Catalyst International Announces First Quarter Results

Apr 18, 2001, 01:00 ET from Catalyst International, Inc.

    MILWAUKEE, April 18 /PRNewswire/ --
     Catalyst International, Inc. (Nasdaq:   CLYS), a global provider of supply
 chain execution solutions (SCE), today announced results for the first quarter
 ended March 31, 2001.
     Revenues for first quarter 2001 were $8.3 million, down $2.0 million from
 revenues of $10.3 million for the same period in 2000.  The decline resulted
 primarily from delayed projects and longer sales cycles.  The first quarter
 2001 loss was $4.2 million or ($0.52) per share.  Excluding separation costs
 expensed during this quarter for the former CEO of approximately $450,000, the
 net loss for first quarter 2001 was $3.8 million or ($0.47) per share.
     "The slowing U.S. economy has impacted our Fortune 500 customer base
 causing project delays that effect both software and service revenue," said
 Douglas B. Coder, chairman of the board, Catalyst International.  "We have
 revised our 2001 business plan, assuming that the economic slowdown will
 impact our business for the remainder of the year.  We are setting a modest
 revenue growth target for the year and are confident that the steps that we
 are taking to align our plans with this more conservative target will reduce
 the effect of the economic slowdown for the balance of the year."
 
     Highlights of the first quarter include:
     -- Announced a partnership with Kewill Systems plc that will combine B2B
        product offerings and provide a complete and cost-effective end-to-end
        supply chain execution solution.  Catalyst will now include
        Kewill.Net(TM) integrated e-fulfillment applications as a standard
        offering within its CatalystComplete(TM) Supply Chain solution.
     -- Launched CatalystComplete, an expanded software solution that is a
        collaborative effort between Catalyst and its supply chain software
        partners, providing supply chain visibility and collaboration
        capabilities and enabling superior control of operations.
     -- Signed new customers including UK-based Allders Department Stores Ltd.
        and IDEXX Laboratories, Inc.  Seven current customers went live in the
        quarter, including Saks, Inc., Dollar General Corporation with their
        seventh Catalyst site, and ShopKo Stores, Inc.  In total, over
        4.3 million square feet of additional warehouse space is now managed by
        Catalyst software.
 
     Conference Call
     Catalyst will host a conference call today to discuss these first quarter
 2001 financial results at 5 p.m. EDT.  Investors, analysts, and other
 interested parties may dial into the conference call at 800-230-1092 for
 domestic access.  A replay of the conference call will be available until May
 18, 2001 by dialing 800-475-6701 for domestic access and 320-365-3844 for
 international access, (access code: 582056).  Additionally, the conference
 call will be broadcast live over the Internet.  It can be accessed through
 Catalyst's Web site at http://www.catalystwms.com , or by going to CCBN's
 investor center at http://www.companyboardroom.com .  Replays of the call will
 be available on both Web sites.
 
     About Catalyst
     Catalyst International, Inc. collaborates to provide supply chain
 execution solutions that accelerate business growth and facilitate change.
 For over 20 years Catalyst has made change positive through innovation-from
 the first true multi-language WMS software package to the industry's first
 Web-based warehouse application.  Catalyst software and services support
 business growth by optimizing efficiencies, increasing profitability and
 enhancing quality customer service.  By providing the supply chain visibility
 needed for collaboration, Catalyst delivers real-time information for rapid
 response to changing business needs.
     Catalyst has provided successful supply chain execution solutions around
 the world for leading companies including Panasonic, Reebok International,
 Home Depot, Subaru, and Cooking.com and can meet the needs of warehouses of
 any size, any volume, in nearly any industry.
     Catalyst corporate headquarters are located in Milwaukee, Wis. with
 offices in London, UK.  CLYS shares are traded on the Nasdaq stock exchange.
 For more information, call toll free 800-236-4600 or visit
 http://www.catalystwms.com
 
     For further information, please refer to Catalyst's Form 10-K for the year
 ended December 31, 2000 and other reports and documents subsequently filed
 with the Securities and Exchange Commission which are publicly available at
 http://www.sec.gov .  Copies may also be obtained by contacting the Catalyst's
 Investor Relations department at 414-362-8956.
     This press release may contain "forward-looking statements" relating to
 Catalyst International, Inc. (such statements may be identified by use of
 words such as "anticipate," "believe," "estimate," "intend," "expect" or
 "future").  Prospective investors are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve risks and
 uncertainties, and that actual results may differ materially from those
 contemplated by such forward-looking statements.  Among the important factors
 that could cause actual results to differ materially from those indicated by
 such forward-looking statements are demand for Catalyst's products, delays in
 product development, technological changes and/or difficulties, competitive
 pressures, availability of technical personnel, market acceptance, changes in
 customer requirements, undetected software errors, marketing relationships,
 mergers, acquisitions, or other business combinations, and general business
 and economic conditions in the domestic and international markets.  Catalyst
 undertakes no obligation to update or revise forward-looking statements to
 reflect changed assumptions, the occurrence of unanticipated events, or
 changes in future operating results.
 
 
             Catalyst International, Inc. Statements of Operations
                      (In thousands except per share data)
 
                                                 Three Months Ended
                                               March 31,       March 31,
                                                 2001            2000
 
     Revenues:
       Software License Fees                    $1,049          $2,388
       Services and Post-Contract Customer
        Support                                  5,907           6,223
       Hardware                                  1,332           1,710
     Total Revenues                              8,288          10,321
 
     Cost of Revenues:
       Cost of License Fees                        486             143
       Cost of Services and Post-Contract
        Customer Support                         4,297           4,245
       Cost of Hardware                          1,059          1, 358
     Total Cost of Revenues                      5,842          5, 746
 
     Product Development                         1,188          1, 416
     Sales, General & Administrative             5,241          2, 960
     Separation Costs                              451              --
 
     Operating Income (Loss)                    (4,434)            199
     Other Income                                  222              65
 
     Net Income (Loss)                         $(4,212)           $264
 
     Net Income (Loss) Per Share - diluted      $(0.52)          $0.03
 
     Shares Used in Computing EPS                8,040           7,910
 
 
                            Condensed Balance Sheets
                     (In thousands, except per share data)
 
                                                     March 31,     December 31,
                                                       2001            2000
     Assets:
       Cash and Cash Equivalents                      $14,355        $21,201
       Accounts Receivable                             11,091         10,270
       Fixed and Other Assets                          15,177          7,134
     Total Assets                                     $40,623        $38,605
 
     Liabilities:
       Current Liabilities                            $17,688        $12,510
       Long-Term Liabilities                            1,492            450
       Stockholders' Equity                            21,443         25,645
     Total Liabilities & Stockholders' Equity         $40,623        $38,605
 
 
 

SOURCE Catalyst International, Inc.
    MILWAUKEE, April 18 /PRNewswire/ --
     Catalyst International, Inc. (Nasdaq:   CLYS), a global provider of supply
 chain execution solutions (SCE), today announced results for the first quarter
 ended March 31, 2001.
     Revenues for first quarter 2001 were $8.3 million, down $2.0 million from
 revenues of $10.3 million for the same period in 2000.  The decline resulted
 primarily from delayed projects and longer sales cycles.  The first quarter
 2001 loss was $4.2 million or ($0.52) per share.  Excluding separation costs
 expensed during this quarter for the former CEO of approximately $450,000, the
 net loss for first quarter 2001 was $3.8 million or ($0.47) per share.
     "The slowing U.S. economy has impacted our Fortune 500 customer base
 causing project delays that effect both software and service revenue," said
 Douglas B. Coder, chairman of the board, Catalyst International.  "We have
 revised our 2001 business plan, assuming that the economic slowdown will
 impact our business for the remainder of the year.  We are setting a modest
 revenue growth target for the year and are confident that the steps that we
 are taking to align our plans with this more conservative target will reduce
 the effect of the economic slowdown for the balance of the year."
 
     Highlights of the first quarter include:
     -- Announced a partnership with Kewill Systems plc that will combine B2B
        product offerings and provide a complete and cost-effective end-to-end
        supply chain execution solution.  Catalyst will now include
        Kewill.Net(TM) integrated e-fulfillment applications as a standard
        offering within its CatalystComplete(TM) Supply Chain solution.
     -- Launched CatalystComplete, an expanded software solution that is a
        collaborative effort between Catalyst and its supply chain software
        partners, providing supply chain visibility and collaboration
        capabilities and enabling superior control of operations.
     -- Signed new customers including UK-based Allders Department Stores Ltd.
        and IDEXX Laboratories, Inc.  Seven current customers went live in the
        quarter, including Saks, Inc., Dollar General Corporation with their
        seventh Catalyst site, and ShopKo Stores, Inc.  In total, over
        4.3 million square feet of additional warehouse space is now managed by
        Catalyst software.
 
     Conference Call
     Catalyst will host a conference call today to discuss these first quarter
 2001 financial results at 5 p.m. EDT.  Investors, analysts, and other
 interested parties may dial into the conference call at 800-230-1092 for
 domestic access.  A replay of the conference call will be available until May
 18, 2001 by dialing 800-475-6701 for domestic access and 320-365-3844 for
 international access, (access code: 582056).  Additionally, the conference
 call will be broadcast live over the Internet.  It can be accessed through
 Catalyst's Web site at http://www.catalystwms.com , or by going to CCBN's
 investor center at http://www.companyboardroom.com .  Replays of the call will
 be available on both Web sites.
 
     About Catalyst
     Catalyst International, Inc. collaborates to provide supply chain
 execution solutions that accelerate business growth and facilitate change.
 For over 20 years Catalyst has made change positive through innovation-from
 the first true multi-language WMS software package to the industry's first
 Web-based warehouse application.  Catalyst software and services support
 business growth by optimizing efficiencies, increasing profitability and
 enhancing quality customer service.  By providing the supply chain visibility
 needed for collaboration, Catalyst delivers real-time information for rapid
 response to changing business needs.
     Catalyst has provided successful supply chain execution solutions around
 the world for leading companies including Panasonic, Reebok International,
 Home Depot, Subaru, and Cooking.com and can meet the needs of warehouses of
 any size, any volume, in nearly any industry.
     Catalyst corporate headquarters are located in Milwaukee, Wis. with
 offices in London, UK.  CLYS shares are traded on the Nasdaq stock exchange.
 For more information, call toll free 800-236-4600 or visit
 http://www.catalystwms.com
 
     For further information, please refer to Catalyst's Form 10-K for the year
 ended December 31, 2000 and other reports and documents subsequently filed
 with the Securities and Exchange Commission which are publicly available at
 http://www.sec.gov .  Copies may also be obtained by contacting the Catalyst's
 Investor Relations department at 414-362-8956.
     This press release may contain "forward-looking statements" relating to
 Catalyst International, Inc. (such statements may be identified by use of
 words such as "anticipate," "believe," "estimate," "intend," "expect" or
 "future").  Prospective investors are cautioned that any such forward-looking
 statements are not guarantees of future performance and involve risks and
 uncertainties, and that actual results may differ materially from those
 contemplated by such forward-looking statements.  Among the important factors
 that could cause actual results to differ materially from those indicated by
 such forward-looking statements are demand for Catalyst's products, delays in
 product development, technological changes and/or difficulties, competitive
 pressures, availability of technical personnel, market acceptance, changes in
 customer requirements, undetected software errors, marketing relationships,
 mergers, acquisitions, or other business combinations, and general business
 and economic conditions in the domestic and international markets.  Catalyst
 undertakes no obligation to update or revise forward-looking statements to
 reflect changed assumptions, the occurrence of unanticipated events, or
 changes in future operating results.
 
 
             Catalyst International, Inc. Statements of Operations
                      (In thousands except per share data)
 
                                                 Three Months Ended
                                               March 31,       March 31,
                                                 2001            2000
 
     Revenues:
       Software License Fees                    $1,049          $2,388
       Services and Post-Contract Customer
        Support                                  5,907           6,223
       Hardware                                  1,332           1,710
     Total Revenues                              8,288          10,321
 
     Cost of Revenues:
       Cost of License Fees                        486             143
       Cost of Services and Post-Contract
        Customer Support                         4,297           4,245
       Cost of Hardware                          1,059          1, 358
     Total Cost of Revenues                      5,842          5, 746
 
     Product Development                         1,188          1, 416
     Sales, General & Administrative             5,241          2, 960
     Separation Costs                              451              --
 
     Operating Income (Loss)                    (4,434)            199
     Other Income                                  222              65
 
     Net Income (Loss)                         $(4,212)           $264
 
     Net Income (Loss) Per Share - diluted      $(0.52)          $0.03
 
     Shares Used in Computing EPS                8,040           7,910
 
 
                            Condensed Balance Sheets
                     (In thousands, except per share data)
 
                                                     March 31,     December 31,
                                                       2001            2000
     Assets:
       Cash and Cash Equivalents                      $14,355        $21,201
       Accounts Receivable                             11,091         10,270
       Fixed and Other Assets                          15,177          7,134
     Total Assets                                     $40,623        $38,605
 
     Liabilities:
       Current Liabilities                            $17,688        $12,510
       Long-Term Liabilities                            1,492            450
       Stockholders' Equity                            21,443         25,645
     Total Liabilities & Stockholders' Equity         $40,623        $38,605
 
 
 SOURCE  Catalyst International, Inc.