RA'ANANA, Israel, May 5, 2011 (GLOBE NEWSWIRE) -- Retalix® Ltd. (Nasdaq:RTLX), a leading provider of software and services for retailers and distributors, announced today results for the first quarter of 2011 ended March 31, 2011.
Summarized financial highlights for the first quarter:
- Total Revenues were up 11% to $54.1 million, compared with $48.7 million in the first quarter of 2010.
- Adjusted Income from Operations (Non-GAAP)* was $4.8 million, compared to $4.7 million in the first quarter of 2010.
- Income from Operations (GAAP) was $3.4 million, compared to $2.9 million in the first quarter of 2010.
- Financial Expense was $0.3 million, related to the impact of currency fluctuations on the Company's non-dollar assets and the costs of currency translations, net of interest income. This compares to a financial expense of $0.4 million in the first quarter of 2010.
- Adjusted Net Income (Non-GAAP)* was $3.3 million, or $0.13 per diluted share, compared to $3.3 million, or $0.14 per diluted share, in the first quarter of 2010. The weighted number of average shares for the first quarter 2011 rose to 24,683,000 fully diluted versus 24,236,000 for the first quarter of 2010.
- GAAP Net Income was $2.3 million, or $0.09 per diluted share, versus $1.9 million, or $0.08 per diluted share, in the first quarter of 2010.
Shuky Sheffer, Chief Executive Officer of Retalix, said, "We had a good first quarter for 2011 achieving 11% growth in total revenues and solid profitability while we continued to execute our strategic plan and build our growth engines. We also won new customers, successfully delivered and implemented projects for our customers and enhanced our business pipeline. We are beginning to sign longer-term, multiyear contracts with customers, which we believe is a significant demonstration of the customers' confidence in Retalix and provides us with better visibility and more efficiency in our operations. We are also successfully introducing our expanded Systems Integration (SI) offering into our customer projects. For example, we recently signed a new contract with Southern Co-operative Ltd., which operates over 150 stores in southern England. The contract includes store solutions, loyalty and replenishment integrated with SI services ranging from testing to deployment and support. In January, we launched our new Retalix 10 Store Suite, a store platform, which is differentiated by its unique architecture and enables flexible deployment options. It seamlessly combines major customer-centric retailing functions and multiple customer touch points, enhances the customer experience, enables quick time-to-market and reduces the cost of ownership. Retalix 10 is generating a lot of excitement with retailers and industry analysts. Its unique architecture and functionality provides meaningful advantages both for our existing customers to upgrade and for new customers looking for the most advanced solutions on the market today."
Hugo Goldman, the Company's Chief Financial Officer, said, "In the first quarter of 2011 we again grew total revenues, maintained profitability and generated strong cash flow from operations by carefully managing our efforts. We achieved an 8.8% operating margin (Non-GAAP), which is an improvement versus the previous quarter while we continue to invest in strategic customer programs and grow our operations. We improved the quality of our revenues with the percentage of revenues coming from hardware continuing to decline and produced a healthy cash flow from operations. We generated cash flows of approximately $6.7 million in the quarter which helped us to maintain our strong balance sheet with over $140 million in cash and cash equivalents and negligible debt."
Outlook for FY 2011
Sheffer added, "We are pleased with our progress and we had a good start to 2011. We are reiterating the guidance we announced in March for the full year 2011. We expect total revenues for 2011 to be in the range of $217 million to $228 million. We also expect to maintain at least the same level of profitability in 2011 as compared to 2010, while continuing to develop the growth engines for Retalix. We are working hard to execute on our plan to build growth for Retalix and our business pipeline is improving."
Conference Call and Webcast Information
Retalix will be holding a conference call to discuss results for the first quarter of 2011 on Thursday, May 5th 9:00 am Eastern Time (4:00 pm Israel Time). This conference can be accessed by all interested parties through the Company's web site at http://www.retalix.com/conference-call.cfm. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Retalix's web site.
About Retalix
Retalix is an independent provider of software solutions and services to retailers and distributors worldwide. Retalix solutions serve the needs of grocery chains, convenience and fuel retailers, food and consumer goods distributors and independent grocers. The Company offers a portfolio of software applications that automate and synchronize essential retail and supply chain operations, encompassing stores, headquarters and warehouses. The Company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas. For more information, visit the contents of which are not part of this press release. Follow Retalix on Twitter: @Retalix.
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Retalix is a registered trademark of Retalix Ltd. in the United States and in other countries. The names of actual companies, products and services mentioned herein may be the trademarks of their respective owners.
* Note Regarding the Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Retalix uses Non-GAAP measures of operating income, operating margin, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude non-cash equity based compensation and amortization of intangibles related to acquisitions. Retalix's management believes the Non-GAAP financial information provided in this release is useful to investors' understanding and assessment of the Company's on-going core operations and prospects for the future. The presentation of this Non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management also uses both GAAP and Non-GAAP information in evaluating and operating business internally and as such deemed it important to provide this information to investors. Reconciliations between GAAP measures and Non-GAAP measures are contained following the GAAP financial statements in this press release.
Safe Harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. For example, the statements regarding our "Outlook for FY 2011" including our expected results, expected demand and opportunities, future expansion of product offerings and services, and future strategic plans and positioning, all involve forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Retalix, including revenues, income and expenses, to be materially different from any future results, performance or achievements or other guidance or outlooks expressed or implied by such forward-looking statements. Such factors include risks relating to Retalix's anticipated future financial performance and growth, the performance of the US dollar relative to other currencies, continued roll-outs with existing customers, continued interest in Retalix's new platforms, the perception by leading retailers of Retalix's reputation, the potential benefits to food and fuel retailers and distributors, expansion into new geographic markets, and other factors over which Retalix may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed by Retalix with the Securities and Exchange Commission, including Retalix's Annual Report on Form 20-F for the year ended December 31, 2010, for a discussion of these and other important risk factors. Except as required by law, Retalix undertakes no obligation to publicly release 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.
CONTACT: Retalix Ltd. Hugo Goldman +972-9-776-6677 investors@retalix.com
