-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RtQegmfQDW3N00GM57AemDDgHN+GbZNj5Lz/juCxju/9yhWGdFxzIl3ftK83rhlb qbMo+FjgflFhiZyN987hxQ== 0000896463-97-000115.txt : 19970520 0000896463-97-000115.hdr.sgml : 19970520 ACCESSION NUMBER: 0000896463-97-000115 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYMIX SYSTEMS INC CENTRAL INDEX KEY: 0000872443 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 311083175 STATE OF INCORPORATION: OH FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19024 FILM NUMBER: 97607934 BUSINESS ADDRESS: STREET 1: 2800 CORPORATE EXCHANGE DR CITY: COLUMBUS STATE: OH ZIP: 43231 BUSINESS PHONE: 6145237000 MAIL ADDRESS: STREET 1: 2800 CORPORATE EXCHANGE DR CITY: COLUMBUS STATE: OH ZIP: 43231 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ____________________ Commission File Number 0-19024 Symix Systems, Inc. ___________________________________________________________ (Exact name of registrant as specified in its charter) Ohio 31-1083175 _______________________________ ____________________________________ (State or other jurisdiction of (IRS Employer Identification Number) incorporation or organization) 2800 Corporate Exchange Drive Columbus, Ohio 43231 ___________________________________________________________ (Address of principal executive officer) (Zip Code) (614) 523-7000 ___________________________________________________________ (Registrant's telephone number, including area code) N/A ___________________________________________________________________________ (Former name, former address fiscal year, if changed since last report) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES __X__ NO _____ At May 13, 1997, there were 5,856,556 common shares of the Company outstanding with a stated value per share of $.01. TOTAL OF SEQUENTIALLY NUMBERED PAGES: EXHIBIT INDEX ON PAGE 14. SYMIX SYSTEMS, INC. INDEX Part I. FINANCIAL INFORMATION PAGE Item 1. Financial Statements Consolidated Balance Sheets 3 - 4 March 31, 1997 (unaudited) June 30, 1996 Consolidated Statements of Operations (unaudited) 5 Three Months Ended March 31, 1997 and 1996 Nine Months Ended March 31, 1997 and 1996 Consolidated Statements of Cash Flows (unaudited) 6 - 7 Nine Months Ended March 31, 1997 and 1996 Notes to Consolidated Financial Statements (unaudited) 8 - 9 Item 2. Management's Discussion and Analysis 10-11 of Financial Condition and Results of Operations Part II. OTHER INFORMATION 12 Item 1. Legal Proceedings. 12 Item 2. Changes in Securities. 12 Item 3. Defaults Upon Senior Securities. 12 Item 4. Submission of Matters to a Vote of Security Holders. 12 Item 5. Other Information. 12 Item 6. Exhibits and Reports on Form 8-K. 12 SIGNATURE 13 INDEX TO THE EXHIBITS 14 -2- SYMIX SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) March 31, June 30, 1997 1996 --------- -------- (unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 3,072 $ 6,774 Trade accounts receivable, less allowance for doubtful accounts of $444 at March 31, 1997 and $450 at June 30, 1996 17,064 11,429 Inventories 381 312 Prepaid expenses 599 522 Other receivables 391 117 Deferred income taxes 300 230 -------- -------- TOTAL CURRENT ASSETS 21,807 19,384 OTHER ASSETS Purchased and developed software, net of accumulated amortization of $5,647 at March 31, 1997 and $4,311 at June 30, 1996 5,868 4,660 Deferred income taxes 1,220 1,004 Intangibles, net 5,129 -- Deposits and other assets 867 472 -------- -------- 13,084 6,136 EQUIPMENT AND IMPROVEMENTS Furniture and fixtures 2,434 2,294 Computer and other equipment 9,896 8,078 Leasehold improvements 1,316 1,187 -------- -------- 13,646 11,559 Less allowance for depreciation and amortization (8,038) (6,616) -------- -------- 5,608 4,943 -------- -------- TOTAL ASSETS $ 40,499 $ 30,463 ======== ======== See notes to consolidated financial statements
-3- SYMIX SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) (In thousands) March 31, June 30, 1997 1996 --------- -------- (unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 6,405 $ 5,300 Customer deposits 177 242 Deferred revenue 8,992 5,786 Income taxes payable 340 518 -------- -------- TOTAL CURRENT LIABILITIES 15,914 11,846 LONG-TERM PAYABLE 997 -- DEFERRED INCOME TAXES 1,984 1,515 SHAREHOLDERS' EQUITY Common stock, authorized 20,000 shares; issued 6,141 shares at March 31, 1997, and 5,826 at June 30, 1996; at stated capital amounts of $.01 per share 61 58 Capital in excess of stated value 13,027 10,985 Convertible preferred stock of subsidiary 1,031 -- Retained earnings 8,805 7,379 -------- -------- 22,924 18,422 Less: Cost of common shares in treasury, 304 shares at March 31, 1997 and June 30, 1996, at cost (1,320) (1,320) -------- -------- TOTAL SHAREHOLDERS' EQUITY 21,604 17,102 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 40,499 $ 30,463 ======== ======== See notes to consolidated financial statements -4- SYMIX SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Nine Months Ended March 31, Ended March 31, ----------------- ---------------- 1997 1996 1997 1996 License fees $ 7,852 $ 5,988 $23,210 $17,177 Service, maintenance and support 7,506 5,177 21,375 15,378 ------- ------- ------- ------- Net revenue 15,358 11,165 44,585 32,555 License fees 2,145 1,565 6,525 4,839 Service, maintenance and support 3,260 2,193 8,819 6,286 ------- ------- ------- ------- Cost of revenue 5,405 3,758 15,344 11,125 ------- ------- ------- ------- Gross margin 9,953 7,407 29,241 21,430 ------- ------- ------- ------- Selling, general and administrative 7,994 5,410 22,649 15,897 Research and product development 1,501 968 3,954 2,587 Restructuring and other unusual charges -- -- -- 506 ------- ------- ------- ------- Total expenses 9,495 6,378 26,603 18,990 ------- ------- ------- ------- Operating income 458 1,029 2,638 2,440 Interest and other income, net 18 46 123 161 ------- ------- ------- ------- Income before provision for income taxes 476 1,075 2,761 2,601 Provision for income taxes 183 430 1,050 1,041 ======= ======= ======= ======= Net income $ 293 $ 645 $ 1,711 $ 1,560 ======= ======= ======= ======= Earnings per share $ 0.04 $ 0.11 $ 0.28 $ 0.28 ======= ======= ======= ======= Weighted average number of common and common equivalent shares outstanding 6,600 5,714 6,218 5,572 ======= ======= ======= ======= See notes to consolidated financial statements
-5- SYMIX SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Nine Months Ended March 31, (unaudited) 1997 1996 --------------------------- Increase (decrease) in cash OPERATING ACTIVITIES Net income $ 1,711 $ 1,560 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 3,111 2,035 Provision for losses on accounts receivable (6) (48) Provision for deferred income taxes 114 416 Changes in operating assets and liabilities: Trade accounts receivable (4,248) 1,093 Prepaid expenses and other receivables 7 (134) Inventory (69) (174) Deposits (606) 118 Accounts payable and accrued expenses (1,323) (14) Customer deposits (73) (153) Deferred revenue 2,495 32 Income taxes payable/refundable 202 612 ------- ------- NET CASH PROVIDED BY OPERATING ACTIVITIES 1,315 5,343 See notes to consolidated financial statements -6- SYMIX SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (In thousands) Nine Months Ended March 31, (unaudited) 1997 1996 --------------------------- Increase (decrease) in cash INVESTING ACTIVITIES Purchase of equipment and improvements (1,915) (854) Additions to purchased and developed software (2,481) (2,699) Purchase of subsidiaries, net of cash acquired (1,191) -- ------- ------- NET CASH USED BY INVESTING ACTIVITIES (5,587) (3,553) FINANCING ACTIVITIES Proceeds from issuance of common stock and exercise of stock options 718 333 Payments on long-term obligations (84) (154) ------- ------- NET CASH PROVIDED BY FINANCING ACTIVITIES 634 179 Effect of exchange rate changes on cash (64) (74) ------- ------- Net Change in Cash (3,702) 1,895 Cash at beginning of period 6,774 4,498 ------- ------- CASH AT END OF PERIOD $ 3,072 $ 6,393 ======= ======= See notes to consolidated financial statements -7- SYMIX SYSTEMS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note A -- Accounting Policies and Presentation The accompanying consolidated financial statements are unaudited; however, the information contained herein reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the interim periods. All adjustments made were of a normal recurring nature. These interim results of operations are not necessarily indicative of the results to be expected for a full year. The notes to the consolidated financial statements contained in the Symix Systems, Inc. and Subsidiaries' (the Company) June 30, 1996 Annual Report to Shareholders should be read in conjunction with these financial statements. Note B -- Restructuring and Other Non-Recurring Charges The restructuring and other non-recurring charges of $506,000 shown for the nine months ended March 31, 1996 relate primarily to severance payments and reorganizing loss associated with the European sales channel. Note C--Acquisitions During the first quarter of fiscal 1997, the Company acquired in two separate transactions companies in France and Australia for an aggregate of $2.0 million. The cash paid for the acquisitions was $940,000, with the remaining balance of $1.06 million being payable over three years. Both companies are manufacturing software specialists that will serve as sales, service and support operations for the Company in France and Australia. The acquisitions were accounted for using purchase accounting with results included since the date of acquisition. Acquisition costs exceeded the fair value of the net assets acquired by approximately $2.3 million which is being amortized over five years. On January 9, 1997 the Company acquired an Ontario, Canada corporation called Visual Applications Software, Inc. ("VAS") for $1.0 million (Canadian) in cash, and 250,000 Class A Preference Shares (the "Class A Shares") and 500,000 Class B Preference Shares (the "Class B Shares") of a subsidiary of the Company. The Class B Shares are redeemable by the holder for $1.00 (Canadian) per share. In connection with the acquisition, the Company also entered into a Share Exchange Agreement with the former stockholders of VAS which provides for a one for one exchange of the Class A Shares for common shares of the Company. VAS designs and markets a field service software product. The acquisition was accounted for using purchase accounting with results included since the date of acquisition. Acquisition costs exceeded the fair value of the net assets acquired by approximately $3.2 million which is being amortized over five years. Note D - Earnings Per Share In February 1997, the Financial Accounting Standards Board issued Statement No. 128, "Earnings Per Share" (SFAS 128). SFAS 128 requires adoption for periods ending after December 15, 1997. Until that time, the Company is required to continue calculating earnings per share (EPS) in accordance with Accounting -8- Principles Board Opinion No. 15. The following is provided for informational purposes and displays the Company's earnings per share data as calculated under the provisions of SFAS 128: Basic EPS Diluted EPS --------- ----------- Three months ended March 31, 1997 $0.05 $0.04 Nine months ended March 31, 1997 $0.30 $0.28 -9- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company's revenues are derived from (i) licensing SYMIX software and (ii) providing product support and related services. Product support is provided pursuant to agreements that are generally renewed annually. Related services consist of installation, implementation, training, consulting, programming and systems integration services for SYMIX users. The Company's results of operations have fluctuated on a quarterly basis due to the timing of license fee revenues. Results of Operations Net revenue was $15,358,000 for the three months ended March 31, 1997, an increase of 38% from the same quarter of the previous year. License revenues increased 31% from $5,988,000 for the same quarter last year to $7,852,000 at March 31, 1997. Service and support revenues increased 45% for the respective quarters' performance; $7,506,000 for March 31, 1997, and $5,177,000 for March 31, 1996. The significant increases in the current period are primarily attributable to license and maintenance revenue growth due to the Company's enhanced and expanded product line, as well as a rapidly growing international sales channel. Net revenue outside of North America accounted for 28% of the total revenue for the current quarter, compared to 13% for the same quarter last year. For the nine months ended March 31, 1997, net revenue increased 37% to $44,585,000 from $32,555,000 for the same period last year. Again, the increase is primarily attributable to the Company's expanded product line and net revenue outside of North America being at its highest level in the Company's history, more than 25% of total revenue for the nine month period. The cost of license fees increased for the quarter ended March 31, 1997 and for the nine months ended March 31, 1997 from the corresponding periods last year as a direct result of the increase in license fee revenue and from royalty payments relating to the new product offerings. Software amortization increased as well following the general commercial release of the SyteLine and SytePower products for which costs had previously been capitalized. The cost of license fees as a percentage of license fee revenue increased slightly in the quarter ended March 31, 1997 from the quarter ended March 31, 1996, but remained constant at 28% for the respective nine month periods. The cost of service, maintenance and support increased to $3,260,000 for the quarter ended March 31, 1997 from $2,193,000 for the same quarter last year primarily because the Company added personnel to provide the services that generated the corresponding increase in revenue from service, maintenance and support. As a percentage of service, maintenance and support revenue, the cost of service, maintenance and support increased slightly in the quarter ended March 31, 1997 from the quarter ended March 31, 1996, but remained constant at 41% for the respective nine month periods. Selling, general and administrative (SG&A) expense was $7,994,000 for the quarter ended March 31, 1997, compared to $5,410,000 for the same period last year, a 48% increase. However, SG&A expense remained fairly constant compared to the prior quarter. For the respective nine month periods, SG&A expense was $22,649,000 compared to $15,897,000, an increase of 42%. The increase is due to -10- the Company's revenue growth - planned spending increases in marketing programs as well as the growth in headcount for both the international and domestic sales channels. SG&A expense stated as a percentage of revenue, for both the three month and nine month periods, has remained fairly constant, ranging from 48% to 52%. Research and product development (R&D) expenditures, including amounts capitalized for the three months ended March 31, 1997, were $2,502,000 compared to $1,327,000 for the same period last year. For the nine months ended March 31, 1997, R&D expenses were $6,476,000 compared to $4,286,000 for the same period last year. Capitalization of software development costs was $1,001,000 and $2,522,000 for the three and nine month periods respectively, ended March 31, 1997, compared to $359,000 and $1,699,000 for the comparable periods last year. The increase in research and development expenditures is expected to continue as the Company devotes a significant percentage of its resources to developing and enhancing existing and new products. Liquidity and Capital Resources At March 31, 1997, the Company had working capital of $5,893,000 including cash and cash equivalents of $3,072,000, compared to $7,538,000 including cash and cash equivalents of $6,774,000 at June 30, 1996. Net accounts receivable increased from $11,429,000 at June 30, 1996, to $17,064,000 at March 31, 1997. At March 31, 1997, the accounts receivable days sales outstanding (DSO) was 97 days compared to 76 days at June 30, 1996. The increase in DSO is attributable to: (i) the increase in installment payments that are being collected over the product implementation cycle, generally a three to six month period; and (ii) the increase in international sales which typically have a higher DSO. The decrease in working capital is due to acquisitions, international expansion, and current year capital expenditures. In addition to its present working capital, the Company has, with a bank, a $6.0 million unsecured revolving line of credit. To date, $250,000 has been drawn under the line of credit and was subsequently repaid on April 3, 1997. It is expected that the Company's continued expansion of its operations and product line will result in additional requirements for cash in the future. The Company, however, anticipates that existing sources of liquidity, cash flow from operations, and the bank line of credit will be sufficient to satisfy anticipated cash flow needs for the next twelve months. --------------------------- Safe Harbor Statement: The statements made in this report which are not historical fact are "forward looking statements" that involve risks and uncertainties, including, but not limited to, product demand and market acceptance, variation of quarterly revenues, the effect of economic conditions, the impact of competitive products, pricing and other factors detailed in Symix's filings with the Securities and Exchange Commission. -11- PART II -- OTHER INFORMATION Item 1. Legal Proceedings. None Item 2. Changes in Securities. On February 14, 1997, the Company issued 62,500 common shares, no par value, to each Philip Smart and Richard Smart (collectively the "Smarts"), former shareholders of Visual Applications Software, Inc., an Ontario, Canada corporation ("VAS"). The common shares were issued in exchange for an equal number of Class A Preference Shares of Symix Systems (Ontario) Inc., a subsidiary of the Company (the "Class A Shares"), formerly held by the Smarts. The Class A Shares were acquired by the Smarts in connection with the acquisition of VAS by the Company in January, 1997. The VAS acquisition was reported in a Current Report on Form 8-K dated January 9, 1997 filed by the Company with the Securities and Exchange Commission (the "Commission") and a press release dated January 10, 1997, a copy of which is attached to this Report as Exhibit 99. The 125,000 common shares of the Company were issued to the Smarts in reliance upon the private offering exemption from the registration requirements of the Securities Act of 1933 (the "Act") contained in Section 4 (2) of the Act which applies to transactions not involving any public offering of securities. Such common shares were subsequently registered with the Commission on a Registration Statement on Form S-3 (Commission File No. 333-23385), which became effective on March 26, 1997. Item 3. Defaults Upon Senior Securities. None Item 4. Submission of Matters to a Vote of Security Holders. None Item 5. Other Information. None Item 6. Exhibits and Reports on Form 8-K. a) See Index to Exhibits on page 14. b) Reports on Form 8-K The Company filed a Current Report on Form 8-K dated January 9, 1997 with the Commission to report the acquisition of VAS during the period covered by this Report. -12- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SYMIX SYSTEMS, INC. Date: May 14, 1997 /s/Lawrence W. DeLeon ________________________________ Lawrence W. DeLeon Vice President, Chief Financial Officer and Secretary -13- INDEX TO EXHIBITS Exhibit No. Description Page - ----------- ----------- ------ 3(a) Amended Articles of Incorporated herein by Incorporation of reference to Exhibit 3(a) Symix Systems, Inc., to the Annual Report as amended on Form 10-K of Registrant for the fiscal year ended June 30, 1996 3(b) Amended Regulations of Incorporated herein by Symix Systems, Inc. reference to Exhibit 3(b) to the Registration Statement on Form S-1 of Registrant filed February 12, 1991 (Registration No. 33-38878) 10(a) Amendment to Employment Page 15 Agreement between the Company and Stephen A. Sasser 10(b) Share Exchange Agreement dated Incorporated herein by January 9, 1997 between the reference to Exhibit 99 to Company and Philip Smart and the Current Report on Form 8-K Richard Smart of the Company dated January 9 1997 27 Financial Data Schedule Page 21 99 Press Release regarding VAS Page 17 acquisition -14- EX-10.A 2 Exhibit 10(a) AMENDMENT TO EMPLOYMENT AGREEMENT THIS AMENDMENT TO EMPLOYMENT AGREEMENT is made to be effective as of the 1st day of April 1997, between Symix Systems, Inc., an Ohio corporation (the "Company") and Stephen A. Sasser ("Employee"). WITNESSETH WHEREAS, the Company and Employee are parties to an Employment Agreement dated July 5, 1995 pursuant to which the Company engaged Employee to serve as President and Chief Operating Officer of the Company (the "Employment Agreement"); and WHEREAS, the Company and Employee desire to modify the Employment Agreement as set forth herein; NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 1. Modification of Compensation Arrangement. Subparagraphs 3(a) and 3(b) of the Employment Agreement are hereby amended to read in their entirety as follows: "(a) Base Salary. Employee shall receive an annual base salary of not less than $242,000 (the "Base Salary") to be paid semi-monthly in equal installments. The Base Salary shall be reviewed not less frequently than annually and shall be subject to such upward adjustments as the Compensation Committee (the "Compensation Committee") of the Board of Directors of the Company (the "Board") may deem appropriate in its discretion. (b) Incentive Compensation. During the Term of this Agreement, Employee shall be entitled to additional compensation pursuant to a bonus plan to be approved by the Compensation Committee and to be consistent with this paragraph 3(b). Employee's annual target bonus will be as follows: (i) $174,500, for the Company's fiscal year ended June 30, 1997, of which 80% ($139,600) will be earned if and to the extent the Company's earnings per share achieve targets proposed by Employee and approved by the Compensation Committee for such fiscal year and 20% ($34,900) will be earned if and to the extent the Company achieves other strategic objectives proposed by Employee and approved by the Compensation Committee for such fiscal year; and (ii) $158,000 during the remaining term of this Agreement, of which 80% ($126,400) will be earned if and to the extent the Company's earnings per share achieve targets proposed annually by -15- Employee and approved by the Compensation Committee and 20% ($31,600) will be earned if and to the extent the Company achieves other strategic objectives proposed annually by Employee and approved by the Compensation Committee." The foregoing provisions shall be substituted for and shall be deemed to replace the language heretofore set forth in Subparagraphs 3(a) and (b) of the Employment Agreement as if such substituted language had been included in the originally-executed Employment Agreement, except that such substituted provisions shall apply prospectively only from the effective date hereof. 2. No Modification of Other Provisions. Except as provided in Paragraph 1 hereinabove, the terms and provisions of the Employment Agreement shall remain in full force and effect and shall apply to this Amendment to Employment Agreement as if fully incorporated herein. IN WITNESS WHEREOF, the parties have executed this Amendment to Employment Agreement as of the date first hereinabove written. SYMIX SYSTEMS, INC. By /s/Lawrence J. Fox ____________________________________ Lawrence J. Fox Chairman and Chief Executive Officer EMPLOYEE /s/Stephen A. Sasser ____________________________________ Stephen A. Sasser -16- EX-99 3 Exhibit 99 FOR IMMEDIATE RELEASE For more information, contact: Mark Wallinger, Symix 614-523-7243; marwal@symix.com SYMIX CONTINUES AGGRESSIVE GROWTH ACQUIRES FIELD SERVICE PRODUCT LEADING PROVIDER OF ERP SOFTWARE FOR MANUFACTURERS BUYS CANADIAN-BASED VAS, INC. COLUMBUS, Ohio, January 10, 1997 -- Symix (NASDAQ-NMS: SYMX) today announced that it has acquired for an undisclosed sum Canadian-based Visual Applications Software (VAS), Inc., the maker of FieldPro, a leading, midmarket, field service product. "Our customers and prospectus wanted improved capabilities to upgrade service and management of their customers," said Symix President and COO Stephen A. Sasser. "With this acquisition, we have added an application to our product line that will provide our customers with a powerful competitive advantage. The visual scheduling of field resources and remote capabilities of FieldPro provides functionality that surpasses the products provided by most other midmarket Enterprise Resource Planning (ERP) vendors." FieldPro is the signature product of VAS, which will remain as a business unit under Symix. Symix will market FieldPro to midsized companies and divisions of multinational corporations, as well as deliver a Symix-branded product using the same technology for manufacturers. -17- Symix Acquires VAS/Page 2 "Symix is a company with exciting momentum and an established international distribution channel," said VAS Chairman Ken Smart, who founded the company. "We are excited about the plan to accelerate the growth and marketplace acceptance of FieldPro." Symix develops, markets and supports integrated, high-performance business management software systems for manufacturers with between $20 million and $350 million in annual sales. Its principal product, Symix SyteLine(TM), is designed for discrete manufacturers specializing in configurable products. Launched in 1992, FieldPro allows companies to track their service business from customer calls, to assigning technicians, to monitoring parts inventory, to evaluating the performance of service contracts. As companies continue to focus on customers, the need for field service becomes critical. FieldPro allows companies to better service customers after the sale as well as providing critical data needed to evaluate true profitability of products and service organizations. FieldPro runs on desktop computers with the Windows operating system. Headquartered in Burlington, Ontario, the majority of VAS business is in North America and the U.K. It has approximately 100 customers at 250 sites and 15 employees. The addition of FieldPro plays into the current Symix strategy of helping manufacturers integrate and synchronize resource planning with customers. Symix offers the products, services and technology to assist manufacturers in "becoming indispensable" to their customers by integrating -- not just bundling add-on products, but truly integrating -- product ordering, configuration, manufacturing systems and, now, field service. The focus is to coordinate software that will make vital information available immediately through online resources, like the Internet. The integration of the software -18- Symix Acquires VAS/Page 3 will allow manufacturers to communicate with and manage customers better IN THE MANNER THE CUSTOMER REQUIRES. The integrated, or synchronized resource planning model that Symix promotes goes beyond existing "add-on" modules, because it builds the customer into the manufacturer's process through existing technologies and reacts faster allowing for better management, or "ownership" of the customer issues, such as securing an order. Symix's family of ERP/business solutions -- The SYMIX(R) Solution, Symix SyteLine, and Symix SytePower(TM), along with Symix's comprehensive services -- enable midsize manufacturers and divisions of multinational companies to quickly and cost-effectively develop an integrated system for managing critical production, financial and distribution functions. With more than 2,400 licenses sold, many of the world's most successful and innovative organizations use Symix software to help manage their businesses. Symix is focused on providing solutions for midsized manufacturers and manufacturing sites, which it defines as between $20 million to $350 million in annual sales. Symix markets its products through sales and services offices in Australia, Europe, North America, and the Pacific Rim. Additionally, SYMIX is sold through more than 40 independent software and support business partners worldwide. Symix product and company information is available at the following URL:http://www.symix.com. The statements made in this press release which are not historical fact are "forward looking statements" that involve risks and uncertainties, including, but not limited to, product demand and market acceptance, variation of quarterly revenues, the effect of economic conditions, the impact of competitive products, foreign currency fluctuations, pricing and other factors detailed in Symix's filings with the Securities and Exchange Commission. -19- Symix Acquires VAS/Page 4 (SYMIX HAS 2,400 LICENSES WORLDWIDE, AND EVERY DAY MORE THAN 70,000 PEOPLE UTILIZE THE SOFTWARE. THE COMPANY, FOUNDED IN 1979, IS FOCUSED ON FOUR KEY MARKETS: INDUSTRIAL EQUIPMENT, FURNITURE/FIXTURES, ELECTRONICS AND FABRICATED METALS.) SYMIX is a registered trademark of Symix Systems, Inc. All other products are trademarks of their respective companies. -20- EX-27 4
5 This schedule contains summary financial information extracted from the condensed consolidated balance sheets and statements of income of Symix Systems, Inc., and is qualified in its entirety by reference to such Form 10-Q for the period ended March 31, 1997. 1000 U.S. DOLLARS 9-MOS JUN-30-1997 JUL-01-1996 MAR-31-1997 1 3,072 0 17,508 444 381 21,807 13,646 8,038 40,499 15,914 997 0 1,031 61 20,512 40,499 23,210 44,585 6,525 15,344 26,603 (6) 5 2,761 1,050 1,711 0 0 0 1,711 0.28 0.28
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