Retail food sector software house Retalix (Nasdaq: RTLX) today announced its operating results for the first quarter ended March 31, 2002. Net revenues for the quarter ended March 31, 2002 were $16.2 million, an increase of 14% from $14.3 million in the first quarter of 2001. Operating income rose 174% to $1.3 million, as compared to $462,000 in the first quarter of 2001. The company reported net income for the quarter of $0.82 million, or $0.06 per diluted share, compared to a net income of $2.2 million (including a capital gain of $2.4 million), or $0.18 per diluted share, in the first quarter of 2001. "We are pleased to report record revenues and a further growth of our operating profitability in the first quarter of 2002," said CEO Barry Shaked. "Demand for our enterprise software solutions continues to run strong, and we are engaged in a very high level of 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.
"North America 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. The high level of functionality, scalability and reliability offered by our integrated solutions is enabling our clients to improve their operations and lower their costs, while boosting customer retention and loyalty levels."
"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.
"For the full year, we remain confident in achieving revenues of over $70 million and an operational profit exceeding $5 million, inclusive of the significant investment in our StoreNext initiatives."
Shaked noted that the financial condition of the company remains strong with approximately $22 million in cash and equivalents and shareholders¿ equity of over $50 million.