EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For More Information,
Please Contact
John Heyman – Co-Chief Executive and Chief Financial Officer (770) 576-6705
Melissa Coley—Radiant Systems Investor Relations (770) 576-6577
Radiant Systems, Inc. reports record gross profits for the second quarter ended June 30, 2002
Company exceeds consensus earnings estimates
Atlanta, GA, July 25, 2002—Radiant Systems, Inc., (NASDAQ: RADS) a leading provider of enterprise-wide technology solutions to businesses that serve the consumer, today announced financial results for the second quarter and six months ended June 30, 2002. Earnings per share results for the quarter exceeded First Call consensus estimates of the financial analysts covering the Company of $0.04 per diluted share.
Total revenues for the second quarter ended June 30, 2002 were $36.7 million, an increase of approximately 1.0% from revenues of $36.4 million for the same period in 2001. Total revenues for the six months ended June 30, 2002 were $68.0 million, a decrease of 3.5% from revenues for the same period in 2001 of $70.4 million. Net income for the second quarter ended June 30, 2002, was $1.5 million, or $0.05 per diluted share, an increase of $507,000, or $0.02 per diluted share, compared to net income of $986,000, or $0.03 per diluted share, for the same period in 2001. Net income for the six months ended June 30, 2002, was $3.0 million, or $0.10 per diluted share, an increase of $1.6 million, or $0.05 per diluted share, over net income of $1.4 million, or $0.05 per diluted share, for the same period last year.
“We are pleased with our performance in this economic environment. We had record gross profits during the quarter, led by both revenue growth in our systems sales as well as improvements in our services margins over the same quarter a year ago,” commented John Heyman, the Company’s Co-Chief Executive Officer and Chief Financial Officer.
Radiant Systems Chairman and Co-Chief Executive Officer Erez Goren said, “During the quarter, we signed a number of new contracts for our new Radiant 6e generation of
products and fostered new relationships with prospects that we believe will bring significant new wins later this year and next.”
Mr. Heyman continued, “The remainder of the year continues to look promising for us and we remain comfortable with consensus earning estimates for the remainder of the year.”
The Company will webcast its second quarter 2002 financial results conference call today. The webcast will begin at 5:00 p.m. Eastern Time and will be available athttp://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=RADS&script=2100. The webcast will also be available for replay through August 30, 2002.
Radiant Systems, Inc. helps companies improve product profitability, employee productivity and customer service through use of innovative technology. Radiant’s mission is to enable businesses to achieve operational excellence through intelligent technology. To accomplish this mission, Radiant combines powerful technology platforms, deep industry knowledge and strategic partnerships to deliver strong returns on systems investments for companies ranging in size from single site operators to multinational corporations. Headquartered in Atlanta, Radiant Systems (www.radiantsystems.com) has deployed its solutions to tens of thousands of sites worldwide.
Certain statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations, including the Company’s projected revenues and earnings per share guidance; (iii) the Company’s growth strategy and operating strategy; (iv) the Company’s new or future product offerings, and (v) the declaration and payment of dividends. The words “may,” “would,” “could,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “plans,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are the Company’s reliance on a small number of clients for a larger portion of its revenues, fluctuations in its quarterly results, ability to continue and manage its growth, liquidity and other capital resources issues, competition and the other factors discussed in detail in the Company’s filings with the Securities and Exchange Commission.
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RADIANT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
| ASSETS | ||||||||
June 30, 2002 | December 31, 2001 | |||||||
(unaudited) | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents. | $ | 25,987 | $ | 33,924 | ||||
| Accounts receivable, net | 31,951 | 20,988 | ||||||
| Inventories | 15,336 | 17,290 | ||||||
| Other short-term assets | 3,464 | 3,401 | ||||||
| Total current assets | 76,738 | 75,603 | ||||||
| Property and equipment, net | 12,888 | 14,590 | ||||||
| Software development costs, net | 16,564 | 15,229 | ||||||
| Intangibles and other long-term assets | 23,827 | 19,740 | ||||||
| $ | 130,017 | $ | 125,162 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 11,792 | $ | 10,176 | ||||
| Customer deposits and unearned revenue | 9,327 | 9,762 | ||||||
| Current portion of long-term debt | 475 | 460 | ||||||
| Total current liabilities | 21,594 | 20,398 | ||||||
| Long-term debt, less current portion | �� | 909 | 1,150 | |||||
| Total liabilities | 22,503 | 21,548 | ||||||
| Shareholders' equity | ||||||||
| Common stock, $0.00001 par value; 100,000,000 shares authorized; 27,611,986 and 27,511,793 shares issued and outstanding | 0 | 0 | ||||||
| Additional paid-in capital | 113,749 | 113,016 | ||||||
| Deferred compensation | (642 | ) | (818 | ) | ||||
| Accumulated deficit | (5,593 | ) | (8,584 | ) | ||||
| Total shareholders' equity | 107,514 | 103,614 | ||||||
| $ | 130,017 | $ | 125,162 | |||||
RADIANT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(Unaudited)
For the three months ended | For the six months ended | |||||||||||
June 30, 2002 | June 30, 2001 | June 30, 2002 | June 30, 2001 | |||||||||
| Revenues: | ||||||||||||
| System sales | $ | 19,991 | $ | 19,496 | $ | 37,119 | $ | 39,995 | ||||
| Client support, maintenance and other services | 16,716 | 16,953 | 30,876 | 30,451 | ||||||||
| Total revenues | 36,707 | 36,449 | 67,995 | 70,446 | ||||||||
| Cost of revenues: | ||||||||||||
| System sales | 10,866 | 10,797 | 18,593 | 21,293 | ||||||||
| Client support, maintenance and other services | 9,338 | 9,585 | 17,867 | 18,568 | ||||||||
| Total cost of revenues | 20,204 | 20,382 | 36,460 | 39,861 | ||||||||
| Gross profit | 16,503 | 16,067 | 31,535 | 30,585 | ||||||||
| Operating Expenses: | ||||||||||||
| Product development | 3,867 | 2,791 | 7,329 | 5,245 | ||||||||
| Sales and marketing | 5,342 | 5,322 | 10,149 | 10,037 | ||||||||
| Depreciation and amortization | 1,400 | 2,456 | 2,839 | 4,780 | ||||||||
| Non-recurring charges | — | — | 0 | 1,023 | ||||||||
| General and administrative | 3,281 | 4,289 | 6,193 | 8,287 | ||||||||
| Income from operations | 2,613 | 1,209 | 5,025 | 1,213 | ||||||||
| Interest income, net | 155 | 435 | 361 | 1,008 | ||||||||
| Income before income taxes | 2,768 | 1,644 | 5,386 | 2,221 | ||||||||
| Income tax provision | 1,275 | 658 | 2,395 | 860 | ||||||||
| Net income | $ | 1,493 | $ | 986 | $ | 2,991 | $ | 1,361 | ||||
| Basic and diluted income per share: | ||||||||||||
| Basic income per share | $ | 0.05 | $ | 0.04 | $ | 0.11 | $ | 0.05 | ||||
| Diluted income per share | $ | 0.05 | $ | 0.03 | $ | 0.10 | $ | 0.05 | ||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 27,593 | 27,747 | 27,573 | 27,716 | ||||||||
| Diluted | 29,376 | 29,697 | 28,975 | 29,406 | ||||||||