Exhibit A
Contact:
Steve Fluin
Chief Executive Officer
Gentia Software
+44 (0)20 8971 4000
GENTIA SOFTWARE REPORTS THIRD QUARTER RESULTS
LONDON - November 1, 2001 - Gentia Software plc (OTCBB: GNTIY), a leading
provider of intelligent analytical applications for enterprise-wide deployment,
today reported its results for the third quarter, ended September 30, 2001.
Gentia's revenues for the third quarter of 2001 totaled $1.1 million, compared
with revenues of $1.8 million in the second quarter of 2001 and $2.6 million in
the year-ago quarter.
Costs for the quarter totaled $2.3 million. This compares with costs of $3.9
million in the second quarter, and $12.3 million in the year-ago quarter. Gentia
reported a net loss for the quarter of $1.1 million. This compares with a loss
of $2.1 million for the second quarter of 2001 and $9.7 million for the year-ago
quarter.
"Given the disappointing results for the third quarter, the company is facing a
cash crisis and is urgently pursuing discussions with potential purchasers of
its business. In the meantime, it and its subsidiaries are instituting formal
steps to seek protection from creditors," said Steve Fluin, Chief Executive
Officer, Gentia Software.
ABOUT GENTIA SOFTWARE
Gentia Software (OTCBB: GNTIY) is a leading supplier of intelligent analytical
applications for enterprise performance management and customer relationship
management. The Company's product suite sustains and improves 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 Global 2000 companies including
Volvo, 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.
GENTIA SOFTWARE PLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PR SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
----------------------------------------------------------------------
SEPT 30, SEPT 30, SEPT 30, SEPT 30,
2001 2000 2001 2000
----------------------------------------------------------------------
US$ US$ US$ US$
Revenues
Continuing Operations: $ 1,111 $ 2,584 $ 5,085 $ 17,250
License......................................... 38 467 1,427 9,393
Services and other.............................. 1,073 2,117 3,658 7,857
Discontinuing Operations: 1 - 948 -
License........................................ - - 944 -
Services and other............................. 1 - 4 -
-------- -------- -------- --------
1,112 2,584 6,033 17,250
Cost of revenues:
Continuing Operations: 669 1,769 2,410 5,913
License........................................ 39 410 126 1,297
Services and other............................. 630 1,359 2,284 4,616
Discontinuing Operations: - - 69 -
License........................................ - - 54 -
Services and other............................. - - 15 -
-------- -------- -------- --------
669 1,769 2,479 5,913
Gross profit........................................ 443 815 3,554 11,337
Continuing Operations............................. 442 815 2,675 11,337
Discontinuing Operations.......................... 1 - 879 -
Operating expenses:
Sales and marketing.............................. 830 7,859 1,931 14,315
Research and development......................... 382 1,156 939 2,743
General and administrative....................... 8 1,097 814 2,672
Goodwill amortization............................ 25 374 75 957
Discontinuing operation's expenses............... 298 - 2,521 -
Restructuring costs.............................. - - 328 -
-------- -------- -------- --------
Total operating expenses....................... 1,543 10,486 6,608 20,687
Income / (loss) from operations..................... (1,100) (9,671) (3,054) (9,350)
Interest (expense)/income........................... (42) (24) (188) (152)
-------- -------- -------- --------
Income / (loss) before provision for income taxes... (1,142) (9,695) (3,242) (9,502)
Provision for income taxes.......................... - - - -
-------- -------- -------- --------
Net income / (loss)................................. ($1,142) ($9,695) ($3,242) ($9,502)
======== ======== ======== ========
Basic loss per share................................ ($0.06) ($0.79) ($0.21) ($0.81)
Diluted loss per share.............................. ($0.06) ($0.79) ($0.21) ($0.81)
Weighted Average Number of Shares used to
compute basic EPS.............................. 18,736 12,247 15,499 11,678
Weighted Average Number of Shares used to
compute diluted EPS................. 18,736 12,247 15,499 11,678
GENTIA SOFTWARE PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPT 30 DECEMBER 31
2001 2000
----------------- ----------------
(UNAUDITED) (UNAUDITED)
(IN THOUSANDS)
US$ US$
ASSETS
Current assets:
Cash and cash equivalents $ 245 $ -
Accounts receivable, net of allowances 1,940 3,524
Trade account receivables 2,576 8,852
Less: Allowance for doubtful debt 636 5,328
Prepaid expenses and other current assets 88 569
---------------- ----------------
Total current assets 2,273 4,093
Property and equipment, net 199 726
Purchased software, net of amortization of $3,303
(Dec 31, 2000 - $1,171) - 1,836
Goodwill on acquisition, net of amortization of $7,487
(Dec 31, 2000 - $7,411) 478 554
---------------- ----------------
Total assets 2,950 $ 7,209
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdraft - $ 189
Current portion of lease obligations 27 94
Accounts payable 1,678 3,636
Accrued liabilities 2,039 2,494
Deferred revenues 1,389 3,481
Other accounts payable 2,019 2,389
Short Term loans 1,343 1,092
---------------- ----------------
Total current liabilities 8,495 13,375
Non current liabilities:
Long-term portion of lease obligations 119 70
Other Liabilities 2,086 -
---------------- ----------------
Total Liabilities 10,700 13,445
Shareholders' equity:
Ordinary shares 4,302 3,116
Additional paid-in capital 37,925 37,574
Retained (deficit) (48,647) (45,403)
Cumulative translation adjustment (1,330) (1,523)
---------------- ----------------
Total shareholders' equity (7,750) (6,236)
---------------- ----------------
Total liabilities and shareholders' equity $ 2,950 $ 7,209
================ ================