CIMdata PLM Industry Summary Online Archive
26 May 2004
Financial News
netGuru Inc. Reports Fiscal 2004 Fourth-Quarter and Year-End Results
netGuru, Inc. reported financial results for fiscal 2004 fourth quarter and year ended March 31, 2004.
The Company reported net income, including an income tax benefit of $149,000, of $77,000, or $0.01 per diluted share, for the quarter. For fourth-quarter 2003, the Company reported a net loss of $1.5 million, or $(0.09) per diluted share.
Net revenues for the quarter were $5.1 million, compared to $4.6 million in fourth-quarter 2003. Engineering software revenues increased due to additional regional and international offices established in the prior year and new revenue streams from OEM (other/original equipment manufacturer) relationships enabling core engineering products to be bundled with software in other niche vertical disciplines. Sales of collaborative software products and related engineering services also rose.
Gross profit for the quarter was $3.5 million, or 69% of net revenues, compared to $2.9 million, or 63% of net revenues, in fourth-quarter 2003. Operating expenses for the quarter fell to $3.5 million from $4.2 million in the prior-year fourth quarter. Research and development and depreciation expenses were slightly lower, and selling, general and administrative expenses fell to $2.8 million from $3.3 million in the comparable quarter of fiscal 2003. The Company reported operating income of $14,000 versus an operating loss of $1.3 million in fourth quarter last year.
Net loss for fiscal 2004 narrowed to $3.1 million, or $(0.18) per diluted share, from net losses of $10.5 million, or $(0.61) per diluted share, in the prior fiscal year. Fiscal 2003 net loss included $5.8 million for the write-off of goodwill as a result of netGuru's adoption of Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets.
Net revenues for the year were $17.7 million, compared to $18.3 million in the prior fiscal year. The decrease in revenues was due primarily to lower Web-based telecommunications services revenues.
However, gross profit for the year rose to $12.0 million, or 68% of net revenues, compared to $10.4 million, or 57% of revenues, for the prior year. Operating expenses for the year were $14.2 million versus $15.0 million in the prior year. Research and development and depreciation expenses were slightly lower, and selling, general and administrative expenses were $11.2 million, compared to $11.4 million in the prior year.
Amrit Das, netGuru chief executive officer, commented: "We are pleased with achieving our fourth-quarter goal of net profitability and improved operating results for the year. Our new management team's focus on core engineering and collaborative software sales and continued monitoring of operating costs contributed to these results and is expected to continue in subsequent periods. Furthermore, we are making progress with transitioning our traditional IT services to an engineering BPO (business process outsourcing) model, which includes building our infrastructure in India to service our expanding worldwide network of customers. As a result, we are excited about netGuru's prospects for further growth and profitability in fiscal 2005."
netGuru is an engineering information technology and services company offering engineering analysis and design software, collaborative software solutions, and professional and technical IT services and support to businesses worldwide. netGuru serves its global markets and clients through offices located in the United States, Europe, Asia, and the Middle East, and through distributors in 40 countries. The Company licenses its engineering software and solutions to more than 20,000 businesses in 85 countries. For more information visit http://www.netguru.com
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.
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