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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
dated November 11, 1999
ILOG S.A.
9 Rue De Verdun BP 85
94253 Gentilly, France
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
FORM 20-F X FORM 40-F .
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
YES NO X .
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If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82- N.A.
ILOG S.A.
FORM 6-K
ILOG S.A. (the "Company") reported its results for the three months ended
September 30, 1999 in a press release dated October 21, 1999. Such press release
is attached as EXHIBIT 00.1 hereto and is incorporated by reference herein.
EXHIBIT INDEX
Exhibit 00.1 Press release, dated October 21, 1999, announcing the results of
ILOG S.A. for the three months ended September 30, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ILOG S.A.
BY: /s/ ROGER FRIEDBERGER
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ROGER FRIEDBERGER
CHIEF FINANCIAL OFFICER
Date: November 11, 1999
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EXHIBIT 99.1
ILOG REPORTS RESULTS FOR FIRST QUARTER OF FISCAL YEAR 2000
PARIS, FRANCE - October 21, 1999 - ILOG S.A. (NASDAQ: ILOG and EURO.NM: ILOG),
the world's leading provider of software components, today reported revenues of
$14.3 million for its first quarter of fiscal year 2000, ended September 30,
1999, and a loss from operations of $1.2 million. This compares to revenues of
$13.3 million and a loss from operations of $0.6 million in the previous year's
first quarter. Loss per share during the first quarter of the fiscal year was
$0.08 on 14.2 million shares, compared to $0.07 per share on 13.9 million shares
in the previous year's first quarter.
According to ILOG CEO Pierre Haren, "The summer quarter is traditionally our
most challenging, yet our performance this quarter is in line with expectations.
Our 8% revenue growth reflects the continuation of Y2K spending deferrals and
our July reorganization. I'm reiterating my earlier statements of cautious
optimism for calendar 2000. That is when we expect the industry to move beyond
Y2K issues and for royalty flow from our newest ISVs to begin. We also expect to
receive the full benefit from the focus created by our July reorganization, as
well as from new products and partnerships."
The company has seen increasing traction this quarter for ILOG components used
in e-business applications. Customers in this area include existing end users as
well as four new ISV customers who are using ILOG JRules for developing
e-business solutions aimed at various markets. ILOG's optimization products are
also being applied to e-business, while new products are on the way, such as
ILOG Configurator, a flexible, intelligent configuration component announced
today.
BUSINESS DEVELOPMENTS DURING THE QUARTER
During the quarter, ILOG's value chain division received business and royalties
from key ISV partners -- most significantly from SAP, but also from others such
as Aspen Technology, i2 Technologies and Synquest. SAP continued its commitment
to ILOG technology within its APO line in the quarter and turned to ILOG
Dispatcher for a new transportation module. In the optimization space, one of
the company's end user customers, Peugeot-Citroen, also expanded its commitment
to ILOG in a three-year, $1 million agreement that makes ILOG its standard
optimization solution company-wide.
In the telecommunications division, ILOG continued its efforts with key
partners, as seen in a recent joint effort with HP to demonstrate the
best-in-class capabilities of ILOG CPLEX running on HP's new N-Class servers.
ILOG also signed new contracts worldwide with major customers such as Alcatel,
France Telecom and Nortel.
"E-business and the web are revolutionizing the software industry, creating big
demand for web-based services," explained Haren. "We are seeing ample evidence
of this trend among ILOG
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customers and partners, where many middlemen functions are being automated. This
is creating a strong need for highly intuitive graphics in Java as well as for
smarter back-office servers. We believe that with ILOG JViews, ILOG JRules and
our growing optimization product line, we are increasingly well positioned to
take advantage of the Internet infrastructure market and leverage our existing
relationships with leading application suppliers."
ABOUT ILOG
ILOG (NASDAQ: ILOG; EURO.NM: ILOG) is the world's leading provider of advanced
C, C++ and Java software components for graphics and resource optimization. ILOG
products deliver high-performance data visualization for user interfaces;
integer, linear and constraint solvers for resource optimization, scheduling,
logistics and planning applications; dynamic rules systems for intelligent
agents and real-time data flow control; and components for integrating modules
with real-time and relational data sources. ILOG was founded in 1987 and now
employs approximately 460 people in seven countries. Visit www.ilog.com for
additional information.
FORWARD-LOOKING INFORMATION
This release contains "forward-looking" information within the meaning of the
United States Securities laws that involve risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking
statements. Potential risks and uncertainties include, without limitation, the
impact of the recently completed corporate reorganization; "Year 2000" and post
year 2000 customer spending decisions; the evolution, growth and profitability
of the Company's existing and new products, including ILOG Configurator in the
e-business software market; the success of the Company's ISV strategy; the
economic, political and currency risks associated with the company's European,
North American and Asian operations; the timing and seasonality of significant
revenues; and those risks and uncertainties mentioned under "Risk Factors" in
the company's form 20-F for the year ended June 30, 1998, which is on file with
the United States Securities and Exchange Commission.
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ILOG S.A.
Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended
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Sept. 30 Sept. 30
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1999 1998
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<S> <C> <C>
Revenues:
License Fees $ 8,513 $ 7,903
Services 5,805 5,396
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Total revenues 14,318 13,299
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Cost of revenues
License Fees 305 223
Services 2,924 3,176
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Total cost of revenues 3,229 3,399
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Gross profit 11,089 9,900
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Operating expenses
Marketing and selling 7,368 6,271
Research and development 2,852 2,239
General and administrative 2,007 1,926
Write-off of acquired intangibles 62 61
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Total operating expenses 12,289 10,497
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Loss from operations (1,200) (597)
Net interest income (expense) and other 105 (384)
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Net loss $ (1,095) $ (981)
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Net loss per share - basic & fully diluted $ (0.08) $ (0.07)
Share and share equivalents used in per share
calculations - basic & fully diluted 14,150 13,876
</TABLE>
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ILOG S.A.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands)
<TABLE>
<CAPTION>
Sept. 30 June 30
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1999 1999
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<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 18,862 $ 21,532
Accounts receivable 13,058 14,839
Other receivables and prepaid expenses 3,882 4,106
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Total current assets 35,802 40,477
Property and equipment-net and other assets 4,373 4,529
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Total assets $ 40,175 $ 45,006
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 10,762 $ 12,796
Current debt 4,072 3,531
Deferred revenue 5,202 6,775
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Total current liabilities 20,036 23,102
Long-term portion of debt 2,167 3,879
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Total liabilities 22,203 26,981
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Shareholders' equity
Paid-in capital 62,806 62,424
Accumulated deficit and currency translation adjustment (44,834) (44,399)
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Total shareholders' equity 17,972 18,025
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Total liabilities and shareholders' equity $ 40,175 $ 45,006
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</TABLE>
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DISCUSSION OF FINANCIAL HIGHLIGHTS
REVENUES AND GROSS MARGIN
Revenues in the quarter grew by 8% over the same quarter in the previous year.
Revenue growth in the quarter was held back from historic levels due to spending
deferrals by customers on new application development in favor of Year 2000
readiness activities. During the quarter, one ISV customer accounted for 34% of
the quarter's total revenues compared to 37% in the same quarter in the
preceding year. Overall gross margin for the quarter increased to 77% from 74%
for the same period in the preceding year due to improving consulting margins.
OPERATING EXPENSES
Marketing and selling expenses for the quarter increased by 17% over the same
period in the prior year. Research and development expenses, net of government
funding, for the quarter increased by 27% over the same period in the prior year
primarily due to the preparation of the expansion of the Company's product
offering over the next year. General and administrative expenses for the quarter
increased by 4% over the same period in the prior year.
OTHER INCOME (EXPENSE)
Net interest and other income (expense) for the quarter increased from
$(384,000) to $105,000 over the same period in the prior year reflecting an
exchange rate gain of $123,000 compared to an exchange rate loss of $317,000 in
the prior year on intercompany indebtedness.
BALANCE SHEET
Cash at September 30, 1999 decreased to $18.9 million from $21.5 million at June
30, 1999. Accounts receivable at September 30, 1999 improved to 82 days sales
outstanding from 107 days in the prior year because the quality of receivables
generally has improved over the last year. Shareholders' paid-in capital
increased by approximately $400,000 to $62.8 million at September 30, 1999,
reflecting the purchase of shares by employees under the Company's stock option
and share purchase plans. At September 30, 1999, the Company had 14.2 million
shares issued and outstanding compared to 14.1 million at June 30, 1999.
RESULTS AND PRESS RELEASE FOR FRENCH SHAREHOLDERS
A translation of this press release in the French language and with the
financial statements expressed in French francs is also available.
ILOG and CPLEX are registered trademarks of ILOG. All other product and company
names are trademarks or registered trademarks of their respective owners.
