EXHIBIT 99.1
The following presents the unaudited consolidated financial statements of
Infinium Software, Inc. as of September 30, 2002 and 2001, and for each of the
three fiscal years ended September 30, 2002, 2001 and 2000. The information
presented below for the fiscal year ended September 30, 2002 is unaudited and
does not include footnote disclosure, but does include all adjustments
(consisting only of normal recurring entries) which Infinium's management
believes to be necessary for the fair presentation of the financial position,
results of operations, and changes in cash flows for the period presented.
Certain prior year amounts have been reclassified to conform with current
year's presentation.
INFINIUM SOFTWARE, INC.
CONSOLIDATED BALANCE SHEET
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA) SEPTEMBER 30,
-----------------------
2002 2001
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ASSETS
Current assets:
Cash and cash equivalents $ 24,843 $ 13,210
Marketable securities at fair market value 511 2,076
Accounts receivable, less allowance for doubtful accounts
of $438 and $1,876 at September 30, 2002 and 2001, respectively 6,447 6,841
Prepaid expenses and other current assets 1,195 2,499
Net current assets of discontinued operations -- 233
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Total current assets 32,996 24,859
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Property and equipment, net 5,316 6,958
Capitalized software development costs, net 477 1,122
Other assets 2,738 2,358
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Total assets $ 41,527 $ 35,297
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 2,232 $ 4,345
Accrued expenses 9,015 13,599
Income taxes payable 283 282
Lease obligations, short-term portion 231 239
Deferred revenue 26,272 27,588
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Total current liabilities 38,033 46,053
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Lease obligations, long-term portion 302 524
Deferred revenue 1,430 1,400
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Total liabilities 39,765 47,977
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Commitments and contingencies
Common stock, $0.01 par value; authorized 40,000 shares, issued
13,663 and 13,365 shares at September 30, 2002 and 2001, respectively 137 134
Additional paid-in capital 39,546 38,936
Deferred stock-based compensation (154) (297)
Accumulated deficit (37,341) (51,362)
Accumulated other comprehensive loss (229) (69)
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1,959 (12,658)
Less: Treasury stock at cost, 96 and 171 shares at September 30,
2002 and 2001, respectively (197) (22)
-------- --------
Total stockholders' equity (deficit) 1,762 (12,680)
-------- --------
Total liabilities and stockholders' equity (deficit) $ 41,527 $ 35,297
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INFINIUM SOFTWARE, INC.
CONSOLIDATED INCOME STATEMENT
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA) FISCAL YEAR ENDED SEPTEMBER 30,
---------------------------------------
2002 2001 2000
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Revenue:
Software license fees $ 10,700 $ 10,363 $ 20,473
Services revenue 55,992 66,347 76,108
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Total revenue 66,692 76,710 96,581
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Operating costs and expenses:
Cost of software license fees 1,582 8,157 7,101
Cost of services 16,873 21,944 35,410
Research and development 10,239 16,165 21,296
Sales and marketing 17,405 27,182 36,102
General and administrative 7,541 16,431 15,620
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Total operating costs and expenses 53,640 89,879 115,529
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Income (loss) from operations 13,052 (13,169) (18,948)
Other income, net 93 22 6,104
Gain on sale of subsidiary 337 -- --
-------- -------- ---------
Income (loss) from continuing operations before provision
for (benefit from) income taxes 13,482 (13,147) (12,844)
Provision for (benefit from) income taxes (539) (2,284) 6,860
-------- -------- ---------
Net income (loss) from continuing operations 14,021 (10,863) (19,704)
Discontinued operations:
Loss from operations of ASP segment -- (11,658) (8,112)
Loss from disposal of ASP segment -- (1,811) --
-------- -------- ---------
Net income (loss) $ 14,021 $(24,332) $ (27,816)
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Income (loss) per share data:
Basic income (loss) per share from continuing operations $ 1.07 $ (0.84) $ (1.56)
======== ======== =========
Diluted income (loss) per share from continuing operations $ 0.98 $ (0.84) $ (1.56)
======== ======== =========
Basic and diluted loss per share from ASP segment $ -- $ (1.04) $ (0.64)
======== ======== =========
Basic income (loss) per share $ 1.07 $ (1.88) $ (2.20)
======== ======== =========
Diluted income (loss) per share $ 0.98 $ (1.88) $ (2.20)
======== ======== =========
Weighted average shares outstanding - basic 13,153 12,941 12,668
======== ======== =========
Weighted average shares outstanding - diluted 14,361 12,941 12,668
======== ======== =========
INFINIUM SOFTWARE, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
UNAUDITED
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2002, 2001, AND 2000 (IN THOUSANDS)
Accumulated
Deferred Retained Other Total Compre-
Common Additional Stock Earnings Comprehensive Treasury Stockholders' hensive
Shares Common Paid-In Compensa- (Accumulated Income Stock Equity Income
Issued Stock Capital tion Deficit) (Loss) At Cost (Deficit) (Loss)
---------------------------------------------------------------------------------------------------
Balance at September 30, 1999 12,607 $ 126 $ 36,306 -- $ 1,188 $ (257) $(2,020) $ 35,343
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Stock issued in connection
with Dexton acquisition 320 3 1,837 1,840
Treasury stock reissued
upon exercise of stock
options and employee
stock purchase plan 184 (248) 1,810 1,746
Comprehensive loss:
Net loss for the year (27,816) (27,816) $ (27,816)
Unrealized gain on
marketable equity
securities 525 525 525
Cumulative translation
adjustment 25 25 25
---------
Comprehensive loss $ (27,266)
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Balance at September 30, 2000 12,927 129 38,327 -- (26,876) 293 (210) 11,663
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Issuance of restricted stock 430 4 855 $ (859)
Executive option compensation 62 (62)
New shares issued for employee
stock purchase plan 8 1 11 12
Treasury stock reissued for
employee stock purchase plan 36 (154) 210 92
Purchase of treasury stock
at cost (22) (22)
Amortization of deferred
stock compensation 269 269
Cancellation of restricted
stock (355) 355
Comprehensive loss:
Net loss for the year (24,332) (24,332) $ (24,332)
Unrealized loss on marketable
equity securities (571) (571) (571)
Cumulative translation
adjustment 209 209 209
---------
Comprehensive loss $ (24,694)
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Balance at September 30, 2001 13,365 134 38,936 (297) (51,362) (69) (22) (12,680)
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Issuance of restricted stock 296 3 231 (234)
New shares issued for employee
stock purchase plan 57 7 64
Purchase of treasury stock
at cost (205) (205)
Amortization of deferred
stock compensation 275 275
Cancellation of
restricted stock (102) 102 (8) (8)
Exercise of stock options 2 424 31 455
Comprehensive income:
Net income for the year 14,021 14,021 $ 14,021
Unrealized loss on
marketable equity
securities (53) (53) 53
Cumulative translation
adjustment (107) (107) (107)
---------
Comprehensive income $ 13,967
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Balance at September 30, 2002 13,663 $ 137 $ 39,546 $ (154) $(37,341) $ (229) $ (197) $ 1,762
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INFINIUM SOFTWARE, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
UNAUDITED
(IN THOUSANDS) FISCAL YEAR ENDED SEPTEMBER 30,
----------------------------------
2002 2001 2000
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Cash flows from operating activities:
Net income (loss) $ 14,021 $(24,332) $(27,816)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Loss from discontinued operations -- 11,658 8,112
Loss on disposal of discontinued operations -- 1,811 --
Depreciation and amortization 3,090 11,123 8,680
Write-down of goodwill and intangibles -- 3,937 --
Loss on disposal of fixed assets 62 546 --
Write-down of marketable securities 58 331 --
Non-cash compensation 275 270 --
Allowance for doubtful accounts 387 217 (271)
Deferred income taxes -- -- 7,295
Gain on sale of Dexton (337) -- --
Changes in operating assets and liabilities,
net of effects from
corporate acquisitions:
Accounts receivable (375) 8,807 1,404
Prepaid expenses and other current assets 1,149 1,955 (325)
Other assets (350) -- (163)
Accounts payable (1,243) (2,473) (1,233)
Accrued expenses (3,306) (2,360) 1,519
Income taxes payable 30 (149) (315)
Deferred revenue (866) (7,204) (1,574)
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Net cash provided by (used in) continuing operations: 12,595 4,137 (4,687)
Net cash used in discontinued operations: (1,647) (5,836) (14,886)
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Net cash provided by (used in) operating activities: 10,948 (1,699) (19,573)
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Cash flows from investing activities:
Proceeds from sale of Dexton 5 -- --
Purchase of marketable securities -- (4,123) (4,148)
Sale of marketable securities 1,453 4,219 25,713
Purchase of property and equipment (454) (658) (2,877)
Capitalization of internal software development costs (265) (2,353) (1,557)
Corporate acquisitions, net of cash acquired -- -- (4,575)
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Net cash provided by (used in) investing activities 739 (2,915) 12,556
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Cash flows from financing activities:
Proceeds from the exercise of stock options
and employee stock purchase plan 519 104 1,746
Payments on capital lease obligations (230) (143) --
Purchase of treasury stock (213) (22) --
-------- -------- --------
Net cash (used in) provided by financing activities 76 (61) 1,746
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Effect of foreign exchange rate on cash (130) 220 (163)
Net increase (decrease) in cash and cash equivalents 11,633 (4,455) (5,434)
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Cash and cash equivalents, beginning of year 13,210 17,665 23,099
Cash and cash equivalents, end of year $ 24,843 $ 13,210 $ 17,665
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Supplemental cash flow information:
Cash paid during the year for:
Interest $ 133 $ 117 $ 25
Income taxes paid (refunded), net of refunds received $ (584) $ (2,089) $ (785)
Supplemental disclosure of non-cash investing and
financing activities:
Equipment purchased under capital leases $ -- $ 338 $ --
Common stock issued in acquisition $ -- $ -- $ 1,840
Note payable incurred in acquisition $ -- $ -- $ 1,500
Issuance of restricted stock $ 234 $ 859 $ --