SVI Solutions Inc. (AMEX:SVI) a leading global provider of multi-channel application software technology and services for the retail industry, today announced fiscal results for the third quarter ended December 31, 2002.
For the third fiscal quarter ended December 31, 2002, the company reported revenues of $7.4 million, an increase of 24% compared to the $6.0 million reported in the same period of the prior fiscal year. For the three months ended December 31, 2002 the company reported net income of $384,000 or $0.01 per diluted share, compared with a loss of ($3.0) million or ($0.08) per share for the same period of the prior fiscal year. In the current period the company recorded EBITDA of $1.6 million compared to a negative EBITDA of ($264,000) reported in the same period of the prior fiscal year.
In comparing the results for the quarter with those of the prior fiscal quarter ended September 30, 2002, sequential revenues increased by 76% from the $4.2 million recorded for that period and EBITDA improved from a negative ($990,000) to a positive $1.6 million, an improvement of more than $2.6 million. The net income of $384,000 reported in the current period compares to a loss of ($2.3) million in the previous period ended September 30, 2002; an improvement of approximately $2.6 million.
For the nine months ended December 31, 2002, the company reported revenues of $16.9 million compared to $21.4 million reported for the same period last year; a positive EBITDA of $694,000 versus a negative EBITDA of ($1.1) million and a net loss of ($3.9) million compared to a loss of ($10.0) million for the same period last year.
“We believe that these financial results represent the dramatic turnaround we have completed in a relatively short time period,” said Barry Schechter, SVI’s chief executive officer. “The new management team has significantly reduced the company’s cost structure and grown revenues. We feel that the company has never been in a better position to take Island Pacific’s proven technology and client base to become the dominant provider of ‘thoughtware’ to the retail industry. Our sales pipeline has never looked stronger.”
During the quarter some of the company’s new customers included The Entertainer, Group USA, Figgins Holdings and Lerner New York/New York & Company. In addition, many of our existing clients broadened their relationship both geographically as well as by adding new modules. These included Academy Sports, Nike Inc., Charming Shoppes, Pacific Sunwear, Polo Ralph Lauren, Timberland, Urban Outfitters, and Sur La Table among others.
During the quarter, SVI appointed Steven Beck, a renowned retail industry visionary, to the position of president and chief operating officer of it’s Island Pacific division. In this role Mr. Beck will help in acquiring and developing complementary leading edge technology and embark upon a strategy to develop a new generation of Merchandise Planning and Decision Assist applications to work seamlessly with the world class integrated merchandise products under the Island Pacific brand. In fact since Mr. Beck joined Island Pacific, partnering, distribution and strategic alliances have been completed with ANT USA Inc., Raymark, Inc., Wazagua LLC, VisionCompass Inc., KMG Solutions, and Planalytics.
At the beginning of the fourth quarter, Harvey Braun joined Island Pacific in the capacity of chief executive officer. Mr. Braun recently retired from his role as Senior Partner of Deloitte Consulting's Consumer Business Practice where he was responsible for developing and serving the firms global retail industry client base and assisting general merchandising and specialty retailers in all phases of their business.
“We are positioning Island Pacific to lead the market not just today, but well into the future. After more than sixty combined years of experience within the retail industry, both Harvey and Steve complement each other and provide the experience, vision and business acumen to take SVI to the next level,” said Mr. Schechter. “The improved results for our third quarter reflect the dramatic changes that we have made and we expect continued improvement for the foreseeable future.”
A conference call will be held at 4:00 p.m. (Eastern time) today to discuss the earnings. Those interested in participating in the conference call may dial in to 800.257.7087. A brief question and answer period will be held at the end of the call. A replay of the call will be available until Sunday, February 9, 2003. To access the replay, dial 800.405.2236 and enter access code 524084 and the # sign.
About Island Pacific
With more than 130 customers worldwide, representing 31,000+ stores, Island Pacific, a division of SVI Solutions, Inc. (AMEX:SVI), has taken the most widely used, most highly scalable, and most reliable retail enterprise software, and in concert with client and partner companies, crafted the most creative and affordable software and services solutions for retailers. InFocus and InVision are the company’s core products and operate on IBM iSeries and AS/400 platforms. Founded in 1978, Island Pacific is headquartered in Irvine, California, and has offices in the United States and the United Kingdom. Additional information about Island Pacific can be obtained at www.islandpacific.com or firstname.lastname@example.org.
About SVI Headquartered in Carlsbad, CA, SVI provides multi-channel technology solutions to retailers. The company’s suite of offerings includes store systems as well as enterprise management, merchandising and direct-to-consumer solutions. Complementing these offerings, the Company provides an expansive menu of professional services including consulting and implementation services, as well as technical and project management services. SVI maintains offices in the United States and the United Kingdom. SVI’s subsidiary, SVI Training Products, is a leading provider of state-of-the-art PC courseware, customization tools and skills assessment software for educational institutions and government entities. More information about SVI can be obtained on their website at www.svisolutions.com.
Certain statements contained in this news release regarding matters that are not historical facts are forward-looking statements. These statements relate to future events or the Company’s future performance. These statements are only predictions. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the risk factors listed in the Company’s Form 10-K (as amended) for the fiscal year ended March 31, 2002 and other risk factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. SVI undertakes no obligation to release publicly any revisions to the forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.
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