Retalix Schedules Conference Call to Discuss Fourth Quarter Results
Ra'anana, Israel, May 21, 2007 - Retalix Ltd. (Nasdaq: RTLX), a global provider of enterprise-wide software solutions for food retailers and distributors, today announced results for the first quarter ended March 31, 2007.
First quarter 2007 Financial Highlights:
* Total Revenues for the period were a $52.7 million, compared to $50.7
million in the first quarter of 2006.
* Product Revenues for the period were 33% of total revenues, compared to
43.6% of total revenues in the first quarter of 2006.
* Gross Margin for the period was 57.2%, and adjusted* gross margin was
59.2%, compared to gross margin of 61.5% and adjusted* gross margin of
64.2% in the first quarter of 2006.
* Net Income for the period was $0.02 million, or $0.00 per diluted share,
compared to net income of $1.5 million, or $0.08 per diluted share in
the first quarter of 2006.
* Adjusted Net Income (Non-GAAP)* for the period was $1.9 million, or
$0.09 per diluted share, compared to $3.6 million, or $0.18 per diluted
share, in the first quarter of 2006.
* Cash Flow: In the first quarter of 2007, the Company used $1.4 million
in operating activities, compared to $1.9 million generated in the first
quarter of 2006.
* Balance Sheet: Cash and marketable securities amounted to $65.2 million
on March 31, 2007, compared to 59.7 million on December 31, 2006. Long
term debt was $0.9 million, and shareholders' equity was $211.5 million.
First quarter Operational Highlights:
* In China , a major grocery retail chain selected Retalix point-of-sale,
headquarters and loyalty solutions
* BP started the roll-out of Retalix software to its fuel and retail sites
worldwide
* Australia 's Woolworths completed the roll-out of Retalix point-of-sale
software to 900 supermarkets and general merchandise stores
* The Scandinavian retail group Reiten Servicehandel extended its
deployement of Retalix software to 185 7-Eleven convenience stores
across Norway and Sweden
* Israel 's leading grocery chain, Supersol, started the roll-out of the
thin-client Retalix StoreLine.net POS and store management solution
* Jamaica 's National Meats and Food Distributors selected Retalix Power
Enterprise
* Alex Lee's Lowes Foods division selected Retalix DemandAnalytX (DAX) for
demand forecasting and order optimization
* Retalix and Postilion announced an alliance to deliver integrated POS
and payment switch for travel centers and convenience stores
"The results of the first quarter were in line with our expectations," said Barry Shaked , president and CEO of Retalix. "We continue to make progress against our business goals. During the first quarter, we won new contracts and progressed with the execution of several significant projects. We are especially encouraged by the strong interest of grocery and convenience retailers in our integrated customer loyalty and promotions solutions. We are in line with our expectations for the full year. We believe that strong opportunities lie ahead in the grocery, foodservice, distribution, petroleum and convenience segments."
Retalix reaffirmed its previously stated guidance that it anticipates total revenues for FY 2007 in the range of $220 to $230 million, adjusted (non-GAAP) net income in the range of $15 million to $22 million, and GAAP net income in the range of $9 million to $16 million. Non-GAAP net income excludes estimated equity based compensation expenses of $3.5 million and estimated acquisition related non-cash items of $2.5 million (net of tax effect)*.
Conference Call and Webcast Information
The Company will be holding a conference call to discuss results for the first quarter 2007 on Monday, May 21, 2007 at 10:30am Eastern Time (5:30pm Israeli Time). This conference can be accessed by all interested parties through the Cosmpany's web site. To listen to the live call, please go to the Web site at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on the Retalix site.
About Retalix
Retalix is an independent provider of enterprise-wide software solutions to retailers and distributors worldwide. Retalix solutions serve the needs of multi-national grocery chains, convenience and fuel retailers, food service operators, food and consumer goods distributors and independent grocers. The Company offers a full portfolio of software applications that automate and synchronize essential retailing, distribution and supply chain operations, encompassing stores, headquarters and warehouses. Retalix develops and supports its software through more than 1,500 employees in its various subsidiaries and offices worldwide. The company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas.
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Retalix uses non-GAAP measures of gross margin, net income and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation in accordance with SFAS 123(R) and amortization of intangibles related to acquisitions. Retalix's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future, as well as for providing useful comparisons to periods prior to the adoption of SFAS 123(R). The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management also uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors. Reconciliation between GAAP to non-GAAP statement of income is provided in the table below.
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 and other U.S. federal securities laws. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements or other guidance or outlooks expressed or implied by such forward-looking statements. Factors that could impact these forward-looking statements include risks relating to Retalix's anticipated future financial performance and growth, continued roll-outs with existing customers, continued interest in Retalix's products, the perception by leading retailers of Retalix's reputation, the potential benefits to retailers and distributors, expansion into new geographic markets, 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 from the forward-looking statements. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including Retalix's Annual Report on Form 20-F for the year ended December 31, 2005, for a discussion of these and other important risk factors. Except as required by applicable law, Retalix 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
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