Exhibit 99.(A)
Contact:
Steve Fluin
Chief Executive Officer
Gentia Software
+44 (0)20 8971 4000
GENTIA SOFTWARE REPORTS FIRST QUARTER RESULTS
PREVIOUSLY ANNOUNCED RESTRUCTURING RESULTS IN RETURN TO PROFIT FOR FIRST QUARTER
LONDON - April 25, 2001 - Gentia Software (Nasdaq: GNTI), a leading provider of
intelligent analytical applications for enterprise-wide deployment, today
reported its results for the first quarter, ended March 31, 2001. Gentia
reported a marginal net income for the first quarter of 2001. This compares with
net loss of $9.2 million, or ($0.74) per share, for the fourth quarter of 2000
and a net income of $0.2 million, or $0.02 per share, for the year-ago quarter.
Revenues for the first quarter of 2001 totaled $3.1 million compared with $3.3
million in the fourth quarter of 2000 and $6.7 million in the year-ago quarter.
Total first quarter revenue included $1.7 million in license revenue.
"We are pleased with the positive change reflected in our first quarter
results," said Steve Fluin, Gentia's Chief Executive Officer. "The return to
profit is the result of great efforts to implement the restructuring announced
at the end of 2000. While we are pleased that these efforts have been effective,
Gentia continues to experience financial pressure and is considering all options
to improve our longer term outlook, and is engaged in discussions regarding the
potential sale of our thinkAnalytics subsidiary as well as a merger or
acquisition of Gentia Software."
Gentia signed 11 new balanced scorecard customers during the first quarter. The
total signed license revenue for the quarter was $2.5 million, of which $1.7
million has been recognized based on $1.2 million that has been collected. Other
revenues, including those from support & maintenance and consulting, totaled
$1.4 million.
Fluin continued, "The high number of new customers, particularly given the
difficult market conditions, demonstrates confidence in Gentia and our products,
and continues to validate our dedication to providing intelligent analytical
applications for the Enterprise Performance Management market. Our current model
for recognizing license revenue leaves us well positioned to book revenue early
in quarter two. In addition, our ongoing worldwide relationship with IBM for the
premier offering in Balanced Scorecard software and services continues to give
us access to world-class prospects for strategy management applications."
"Our major achievements for the quarter have been improving our cash flow and
making progress in collections," said Adrian King, Vice President of Finance,
Gentia Software. "During the quarter, the Company cleared its bank overdraft and
is now in a positive cash position. Gentia has significantly lowered its
outstanding receivables and also reached an agreement for a payment profile with
its UK creditors, and the resulting improvements in our cash position give us a
good platform for the remainder of 2001."
About Gentia Software
Gentia Software (Nasdaq: GNTI) is a leading supplier of intelligent analytical
applications for enterprise performance management and customer relationship
management. Its product suites sustain and improve business performance by
improving the quality of customer interactions and driving strategy and
performance management. Gentia incorporates unique technology and the world-
class consulting expertise of partners including IBM, NCR, PWC and KPMG. Gentia
offers best-in-class solutions for Fortune 1,000 companies including Volvo, Bell
Atlantic, Credit Suisse First Boston and Motorola. For more information, visit
www.gentia.com or call +44 (0)20 8971 4000.
This news release contains statements of a forward-looking nature relating to
the financial performance of Gentia Software. Such statements are based upon the
information available to management at this time, and they necessarily involve
risk because actual results could differ materially from current expectations.
Among the many factors that could cause actual results to differ from those set
forth in the Company's forward-looking statements are changes in general
economic conditions, actions taken by customers or competitors, and the receipt
of more or fewer orders than expected.
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GENTIA SOFTWARE PLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
------------------------------------------
MARCH 31, MARCH 31,
2001 2000
------------------------------------------
(UNAUDITED) (UNAUDITED)
US$ US$
Revenues:
License.................................... $ 1,658 $ 3,684
Services and other......................... 1,446 2,979
--------- --------
3,104 6,663
Cost of revenues:
License.................................... 82 211
Services and other......................... 880 1,639
--------- --------
962 1,850
Gross profit.................................... 2,142 4,813
Operating expenses:
Sales and marketing........................ 570 2,603
Research and development................... 500 973
General and administrative................. 352 710
Restructuring costs........................ 428 -
Goodwill amortization...................... 175 260
--------- --------
Total operating expenses.................. 2,025 4,546
Income from operations.......................... 117 267
Interest (expense) ............................. (115) (90)
--------- --------
Income before provision for income taxes 2 177
Provision for income taxes - -
--------- --------
Net income ..................................... $ 2 $ 177
========= ========
Basic income per share.......................... $0.00 $0.02
Diluted income per share........................ $0.00 $0.01
Shares used to compute basic EPS........... 13,150 10,719
Shares used to compute diluted EPS......... 13,150 13,897
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GENTIA SOFTWARE PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31 DECEMBER 31
2001 2000
----------------- ----------------
(UNAUDITED) (UNAUDITED)
US$ US$
ASSETS
Current assets:
Cash and cash equivalents.......................................... 248 -
Accounts receivable, net of allowances............................. 2,975 3,524
Trade account receivables.......................................... 4,055 8,852
Less: Allowance for doubtful debt.................................. 1,080 5,328
Prepaid expenses and other current assets.......................... 522 569
------------- -----------
Total current assets............................................... 3,745 4,093
Property and equipment, net........................................ 606 726
Purchased software, net of amortization of $1,339
(Dec 31, 2000 - $1,171)............................................ 1,668 1,863
Goodwill on acquisition, net of amortization of $7,436
(Dec 31, 2000 - $7,411)............................................ 529 554
------------- -----------
Total assets....................................................... 6,548 7,209
============= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdraft..................................................... - 189
Current portion of lease obligations............................... 86 94
Accounts payable................................................... 2,333 3,636
Accrued liabilities................................................ 2,760 2,494
Deferred revenues.................................................. 1,619 3,481
Other accounts payable............................................. 2,641 2,389
Short Term loans................................................... 1,092 1,092
------------- -----------
Total current liabilities.......................................... 10,531 13,375
Non current liabilities:
Long-term portion of lease obligations............................. 69 70
Other liabilities ................................................ 2,057 -
------------- -----------
Total Liabilities 12,657 13,445
Shareholders' equity:
Ordinary shares.................................................... 3,150 3,116
Additional paid-in capital......................................... 37,348 37,574
Retained (deficit) ................................................ (45,401) (45,403)
Cumulative translation adjustment.................................. (1,206) (1,523)
------------- -----------
Total shareholders' equity......................................... ($6,109) ($6,236)
------------- -----------
Total liabilities and shareholders' equity......................... $ 6,548 $ 7,209
============= ===========
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