24 Jan 02. Indus International, Inc. (Nasdaq:IINT – news), announced results for the fourth quarter and year ended December 31, 2001 ON January 24th, along with a statement regarding the UK DSMS project (See DSMS Suspended).
British Ministry of Defense Suspends DSMS Project The Company also announced today that it has received notification that the United Kingdom’s Ministry of Defense (MoD) has suspended all current contractual work on the Defense Stores Management Solution (DSMS) project. The Company announced on January 2, 2002 that unanticipated MoD budget constraints would reduce near-term revenues from this project. The MoD is now suspending current contracted activities as it reviews its priorities against long-term resource availability. The MoD has not advised the Company when this review will be completed.
As a result of this notification, the Company plans to take a restructuring charge in the first quarter of 2002. The Company is currently in the process of identifying the actions to be taken, which will determine the size of this charge.
Outlook for 2002 “Although we are disappointed with the decision to suspend the DSMS project at the MoD, we expect growth in our core EAM product offerings, cost reductions, and revenues from the introduction of Indus InSite™ to generate earnings growth in 2002,” Mr. Hudson stated. “We expect to incur an operating loss of approximately $0.15 per share for the first quarter, as a result of the suspension of the MoD project, before returning to profitability mid-year. Full year earnings per share will depend on the amount of revenue growth and the mix of services and software licensing revenues, including the contribution from Indus InSite™.”
Revenues for the fourth quarter increased to $46.3 m, (2000: $44.8m) and from $44.2m in the third quarter of 2001. Indus recognized software licensing fees of $9.4m during the quarter, a 22 percent increase, (2000: $7.7m) and an 81 percent increase over the $5.2m reported in the third quarter of 2001.
Net income for the fourth quarter was $1.2 million, or $0.03 per diluted share
(2000: ($13.6m), or ($0.39) per diluted share),and net income of $0.4m, or $0.01 per diluted share in the third quarter of 2001.
Cash, cash equivalents and marketable securities were $63.5m at December
31, 2001, (2000: $62.8m)and $55.3m at December 31, 2000. Deferred revenue was $40.0m at December 31, 2001 (2000: $41.2m).
Indus President and Chief Executive Officer Kent O. Hudson stated, “The fourth quarter was very significant for Indus. First, we remained profitable in a very difficult economic environment for several of the key vertical markets served by Indus. Further, the Company obtained its first license fee contract as a result of its Global Alliance with i2 Technologies. This commitment substantiates Indus’ ability to convert its strategic relationships into tangible value for our customers and shareholders. Finally, we introduced Indus InSite™, an innovative pure-Internet software solution that we believe establishes Indus as the world’s only company offering a full range of asset management solutions that are global across all industries and scalable to all business sizes.”
For the year ended December 31, 2001, the Company reported a net loss of $11.5m, or a loss per share of $0.33, on revenues of $176.0 million, (2000:($58.8m)), or a loss per share of $1.72, on revenues of $145.7m for 2000.