EX-99.1 3 a03-4834_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Press Release dated August 15, 2003

 

A

 

 

NEWS RELEASE

FOR RELEASE FRIDAY, AUGUST 15, 2003 AT 7:20 A.M. EDT

 

CONTACTS:

 

W. Brian Kretzmer
MAI Systems Corporation
Chief Executive Officer
949.598.6160
brian.kretzmer@maisystems.com

 

James W. Dolan
MAI Systems Corporation
Chief Financial Officer
949.598.6404
james.dolan@maisystems.com

 

MAI Systems Reports Second Quarter 2003 Results

 

LAKE FOREST, CA (August 15, 2003) . . . MAI Systems Corporation (OTCBB: MAIY.OB) announced today that its three-month and six-month ended June 30, 2003 revenue, net income (loss), and income (loss) per share from operations were $4.8 million, $(0.1) million, $(0.01) and $9.9 million, $0.2 million and $0.01, respectively.  This compares to $5.5 million, $0.3 million, $0.02 and $11.2 million, $0.7 million, $0.05 for the three-month and six-month period ended June 30, 2002, respectively.

 

MAI Chief Executive Officer W. Brian Kretzmer commented, “Our second quarter results were adversely impacted by SARS in Asia and the continuing economic challenges in the travel industry at large. We also incurred a $212,000 expense for pension cost related to employees of our discontinued operations.”

 

About MAI Systems Corporation

 

MAI Systems is a worldwide provider of total information system solutions to the hospitality, resort and destination market. Headquartered in Lake Forest, California, MAI has worldwide offices for sales and service. For information on the Company’s innovative hospitality solutions, call 1.800.497.0532, or visit www.hotelinfosys.com or www.maisystems.com.

 

Certain statements in this news release may constitute “forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, declining economic conditions, including a slowdown or recession; future terrorist activities affecting the hospitality industry; the Company’s ability to retain and increase revenue from existing clients and to execute agreements with new clients; the successful implementation of strategic relationships with other vendors and service providers; the competitive nature of the market for our software products and services; rapid technological change in the software industry and possible delays in development or shipment of new versions of key product lines; the Company’s ability to attract and retain qualified technical and management personnel; inability to control costs; changes in our product pricing; changes in business strategy or development plans; and other factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2002 and other interim reports filed from time to time with the Securities and Exchange Commission.  Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly 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.

 

TABLE FOLLOWS

 

 

MAI SYSTEMS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

 

(in thousands, except per share data)

 

(in thousands, except per share data)

 

 

 

2002

 

2003

 

2002

 

2003

 

Revenue:

 

 

 

 

 

 

 

 

 

Software

 

$

1,124

 

$

1,127

 

$

2,391

 

$

2,257

 

Network and computer equipment

 

134

 

86

 

404

 

235

 

Services

 

4,230

 

3,539

 

8,425

 

7,446

 

Total revenue

 

5,488

 

4,752

 

11,220

 

9,938

 

 

 

 

 

 

 

 

 

 

 

Direct costs:

 

 

 

 

 

 

 

 

 

Software

 

192

 

52

 

349

 

258

 

Network and computer equipment

 

90

 

74

 

292

 

165

 

Services

 

1,499

 

1,100

 

3,119

 

2,274

 

Total direct costs

 

1,781

 

1,226

 

3,760

 

2,697

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

3,707

 

3,526

 

7,460

 

7,241

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

2,322

 

2,438

 

4,382

 

4,969

 

Research and development costs

 

656

 

658

 

1,664

 

1,340

 

Amortization of intangibles

 

45

 

—

 

109

 

—

 

Other operating (income) loss

 

6

 

3

 

5

 

(46

)

 

 

 

 

 

 

 

 

 

 

Operating income

 

678

 

427

 

1,300

 

978

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1

 

—

 

3

 

1

 

Interest expense

 

(388

)

(292

)

(775

)

(642

)

Other non-operating expense

 

(14

)

(212

)

(27

)

(212

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

277

 

(77

)

501

 

125

 

Income tax benefit (expense)

 

(5

)

(5

)

(8

)

54

 

Income (loss) from continuing operations

 

272

 

(82

)

493

 

179

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

74

 

—

 

180

 

—

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

346

 

$

(82

)

$

673

 

$

179

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations:

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

0.02

 

$

(0.01

)

$

0.04

 

$

0.01

 

Diluted income (loss) per share

 

$

0.02

 

$

(0.01

)

$

0.04

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

Basic income per share

 

$

0.01

 

$

0.00

 

$

0.01

 

$

0.00

 

Diluted income per share

 

$

0.01

 

$

0.00

 

$

0.01

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

0.02

 

$

(0.01

)

$

0.05

 

$

0.01

 

Diluted income (loss) per share

 

$

0.02

 

$

(0.01

)

$

0.05

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares used in determining income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

13,852

 

14,426

 

13,754

 

14,426

 

Diluted

 

14,361

 

14,426

 

14,223

 

14,726

 

 

# # #

 

2