breakeven by reducing ongoing expenses by an estimated $1.5 million to $2.0 million per quarter, beginning in the second quarter of this fiscal year· Leveraged the Wishbone acquisition by licensing Field Service Suite in more than 40 percent of this quarter’s software deals, further validating SDM strategy· Added new customers to the Indus portfolio, including Centre Hospitalier Universitaire de NANCY, Compagnie des Transports de Strasbourg, Opera National de Paris, Paks Nuclear Power Plant Ltd.
(Hungary) and Southern Company Services · Completed search for Chief Financial Officer with the appointment of Thomas W. Williams Jr. · Hosted annual users’ conference, IndusWorld, with record participation of more than 800 attendees and 250 customers
CEO Commentary
“As expected, we saw some normal seasonality in our fiscal first quarter. However, we continued to make great strides executing our SDM strategy, signing substantial new deals in diverse industries. More than 40 percent of these deals include our new Field Service Suite acquired in the Wishbone acquisition in January of this year,” said Indus President and CEO Greg Dukat. “As we continue to invest in and market our industry-leading SDM suite, a wide array of business-to-business and business-to-consumer sectors is beginning to show interest in our solutions to take advantage of the growing demand for cost-effective and efficient service delivery operations.
Therefore, we remain optimistic and focused on our long-term goals – increasing our leadership in Service Delivery Management, broadening our client base in new growth markets and improving our financial performance.” Dukat added, “We stated in our last earnings announcement that we expected to see growth in license revenue reflecting our shift to greater use of resellers and systems integrators. During the second half of fiscal 2005, as our SDM strategy gains momentum and cost savings are realized from the actions we have taken and continue to evaluate, we expect quarter-to-quarter revenue growth with increasing profitability and cash flow. All of this positions Indus for sustained, long-term profitability.”
For the second fiscal quarter ending September 30, 2004, the Company currently projects revenues of between $32 million and $34 million. Net income for the quarter is anticipated to range between breakeven and $1 million. These projections assume no significant changes to the current general economic environment and the capital spending environments within our markets over the next few months.
Investor Call
As announced on July 20, Indus will conduct an investor conference call to discuss the Company’s results at 4:30 p.m. (Eastern) today.
Investors may access the conference call over the Internet via the Company’s Website ( investor.indus.com ), or via telephone by dialing 706-634-1146. 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 midnight (Eastern) Friday, August 13, by dialing 800-642-1687 (international callers dial 706-645-9291) and entering conference ID #8816926; 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, Indus will answer questions submitted by individual investors at any time prior to and during the call.
Individual investors should send their questions via email to [email protected] .
About Indus International
Indus is a leading provider of Service Delivery Management (SDM) solutions, 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 www.indus.com .
