EX-99.1 2 a04-9941_1ex99d1.htm EX-99.1

Exhibits. 99.1.

 

Press Release dated August 24, 2004

 

 

NEWS RELEASE

 

 

FOR RELEASE AUGUST 24, 2004 AT 4:00 P.M. ET

 

Contacts:

 

W. Brian Kretzmer

 

James W. Dolan

 

 

MAI Systems Corporation

 

MAI Systems Corporation

 

 

Chief Executive Officer

 

Chief Financial Officer

 

 

949-598-6160

 

949-598-6404

 

 

brian.kretzmer@maisystems.com

 

james.dolan@maisystems.com

 

MAI Systems Reports Second Quarter 2004 Results

 

LAKE FOREST, CA (August 24, 2004) MAI Systems Corporation (OTCBB: MAIY.OB) announced today that its second quarter 2004 revenue, net income (loss), net income (loss) per share were $4.9 million, $0.1 million, and $0.01 respectively. This compares to $4.8 million, ($0.1) million, and ($0.01) for the second quarter 2003. Revenue, net income, and income per share for the six month period ended June 30, 2004 were $10.1 million, $0.2 million, and $0.02 respectively. This compares to $9.9 million, $0.2 million, and $0.01 for the comparable period in 2003.

 

MAI Systems Corporation, headquartered in Lake Forest, California has worldwide offices for Hotel Information Systems, Inc. sales and service. Hotel Information Systems, Inc. provides total enterprise management solutions, improving critical operations and profitability for global lodging organizations. For information on the Company’s innovative hospitality solutions, call toll-free 800-497-0532, or visit the Hotel Information Systems website at www.hotelinfosys.com.  MAI Systems Corporation can be found on the World Wide Web at 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, 2003 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

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Unaudited)

 

 

 

For the Three Months Ended June 30,
(in thousands, except per share data)

 

For the Six Months Ended June 30,
(in thousands, except per share data)

 

 

 

2003

 

2004

 

2003

 

2004

 

Revenue:

 

 

 

 

 

 

 

 

 

Software

 

$

1,127

 

$

814

 

$

2,257

 

$

2,103

 

Network and computer equipment

 

86

 

136

 

235

 

211

 

Services

 

3,539

 

3,951

 

7,446

 

7,760

 

Total revenue

 

4,752

 

4,901

 

9,938

 

10,074

 

 

 

 

 

 

 

 

 

 

 

Direct costs:

 

 

 

 

 

 

 

 

 

Software

 

52

 

8

 

258

 

329

 

Network and computer equipment

 

74

 

109

 

165

 

169

 

Services

 

1,100

 

1,113

 

2,274

 

2,182

 

Total direct costs

 

1,226

 

1,230

 

2,697

 

2,680

 

Gross profit

 

3,526

 

3,671

 

7,241

 

7,394

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

2,438

 

2,351

 

4,969

 

4,700

 

Research and development costs

 

658

 

908

 

1,340

 

1,800

 

Other operating (income) loss

 

3

 

15

 

(46

)

18

 

Operating income

 

427

 

397

 

978

 

876

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

—

 

—

 

1

 

—

 

Interest expense

 

(292

)

(288

)

(642

)

(579

)

Other non-operating expense

 

(212

)

(23

)

(212

)

(39

)

Income (loss) before income taxes

 

(77

)

86

 

125

 

258

 

Income tax benefit (expense)

 

(5

)

(4

)

54

 

(10

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(82

)

$

82

 

$

179

 

$

248

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

(0.01

)

$

0.01

 

$

0.01

 

$

0.02

 

Diluted income (loss) per share

 

$

(0.01

)

$

0.01

 

$

0.01

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

14,426

 

14,676

 

14,426

 

14,676

 

Diluted

 

14,426

 

14,676

 

14,726

 

14,676

 

 

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