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 financial results for the
fourth quarter and year ended December 31, 2001
Atlanta, GA, February 7, 2002--Radiant Systems, Inc. (NASDAQ: RADS) today
reported financial results for the fourth quarter and year ended December 31,
2001.
Total revenues for the fourth quarter ended December 31, 2001 were $32.4
million, a decrease of 5.0% over revenues of $34.1 million for the same period
in 2000. Total revenues for the year ended December 31, 2001 were $132.0
million, an increase of 3.1% over revenues for the same period in 2000 of $128.0
million. Net income for the fourth quarter ended December 31, 2001, was
$480,000, or $0.02 per diluted share, a decrease of $1.1 million, or $0.03 per
diluted share, compared to net income of $1.6 million, or $0.05 per diluted
share, for the same period in 2000. Net loss for the year ended December 31,
2001, was $428,000, or $0.02 per diluted share, a decrease of $5.7 million, or
$0.20 per diluted share, over net income before extraordinary item of $5.3
million, or $0.18 per diluted share, for the same period last year.
Mr. John Heyman, the Company's Co-Chief Executive Officer and Chief Financial
Officer commented, "We are pleased with our fourth quarter financial
performance. We saw a double-digit percentage increase in our revenues over the
third quarter and, along with the cost cutting measures we undertook, we were
able to bring the Company back to profitability." Mr. Heyman continued, "While
we were disappointed with the Company's overall financial results for 2001, we
did see a number of important successes during the year. Our next generation of
products has emerged from a lengthy development cycle; our distribution channel
continues to grow; our international efforts have driven results with new
clients and exciting new prospects; and our efforts to enter new markets are
showing
results. Our products are gaining market acceptance and seeing wider deployment,
while our services business, which in large part is recurring in nature,
continues to make dramatic improvements in profitability. And, organizationally,
we are bringing a new level of focus to our markets. We believe we are better
poised for long-term growth more than ever before, and we believe we will see
increased revenues and profitability in 2002."
Mr. Erez Goren, the Company's Chairman and Co-Chief Executive Officer commented,
"Our Enterprise Productivity Software is operating in a variety of client sites,
across many different concepts and with a variety of modules deployed. New
releases are forthcoming in the very near future. Our product strategy, both
with Point of Sale and Enterprise applications, continues to progress with new
opportunities across our markets. Specifically, we have a number of significant
prospects engaged in active negotiations which, if closed, will help us to
continue to build a strong foundation for growth. However, given the soft
economic environment, we intend to continue to operate the business very
conservatively."
The Company will webcast its fourth 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
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webcast will also be available for replay through March 1, 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.
MORE
RADIANT SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
For the three months ended For the year ended
December 31, 2001 December 31, 2000 December 31, 2001 December 31, 2000
----------------- ----------------- ----------------- -----------------
(unaudited) (unaudited) (unaudited)
Revenues:
System sales ................................. $ 17,411 $ 21,039 $ 71,268 $ 79,987
Client support, maintenance and
other services ............................. 14,992 13,066 60,711 48,057
--------------- ---------------- ----------------- ----------------
Total revenues ............................ 32,403 34,105 131,979 128,044
Cost of revenues:
System sales ................................. 9,234 11,558 38,799 39,620
Client support, maintenance and
other services ............................. 9,088 9,508 38,043 37,356
---------------- ---------------- ---------------- ---------------
Total cost of revenues .................... 18,322 21,066 76,842 76,976
---------------- ---------------- ---------------- ---------------
Gross profit ................................... 14,081 13,039 55,137 51,068
Operating Expenses:
Product development .......................... 3,208 2,817 11,234 11,030
Sales and marketing .......................... 4,413 3,477 19,718 12,720
Depreciation and amortization ................ 2,406 2,209 9,643 7,706
Non-recurring charges ........................ 221 - 1,244 -
General and administrative ................... 3,023 4,536 15,056 15,818
---------------- ---------------- ---------------- ---------------
Income (loss) from operations .................. 810 - (1,758) 3,794
Interest income, net ........................... 216 856 1,513 3,240
---------------- ---------------- ---------------- ---------------
Income (loss) before income tax provision
and extraordinary item ....................... 1,026 856 (245) 7,034
Income tax provision (benefit) ................. 546 (695) 183 1,773
--------------- ---------------- ---------------- ----------------
Income (loss) before extraordinary item ........ 480 1,551 (428) 5,261
Extraordinary item:
Gain on early extinguishment of debt,
net of taxes ................................. - - - 1,520
---------------- ---------------- ---------------- ---------------
Net income (loss) .............................. $ 480 $ 1,551 $ (428) $ 6,781
================ ================ ================ ===============
Basic income (loss) per share:
Income (loss) before extraordinary item ...... $ 0.02 $ 0.06 $ (0.02) $ 0.19
Extraordinary income on early
extinguishment of debt ..................... - - - 0.05
---------------- ---------------- ---------------- ---------------
Total basic income (loss) per share ....... $ 0.02 $ 0.06 $ (0.02) $ 0.24
================ ================ ================ ===============
Diluted income (loss) per share:
Income (loss) before extraordinary item ...... $ 0.02 $ 0.05 $ (0.02) $ 0.18
Extraordinary income on early
extinguishment of debt ..................... - - - 0.05
---------------- ---------------- ---------------- ---------------
Total diluted income (loss) per share ..... $ 0.02 $ 0.05 $ (0.02) $ 0.23
================ ================ ================ ===============
Weighted average shares outstanding:
Basic ..................................... 27,535 27,645 27,726 27,294
================ ================ ================ ===============
Diluted ................................... 28,645 29,719 27,726 29,791
================ ================ ================ ===============
RADIANT SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
December 31, December 31,
2001 2000
------------ -----------
(unaudited)
Current assets
Cash and cash equivalents ............................................. $ 33,924 $ 49,560
Accounts receivable, net .............................................. 20,988 22,302
Inventories ........................................................... 17,290 17,172
Other short-term assets ............................................... 4,219 4,722
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Total current assets ................................... 76,421 93,756
Property and equipment, net ................................................ 14,590 14,092
Software development costs, net ............................................ 15,229 9,358
Intangibles and other long-term assets ..................................... 19,740 14,055
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$125,980 $131,261
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities .............................. $ 10,176 $ 16,486
Customer deposits and unearned revenue ................................ 9,762 6,388
Current portion of long-term debt ..................................... 460 -
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Total current liabilities .............................. 20,398 22,874
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Long-term debt, less current portion ....................................... 1,150 -
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Total liabilities ...................................... 21,548 22,874
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Shareholders' equity
Common stock, no par value; 100,000,000 shares authorized;
27,511,793 and 27,647,830 shares issued and outstanding ............. 0 0
Additional paid-in capital ............................................ 113,016 116,543
Accumulated deficit ................................................... (8,584) (8,156)
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Total shareholders' equity ............................. 104,432 108,387
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$125,980 $131,261
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