Ra’Anana-based Retalix, a provider of software solutions for the retail food industry, has announced record operating results for its first quarter ended 31 March 2002, with a 174% rise in operating income to US$1.3m.
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Net revenues were up 14% to US$16.2m, and the company reported Q1 net income of US$0.82m, US$0.06 per diluted share, compared to a net income of US$2.2m (including a capital gain of US$2.4m), or US$0.18 per diluted share, in Q1 2001.
“We are pleased to report record revenues and a further growth of our operating profitability in Q1 2002,” said CEO Barry Shaked: “Demand for our enterprise software solutions continues to run strong, and we are engaged in lab testing and discussions which should position us to build on this momentum for the balance of 2002 and beyond. Retalix continues to benefit from excellent revenue visibility, strong operating margins in our core business and a solid financial position.
“USA continues to be the most important growth engine for Retalix, and we now have over 40% of our employees based in the US market. A significant number of Tier-1 grocery chains will be reaching decision points on their next-generation Point-of-Sale system in the next 6 to 18 months. We believe that our point-of sale-solution is well positioned to address the needs of these chains.”
Shaked added: “In Europe we continue our preparations towards rollout for two Tier-1 supermarket chains. Our relationship with Tesco continues to deepen as we progress with implementing their Global Strategy, the primary focus of which is the release of a single point-of-sale platform in all countries in which they operate. In addition, our fuel project for Welcome Break remains on schedule and we have completed the StorePoint Host-to-Post rollout for 65 Esthetique stores in Norway.
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By GlobalData“In South Africa, software rollouts are ongoing to a total of 700 sites for SPAR Group, Shoprite and Clicks and we have begun new projects for chains in Kenya and Zimbabwe. We have strengthened our distribution channels in Asia/Pacific, focusing on reselling our StoreLine product throughout China, Thailand and Hong Kong.”
In the convenience-petroleum marketplace, Retalix continues to win market share; beginning a rollout across 237 Travel Centers for Pilot Corporation and completing installation in 120 sites for Tesoro Petroleum Corporation in the Western US, Alaska and Hawaii. In addition, Tesoro has become the first fuel company to begin deploying Retalix’s PocketOffice mobile solutions.
“We continue to see encouraging signs regarding our e-Marketplace initiatives both in Israel and the US,” continued Shaked. “We are expanding our ASP (application service provider) services to the independent grocery market.
“In Israel, we now have over 500 independent grocery members, with a combined purchasing power of over US$1bn. In the US, we currently dominate the ship share of point-of-sale products to the Tier-3 and 4 grocery sectors. We are targeting this same customer base for our StoreNext venture in the US. As we look to grow StoreNext in the US, we are confident that we have the go-to-market strategy to achieve critical mass over the coming two years.
“In addition, we intend to target this customer base and convert front-end usage into complete `host-to-post’ usage by offering, via StoreNext, access to both our Back Office and Headquarters applications.
Financial outlook
“For the full year, we remain confident in achieving revenues of over US$70m and operational profit exceeding US$5m, inclusive of the significant investment in our StoreNext initiatives.”
Shaked noted that the financial condition of the Company remains strong with approximately US$22m in cash and equivalents and shareholders’ equity of over US$50m.
