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Descartes Reports Fiscal 2011 Fourth Quarter And Annual Financial Results

Record Operating Performance Driven by 42% Year-Over-Year Increase in Quarterly Revenues

WATERLOO, Ontario, March 9, 2011 (GLOBE NEWSWIRE) -- Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX) announced financial results for its fiscal 2011 fourth quarter (Q4FY11) and year (FY11) ended January 31, 2011. All financial results referenced are in United States (US) currency and, unless otherwise indicated, are determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP).

Q4FY11 Financial Results

As described in more detail below, key financial highlights for Descartes in Q4FY11 included:
  • Revenues of $26.9 million, up 42% from $18.9 million in the fourth quarter of fiscal 2010 (Q4FY10) and up 4% from $25.8 million in the previous quarter (Q3FY11);
  • Services revenues of $25.0 million, up 41% from $17.7 million in Q4FY10 and up 1% from $24.7 million in Q3FY11. Services revenues comprised 93% of total revenues for the quarter;
  • Gross margin of 65%, compared to 68% in Q4FY10 and 67% in Q3FY11;
  • Net income of $7.7 million, up from $1.6 million in Q3FY11 and compared to $10.3 million in Q4FY10;
  • Earnings per share on a diluted basis of $0.12, up from $0.03 in Q3FY11 and compared to $0.17 in Q4FY10;
  • Days-sales-outstanding (DSO) for Q4FY11 were 48 days, down 5 days from 53 days in Q3FY11 and compared to 47 days in Q4FY10;
  • Adjusted EBITDA of $7.7 million, up 48% from $5.2 million in Q4FY10 and up 7% from $7.2 million in Q3FY11. Adjusted EBITDA as a percentage of revenues was 29% this quarter, compared to 28% in both Q4FY10 and Q3FY11; and
  • Adjusted EBITDA per diluted share of $0.12, up 50% from $0.08 in Q4FY10 and up from $0.11 in Q3FY11.

Adjusted EBITDA and Adjusted EBITDA per diluted share are non-GAAP financial measures provided as a complement to financial results presented in accordance with GAAP. We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (for which we include amortization of intangible assets, deferred compensation, stock-based compensation and related taxes) and other charges (for which we include acquisition-related expenses and restructuring charges). These items are considered by management to be outside Descartes' ongoing operational results. We define Adjusted EBITDA per diluted share as Adjusted EBITDA divided by the number of diluted shares used to calculate the GAAP measure of earnings per share. A reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and earnings per share determined in accordance with GAAP, respectively, is provided later in this release.

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