FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1997
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________________ to ____________________
Commission File Number 0-19024
Symix Systems, Inc.
___________________________________________________________
(Exact name of registrant as specified in its charter)
Ohio 31-1083175
_______________________________ ____________________________________
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
2800 Corporate Exchange Drive
Columbus, Ohio 43231
___________________________________________________________
(Address of principal executive officer) (Zip Code)
(614) 523-7000
___________________________________________________________
(Registrant's telephone number, including area code)
N/A
___________________________________________________________________________
(Former name, former address fiscal year, if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES __X__ NO _____
At May 13, 1997, there were 5,856,556 common shares of the Company outstanding
with a stated value per share of $.01.
TOTAL OF SEQUENTIALLY NUMBERED PAGES:
EXHIBIT INDEX ON PAGE 14.
<PAGE>
SYMIX SYSTEMS, INC.
INDEX
Part I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Consolidated Balance Sheets 3 - 4
March 31, 1997 (unaudited)
June 30, 1996
Consolidated Statements of Operations (unaudited) 5
Three Months Ended March 31, 1997 and 1996
Nine Months Ended March 31, 1997 and 1996
Consolidated Statements of Cash Flows (unaudited) 6 - 7
Nine Months Ended March 31, 1997 and 1996
Notes to Consolidated Financial Statements (unaudited) 8 - 9
Item 2. Management's Discussion and Analysis 10-11
of Financial Condition and Results of Operations
Part II. OTHER INFORMATION 12
Item 1. Legal Proceedings. 12
Item 2. Changes in Securities. 12
Item 3. Defaults Upon Senior Securities. 12
Item 4. Submission of Matters to a Vote of Security Holders. 12
Item 5. Other Information. 12
Item 6. Exhibits and Reports on Form 8-K. 12
SIGNATURE 13
INDEX TO THE EXHIBITS 14
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<TABLE>
SYMIX SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
1997 1996
--------- --------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 3,072 $ 6,774
Trade accounts receivable, less allowance for
doubtful accounts of $444 at March 31, 1997
and $450 at June 30, 1996 17,064 11,429
Inventories 381 312
Prepaid expenses 599 522
Other receivables 391 117
Deferred income taxes 300 230
-------- --------
TOTAL CURRENT ASSETS 21,807 19,384
OTHER ASSETS
Purchased and developed software, net of accumulated
amortization of $5,647 at March 31, 1997
and $4,311 at June 30, 1996 5,868 4,660
Deferred income taxes 1,220 1,004
Intangibles, net 5,129 --
Deposits and other assets 867 472
-------- --------
13,084 6,136
EQUIPMENT AND IMPROVEMENTS
Furniture and fixtures 2,434 2,294
Computer and other equipment 9,896 8,078
Leasehold improvements 1,316 1,187
-------- --------
13,646 11,559
Less allowance for depreciation and amortization (8,038) (6,616)
-------- --------
5,608 4,943
-------- --------
TOTAL ASSETS $ 40,499 $ 30,463
======== ========
See notes to consolidated financial statements
</TABLE>
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SYMIX SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
(In thousands)
March 31, June 30,
1997 1996
--------- --------
(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 6,405 $ 5,300
Customer deposits 177 242
Deferred revenue 8,992 5,786
Income taxes payable 340 518
-------- --------
TOTAL CURRENT LIABILITIES 15,914 11,846
LONG-TERM PAYABLE 997 --
DEFERRED INCOME TAXES 1,984 1,515
SHAREHOLDERS' EQUITY
Common stock, authorized 20,000 shares;
issued 6,141 shares at March 31, 1997,
and 5,826 at June 30, 1996; at stated
capital amounts of $.01 per share 61 58
Capital in excess of stated value 13,027 10,985
Convertible preferred stock of subsidiary 1,031 --
Retained earnings 8,805 7,379
-------- --------
22,924 18,422
Less: Cost of common shares in treasury,
304 shares at March 31, 1997
and June 30, 1996, at cost (1,320) (1,320)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 21,604 17,102
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 40,499 $ 30,463
======== ========
See notes to consolidated financial statements
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<TABLE>
SYMIX SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Nine Months
Ended March 31, Ended March 31,
----------------- ----------------
1997 1996 1997 1996
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License fees $ 7,852 $ 5,988 $23,210 $17,177
Service, maintenance and support 7,506 5,177 21,375 15,378
------- ------- ------- -------
Net revenue 15,358 11,165 44,585 32,555
License fees 2,145 1,565 6,525 4,839
Service, maintenance and support 3,260 2,193 8,819 6,286
------- ------- ------- -------
Cost of revenue 5,405 3,758 15,344 11,125
------- ------- ------- -------
Gross margin 9,953 7,407 29,241 21,430
------- ------- ------- -------
Selling, general and administrative 7,994 5,410 22,649 15,897
Research and product development 1,501 968 3,954 2,587
Restructuring and other unusual charges -- -- -- 506
------- ------- ------- -------
Total expenses 9,495 6,378 26,603 18,990
------- ------- ------- -------
Operating income 458 1,029 2,638 2,440
Interest and other income, net 18 46 123 161
------- ------- ------- -------
Income before provision for income taxes 476 1,075 2,761 2,601
Provision for income taxes 183 430 1,050 1,041
======= ======= ======= =======
Net income $ 293 $ 645 $ 1,711 $ 1,560
======= ======= ======= =======
Earnings per share $ 0.04 $ 0.11 $ 0.28 $ 0.28
======= ======= ======= =======
Weighted average number of common and
common equivalent shares outstanding 6,600 5,714 6,218 5,572
======= ======= ======= =======
See notes to consolidated financial statements
</TABLE>
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<PAGE>
SYMIX SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
March 31,
(unaudited)
1997 1996
---------------------------
Increase (decrease) in cash
OPERATING ACTIVITIES
Net income $ 1,711 $ 1,560
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 3,111 2,035
Provision for losses on accounts receivable (6) (48)
Provision for deferred income taxes 114 416
Changes in operating assets and liabilities:
Trade accounts receivable (4,248) 1,093
Prepaid expenses and other receivables 7 (134)
Inventory (69) (174)
Deposits (606) 118
Accounts payable and accrued expenses (1,323) (14)
Customer deposits (73) (153)
Deferred revenue 2,495 32
Income taxes payable/refundable 202 612
------- -------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 1,315 5,343
See notes to consolidated financial statements
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<PAGE>
SYMIX SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(In thousands)
Nine Months Ended
March 31,
(unaudited)
1997 1996
---------------------------
Increase (decrease) in cash
INVESTING ACTIVITIES
Purchase of equipment and improvements (1,915) (854)
Additions to purchased and developed software (2,481) (2,699)
Purchase of subsidiaries, net of cash acquired (1,191) --
------- -------
NET CASH USED BY
INVESTING ACTIVITIES (5,587) (3,553)
FINANCING ACTIVITIES
Proceeds from issuance of common
stock and exercise of stock options 718 333
Payments on long-term obligations (84) (154)
------- -------
NET CASH PROVIDED
BY FINANCING ACTIVITIES 634 179
Effect of exchange rate changes on cash (64) (74)
------- -------
Net Change in Cash (3,702) 1,895
Cash at beginning of period 6,774 4,498
------- -------
CASH AT END OF PERIOD $ 3,072 $ 6,393
======= =======
See notes to consolidated financial statements
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SYMIX SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Note A -- Accounting Policies and Presentation
The accompanying consolidated financial statements are unaudited; however, the
information contained herein reflects all adjustments which are, in the opinion
of management, necessary for a fair statement of the results of operations for
the interim periods. All adjustments made were of a normal recurring nature.
These interim results of operations are not necessarily indicative of the
results to be expected for a full year.
The notes to the consolidated financial statements contained in the Symix
Systems, Inc. and Subsidiaries' (the Company) June 30, 1996 Annual Report to
Shareholders should be read in conjunction with these financial statements.
Note B -- Restructuring and Other Non-Recurring Charges
The restructuring and other non-recurring charges of $506,000 shown for the nine
months ended March 31, 1996 relate primarily to severance payments and
reorganizing loss associated with the European sales channel.
Note C--Acquisitions
During the first quarter of fiscal 1997, the Company acquired in two separate
transactions companies in France and Australia for an aggregate of $2.0 million.
The cash paid for the acquisitions was $940,000, with the remaining balance of
$1.06 million being payable over three years. Both companies are manufacturing
software specialists that will serve as sales, service and support operations
for the Company in France and Australia. The acquisitions were accounted for
using purchase accounting with results included since the date of acquisition.
Acquisition costs exceeded the fair value of the net assets acquired by
approximately $2.3 million which is being amortized over five years.
On January 9, 1997 the Company acquired an Ontario, Canada corporation called
Visual Applications Software, Inc. ("VAS") for $1.0 million (Canadian) in cash,
and 250,000 Class A Preference Shares (the "Class A Shares") and 500,000 Class B
Preference Shares (the "Class B Shares") of a subsidiary of the Company. The
Class B Shares are redeemable by the holder for $1.00 (Canadian) per share. In
connection with the acquisition, the Company also entered into a Share Exchange
Agreement with the former stockholders of VAS which provides for a one for one
exchange of the Class A Shares for common shares of the Company. VAS designs and
markets a field service software product. The acquisition was accounted for
using purchase accounting with results included since the date of acquisition.
Acquisition costs exceeded the fair value of the net assets acquired by
approximately $3.2 million which is being amortized over five years.
Note D - Earnings Per Share
In February 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings Per Share" (SFAS 128). SFAS 128 requires adoption for periods
ending after December 15, 1997. Until that time, the Company is required to
continue calculating earnings per share (EPS) in accordance with Accounting
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<PAGE>
Principles Board Opinion No. 15. The following is provided for informational
purposes and displays the Company's earnings per share data as calculated under
the provisions of SFAS 128:
Basic EPS Diluted EPS
--------- -----------
Three months ended March 31, 1997 $0.05 $0.04
Nine months ended March 31, 1997 $0.30 $0.28
-9-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The Company's revenues are derived from (i) licensing SYMIX software and (ii)
providing product support and related services. Product support is provided
pursuant to agreements that are generally renewed annually. Related services
consist of installation, implementation, training, consulting, programming and
systems integration services for SYMIX users. The Company's results of
operations have fluctuated on a quarterly basis due to the timing of license fee
revenues.
Results of Operations
Net revenue was $15,358,000 for the three months ended March 31, 1997, an
increase of 38% from the same quarter of the previous year. License revenues
increased 31% from $5,988,000 for the same quarter last year to $7,852,000 at
March 31, 1997. Service and support revenues increased 45% for the respective
quarters' performance; $7,506,000 for March 31, 1997, and $5,177,000 for March
31, 1996. The significant increases in the current period are primarily
attributable to license and maintenance revenue growth due to the Company's
enhanced and expanded product line, as well as a rapidly growing international
sales channel. Net revenue outside of North America accounted for 28% of the
total revenue for the current quarter, compared to 13% for the same quarter last
year.
For the nine months ended March 31, 1997, net revenue increased 37% to
$44,585,000 from $32,555,000 for the same period last year. Again, the increase
is primarily attributable to the Company's expanded product line and net revenue
outside of North America being at its highest level in the Company's history,
more than 25% of total revenue for the nine month period.
The cost of license fees increased for the quarter ended March 31, 1997 and for
the nine months ended March 31, 1997 from the corresponding periods last year as
a direct result of the increase in license fee revenue and from royalty payments
relating to the new product offerings. Software amortization increased as well
following the general commercial release of the SyteLine and SytePower products
for which costs had previously been capitalized. The cost of license fees as a
percentage of license fee revenue increased slightly in the quarter ended March
31, 1997 from the quarter ended March 31, 1996, but remained constant at 28% for
the respective nine month periods.
The cost of service, maintenance and support increased to $3,260,000 for the
quarter ended March 31, 1997 from $2,193,000 for the same quarter last year
primarily because the Company added personnel to provide the services that
generated the corresponding increase in revenue from service, maintenance and
support. As a percentage of service, maintenance and support revenue, the cost
of service, maintenance and support increased slightly in the quarter ended
March 31, 1997 from the quarter ended March 31, 1996, but remained constant at
41% for the respective nine month periods.
Selling, general and administrative (SG&A) expense was $7,994,000 for the
quarter ended March 31, 1997, compared to $5,410,000 for the same period last
year, a 48% increase. However, SG&A expense remained fairly constant compared to
the prior quarter. For the respective nine month periods, SG&A expense was
$22,649,000 compared to $15,897,000, an increase of 42%. The increase is due to
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<PAGE>
the Company's revenue growth - planned spending increases in marketing programs
as well as the growth in headcount for both the international and domestic sales
channels. SG&A expense stated as a percentage of revenue, for both the three
month and nine month periods, has remained fairly constant, ranging from 48% to
52%.
Research and product development (R&D) expenditures, including amounts
capitalized for the three months ended March 31, 1997, were $2,502,000 compared
to $1,327,000 for the same period last year. For the nine months ended March 31,
1997, R&D expenses were $6,476,000 compared to $4,286,000 for the same period
last year. Capitalization of software development costs was $1,001,000 and
$2,522,000 for the three and nine month periods respectively, ended March 31,
1997, compared to $359,000 and $1,699,000 for the comparable periods last year.
The increase in research and development expenditures is expected to continue as
the Company devotes a significant percentage of its resources to developing and
enhancing existing and new products.
Liquidity and Capital Resources
At March 31, 1997, the Company had working capital of $5,893,000 including cash
and cash equivalents of $3,072,000, compared to $7,538,000 including cash and
cash equivalents of $6,774,000 at June 30, 1996. Net accounts receivable
increased from $11,429,000 at June 30, 1996, to $17,064,000 at March 31, 1997.
At March 31, 1997, the accounts receivable days sales outstanding (DSO) was 97
days compared to 76 days at June 30, 1996. The increase in DSO is attributable
to: (i) the increase in installment payments that are being collected over the
product implementation cycle, generally a three to six month period; and (ii)
the increase in international sales which typically have a higher DSO. The
decrease in working capital is due to acquisitions, international expansion, and
current year capital expenditures.
In addition to its present working capital, the Company has, with a bank, a $6.0
million unsecured revolving line of credit. To date, $250,000 has been drawn
under the line of credit and was subsequently repaid on April 3, 1997. It is
expected that the Company's continued expansion of its operations and product
line will result in additional requirements for cash in the future. The Company,
however, anticipates that existing sources of liquidity, cash flow from
operations, and the bank line of credit will be sufficient to satisfy
anticipated cash flow needs for the next twelve months.
---------------------------
Safe Harbor Statement: The statements made in this report which are not
historical fact are "forward looking statements" that involve risks and
uncertainties, including, but not limited to, product demand and market
acceptance, variation of quarterly revenues, the effect of economic conditions,
the impact of competitive products, pricing and other factors detailed in
Symix's filings with the Securities and Exchange Commission.
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<PAGE>
PART II -- OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities.
On February 14, 1997, the Company issued 62,500 common shares, no par
value, to each Philip Smart and Richard Smart (collectively the "Smarts"),
former shareholders of Visual Applications Software, Inc., an Ontario, Canada
corporation ("VAS"). The common shares were issued in exchange for an equal
number of Class A Preference Shares of Symix Systems (Ontario) Inc., a
subsidiary of the Company (the "Class A Shares"), formerly held by the Smarts.
The Class A Shares were acquired by the Smarts in connection with the
acquisition of VAS by the Company in January, 1997. The VAS acquisition was
reported in a Current Report on Form 8-K dated January 9, 1997 filed by the
Company with the Securities and Exchange Commission (the "Commission") and a
press release dated January 10, 1997, a copy of which is attached to this Report
as Exhibit 99. The 125,000 common shares of the Company were issued to the
Smarts in reliance upon the private offering exemption from the registration
requirements of the Securities Act of 1933 (the "Act") contained in Section 4
(2) of the Act which applies to transactions not involving any public offering
of securities. Such common shares were subsequently registered with the
Commission on a Registration Statement on Form S-3 (Commission File No.
333-23385), which became effective on March 26, 1997.
Item 3. Defaults Upon Senior Securities. None
Item 4. Submission of Matters to a Vote of Security Holders. None
Item 5. Other Information. None
Item 6. Exhibits and Reports on Form 8-K.
a) See Index to Exhibits on page 14.
b) Reports on Form 8-K
The Company filed a Current Report on Form 8-K dated January 9, 1997 with
the Commission to report the acquisition of VAS during the period covered by
this Report.
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<PAGE>
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.
SYMIX SYSTEMS, INC.
Date: May 14, 1997 /s/Lawrence W. DeLeon
________________________________
Lawrence W. DeLeon
Vice President, Chief Financial
Officer and Secretary
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<PAGE>
INDEX TO EXHIBITS
Exhibit No. Description Page
- ----------- ----------- ------
3(a) Amended Articles of Incorporated herein by
Incorporation of reference to Exhibit 3(a)
Symix Systems, Inc., to the Annual Report
as amended on Form 10-K of Registrant
for the fiscal year ended June
30, 1996
3(b) Amended Regulations of Incorporated herein by
Symix Systems, Inc. reference to Exhibit 3(b)
to the Registration Statement
on Form S-1 of Registrant
filed February 12, 1991
(Registration No. 33-38878)
10(a) Amendment to Employment Page 15
Agreement between the Company
and Stephen A. Sasser
10(b) Share Exchange Agreement dated Incorporated herein by
January 9, 1997 between the reference to Exhibit 99 to
Company and Philip Smart and the Current Report on Form 8-K
Richard Smart of the Company dated January 9
1997
27 Financial Data Schedule Page 21
99 Press Release regarding VAS Page 17
acquisition
-14-
Exhibit 10(a)
AMENDMENT TO EMPLOYMENT AGREEMENT
THIS AMENDMENT TO EMPLOYMENT AGREEMENT is made to be effective as of the
1st day of April 1997, between Symix Systems, Inc., an Ohio corporation (the
"Company") and Stephen A. Sasser ("Employee").
WITNESSETH
WHEREAS, the Company and Employee are parties to an Employment Agreement
dated July 5, 1995 pursuant to which the Company engaged Employee to serve as
President and Chief Operating Officer of the Company (the "Employment
Agreement"); and
WHEREAS, the Company and Employee desire to modify the Employment Agreement
as set forth herein;
NOW THEREFORE, in consideration of the premises and the mutual covenants
and agreements herein contained, and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows:
1. Modification of Compensation Arrangement. Subparagraphs 3(a) and 3(b) of
the Employment Agreement are hereby amended to read in their entirety as
follows:
"(a) Base Salary. Employee shall receive an annual base salary of
not less than $242,000 (the "Base Salary") to be paid semi-monthly in
equal installments. The Base Salary shall be reviewed not less
frequently than annually and shall be subject to such upward
adjustments as the Compensation Committee (the "Compensation
Committee") of the Board of Directors of the Company (the "Board") may
deem appropriate in its discretion.
(b) Incentive Compensation. During the Term of this Agreement,
Employee shall be entitled to additional compensation pursuant to a
bonus plan to be approved by the Compensation Committee and to be
consistent with this paragraph 3(b). Employee's annual target bonus
will be as follows:
(i) $174,500, for the Company's fiscal year ended June 30,
1997, of which 80% ($139,600) will be earned if and to the extent
the Company's earnings per share achieve targets proposed by
Employee and approved by the Compensation Committee for such
fiscal year and 20% ($34,900) will be earned if and to the extent
the Company achieves other strategic objectives proposed by
Employee and approved by the Compensation Committee for such
fiscal year; and
(ii) $158,000 during the remaining term of this Agreement,
of which 80% ($126,400) will be earned if and to the extent the
Company's earnings per share achieve targets proposed annually by
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<PAGE>
Employee and approved by the Compensation Committee and 20%
($31,600) will be earned if and to the extent the Company
achieves other strategic objectives proposed annually by Employee
and approved by the Compensation Committee."
The foregoing provisions shall be substituted for and shall be deemed
to replace the language heretofore set forth in Subparagraphs 3(a) and
(b) of the Employment Agreement as if such substituted language had
been included in the originally-executed Employment Agreement, except
that such substituted provisions shall apply prospectively only from
the effective date hereof.
2. No Modification of Other Provisions. Except as provided in Paragraph 1
hereinabove, the terms and provisions of the Employment Agreement shall remain
in full force and effect and shall apply to this Amendment to Employment
Agreement as if fully incorporated herein.
IN WITNESS WHEREOF, the parties have executed this Amendment to Employment
Agreement as of the date first hereinabove written.
SYMIX SYSTEMS, INC.
By /s/Lawrence J. Fox
____________________________________
Lawrence J. Fox
Chairman and Chief Executive Officer
EMPLOYEE
/s/Stephen A. Sasser
____________________________________
Stephen A. Sasser
-16-
Exhibit 99
FOR IMMEDIATE RELEASE
For more information, contact:
Mark Wallinger, Symix
614-523-7243; [email protected]
SYMIX CONTINUES AGGRESSIVE GROWTH
ACQUIRES FIELD SERVICE PRODUCT
LEADING PROVIDER OF ERP SOFTWARE FOR MANUFACTURERS
BUYS CANADIAN-BASED VAS, INC.
COLUMBUS, Ohio, January 10, 1997 -- Symix (NASDAQ-NMS: SYMX) today announced
that it has acquired for an undisclosed sum Canadian-based Visual Applications
Software (VAS), Inc., the maker of FieldPro, a leading, midmarket, field service
product.
"Our customers and prospectus wanted improved capabilities to upgrade
service and management of their customers," said Symix President and COO Stephen
A. Sasser. "With this acquisition, we have added an application to our product
line that will provide our customers with a powerful competitive advantage. The
visual scheduling of field resources and remote capabilities of FieldPro
provides functionality that surpasses the products provided by most other
midmarket Enterprise Resource Planning (ERP) vendors."
FieldPro is the signature product of VAS, which will remain as a business
unit under Symix. Symix will market FieldPro to midsized companies and divisions
of multinational corporations, as well as deliver a Symix-branded product using
the same technology for manufacturers.
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<PAGE>
Symix Acquires VAS/Page 2
"Symix is a company with exciting momentum and an established international
distribution channel," said VAS Chairman Ken Smart, who founded the company. "We
are excited about the plan to accelerate the growth and marketplace acceptance
of FieldPro."
Symix develops, markets and supports integrated, high-performance business
management software systems for manufacturers with between $20 million and $350
million in annual sales. Its principal product, Symix SyteLine(TM), is designed
for discrete manufacturers specializing in configurable products.
Launched in 1992, FieldPro allows companies to track their service business
from customer calls, to assigning technicians, to monitoring parts inventory, to
evaluating the performance of service contracts. As companies continue to focus
on customers, the need for field service becomes critical. FieldPro allows
companies to better service customers after the sale as well as providing
critical data needed to evaluate true profitability of products and service
organizations. FieldPro runs on desktop computers with the Windows operating
system.
Headquartered in Burlington, Ontario, the majority of VAS business is in
North America and the U.K. It has approximately 100 customers at 250 sites and
15 employees.
The addition of FieldPro plays into the current Symix strategy of helping
manufacturers integrate and synchronize resource planning with customers. Symix
offers the products, services and technology to assist manufacturers in
"becoming indispensable" to their customers by integrating -- not just bundling
add-on products, but truly integrating -- product ordering, configuration,
manufacturing systems and, now, field service. The focus is to coordinate
software that will make vital information available immediately through online
resources, like the Internet. The integration of the software
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<PAGE>
Symix Acquires VAS/Page 3
will allow manufacturers to communicate with and manage customers better IN THE
MANNER THE CUSTOMER REQUIRES. The integrated, or synchronized resource planning
model that Symix promotes goes beyond existing "add-on" modules, because it
builds the customer into the manufacturer's process through existing
technologies and reacts faster allowing for better management, or "ownership" of
the customer issues, such as securing an order. Symix's family of ERP/business
solutions -- The SYMIX(R) Solution, Symix SyteLine, and Symix SytePower(TM),
along with Symix's comprehensive services -- enable midsize manufacturers and
divisions of multinational companies to quickly and cost-effectively develop an
integrated system for managing critical production, financial and distribution
functions.
With more than 2,400 licenses sold, many of the world's most successful and
innovative organizations use Symix software to help manage their businesses.
Symix is focused on providing solutions for midsized manufacturers and
manufacturing sites, which it defines as between $20 million to $350 million in
annual sales. Symix markets its products through sales and services offices in
Australia, Europe, North America, and the Pacific Rim. Additionally, SYMIX is
sold through more than 40 independent software and support business partners
worldwide. Symix product and company information is available at the following
URL:http://www.symix.com.
The statements made in this press release which are not historical fact are
"forward looking statements" that involve risks and uncertainties, including,
but not limited to, product demand and market acceptance, variation of quarterly
revenues, the effect of economic conditions, the impact of competitive products,
foreign currency fluctuations, pricing and other factors detailed in Symix's
filings with the Securities and Exchange Commission.
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<PAGE>
Symix Acquires VAS/Page 4
(SYMIX HAS 2,400 LICENSES WORLDWIDE, AND EVERY DAY MORE THAN 70,000 PEOPLE
UTILIZE THE SOFTWARE. THE COMPANY, FOUNDED IN 1979, IS FOCUSED ON FOUR KEY
MARKETS: INDUSTRIAL EQUIPMENT, FURNITURE/FIXTURES, ELECTRONICS AND FABRICATED
METALS.)
SYMIX is a registered trademark of Symix Systems, Inc. All other products are
trademarks of their respective companies.
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<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condensed consolidated balance sheets and statements of income of Symix
Systems, Inc., and is qualified in its entirety by reference to such
Form 10-Q for the period ended March 31, 1997.
</LEGEND>
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1
<CASH> 3,072
<SECURITIES> 0
<RECEIVABLES> 17,508
<ALLOWANCES> 444
<INVENTORY> 381
<CURRENT-ASSETS> 21,807
<PP&E> 13,646
<DEPRECIATION> 8,038
<TOTAL-ASSETS> 40,499
<CURRENT-LIABILITIES> 15,914
<BONDS> 997
0
1,031
<COMMON> 61
<OTHER-SE> 20,512
<TOTAL-LIABILITY-AND-EQUITY> 40,499
<SALES> 23,210
<TOTAL-REVENUES> 44,585
<CGS> 6,525
<TOTAL-COSTS> 15,344
<OTHER-EXPENSES> 26,603
<LOSS-PROVISION> (6)
<INTEREST-EXPENSE> 5
<INCOME-PRETAX> 2,761
<INCOME-TAX> 1,050
<INCOME-CONTINUING> 1,711
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,711
<EPS-PRIMARY> 0.28
<EPS-DILUTED> 0.28
</TABLE>
