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Exhibit 99
Contact: Martin K. Weinbaum
Vice President, Finance/CFO
Smith-Gardner
Phone: 561-265-2700
Fax: 561-454-4801
SMITH-GARDNER ANNOUNCES PRELIMINARY EXPECTATIONS FOR SECOND
QUARTER OF FISCAL 2000
DELRAY BEACH, FL (June 16, 2000) - Smith-Gardner & Associates, Inc. (Nasdaq:
SGAI) today announced preliminary expectations for the second fiscal quarter
ending June 30, 2000. For the quarter, the Company expects to report total
revenue in the range of $9 million to $11 million, compared to $12.3 million in
the second quarter of 1999. The Company expects to report a loss per share in
the range of $.13 to $.16 compared to net income of $.12 per share for the
second quarter of 1999.
The Company believes that second quarter results will be adversely impacted by
several factors, including:
o the reduction of approximately $.05 per share relating to an additional
accounts receivable reserve established for one of its customers as
previously discussed in a press release dated May 25, 2000
o the movement of material sales revenue projected for the second quarter to
the third quarter as a result of a number of customers delaying their
implementation plans
o the shift of business from .com start-up customers to established companies
which require longer sales and implementation cycles
"While we are very disappointed to make this announcement, we remain optimistic
about our future market opportunities," said Gary G. Hegna, Smith-Gardner
Chairman, President and CEO. "Our current levels of new customer leads and
system demonstrations are exceeding historical levels. Furthermore, our new
technologies, such as our Online Shopping n-Tier architecture, Marketing and
Merchandising Knowledge Center and E-Mail Executive system were enthusiastically
received by our customers and prospective customers at our recent World
Conference. We believe that these new products will have a long-term positive
impact on our revenue growth."
Smith-Gardner will host a conference call to discuss these developments at 1:00
pm EDT on Friday, June 16, 2000. The conference call telephone number is
800-633-8548.
Smith-Gardner expects to announce its final results for the second quarter of
2000 on or about July 27, 2000.
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ABOUT SMITH-GARDNER
Smith-Gardner is the premier provider of end-to-end e-commerce solutions
worldwide. Smith-Gardner's products and services ensure customer satisfaction
and loyalty throughout the entire online shopping experience. Headquartered in
Delray Beach, Florida, the Company was founded in 1988 and has several hundred
clients in 17 countries. Smith-Gardner operates regional headquarters throughout
the United States, Europe and Asia Pacific. The Company's global client base
includes Nordstrom.com, Nine West, Hickory Farms, MicroWarehouse, KBKids.com,
dELiA*s, Brookstone, Barnes & Noble, Hammacher Schlemmer and Zales.
Smith-Gardner products earned Best of Comdex awards in 1998 and 1999, a
"Citation of Innovation" at Internet and Electronic Commerce Expo in '99, and an
award for Best New e-Commerce and Internet Product of the Year at The
International Direct Marketing Fair in March 2000. For more information on
Smith-Gardner, visit the Company's web site at www.smith-gardner.com.
# # #
This news release may contain forward-looking statements which are made pursuant
to the safe harbor provisions of Section 21E of the Securities Exchange Act of
1934. The forward-looking statements in this release do not constitute
guarantees of future performance. Investors are cautioned that statements in
this press release which are not strictly historical statements, including,
without limitation, statements regarding current or future financial
performance, management's plans and objectives for future operations, product
plans and performance, management's assessment of market factors, as well as
statements regarding the strategy and plans of the company and its strategic
partners, constitute forward-looking statements. Such forward-looking statements
are subject to a number of risks and uncertainties that could cause actual
results to differ materially from those anticipated by the forward-looking
statements, including, without limitation, risks associated with the Company's
business, including those risks set forth in its prospectus dated January 29,
1999, forms 10-K, 10-Q and other documents filed with the Securities and
Exchange Commission, which may cause results to differ from management's current
expectations. The company assumes no obligation to update any forward-looking
information contained in this press release or with respect to the announcements
described herein.
