CIMdata PLM Industry Summary Online Archive
15 March 2006
Financial News
Artemis Reports Fourth Quarter 2005 Financial Results
Artemis International Solutions Corporation reported its financial results for the quarter and fiscal year ended December 31, 2005.
Artemis reported $13.0 million in total revenue for the quarter ended December 31, 2005, up 28.6% from $10.1 million in the third quarter of 2005 and down 10.0% from $14.4 million for the same quarter of 2004.
Software license revenue was $3.7 million, up 116.0% from $1.7 million in the third quarter of 2005 and down 19.2% from $4.5 million in the same quarter of 2004. Software license and support revenue was 60.3% of total revenue compared to 61.9% in the same quarter of 2004.
The Company reported non-GAAP loss of $(0.6) million, or $(0.05) per common share, for the fourth quarter of 2005, compared to a non-GAAP loss of $(1.1) million, or $(0.10) per common share, in the third quarter of 2005 and a non-GAAP income of $1.6 million, or $0.16 per common share, in the fourth quarter of 2004. Non-GAAP loss for the third quarter of 2005 excludes $0.2 million in amortization, while excluding $1.9 million in amortization and impairment charges and $0.7 million in restructuring charges for the fourth quarter of 2004.
On a US GAAP basis, the Company's net loss for the fourth quarter of 2005 was $(0.6) million, or $(0.05) per common share. This compares to a net loss of $(1.3) million, or $(0.12) per common share, in the preceding quarter and $(1.0) million, or $(0.10) per common share, for the fourth quarter of 2004.
"Demand for our flagship product Artemis 7 continues to strengthen world-wide with the addition of 38 new Artemis 7 customers during 2005," said Patrick Ternier, president and CEO of Artemis. "Transforming this demand in actual license sales has been particularly successful in Europe and Japan, where A7 license sales have grown year over year respectively at 55% and 85%. A number of significant steps, including the transaction announced earlier this week, have been taken to allow us to execute similarly in the US, in our continued effort to establish worldwide leadership in the Product Portfolio Management space."
For the full year 2005, Artemis reported $47.4 million in revenue, a non-GAAP loss of $(2.6) million, and a US GAAP net loss of $(4.0) million or $(0.38) per common share. This compares to $52.4 million in revenue, a non-GAAP loss of $(1.9) million, and a US GAAP net loss of $(9.7) million or $(0.97) per common share for the full year 2004. Non-GAAP loss for 2005 and 2004 exclude amortization, impairment and restructuring charges of $1.5 million and $7.8 million, respectively.
The Company reported a cash balance of $4.1 million as of December 31, 2005.
On March 10, 2006, the Company entered into a merger agreement with a wholly-owned subsidiary of Trilogy, Inc., in a transaction valued at approximately $27 million. The agreement provides for the payment of $1.60 per share to holders of Artemis' common stock, and $2.20 per share for the holders of Series A Preferred Stock of Artemis, which represents their liquidation value. The transaction is subject to certain covenants relating to the Company's financial performance and the approval of the stockholders of Artemis, with a meeting of the stockholders expected to be held in May 2006. On completion of the merger, Artemis will become a part of Trilogy's recently announced Versata Group. The Company incurred approximately $0.4 million in acquisition-related expenses during the quarter ended December 31, 2005. Excluding these acquisition-related expenses, the Company's non-GAAP loss and US GAAP net loss for the fourth quarter of 2005 were $(0.1) million, or $(0.01) per common share.
Further highlights of the year were as follows:
• Additional sales of Artemis solutions to:
New Product Development : Arcelor, BAE Systems, Beijing Mobile Communication Co. Ltd., Bell Aerospace, China Telecom Shangai R&D Institute, Cummins Inc., Denso Corporation, Fasotec Co., Gambro Renal Products, Genmab, KAPL, JATCO Ltd., LG Chemical Ltd., LG Micron, Lockheed Martin, Maruho Co., Ltd. (Kyoto), NAVSEA, Northrop Grumman, RATP (Paris Metro), Raytheon, and Rockwell.
IT Management and Governance : Banco Espirito Santo, CALYON, CEA (French Nuclear Agency), CUMMINS Inc., France Telecom DPS, France Telecom SCE Transoac, Generali IT-Solutions GmbH, Hitachi (Tokyo), INAIL, IT-AmtBw, LA POSTE DIAQ, Landeshauptstadt Munchen, Ministere des Transports du Quebec, Pfizer Japan Inc., PT Bank Rakyat Indonesia (BRI), Renault, SiNSYS, Sogei - Agenzia del Territorio, Somerfield, SSB, System U Est, and The Bank Of England
Strategic Asset Optimization : American Electric Power - Cook Nuclear Plant, Ergon Energy, PSEG, and RATP Engineering Department, SNCF (French Railways)
• Major new release of Artemis 7-based solutions, with Version 6.1 offering advanced project and resource management capabilities including real-time multi-project management, resource management and analysis and performance tracking and reporting.
• Reached a milestone of over 600,000 users world-wide.
• Launched successful International Business Conference on Enterprise Applications of Project Portfolio Management with presentations from:
Actelion (Pharmaceuticals - Switzerland), BAE Naval Systems (Defense - UK), CIPE - the Ministry of Economy and Finance (Central Government - Italy), Exelon (Energy - USA), HSH NordBank (Financial Services - Germany), Banque La Poste (Financial Services - France), Lundbeck (Pharmaceuticals - Denmark), Nokia Networks (Telecommunications - Finland), Regional Development Agencies (Local Government - UK), Telecom Italia (Telecommunications - Italy), T-Systems (ITC services - Germany), and Vodafone (Telecommunications - Italy).
Financial tables are available at http://www.aisc.com/News/pr_060315 .
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