Industri-Matematik International Announces Fourth Quarter 2002 Results


STOCKHOLM, Sweden, June 11, 2002 (PRIMEZONE) -- Industri-Matematik International Corp. (Nasdaq:IMIC), the Order Company, today announced results for its fourth fiscal quarter and fiscal year ended April 30, 2002.

Revenues for the fourth quarter and fiscal year were $12.6 million and $55.3 million, respectively, as compared to $18.5 million and $69.4 million for the same period in 2001. License revenue for the fourth quarter was $0.4 million as compared to $3.5 million for the same period in 2001, and service and maintenance revenue was $11.5 million as compared to $14.1 million for the same period in 2001. License revenue for the fiscal year was $4.5 million as compared to $13.5 million for the same period in 2001, and service and maintenance revenue was $48.2 million as compared to $53.3 million for the same period in 2001.

The reported net loss for the fourth quarter and fiscal year was $3.0 million and $6.6 million, respectively, as compared to $26.9 million and $35.3 million for the same period in 2001.

Stig Durlow, President and Chief Executive Officer of Industri-Matematik, said, "While our pipeline continues to grow with new opportunities, we are seeing a reluctance by companies to commit their investment dollars. Deals are maturing through our pipeline but the closing process is often being postponed. We believe this is due to an underlying general uncertainty in the direction of the economy."

"Industri-Matematik continues to make progress in creating expanded market visibility and sales activity in all our global markets, especially in the Americas. Pivotal to this progress is the Company's strategy of focus and execution, where we have tailored our order and replenishment business process solutions to specific industries in the retail value chain across target geographic markets. Also important is our initiative to sell our expanded product line to existing customers.

"This strategy is reflected in our go-to-market branding of Industri-Matematik as the Order Company. We believe that the best way for companies to achieve supply chain and business success is to focus on actual demand - the order. Industry experts, customers and prospects have all responded favorably to our strategy and solutions that help companies optimize their order life cycles and replenishment processes, building our sales pipeline," continued Mr. Durlow.

"On the customer front, the fourth quarter saw Warner/Electra/Atlantic Corp. go live with a collaborative order management application and Canadian Tire go live with a visibility and event management application to improve multi-channel distribution.

"Organizationally, the Company continues to tailor its organization to drive revenue and keep costs in alignment. As part of this process, we have reduced overheads and increased Sales and Marketing resources. In addition, we have pushed more marketing and sales decision making out to the regions where our teams are closer to customers and can react faster to new opportunities and changing market conditions. During the fourth quarter we have taken steps to make our product direction more market focused with substantial input coming from the local regions.

Other examples of our stepped up marketing include unveiling an exciting, new corporate web site, the launch of our retail initiative at an industry conference in Barcelona and a highly successfully forum which brought a number of leading U.S. customers together with industry analysts. We are well positioned to produce results from these and other marketing and sales initiatives," said Mr. Durlow.

About Industri-Matematik

Industri-Matematik International - The Order Company - is a provider of high-performance supply chain solutions for the retail value chain which turns supply chain friction into smooth order flows. Its software enables companies to manage order and replenishment business processes based on actual customer demand to enable best-in-class, pull-driven supply chain practices. The Company's software includes collaborative order management, fulfillment, customer relationship management (CRM), distribution center and store replenishment, supply chain analytics, visibility and event management capabilities.

Industri-Matematik customers cover the entire retail value chain from manufacturers to logistics and business service providers to wholesalers and retailers. They include some of the world's leading brands such as AstraZeneca, AT&T, British Airways, Campbell Soup, Canadian Tire, Foster's, GE Plastics, Kellogg's, Royal Ahold, Schenker-BTL, Starbucks, Telia, TNT Express and Warner/Elektra/Atlantic.

The statements contained in this release that are not historical facts contain forward-looking information with respect to plans, projections or future performance of Industri-Matematik and further versions of its software products, the achievements of which involve certain risks and uncertainties, including, but not limited to, the success of its reorganization, product demand and market acceptance risks, the effect of economic conditions particularly in its target markets, the impact of competitive products and pricing, product development, commercialization and technological difficulties and other uncertainties detailed in Industri-Matematik's filings with the Securities and Exchange Commission, particularly its Annual Report on Form 10-K filed in July 2001. All information in this release is as of June 11, 2002. Industri-Matematik undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in its expectations.

For Industri-Matematik company and product information, and press releases, please access the Industri-Matematik site on the World Wide Web at http://www.industri-matematik.com


       INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
           Condensed Consolidated Statements of Operations
                             (Unaudited)
     (U.S. Dollars in thousands, except share and per share data)

                           Three Months Ended     Twelve Months Ended
                         04/30/02    04/30/01     04/30/02    04/30/01

 Revenues:
                            $ 410     $ 3,471     $ 4,479    $ 13,478
 Licenses
 Services and maintenance  11,489      14,139      48,239      53,313
 Other                        694         875       2,562       2,564
 Total revenues            12,593      18,485      55,280      69,355
                                                                     
 Cost of revenues:                      
                               30         647         307       1,336
 Licenses
 Services and maintenance   7,387       9,909      31,870      37,375
 Other                        245         107         935         520
 Total cost of revenues     7,662      10,663      33,112      39,231
 Gross profit               4,931       7,822      22,168      30,124
                                                                     
 Operating expenses:                                               
 Product development        2,703       3,975      10,458      15,479
 Sales and marketing        2,956       4,061      10,658      15,878
 General and                1,982       2,416       7,579       9,026
   administrative
 Amortization of goodwill     185       3,383         741       4,506
  and other intangible assets                         
 Restructuring costs            0       5,391           0       5,391
 Total operating expenses   7,826      19,226      29,436      50,280
 Loss from operations      (2,895)    (11,404)     (7,268)    (20,156)
                                                                     
 Other income (expense):                                      
 Interest income               82         291         560       1,561
 Interest expense             (1)         (1)         (3)        (13)
 Miscellaneous income       (167)       (328)         109     (1,219)
  (expense)
 Loss before income taxes  (2,981)    (11,442)     (6,602)    (19,827)
 Provision from income           0    (15,424)           0            
 taxes                                                        (15,424)
 Net                             $           $           $           $
 loss                      (2,981)    (26,866)     (6,602)    (35,251)
                                                                     
 Net loss per share -      ($0.09)     ($0.84)     ($0.20)     ($1.10)
  assuming dilution
 Weighted average number                                        
  of shares outstanding -  31 871      32 019      32 195      31 985
  assuming dilution           436         747         436         991


        INDUSTRI-MATEMATIK INTERNATIONAL CORP. AND SUBSIDIARIES
               Condensed Consolidated Balance Sheets
                    (U.S. Dollars in thousands)

                                        04/30/02           04/30/01
                                        (unaudited)              
                                           
 ASSETS                                                             
 Current assets:                                                    
 Cash and cash equivalents               $ 16,422           $ 12,053
 Short-term investments                                       12,866
 Accounts receivable, less allowance                                
 for doubtful accounts                      7,953             10,952
 Accrued income                             2,218              1,861
 Prepaid expenses                           1,688              1,726
 Income taxes receivable                        3                217
 Other current assets                         384                640
 Total current assets                      28,668             40,315
                                                                    
 Non-current assets:                                                
 Property and equipment, net                3,135              4,753
 Goodwill and other intangible assets       2,989              3,739
 Long-term cash deposit                     2,728              2,794
 Other non-current assets                     889                909
 Total non-current assets                   9,741             12,195
                                                                    
 Total assets                            $ 38,409           $ 52,510
                                                                    
 LIABILITIES AND STOCKHOLDERS' EQUITY                               
 Current liabilities:                                               
 Accounts payable                         $ 1,341            $ 1,129
 Accrued expenses and other current         6,136              8,071
 liabilities
 Accrued payroll and employee benefits      4,562              7,595
 Deferred revenue                           5,148              7,045
 Total current liabilities                 17,187             23,840
                                                                    
 Long-term liabilities:                                             
 Accrued pension liability                 2 ,093              2,880
 Other long-term liabilities                  153                  0
 Total long-term liabilities                2,246              2,880
 Total liabilities                         19,433             26,720
                                                                    
 Stockholders' equity:                                              
 Common Stock                                 319                323
 Additional paid-in capital               120,849            125,206
 Accumulated deficit                      (94,623)           (88,022)
 Accumulated other comprehensive loss      (6,214)            (5,835)
 Note receivable from stockholders         (1,355)            (5,882)
 Total stockholders' equity                18,976             25,790
                                                                    
 Total liabilities and stockholders'     $ 38,409           $ 52,510
 equity

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