EX-99.1 2 a04-14253_1ex99d1.htm EX-99.1

Exhibit 99.1

 

NEWS RELEASE

 

PRESS RELEASE NOVEMBER 29, 2004

 

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 Third Quarter 2004 Results

 

LAKE FOREST, CA (November 29, 2004) . . . MAI Systems Corporation (MAIY.OB) announced its third quarter results. Revenue for the Quarter Ending September 30, 2004 was $4.9 million, Net loss of ($58,000) and $0.00 EPS; versus revenues $4.8 million, Net Income $132,000 and EPS of $0.01 for the same period a year ago. Revenue for the Nine Months Ending 9/30/04 was $15.0 million, Net Income $0.2 million, and EPS $0.01. This compares to $14.8 million, $0.3 million, and $0.02, respectively, for the same period last year.

 

W. Brian Kretzmer, CEO of MAI Systems Corporation, commented, “Our year to year results are very consistent. We are pleased with our ability to continue our commitment to product development, maintain our revenue level and begin to gain customer acceptance for our new Enterprise products.”

 

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

 

More – More – More

 


 

MAI SYSTEMS CORPORATION

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Unaudited)

 

 

 

For the Three Months Ended
September 30,

 

For the Nine Months Ended
September 30,

 

 

 

(in thousands, except per share data)

 

(in thousands, except per share data)

 

 

 

2003

 

2004

 

2003

 

2004

 

Revenue:

 

 

 

 

 

 

 

 

 

Software

 

$

842

 

$

842

 

$

3,098

 

$

2,945

 

Network and computer equipment

 

104

 

118

 

339

 

329

 

Services

 

3,868

 

3,923

 

11,315

 

11,683

 

Total revenue

 

4,814

 

4,883

 

14,752

 

14,957

 

 

 

 

 

 

 

 

 

 

 

Direct costs:

 

 

 

 

 

 

 

 

 

Software

 

167

 

40

 

425

 

369

 

Network and computer equipment

 

73

 

103

 

238

 

272

 

Services

 

1,109

 

1,264

 

3,384

 

3,446

 

Total direct costs

 

1,349

 

1,407

 

4,047

 

4,087

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

3,465

 

3,476

 

10,705

 

10,870

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

2,307

 

2,200

 

7,277

 

6,900

 

Research and development costs

 

764

 

956

 

2,104

 

2,756

 

Other expense (income)

 

(134

)

48

 

(181

)

67

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

528

 

272

 

1,505

 

1,147

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

—

 

—

 

1

 

1

 

Interest expense

 

(286

)

(303

)

(928

)

(882

)

Other non-operating expense

 

(98

)

(22

)

(309

)

(60

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

144

 

(53

)

269

 

206

 

Income tax benefit (expense)

 

(12

)

(5

)

41

 

(15

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

132

 

$

(58

)

$

310

 

$

191

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share

 

$

0.01

 

$

0.00

 

$

0.02

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Diluted income (loss) per share

 

$

0.01

 

$

0.00

 

$

0.02

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

14,575

 

14,676

 

14,525

 

14,676

 

Diluted

 

14,875

 

14,676

 

14,825

 

14,676

 

 

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