Retalix Ltd., a global provider of enterprise-wide software solutions for food retailers and distributors, 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 deployment 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)*.
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.
Retalix on the Web: http://www.retalix.com
For complete details on Retalix’s first quarter results visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
