This excerpt taken from the RADS 8-K filed May 4, 2005.
Radiant Systems, Inc. Reports Record First Quarter Results
Continued strong growth results in adjusted earnings of $.08 per diluted share
ATLANTA(BUSINESS WIRE)April 28, 2005Radiant Systems, Inc. (NASDAQ: RADSNews), a leading provider of innovative technology for the hospitality, petroleum and convenience retail and entertainment industries, today announced financial results for the first quarter ended March 31, 2005.
Summary financial results for the first quarter of 2005 are as follows:
John Heyman, the Companys chief executive officer commented, Continued strong growth in our hospitality business mitigated the historical seasonality we see in our other businesses and helped drive higher than expected results in the quarter. Specifically, our pipeline of larger, direct account business across the company continued to grow and become more qualified. Our products are producing demonstrable value for our customers. This value proposition has resulted in significant wins for our company and is helping encourage customers to accelerate implementations, allowing us to close and deliver on more direct business than planned during the quarter. Additionally, our indirect channel business continued to be strong and perform ahead of plan driven by excellent execution by our strong community of channel partners.
Mark Haidet, the Companys chief financial officer commented, The business continues to track against our long term model. We have demonstrated our ability to grow while better leveraging our cost structure and strengthening our balance sheet. Even with 39
percent revenue growth, our operating expense remained flat resulting in adjusted operating margin of 8% compared to 1% in the same period of 2004. We generated more than $5.1 million of free cash flow during the first quarter and improved working capital by $1 million. In addition, we reduced our debt by $2.8 million during the period.
Haidet added, The strength of the first quarter has increased our visibility and allowed us to increase the low end of our earnings guidance for 2005.
The Company provided guidance for the second quarter of 2005 with a revenue range of $36 million to $38 million and adjusted earnings of $0.06 to $0.08 per diluted share. The company updated its previous adjusted earnings guidance for the year from a range of $.30 to $.38 to a range of $.32 to $.38 per diluted share. The revenue range remains at $155 million to $160 million.
On January 31, 2004 the Company completed the disposition of its Enterprise Software Systems segment. The historical financial statements have been reported with the Enterprise Software Systems segment included in discontinued operations. Additionally, on January 12, 2004 the Company completed its acquisition of Aloha Technologies (Aloha). All Aloha operations are included in the Companys 2004 financial statements as of the date of the acquisition.
The Company provides adjusted net income/(loss) and adjusted net income/(loss) per share in this press release as additional information relating to the Companys operating results. The measures are not in accordance with, or an alternative for, generally accepted accounting practices (GAAP) and may be different from adjusted net income measures used by other companies. Net income/(loss) has been adjusted to exclude amortization of acquisition related intangible assets and non-recurring charges. The Company believes that this non-GAAP presentation provides useful information to investors regarding certain additional financial and business trends relating to the Companys financial condition and results of operations, and valuable insight into the Companys ongoing operations and earnings power.
Radiant will hold its first quarter 2005 conference call today at approximately 5 p.m. Eastern Time. This call is being webcast by CCBN and can be accessed at Radiants web site at http://phx.corporate-ir.net/phoenix.zhtml?c=115271&p=irol-irhome. The call will also be available via telephone at 1-888-280-8277 - reference ID# T563437R.
Founded in 1985, Radiant Systems, Inc. provides innovative store technology for the hospitality, petroleum and convenience retail, and entertainment industries. Radiants point-of-sale, self-service kiosk, and back-office technology enables operators to drive top-line growth and improve bottom-line performance. Headquartered in Atlanta, Radiant (www.radiantsystems.com) has deployed its solutions in more than 50,000 sites worldwide.
Certain statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future business development activities, and are thus prospective. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Companys financing plans; (ii) trends affecting the
Companys financial condition or results of operations, including the Companys projected revenues and earnings per share guidance; (iii) the Companys growth strategy and operating strategy; (iv) the Companys new or future product offerings, and (v) the declaration and payment of dividends. The words may, would, could, will, expect, estimate, anticipate, believe, intend, plans, and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Companys ability to control. Actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Among the key risks, assumptions and factors that may affect operating results, performance and financial condition are the Companys reliance on a small number of clients for a large portion of its revenues, fluctuations in its quarterly results, its ability to continue and manage its growth, liquidity and other capital resources issues, competition and the other factors discussed in detail in the Companys filings with the Securities and Exchange Commission.