Tempe, AZ February 7, 2003 With February well underway, the flood of quarterly earnings reports of the past few weeks has slowed to a trickle, although at least one solution provider in the supply chain field, MRO Software, had some good news to report.
On Monday, iSource Business reported on earnings for solution providers Ariba, Aspen Technology, Commerce One, Epicor, i2, PeopleSoft, SAP, SciQuest, Technology Solutions Co. and Vitria.
The overall picture was one of drops in revenues against the year-ago period, as well as reduced profits or, more frequently, losses, often as a result of restructuring charges as solution providers downsized themselves to accommodate the continued lag in corporate spending on new technology.
Today, we close out our earnings season reporting with a look at the latest results from MRO Software, Printcafe, Siebel Systems and Viewlocity. And again, the results paint a mixed picture, with just one provider, MRO, reported profits under generally accepted accounting principles.
Asset management specialist MRO Software reported a profit of $400,000 for the first quarter of its 2003 fiscal year, ended December 31. That compares with a net loss of $1.9 million for the same quarter of the previous year. MRO Software offers solutions for procuring, maintaining and managing enterprise assets.
The Bedford, Mass.-based company recorded revenues of $43.9 million for the most recent quarter, down slightly from the $46.5 million that came in during the year-ago period.
The company's balance sheet showed $71.0 million in cash and marketable securities and no long-term debt as of December 31. "The fiscal health of the company remains very sound, providing a critical differentiator in this sales environment," said Peter Rice, MRO's chief financial officer.
During the first quarter of fiscal 2003, MRO said it sold more than 260 licenses into a variety of industries, including the Washington Metropolitan Area Transit Authority, the city of Cincinnati, the U.S. Department of Energy, Visteon, BP International and Baxter Pharmaceuticals, among others.
Pittsburgh's Printcafe Software reported a net loss attributable to common stock, based on generally accepted accounting principles (GAAP), of $9.5 million for the fourth quarter of 2002, compared to a loss of $8.1 million for the same period of 2001.
Printcafe provides software solutions for the printing industry supply chain. The company recently has become the target of competing acquisition offers (see related story).
The company's revenues in the fourth quarter came in at $11.3 million, matching revenues brought in during the same quarter of 2001. For all of 2002, Printcafe showed a net loss attributable to common stock, based on generally accepted accounting principles, of $47.0 million, compared to $75.6 million for the previous year.
The company recorded $46.5 million in revenues for all of 2002, an 11 percent increase compared to the $41.9 million recorded in 2001.
"Despite very tough economic conditions, we were able to improve our bottom line this quarter over the same period in 2001 and deliver an 11 percent increase in revenue for the year," said Marc Olin, Printcafe chairman and CEO, in a statement. "We continue to make positive strides by further improving organizational efficiency, expanding our sales geographically and by adding new customers."
During the fourth quarter, Printcafe acquired all the assets and intellectual property of e-commerce solution provider printChannel, resulting in the addition of 100 new printer subscribers in the United States and Europe and 1,350 corporate Web sites. The company also signed two significant new buy-side contracts, with Commonwealth Bank of Australia and with Cingular Wireless, the second largest wireless carrier in the United States.
Customer relationship management specialist Siebel Systems reported a net loss of $38.0 million for the fourth quarter of 2002, compared to a loss of $92.1 million for the previous quarter and a profit of $65.9 million for the year-ago period. The results for the most recent period reflected a $95.9 million restructuring charge, primarily for severance costs related to facilities consolidation, and without the charge San Mateo, Calif.-based Siebel said it would have earned a fourth quarter profit of $23.4 million..
Revenues for Q4 2002 came in at $394.7 million, up from $357.2 million for the third quarter of 2002 but down by almost a fifth from the fourth quarter of 2001, when revenues stood at $487.8 million.
For all of 2002, the company reported a loss of $35.7 million (which reflects restructuring charges totaling $205.3 million), compared with a profit of $254.6 million for 2001. Revenues for 2002 were $1.64 billion, compared to $2.08 billion in 2001.
Despite the losses, the company was able to improve its cash position, increasing cash and cash equivalents to $2.2 billion as of the end of 2002, up by more than half-a-billion dollars from the end of the previous year.
As the CRM provider has faced depressed tech spending and intense competition over the past two years, the company's chairman and CEO, Thomas Siebel, reduced his salary to $1 for each of 2001 and 2002.
Viewlocity, a provider of supply chain planning and event management applications, reported a loss of $6.9 million for the fourth quarter of 2002, compared to a loss of $8.2 million in the same period of 2001.
Atlanta-based Viewlocity is the recently renamed
result of last September's three-way merger of SynQuest, Viewlocity and fellow software provider Tilion, which offered Internet-based event management solutions for logistics and supply chain managers.
The provider reported fourth quarter revenues of $2.6 million, versus revenues of $1.4 million for the same period of 2001.
For all of 2002, the company showed a loss of $9.7 million, a figure that reflects $17.2 million in income from discontinued operations, primarily resulting from the gain on the sale of its integration business. Net loss for 2001 was $57.5 million, which included a loss from discontinued operations of $20.4 million.
Total revenues for 2002 came in at $6.7 million, compared to $3.7 million for the previous year.
In the company's earning statement, Jeffrey Simpson, CEO of Viewlocity, played up the company's prospects based on the recent merger. "The completion of the merger of Viewlocity and SynQuest places us in a unique position to close the loop between supply chain planning and execution, with our customers emerging as the true beneficiaries," Simpson said. "We achieved our goals for the quarter by completing the merger and getting the bulk of the restructuring behind us. We are now focused on bringing the company to positive operating cash flow as soon as possible."
New customer wins for the company in the fourth quarter included Menlo Worldwide and Nissan North America, which selected Viewlocity for supplier performance management and supply chain event management.