EXHIBIT 99.1
FOR IMMEDIATE RELEASE
For More Information,
Please Contact
John Heyman - Executive Vice President and CFO (770) 576-6705
Melissa Coley - Radiant Systems Investor Relations (770) 576-6577
Radiant Systems, Inc. reports record second quarter revenues
Atlanta, GA, July 26, 2001--Radiant Systems, Inc. (NASDAQ: RADS) today reported
financial results for the second quarter and six months ended June 30, 2001.
Total revenues for the second quarter ended June 30, 2001 were $36.4 million, an
increase of 20.4% over revenues of $30.3 million for the same period in 2000.
Total revenues for the six months ended June 30, 2001 were $70.4 million, an
increase of 12.4% over revenues for the same period in 2000 of $62.7 million.
Net income for the second quarter ended June 30, 2001, was $1.0 million, or
$0.03 per diluted share, an increase of $400,000, or $0.01 per diluted share,
compared to net income of $600,000, or $0.02 per diluted share, for the same
period in 2000. Net income for the six months ended June 30, 2001, was $1.4
million, or $0.05 per diluted share, a decrease of $1.8 million, or $0.06 per
diluted share, over net income before extraordinary item of $3.2 million, or
$0.11 per diluted share, for the same period last year.
Mr. Erez Goren, the Company's Chief Executive Officer, commented, "We are
pleased with our financial performance in the face of an evolving product line
and business model. We have signed contracts with a number of companies across
our markets, both domestically and internationally, and we
believe these contracts and the success of our solutions will drive growth in
revenues and profitability in the years ahead."
Mr. Goren continued, "The acquisition of Breeze Software Pty Ltd and our
agreement to acquire certain assets of Hotel Tools, Inc. have positioned us to
better serve and market our solutions internationally and to the hotel industry,
respectively. Both of these markets should contribute to our growth in future
years."
Mr. John Heyman, the Company's Chief Financial Officer, commented, "These
acquisitions are important for our long-term growth prospects. In the short-
term, we expect these acquisitions to be slightly dilutive, with the impact on
earnings per share approximating $0.01 to $0.02 per quarter for the remainder of
this year. We believe this dilution is short-term and that these acquisitions
will be at least breakeven by the first quarter of 2002. We view this dilution
as insignificant relative to the contributions we believe these acquisitions
will make to our Company's strategic efforts."
For 2001, the Company continues to expect revenues of between $150 and $160
million and earnings before non-recurring charges of between $0.15 to $0.19 per
share. Additionally, for 2002 the Company currently preliminarily projects
revenues between $180 and $210 million, and earnings of between $.40 and $.60
per share. The statements in this paragraph are forward-looking statements and
are based upon current economic conditions and assumptions involved with our
operations.
The Company will webcast its second quarter 2001 financial results conference
call today. The webcast will begin at
5:00 p.m. Eastern Time and will be available at
http://www.radiantsystems.com/investor/investor2_frame.htm. The webcast will
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also be available for replay through August 31, 2001.
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. 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, December 31,
2001 2000
----------- -------------
(unaudited)
Current assets
Cash and cash equivalents............................................. $ 37,301 $ 49,560
Accounts receivable, net.............................................. 28,602 22,302
Inventories........................................................... 18,971 17,172
Other short-term assets............................................... 3,923 4,722
-------- --------
Total current assets............................................. 88,797 93,756
Property and equipment, net............................................... 15,733 14,092
Software development costs, net........................................... 12,580 9,358
Intangibles and other long-term assets.................................... 14,844 14,055
-------- --------
$131,954 $131,261
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities.............................. $ 13,525 $ 16,486
Customer deposits and unearned revenue................................ 7,581 6,388
Current portion of long-term debt..................................... 603 -
-------- --------
Total current liabilities........................................ 21,709 22,874
-------- --------
Long-term debt, less current portion...................................... 1,384 -
-------- --------
Total liabilities................................................ 23,093 22,874
-------- --------
Shareholders' equity
Common stock, no par value; 100,000,000 shares authorized;
27,798,344 and 27,647,830 shares issued and outstanding............. 0 0
Additional paid-in capital............................................ 115,656 116,543
Accumulated deficit................................................... (6,795) (8,156)
-------- --------
Total shareholders' equity....................................... 108,861 108,387
-------- --------
$131,954 $131,261
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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, 2001 June 30, 2000 June 30, 2001 June 30, 2000
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Revenues:
System sales......................................... $19,496 $18,956 $39,995 $40,086
Client support, maintenance and other services....... 16,953 11,321 30,451 22,607
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Total revenues..................................... 36,449 30,277 70,446 62,693
Cost of revenues:
System sales......................................... 10,797 8,596 21,293 18,585
Client support, maintenance and other services....... 9,585 9,458 18,568 18,170
------------- ------------- ------------- -------------
Total cost of revenues............................. 20,382 18,054 39,861 36,755
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Gross profit........................................... 16,067 12,223 30,585 25,938
Operating Expenses:
Product development.................................. 2,791 2,963 5,245 5,154
Sales and marketing.................................. 5,322 3,280 10,037 6,181
Depreciation and amortization........................ 2,456 1,802 4,780 3,407
Non-recurring charges................................ - - 1,023 -
General and administrative........................... 4,289 4,049 8,287 7,428
------------- ------------- ------------- -------------
Income from operations................................. 1,209 129 1,213 3,768
Interest income, net................................... 435 885 1,008 1,592
------------- ------------- ------------- -------------
Income before income tax provision
and extraordinary item................................. 1,644 1,014 2,221 5,360
Income tax provision................................... 658 406 860 2,140
------------- ------------- ------------- -------------
Income before extraordinary item....................... 986 608 1,361 3,220
Extraordinary item:
Gain on early extinguishment of debt, net of taxes..... - - - 1,520
------------- ------------- ------------- -------------
Net income............................................. $ 986 $ 608 $ 1,361 $ 4,740
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Basic income per share:
Income before extraordinary item..................... $ 0.04 $ 0.02 $ 0.05 $ 0.12
Extraordinary income on early extinguishment of debt. - - - 0.06
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Total basic income per share....................... $ 0.04 $ 0.02 $ 0.05 $ 0.18
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Diluted income per share:
Income before extraordinary item..................... $ 0.03 $ 0.02 $ 0.05 $ 0.11
Extraordinary income on early extinguishment of debt. - - - 0.05
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Total diluted income per share..................... $ 0.03 $ 0.02 $ 0.05 $ 0.16
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Weighted average shares outstanding:
Basic................................................ 27,747 27,410 27,716 26,975
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Diluted.............................................. 29,697 29,803 29,406 29,879
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