Catalyst International Revises First Quarter 2001 Forecast

Apr 10, 2001, 01:00 ET from Catalyst International, Inc.

    MILWAUKEE, April 10 /PRNewswire/ --
     Catalyst International, Inc. (Nasdaq: CLYS), a global provider of supply
 chain execution solutions (SCE), today announced that due to weakness in
 economic conditions, the company expects revenues and earnings for the quarter
 ending March 31, 2001 to be below previous expectations.  The decline results
 primarily from customer project delays, a lengthened sales cycle, and
 separation costs for the former president and CEO.  As a result, diluted
 earnings per share for the first quarter 2001 are now expected to be
 approximately  ($0.53) to ($0.60).  Excluding charges for separation costs,
 the first quarter 2001 loss is expected to range from $3.6 to $3.8 million.
     The change in outlook is primarily a result of these factors:
     -- Weaker than expected global economy which has affected all areas of the
        company's business
     -- Lengthening sales cycles across targeted vertical markets
     -- Lower margins resulting from a competitive software industry
     -- Customers changing their business models and moving to outsourced
        solutions
 
     "The slowing U.S. economy has impacted our Fortune 500 customer base
 causing project delays that impact both software and service revenue," said
 Douglas B. Coder, chairman of the board, Catalyst International.  "We have
 carefully evaluated our business and are making changes that we are confident
 will reduce the effect of the economic slowdown for the balance of the year."
     Catalyst has already embarked on a series of cost-reduction measures to
 more fully align operating expenses with the current economic outlook.  At the
 same time, Catalyst will continue to focus on key product and partnership
 programs.
     Catalyst will provide further financial guidance for the rest of the year
 within its first quarter earnings release.
 
     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, Eli Lilly, 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 the Company'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, copies of which may also be obtained by contacting the company'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 the company'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.
 
 

SOURCE Catalyst International, Inc.
    MILWAUKEE, April 10 /PRNewswire/ --
     Catalyst International, Inc. (Nasdaq: CLYS), a global provider of supply
 chain execution solutions (SCE), today announced that due to weakness in
 economic conditions, the company expects revenues and earnings for the quarter
 ending March 31, 2001 to be below previous expectations.  The decline results
 primarily from customer project delays, a lengthened sales cycle, and
 separation costs for the former president and CEO.  As a result, diluted
 earnings per share for the first quarter 2001 are now expected to be
 approximately  ($0.53) to ($0.60).  Excluding charges for separation costs,
 the first quarter 2001 loss is expected to range from $3.6 to $3.8 million.
     The change in outlook is primarily a result of these factors:
     -- Weaker than expected global economy which has affected all areas of the
        company's business
     -- Lengthening sales cycles across targeted vertical markets
     -- Lower margins resulting from a competitive software industry
     -- Customers changing their business models and moving to outsourced
        solutions
 
     "The slowing U.S. economy has impacted our Fortune 500 customer base
 causing project delays that impact both software and service revenue," said
 Douglas B. Coder, chairman of the board, Catalyst International.  "We have
 carefully evaluated our business and are making changes that we are confident
 will reduce the effect of the economic slowdown for the balance of the year."
     Catalyst has already embarked on a series of cost-reduction measures to
 more fully align operating expenses with the current economic outlook.  At the
 same time, Catalyst will continue to focus on key product and partnership
 programs.
     Catalyst will provide further financial guidance for the rest of the year
 within its first quarter earnings release.
 
     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, Eli Lilly, 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 the Company'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, copies of which may also be obtained by contacting the company'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 the company'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.
 
 SOURCE  Catalyst International, Inc.