ANDERLECHT, Belgium, Feb. 18, 2003 (PRIMEZONE) -- Keyware Technologies NV ("Keyware") (NASDAQ Europe:KEYW) (Other OTC:KEYWF), one of the world's leading providers of multi-application card, physical access and time & attendance management solutions, today announced the successful accomplishment of the 2002 turnaround plan. This plan was threefold:
-- Refocus of the Company, -- Reach operational cash break-even, -- Refinance the Company.
Refocus of the Company
At the end of 2002, Keyware is a highly focused company on multi-application card solutions for the Customer Loyalty, Event Ticketing, Electronic Payment, e-Identity, Physical Access, Logical Access, Time & Attendance and Alarm Management markets.
In line with this mission statement, Keyware divested the following activities :
-- Q1: Sale of the U.S. Internet Division, to the former management
of this division;
-- Q2: Sale of the UNI product line assets;
-- Q3: Divestment of Keyware Solutions LLC (formerly Lex Solutions),
Washington, U.S., to MSD Inc.;
-- Q4: Sale of the CAS (Common Authentication Server) software
platform IP rights to Identix-Visionics.
These divestments resulted in a total cash consideration of $3.5 million.
From this amount, $0.4 million still have to be received.
Before the end of Q1 2003, Keyware further plans to sell its Internet Access Security division Able, based in Belgium.
Reach operational cash break-even
The management further decided to decrease the Company's cost structure and to improve the sales income by:
-- Closing the following offices: Boston (U.S.), Barcelona (Spain),
Ieper (Belgium), Zaventem (Belgium) and Singapore (Singapore);
-- Rightsizing the Head Quarter functions;
-- Focusing on high margin revenue and implementing a strict cost
control.
As a result, in 2002 the operational cash drain (before non-recurrent items) decreased on a quarterly basis:
-- Q1: $2.9 million -- Q2: $2.5 million -- Q3: $1.3 million
In Q4 2002 the operational cash drain further decreased.
Refinancing
In July 2002 Keyware announced the completion of a private placement in the form of a bond with warrants of $1.9 million. The funds obtained have been used to execute the Company's turnaround plan.
In September 2002 Keyware signed a contract with LaMarr Brothers, an Anglo-American, FSA regulated an privately owned Advisory and Investment Banking Group. Under the agreement LaMarr Brothers underwrites an engagement to search, approach, negociate and formalize contractual terms for the refinancing of the group on or before the end of June. Today, the Company is in ongoing discussions with potential partners.
Mr. Chris Buyse, CEO, said: "During 2002, we have been concentrating on the execution of our challenging restructuring plan. The key message was to focus on the bottom-line, to sell non-core, non-profitable business units and to defragment the organization in every single aspect. I would like to thank our customers, partners and employees for their continuous support."
Mr. Stephane Vandervelde, President Corporate Strategy, added: "Our assumption is that for fiscal year 2003 business starts to pick up again. New orders from our customers confirm our credibility of strong technological leadership, state-of-the-art products and premium professional services. We expect Keyware to be cash profitable by the end of 2003."
About Keyware
Keyware (NASDAQ Europe:KEYW) is a leading provider of multi-application card solutions, for the Customer Loyalty, Event Ticketing, Electronic Payment, e-Identity, Physical Access, Logical Access, Time & Attendance and Alarm Management markets.
Keyware's award-winning technology is sold globally through an extended network of OEMs, system integrators and VARs, and its Professional Services group supports rapid integration to minimize time-to-market. Some important customers of Keyware include: Avis, Shell, American Express, Chrysler, Citibank, Visa/Eurocard-Mastercard, Belgian National Social Security Card, Belgian National Football League, Diners Club, Cetelem, Mobistar, and Ahold. Keyware has also provided the software for more than ten (10) million health cards, over one (1) million proximity cards for physical access and time & attendance management and over seven (7) million chip-based loyalty cards.
The company is headquartered in Brussels, Belgium and presented on line at www.keyware.com.