Prophet 21 Announces Third Quarter Results

Apr 26, 2001, 01:00 ET from Prophet 21, Inc.

    YARDLEY, Pa., April 26 /PRNewswire/ -- Prophet 21, Inc. (Nasdaq: PXXI), a
 leading provider of business technology and supporting professional services
 for high-volume distribution-centric organizations, today announced earnings
 results for the third quarter of fiscal 2001.
     A continued softness in the market has resulted in a corresponding slowing
 of enterprise software revenue generation.  Professional services revenue has
 grown as customers focus on capitalizing upon their current business
 technology investments. The company continues to execute aggressively upon
 their corporate objectives.
     Revenues for the third quarter of fiscal 2001 reached $10.7 million, as
 compared to $11.5 million reported in the quarter one-year prior. Operating
 loss was $0.8 million for the quarter, compared to operating income of
 $0.4 million in the corresponding quarter last year. Net loss for the quarter
 was $0.4 million, or ($0.11) per diluted share, as compared to net income of
 $0.3 million, or $0.08 per diluted share, in the like period a year ago.
     Revenues for the nine-month period ended March 31, 2001 reached
 $30 million as compared to $32.7 million for the same period a year ago.
 Operating loss was just over $3.1 million as compared to an operating loss of
 $ 0.5 million for the comparable period last year. Net loss for the nine
 months ended March 31, 2001 was $1.6 million, or ($0.43) per diluted share, as
 compared to a net loss of $0.2 million, or ($0.05) per diluted share, for the
 same period a year ago.
     "While these numbers reflect the recent downturn in the market, we
 continue to maintain the financial strength to execute all of our corporate
 objectives without hesitation," said Charles L. Boyle, president and CEO of
 Prophet 21.  "Our enterprise software offerings are industry leading. Both
 Prophet 21 Acclaim and Prophet 21 CommerceCenter have recently released new
 versions and are preparing for continuing enhancement.
     "In addition, we are very excited about the progress we are making with
 Trading Partner Connect, our Internet trading network focused on distributors
 and their trading partners," continued Boyle. "Prophet 21 has taken its vision
 to reality by providing a means to connect the 10,000 stocking locations that
 utilize Prophet 21's technology and their business partners and deliver to
 them commerce/operational efficiencies. Trading Partner Connect is live -- a
 reality and not 'B2B baloney.' Participation continues to grow and Prophet 21
 is dedicated to further development of this trading network."
     Added Boyle, "Professional services have really rallied this past quarter
 based on the bottom-line value our consultants can deliver to our customers
 and our Internet-based support offering. An additional non-recurring
 investment of $500,000 was made this quarter in launching Trading Partner
 Connect at our annual Summit conference. Because the market is slow, we have
 trimmed our operating costs accordingly in areas that will not affect our
 corporate direction and goals. We believe Prophet 21 is positioned very well
 for the future with a strong balance sheet, leading technology offerings, and
 a clear corporate focus."
 
     About Prophet 21
     With more than 2,000 customers and 70,000 users conducting over
 $35 billion in highly complex supply chain transactions annually, Prophet 21,
 Inc. (Nasdaq: PXXI) is a leading provider of enterprise solutions for the
 continuously changing market demands of high-volume distribution-centric
 organizations.
     For more than 33 years, the company has provided innovative, adaptive
 solutions essential to running complex and fast-moving organizations -- acting
 as a true business partner to help companies of all sizes leverage new
 technologies and maintain competitive advantage.  Through powerful, highly
 customizable applications and services, Prophet 21 seeks to streamline
 customers' business processes and reduce transaction costs in an effort to
 maximize profit and growth.   Prophet 21 is shaping the next phase of Internet
 commerce within the $1.7 trillion durable goods industry, through its
 enterprise-to-enterprise (E2E) Internet trading network for distributors and
 their suppliers, Trading Partner Connect.  The venture is aimed at
 streamlining the commerce process of this heavily fragmented marketplace
 through promoting collaborative commerce among manufacturers, distributors,
 and customers, as well as establishing interconnectivity with leading Internet
 trading communities.  For more information, please refer to
 http://www.p21.com.
     Prophet 21 is a registered trademark and Prophet 21 Acclaim is a trademark
 of Prophet 21, Inc.  All other trademarks and registered trademarks are the
 property of their respective companies.
     This press release contains forward-looking statements.  All forward-
 looking statements involve risks and uncertainties, including, without
 limitation, the risks detailed in the Company's filings and reports with the
 Securities and Exchange Commission.  Such statements are only predictions and
 actual events or results may differ materially.  Potential risks and
 uncertainties that could affect the Company's future operating results
 include, but are not limited to: (i) economic conditions, including economic
 conditions related to the computer industry; (ii) the availability of
 components and parts from the Company's vendors at current prices and levels;
 (iii) the intense competition in the markets for the Company's products and
 service; (iv) the Company's ability to protect its intellectual property; (v)
 potential infringement claims against the Company for its software development
 products; (vi) the Company's ability to obtain customer maintenance contracts
 at current levels; and (vii) the Company's ability to develop, market,
 provide, and achieve market acceptance of new service offerings to new and
 existing clients.
 
                          PROPHET 21 INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                             Three Months Ended       Nine Months Ended
                                  March 31,               March 31,
                               2001      2000          2001      2000
     Revenues:
       Software and hardware  $3,372    $4,845        $9,063   $12,372
       Service and support     7,364     6,696        20,982    20,302
                              10,736    11,541        30,045    32,674
 
     Cost of revenues:
       Software and hardware   1,720     1,830         4,889     5,622
       Service and support     3,393     3,530        10,574    11,059
                               5,113     5,360        15,463    16,681
       Gross profit            5,623     6,181        14,582    15,993
 
     Operating expenses:
       Sales and marketing     3,782     2,906         9,036     8,406
       Research and
        development            1,526     1,623         5,044     5,039
       General and
        administrative         1,144     1,244         3,573     3,051
                               6,452     5,773        17,653    16,496
     Operating (loss) income    (829)      408        (3,071)     (503)
     Interest income             173       103           554       248
     (Loss) Income before taxes (656)      511        (2,517)     (255)
     Income tax (benefit)
      provision                 (236)      174          (906)      (87)
     Net (loss) income         ($420)     $337       ($1,611)     (168)
 
     Net (loss) income per
      diluted share           ($0.11)    $0.08         ($0.43)   ($0.05)
 
     Average number
      of shares outstanding    3,743     4,020         3,733     3,607
 
                            CONSOLIDATED BALANCE SHEETS
 
                                           March 31,      June 30,
                                             2001           2000
     Cash and marketable securities         $12,571       $10,634
     Other current assets                    13,316        17,340
     Other assets                             8,892         9,199
 
     Total assets                           $34,779       $37,173
 
     Current liabilities                    $ 8,369       $ 9,322
     Other liabilities                          244           244
     Stockholders' equity                    26,166        27,607
 
     Total liabilities and
      stockholders' equity                  $34,779       $37,173
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51308857
 
 

SOURCE Prophet 21, Inc.
    YARDLEY, Pa., April 26 /PRNewswire/ -- Prophet 21, Inc. (Nasdaq: PXXI), a
 leading provider of business technology and supporting professional services
 for high-volume distribution-centric organizations, today announced earnings
 results for the third quarter of fiscal 2001.
     A continued softness in the market has resulted in a corresponding slowing
 of enterprise software revenue generation.  Professional services revenue has
 grown as customers focus on capitalizing upon their current business
 technology investments. The company continues to execute aggressively upon
 their corporate objectives.
     Revenues for the third quarter of fiscal 2001 reached $10.7 million, as
 compared to $11.5 million reported in the quarter one-year prior. Operating
 loss was $0.8 million for the quarter, compared to operating income of
 $0.4 million in the corresponding quarter last year. Net loss for the quarter
 was $0.4 million, or ($0.11) per diluted share, as compared to net income of
 $0.3 million, or $0.08 per diluted share, in the like period a year ago.
     Revenues for the nine-month period ended March 31, 2001 reached
 $30 million as compared to $32.7 million for the same period a year ago.
 Operating loss was just over $3.1 million as compared to an operating loss of
 $ 0.5 million for the comparable period last year. Net loss for the nine
 months ended March 31, 2001 was $1.6 million, or ($0.43) per diluted share, as
 compared to a net loss of $0.2 million, or ($0.05) per diluted share, for the
 same period a year ago.
     "While these numbers reflect the recent downturn in the market, we
 continue to maintain the financial strength to execute all of our corporate
 objectives without hesitation," said Charles L. Boyle, president and CEO of
 Prophet 21.  "Our enterprise software offerings are industry leading. Both
 Prophet 21 Acclaim and Prophet 21 CommerceCenter have recently released new
 versions and are preparing for continuing enhancement.
     "In addition, we are very excited about the progress we are making with
 Trading Partner Connect, our Internet trading network focused on distributors
 and their trading partners," continued Boyle. "Prophet 21 has taken its vision
 to reality by providing a means to connect the 10,000 stocking locations that
 utilize Prophet 21's technology and their business partners and deliver to
 them commerce/operational efficiencies. Trading Partner Connect is live -- a
 reality and not 'B2B baloney.' Participation continues to grow and Prophet 21
 is dedicated to further development of this trading network."
     Added Boyle, "Professional services have really rallied this past quarter
 based on the bottom-line value our consultants can deliver to our customers
 and our Internet-based support offering. An additional non-recurring
 investment of $500,000 was made this quarter in launching Trading Partner
 Connect at our annual Summit conference. Because the market is slow, we have
 trimmed our operating costs accordingly in areas that will not affect our
 corporate direction and goals. We believe Prophet 21 is positioned very well
 for the future with a strong balance sheet, leading technology offerings, and
 a clear corporate focus."
 
     About Prophet 21
     With more than 2,000 customers and 70,000 users conducting over
 $35 billion in highly complex supply chain transactions annually, Prophet 21,
 Inc. (Nasdaq: PXXI) is a leading provider of enterprise solutions for the
 continuously changing market demands of high-volume distribution-centric
 organizations.
     For more than 33 years, the company has provided innovative, adaptive
 solutions essential to running complex and fast-moving organizations -- acting
 as a true business partner to help companies of all sizes leverage new
 technologies and maintain competitive advantage.  Through powerful, highly
 customizable applications and services, Prophet 21 seeks to streamline
 customers' business processes and reduce transaction costs in an effort to
 maximize profit and growth.   Prophet 21 is shaping the next phase of Internet
 commerce within the $1.7 trillion durable goods industry, through its
 enterprise-to-enterprise (E2E) Internet trading network for distributors and
 their suppliers, Trading Partner Connect.  The venture is aimed at
 streamlining the commerce process of this heavily fragmented marketplace
 through promoting collaborative commerce among manufacturers, distributors,
 and customers, as well as establishing interconnectivity with leading Internet
 trading communities.  For more information, please refer to
 http://www.p21.com.
     Prophet 21 is a registered trademark and Prophet 21 Acclaim is a trademark
 of Prophet 21, Inc.  All other trademarks and registered trademarks are the
 property of their respective companies.
     This press release contains forward-looking statements.  All forward-
 looking statements involve risks and uncertainties, including, without
 limitation, the risks detailed in the Company's filings and reports with the
 Securities and Exchange Commission.  Such statements are only predictions and
 actual events or results may differ materially.  Potential risks and
 uncertainties that could affect the Company's future operating results
 include, but are not limited to: (i) economic conditions, including economic
 conditions related to the computer industry; (ii) the availability of
 components and parts from the Company's vendors at current prices and levels;
 (iii) the intense competition in the markets for the Company's products and
 service; (iv) the Company's ability to protect its intellectual property; (v)
 potential infringement claims against the Company for its software development
 products; (vi) the Company's ability to obtain customer maintenance contracts
 at current levels; and (vii) the Company's ability to develop, market,
 provide, and achieve market acceptance of new service offerings to new and
 existing clients.
 
                          PROPHET 21 INC. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                       (In thousands, except per share data)
 
                             Three Months Ended       Nine Months Ended
                                  March 31,               March 31,
                               2001      2000          2001      2000
     Revenues:
       Software and hardware  $3,372    $4,845        $9,063   $12,372
       Service and support     7,364     6,696        20,982    20,302
                              10,736    11,541        30,045    32,674
 
     Cost of revenues:
       Software and hardware   1,720     1,830         4,889     5,622
       Service and support     3,393     3,530        10,574    11,059
                               5,113     5,360        15,463    16,681
       Gross profit            5,623     6,181        14,582    15,993
 
     Operating expenses:
       Sales and marketing     3,782     2,906         9,036     8,406
       Research and
        development            1,526     1,623         5,044     5,039
       General and
        administrative         1,144     1,244         3,573     3,051
                               6,452     5,773        17,653    16,496
     Operating (loss) income    (829)      408        (3,071)     (503)
     Interest income             173       103           554       248
     (Loss) Income before taxes (656)      511        (2,517)     (255)
     Income tax (benefit)
      provision                 (236)      174          (906)      (87)
     Net (loss) income         ($420)     $337       ($1,611)     (168)
 
     Net (loss) income per
      diluted share           ($0.11)    $0.08         ($0.43)   ($0.05)
 
     Average number
      of shares outstanding    3,743     4,020         3,733     3,607
 
                            CONSOLIDATED BALANCE SHEETS
 
                                           March 31,      June 30,
                                             2001           2000
     Cash and marketable securities         $12,571       $10,634
     Other current assets                    13,316        17,340
     Other assets                             8,892         9,199
 
     Total assets                           $34,779       $37,173
 
     Current liabilities                    $ 8,369       $ 9,322
     Other liabilities                          244           244
     Stockholders' equity                    26,166        27,607
 
     Total liabilities and
      stockholders' equity                  $34,779       $37,173
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51308857
 
 SOURCE  Prophet 21, Inc.