EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

For More Information,

Please Contact

Mark Haidet – Chief Financial Officer (770) 576-6404

Melissa Coley - Investor Relations (770) 576-6577

 

Radiant Systems, Inc. Reports Record First Quarter Results

 

Continued strong growth results in adjusted earnings of $.08 per diluted share

 

ATLANTA—(BUSINESS WIRE)—April 28, 2005—Radiant Systems, Inc. (NASDAQ: RADS—News), a leading provider of innovative technology for the hospitality, petroleum and convenience retail and entertainment industries, today announced financial results for the first quarter ended March 31, 2005.

 

Summary financial results for the first quarter of 2005 are as follows:

 

    Total revenues for the period were $37.3 million, an increase of 39 percent over revenues of $26.8 million for the same period in 2004.

 

    Net income before discontinued operations for the period was $1.2 million, or approximately $0.04 per diluted share, an improvement of $2.1 million, or $0.07 per diluted share, compared to the same period in 2004.

 

    Net income for the period was $1.2 million, or approximately $0.04 per diluted share, a decrease of $0.8 million, or $0.03 per diluted share, compared to the same period in 2004.

 

    Adjusted net income (non-GAAP) from continuing operations for the period, which excludes amortization of acquisition related intangible assets and non-recurring charges, was $2.5 million or $0.08 per diluted share, an increase of $2.4 million or $0.08 per diluted share, compared to the same period in 2004.

 

John Heyman, the Company’s chief executive officer commented, “Continued strong growth in our hospitality business mitigated the historical seasonality we see in our other businesses and helped drive higher than expected results in the quarter. Specifically, our pipeline of larger, direct account business across the company continued to grow and become more qualified. Our products are producing demonstrable value for our customers. This value proposition has resulted in significant wins for our company and is helping encourage customers to accelerate implementations, allowing us to close and deliver on more direct business than planned during the quarter. Additionally, our indirect channel business continued to be strong and perform ahead of plan driven by excellent execution by our strong community of channel partners.”

 

Mark Haidet, the Company’s chief financial officer commented, “The business continues to track against our long term model. We have demonstrated our ability to grow while better leveraging our cost structure and strengthening our balance sheet. Even with 39


percent revenue growth, our operating expense remained flat resulting in adjusted operating margin of 8% compared to 1% in the same period of 2004. We generated more than $5.1 million of free cash flow during the first quarter and improved working capital by $1 million. In addition, we reduced our debt by $2.8 million during the period.”

 

Haidet added, “The strength of the first quarter has increased our visibility and allowed us to increase the low end of our earnings guidance for 2005.”

 

The Company provided guidance for the second quarter of 2005 with a revenue range of $36 million to $38 million and adjusted earnings of $0.06 to $0.08 per diluted share. The company updated its previous adjusted earnings guidance for the year from a range of $.30 to $.38 to a range of $.32 to $.38 per diluted share. The revenue range remains at $155 million to $160 million.

 

On January 31, 2004 the Company completed the disposition of its Enterprise Software Systems segment. The historical financial statements have been reported with the Enterprise Software Systems segment included in discontinued operations. Additionally, on January 12, 2004 the Company completed its acquisition of Aloha Technologies (“Aloha”). All Aloha operations are included in the Company’s 2004 financial statements as of the date of the acquisition.

 

The Company provides adjusted net income/(loss) and adjusted net income/(loss) per share in this press release as additional information relating to the Company’s operating results. The measures are not in accordance with, or an alternative for, generally accepted accounting practices (“GAAP”) and may be different from adjusted net income measures used by other companies. Net income/(loss) has been adjusted to exclude amortization of acquisition related intangible assets and non-recurring charges. The Company believes that this non-GAAP presentation provides useful information to investors regarding certain additional financial and business trends relating to the Company’s financial condition and results of operations, and valuable insight into the Company’s ongoing operations and earnings power.

 

Radiant will hold its first quarter 2005 conference call today at approximately 5 p.m. Eastern Time. This call is being webcast by CCBN and can be accessed at Radiant’s web site at http://phx.corporate-ir.net/phoenix.zhtml?c=115271&p=irol-irhome. The call will also be available via telephone at 1-888-280-8277 - reference ID# T563437R.

 

Founded in 1985, Radiant Systems, Inc. provides innovative store technology for the hospitality, petroleum and convenience retail, and entertainment industries. Radiant’s point-of-sale, self-service kiosk, and back-office technology enables operators to drive top-line growth and improve bottom-line performance. Headquartered in Atlanta, Radiant (www.radiantsystems.com) has deployed its solutions in more than 50,000 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 large portion of its revenues, fluctuations in its quarterly results, its 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.

 

- ### –

 

 


RADIANT SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE DATA)

 

     March 31,
2005


    December 31,
2004


 
ASSETS                 

Current assets

                

Cash and cash equivalents

   $ 15,114     $ 15,067  

Accounts receivable, net

     26,490       25,997  

Inventories

     18,164       18,647  

Other short-term assets

     2,772       2,122  
    


 


Total current assets

     62,540       61,833  

Property and equipment, net

     8,428       8,590  

Software development costs, net

     2,298       2,344  

Goodwill

     34,860       34,927  

Intangibles, net

     20,746       22,029  

Other long-term assets

     256       31  
    


 


     $ 129,128       129,754  
    


 


LIABILITIES AND SHAREHOLDERS’ EQUITY                 

Current liabilities

                

Accounts payable and accrued liabilities

   $ 22,702     $ 24,123  

Accrued contractual obligations and payables due to Related Party

     2,589       2,982  

Customer deposits and unearned revenue

     13,351       9,881  

Current portion of long-term debt

     3,767       5,661  
    


 


Total current liabilities

     42,409       42,647  

Client deposits and deferred revenues, net of current portion

     517       564  

Long-term debt, less current portion

     11,951       12,892  

Other long-term liabilities

     261       344  
    


 


Total liabilities

     55,138       56,447  
    


 


Shareholders’ equity

                

Common stock, no par value; 100,000,000 shares authorized; 29,157,593 and 29,321,360 shares issued and outstanding

     —         —    

Additional paid-in capital

     118,041       118,649  

Accumulated other comprehensive income

     363       244  

Accumulated deficit

     (44,414 )     (45,586 )
    


 


Total shareholders’ equity

     73,990       73,307  
    


 


     $ 129,128       129,754  
    


 


 

 


RADIANT SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

 

     For the three months ended

 
     March 31, 2005

    March 31, 2004

 

Revenues:

                

System sales

   $ 20,402     $ 11,890  

Client support, maintenance and other services

     16,937       14,951  
    


 


Total revenues

     37,339       26,841  

Cost of revenues:

                

System sales

     10,629       5,309  

Client support, maintenance and other services

     11,260       8,645  
    


 


Total cost of revenues

     21,889       13,954  
    


 


Gross profit

     15,450       12,887  

Operating Expenses:

                

Product development

     2,973       3,472  

Sales and marketing

     4,211       4,518  

Depreciation of fixed assets

     811       964  

Amortization of intangible assets

     1,283       1,044  

General and administrative

     4,560       3,606  
    


 


Total operating expenses

     13,838       13,604  

Income (loss) from operations

     1,612       (717 )

Interest and other (expense) income, net

     (257 )     (213 )
    


 


Income (loss) from continuing operations before income taxes

     1,355       (930 )

Income tax provision

     183       34  
    


 


Income (loss) from continuing operations

     1,172       (964 )

Discontinued operations

                

Loss from operations of Enterprise business, net

     —         (913 )

Gain on disposal of Enterprise business, net

     —         3,809  
    


 


Income from discontinued operations

     —         2,896  
    


 


Net income

   $ 1,172     $ 1,932  
    


 


Income (loss) per share from continuing operations

                

Basic

   $ 0.04     $ (0.03 )
    


 


Diluted

   $ 0.04     $ (0.03 )
    


 


Net income per share

                

Basic

   $ 0.04     $ 0.07  
    


 


Diluted

   $ 0.04     $ 0.07  
    


 


Weighted average shares outstanding:

                

Basic

     29,247       28,906  
    


 


Diluted

     30,302       28,906  
    


 


Reconciliation of Adjusted Net Income:

                

Net income

   $ 1,172     $ 1,932  

Operations of discontinued business

     —         913  

Gain on disposal of discontinued business

     —         (3,809 )

Lease termination and severance costs

     —         —    

Amortization of purchased intangibles

     1,283       1,044  
    


 


Adjusted net income

   $ 2,455     $ 80  
    


 


Adjusted net income per diluted share

   $ 0.08     $ 0.00