EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For More Information,
Please Contact
John Heyman - Executive Vice President and CFO (770) 576-6705
Melissa Portell - Radiant Systems Investor Relations (770) 576-6577
Radiant Systems, Inc. reports third quarter and nine-month results.
Record commitments to web-based offerings continue to validate technology and
ASP business model and drive increase in revenue pipeline
Atlanta, GA, October 25, 2000--Radiant Systems, Inc. (NASDAQ: RADS) today
reported financial results for the third quarter and nine months ended September
30, 2000.
Total revenues for the third quarter ended September 30, 2000 were $31.2
million, a decrease of 10.5% over revenues of $34.9 million for the same period
in 1999. Total revenues for the nine months ended September 30, 2000 were $93.9
million, an increase of 4.6% over revenues for the same period in 1999 of $89.8
million. Net income for the third quarter ended September 30, 2000, was
$490,000, or $0.02 per diluted share, a decrease of $2.4 million, or $0.08 per
diluted share, compared to net income of $2.9 million, or $0.10 per diluted
share, for the same period in 1999. Net income for the nine months ended
September 30, 2000, before extraordinary item, was $3.7 million, or $0.13 per
diluted share, a decrease of $656,000, or $0.03 per diluted share, over net
income of $4.4 million, or $0.16 per diluted share, for the same period last
year.
During the first quarter ended March 31, 2000, the Company recorded an
extraordinary gain of approximately $1.5 million, net of taxes, or $0.05 per
diluted share, as a result of the early extinguishment of debt. Including the
extraordinary item, net income for the nine months ended September 30, 2000 was
approximately $5.2 million, or $0.18 per diluted share.
Mr. John Heyman, the Company's Chief Financial Officer, said, "Let me emphasize
the transition we have made to a subscription-based pricing model. To date, we
have signed over $60.0 million of agreements or commitments that would have
resulted in a substantial increase in reported results under a traditional
licensing model. While current performance has been negatively impacted by the
change, we estimate the long-term effects on our growth and visibility should be
very positive."
Mr. Erez Goren, the Company's Chief Executive Officer, commented, "Our new
products continue to drive excitement in the retail industry. In the third
quarter, we completed Wave 2.1, which enhanced functionality around e-
procurement, inventory management and workforce management and introduced
supplier integration capabilities. Our industry expertise, technology
architecture and product road map have been the foundation behind important
client commitments we received during the last quarter, such as Tricon Global
Restaurants, Inc. Our Lighthouse product is gaining momentum across our retail
markets. Additionally, this week, we have released our Lighthouse product for
the table service restaurant market, opening a sizeable opportunity for growth."
Mr. Heyman continued, "We are pleased with our current financial performance.
Moreover, the strength of our products
and expansion into new markets is translating into increases in our revenue
pipeline, which is the leading indicator for future revenue growth. Client
commitments to Wave put us significantly ahead of our internal ASP revenue
pipeline targets and, given their industry leadership position, helps validate
the technology and our ASP business model."
The Company will webcast its third quarter 2000 financial results conference
call today. The webcast will begin at 5:00 p.m. EST and will be available at
http://www.radiantsystems.com/ir_def.htm. The webcast will also be available
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for replay through November 30, 2000.
Radiant Systems, Inc. is a leader in delivering innovative technology to
businesses that serve the consumer. The Company provides transaction and
management systems to support enterprise processes for clients ranging in size
from multi-national to single-site operators. The Company also delivers
comprehensive client care and consulting services to maximize speed of
implementation and the client's return on technology investment. Headquartered
in Atlanta, Radiant Systems, Inc. (www.radiantsystems.com) has deployed its
technology to hundreds of companies worldwide, which currently process more than
two billion transactions annually.
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. Such forward-looking
statements are subject to risks, uncertainties and other factors which could
cause actual
results to differ materially from future results expressed or implied by such
forward-looking statements. Potential risks and uncertainties include, but are
not limited to; economic conditions, competition and other uncertainties
detailed from time to time in the Company's Securities and Exchange Commission
filings.
RADIANT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
Sept. 30, Dec. 31,
2000 1999
----------- ---------
(unaudited)
Current assets
Cash and cash equivalents $ 52,414 $ 53,435
Accounts receivable, net 21,162 17,929
Inventories 15,023 13,141
Other short-term assets 4,207 3,256
-------- --------
Total current assets 92,806 87,761
Property and equipment, net 12,656 7,857
Software development costs, net 7,922 5,394
Intangibles and other long-term assets 11,738 10,987
-------- --------
$125,122 $111,999
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 13,308 $ 14,466
Customer deposits and unearned revenue 7,545 7,243
Current portion of long-term debt - 105
-------- --------
Total current liabilities 20,853 21,814
Long-term debt, less current portion - 4,250
-------- --------
Total liabilities 20,853 26,064
-------- --------
Shareholders' equity
Common stock, no par value; 100,000,000 shares
authorized; 27,618,019 and 25,475,888 shares
issued and outstanding 0 0
Additional paid-in capital 113,976 100,872
Accumulated deficit (9,707) (14,937)
-------- --------
Total shareholders' equity 104,269 85,935
-------- --------
$125,122 $111,999
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RADIANT SYSTEMS, INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
For the three For the nine
months ended months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2000 1999 2000 1999
------- ------- ------- -------
Revenues:
System sales $18,862 $24,949 $58,948 $63,500
Client support,
maintenance and other
services 12,384 9,981 34,991 26,284
------- ------- ------- -------
Total revenues 31,246 34,930 93,939 89,784
Cost of revenues:
System sales 9,477 12,295 28,062 31,298
Client support,
maintenance and other
services 9,678 7,893 27,848 21,013
------- ------- ------- -------
Total cost of revenues 19,155 20,188 55,910 52,311
------- ------- ------- -------
Gross profit 12,091 14,742 38,029 37,473
Operating Expenses:
Product development 3,059 2,640 8,213 8,160
Sales and marketing 3,062 3,034 9,243 9,120
Depreciation and
amortization 2,090 1,536 5,497 4,466
General and
administrative 3,854 3,190 11,282 9,543
------- ------- ------- -------
Income from operations 26 4,342 3,794 6,184
Interest income, net 792 408 2,384 1,093
------- ------- ------- -------
Income before income tax
provision and
extraordinary item 818 4,750 6,178 7,277
Income tax provision 328 1,900 2,468 2,911
------- ------- ------- -------
Income before
extraordinary item 490 2,850 3,710 4,366
Extraordinary item:
Gain on early
extinguishment of debt,
net of taxes - - 1,520 -
------- ------- ------- -------
Net income $ 490 $ 2,850 $ 5,230 $ 4,366
======= ======= ======= =======
Basic income per share:
Income before
extraordinary item $ 0.02 $ 0.11 $ 0.14 $ 0.18
Extraordinary income on
early extinguishment of
debt - - 0.05 -
------- ------- ------- -------
Total basic income
per share $ 0.02 $ 0.11 $ 0.19 $ 0.18
======= ======= ======= =======
Diluted income per share:
Income before
extraordinary item $ 0.02 $ 0.10 $ 0.13 $ 0.16
Extraordinary income on
early extinguishment
of debt - - 0.05 -
------- ------- ------- -------
Total diluted income
per share $ 0.02 $ 0.10 $ 0.18 $ 0.16
======= ======= ======= =======
Weighted average shares
outstanding:
Basic 27,571 24,804 27,169 24,486
======= ======= ======= =======
Diluted 29,727 27,719 29,812 27,084
======= ======= ======= =======
Contact:
Radiant Systems, Inc., Alpharetta
John Heyman, 770/576-6705
or
Investor Relations
Melissa Portell, 770/576-6577