EX-99.1 2 0002.txt PRESS RELEASE DATED OCTOBER 25, 2000 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 ---------------------------------------- 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 ======== ======== 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