Company posts record revenues of $16.2 million, an increase of 14% over Q1 2001
First quarter operating income up 174% to $1.3 million, versus Q1 2001
Ra’anana, Israel, April 30, 2002 – Retalix Ltd., (Nasdaq: RTLX), a leading provider of integrated enterprise-wide software solutions for the retail food industry worldwide, today announced its operating results for the first quarter ended March 31, 2002.
Net revenues for the quarter ended March 31, 2002 were $16.2 million, an increase of 14% from $14.3 million in the first quarter of 2001. Operating income rose 174% to $1.3 million, as compared to $462,000 in the first quarter of 2001. The Company reported net income for the quarter of $0.82 million, or $0.06 per diluted share, compared to a net income of $2.2 million (including a capital gain of $2.4 million), or $0.18 per diluted share, in the first quarter of 2001.
Business highlights for Q1 2002 include:
* Rollout of 237 Pilot Travel Centers begins - schedule calls for 2 sites
per week
* SPAR, Shoprite and Clicks rollout ongoing to a total of 700 sites in South
Africa
* ReMA wins Microsoft European RAD award
* First self checkout installations go live with PSI systems in US
* Successful completion of rollout of 120 sites for Tesoro Petroleum
Corporation
“We are pleased to report record revenues and a further growth of our operating profitability in the first quarter of 2002,” said Barry Shaked, CEO of Retalix Ltd. “Demand for our enterprise software solutions continues to run strong, and we are engaged in a very high level of lab testing and discussions which should position us to build on this momentum for the balance of 2002 and beyond. Retalix continues to benefit from excellent revenue visibility, strong operating margins in our core business and a solid financial position.
“North America continues to be the most important growth engine for Retalix, and we now have over 40% of our employees based in the US market. A significant number of Tier-1 grocery chains will be reaching decision points on their next-generation Point-of-Sale system in the next 6 to 18 months. We believe that our point-of sale-solution is well positioned to address the needs of these chains. The high level of functionality, scalability and reliability offered by our integrated solutions is enabling our clients to improve their operations and lower their costs, while boosting customer retention and loyalty levels.”
Shaked noted that Retalix continues to expand with its leading global retailing customers into new geographic territories, fuelled by the unique adaptability of its solutions enabling operation across multiple languages, currencies and taxation methods.
“In Europe we continue our preparations towards rollout for two Tier-1 supermarket chains. Our relationship with Tesco continues to deepen as we progress with implementing their Global Strategy, the primary focus of which is the release of a single point-of-sale platform in all countries in which they operate. In addition, our fuel project for Welcome Break remains on schedule and we have completed the StorePoint Host-to-Post rollout for 65 Esthetique stores in Norway.
“In South Africa, software rollouts are ongoing to a total of 700 sites for SPAR Group, Shoprite and Clicks and we have begun new projects for chains in Kenya and Zimbabwe. We have strengthened our distribution channels in Asia/Pacific, focusing on reselling our StoreLine product throughout China, Thailand and Hong Kong,” Shaked said.
In the convenience-petroleum marketplace, Retalix continues to win market share based on the ability of its solutions to offer seamless fusion of multiple retail formats. Retalix began a rollout across 237 Travel Centers for Pilot Corporation, and completed installation in 120 sites for Tesoro Petroleum Corporation in the Western United States, Alaska and Hawaii. In addition, Tesoro has become the first fuel company to evaluate and begin deploying Retalix's advanced PocketOffice mobile solutions, the next-generation family of applications that operate on the Windows CE graphic hand-held devices.
“We continue to see encouraging signs regarding our e-Marketplace initiatives both in Israel and the U.S,” continued Shaked. “We are expanding our ASP (application service provider) services to the independent grocery market. These services bring the reality of sophisticated retail management and analysis software tools within the reach of the smaller, independent grocer. In Israel, we now have over 500 independent grocery members, with a combined purchasing power of over $1 billion. In the US, we currently dominate the ship share of point-of-sale products to the Tier-3 and 4 grocery sectors. We are targeting this same customer base for our StoreNext venture in the US. As we look to grow StoreNext in the US, we are confident that we have the go-to-market strategy to achieve critical mass over the coming two years.
“In addition, we intend to target this customer base and convert front-end usage into complete ‘host-to-post’ usage by offering, via StoreNext, access to both our Back Office and Headquarters applications.
Financial Outlook
“For the full year, we remain confident in achieving revenues of over $70 million and an operational profit exceeding $5 million, inclusive of the significant investment in our StoreNext initiatives.”
Shaked noted that the financial condition of the Company remains strong with approximately $22 million in cash and equivalents and shareholders’ equity of over $50 million.
About Retalix Ltd.
Retalix Ltd., with headquarters in Israel, provides integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores and restaurants. The Company offers a full suite of software applications that support a food retailer's essential retailing operations and enable retailers to increase their operating efficiencies while improving customer acquisition, retention and profitability. Recently, the Company expanded its product line by offering its head and back-office applications via the Internet to small chains and single store food retailers. With installations in more than 20,000 stores and quick service restaurants across 41 countries, the Company markets its software solutions through direct sales, distributors, local dealers and through its U.S. subsidiary, Retalix USA, Inc., and its various other subsidiaries. The Company was founded in 1982 as Point of Sale Limited and changed its name in November of 2000 to Retalix Ltd. The Company's Ordinary Shares have been publicly traded on the Tel Aviv Stock Exchange since November 1994 and on the NASDAQ National Market System since July 1998. For further information, please visit the Company's web sites at www.retalix.com or www.storealliance.com.
Safe Harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, including revenues, income and expenses, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include risks relating to the Company's anticipated future financial performance, continued roll-outs with existing customers, the market reception of its Retalix e-Marketplace Application (REMA) technology and services, the potential benefits to food retailers and suppliers, the conversion of sales leads into customers and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F for the year ended December 31, 2000, for a discussion of these and other important risk factors. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
Home| Company| Industries| Products| News & Events| Investors| Services| Customers| Careers| Contact Us
