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 financial results for the third quarter and nine
months ended September 30, 2001
Atlanta, GA, October 25, 2001-Radiant Systems, Inc. (NASDAQ: RADS) today
reported financial results for the third quarter and nine months ended September
30,200l.
Total revenues for the third quarter ended September 30, 2001 were $29.1
million, a decrease of 6.8% over revenues of $31.2 million for the same period
in 2000. Total revenues for the nine months ended September 30, 2001 were $99.6
million, an increase of 6.0% over revenues for the same period in 2000 of $93.9
million. Net loss for the third quarter ended September 30, 2001, was $2.3
million, or $0.08 per diluted share, a decrease of $2.8 million, or $0.10 per
diluted share, compared to net income of $490,000, or $0.02 per diluted share,
for the same period in 2000. Net loss for the nine months ended September 30,
2001, was $908,000, or $0.03 per diluted share, a decrease of $4.6 million, or
$0.16 per diluted share, over net income before extraordinary item of $3.7
million, or $0.13 per diluted share, for the same period last year.
Mr. John Heyman, the Company's Chief Financial Officer, commented, "We continue
to see excellent growth opportunities across our markets, yet we remain
concerned with the economy,s impact on our sales processes. As previously
stated, we have taken a number of actions to reduce our cost structure without
affecting our ability to drive growth opportunities. These include:
. Significant reductions in cash compensation for employees at the Director,
Vice President and Officer levels in return for longer-term incentive
compensation awards.
. Included in the above is the forfeiture by the Company's top five
executives of 100% of their salary for the next twelve months. Four of the
Company,s Vice Presidents forfeited 70% or more of their salary.
. Suspension of our 401k match
. Reduced spending in the areas of travel, trade shows, and other
discretionary areas
. Reduced costs in certain less-critical areas of the Company
We are confident these actions will reduce our operating costs significantly
and position the Company to improve profitability as revenues increase."
Mr Erez Goren, the Company's Chief Executive Officer, commented, "Our Radiant
Point of Sale and Enterprise Management version 6.0 products has been installed
in several sites and will be the foundation of our growth for the next several
years. Initial feedback from clients has been very positive, and we look
forward to new installations during the fourth quarter."
The Company will webcast its third quarter 2001 financial results conference
call today. The webcast will begin at 4:30 p.m. Eastern Time and will be
available at http://www.radiantsystems.com/investor/investor2 frame.htm.
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The webcast will also be available for replay through November 30,200l.
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 in estments 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 BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
ASSETS
September 30, December 31,
2001 2000
----------- --------
(unaudited)
Current assets
Cash and cash equivalents .......................... $ 34,339 $ 49,560
Accounts receivable, net ........................... 21,581 22,302
Inventories ........................................ 20,147 17,172
Other short-term assets ............................ 3,970 4,722
-------- --------
Total current assets ................ 80,037 93,756
Property and equipment, net ............................. 15,906 14,092
Software development costs, net ......................... 14,044 9,358
Intangibles and other long-term assets .................. 20,758 14,055
-------- --------
$130,745 $131,261
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities ........... $ 13,071 $ 16,486
Customer deposits and unearned revenue ............. 9,616 6,388
Current portion of long-term debt .................. 453 --
-------- --------
Total current liabilities ........... 23,140 22,874
-------- --------
Long-term debt, less current portion ............................ 1,268 --
--------- ---------
Total liabilities ........................... 24,408 22,874
--------- ---------
Shareholders' equity
Common stock, no par value; 100,000,000 shares authorized;
27,973,897 and 27,647,830 shares issued and outstanding .... 0 0
Additional paid-in capital ................................. 115,401 116,543
Accumulated deficit ........................................ (9,064) (8,156)
--------- ---------
Total shareholders' equity .................. 106,337 108,387
--------- ---------
$ 130,745 $ 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 nine months ended
September 30, 2001 September 30, 2000 September 30, 2001 September 30, 2000
------------------ ------------------ ------------------ ------------------
Revenues:
System sales ................................... $ 13,862 $ 18,862 $ 53,857 $ 58,948
Client support, maintenance and
other services ................................. 15,268 12,384 45,719 34,991
-------- -------- -------- --------
Total revenues .............................. 29,130 31,246 99,576 93,939
Cost of revenues:
System sales ................................... 8,272 9,477 29,565 28,062
Client support, maintenance and other
services ....................................... 10,387 9,678 28,955 27,848
-------- -------- -------- --------
Total cost of revenues ...................... 18,659 19,155 58,520 55,910
-------- -------- -------- --------
Gross profit ..................................... 10,471 12,091 41,056 38,029
Operating Expenses:
Product development ............................ 2,781 3,059 8,026 8,213
Sales and marketing ............................ 5,268 3,062 15,305 9,243
Depreciation and amortization .................. 2,457 2,090 7,237 5,497
Non-recurring charges .......................... -- -- 1,023 --
General and administrative ..................... 3,746 3,854 12,033 11,282
-------- -------- -------- --------
(Loss) income from operations .................... (3,781) 26 (2,568) 3,794
Interest income, net ............................. 289 792 1,297 2,384
-------- -------- -------- --------
(Loss) income before income tax provision
and extraordinary item ......................... (3,492) 818 (1,271) 6,178
Income tax (benefit) provision ................... (1,222) 328 (363) 2,468
-------- -------- -------- --------
(Loss) income before extraordinary item .......... (2,270) 490 (908) 3,710
Extraordinary item:
Gain on early extinguishment of debt, net of taxes ... -- -- -- 1,520
-------- ------ ------- ----------
Net (loss) income .................................... $ (2,270) $ 490 $ (908) $ 5,230
======== ====== ======= ==========
Basic (loss) income per share:
(Loss) income before extraordinary item ............ $ (0.08) $ 0.02 $ (0.03) $ 0.14
Extraordinary income on early extinguishment of debt -- -- -- 0.05
-------- ------ ------- ----------
Total basic (loss) income per share ............. $ (0.08) $ 0.02 $ (0.03) $ 0.19
======== ====== ======= ==========
Diluted (loss) income per share:
(Loss) income before extraordinary item ............ $ (0.08) $ 0.02 $ (0.03) $ 0.13
Extraordinary income on early extinguishment of debt -- -- -- 0.05
-------- ------ ------- ----------
Total diluted (loss) income per share ........... $ (0.08) $ 0.02 $ (0.03) $ 0.18
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Weighted average shares outstanding:
Basic ........................................... 27,875 27,571 27,770 27,169
======== ====== ======= ==========
Diluted ......................................... 27,875 29,727 27,770 29,812
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