SYNGISTIX PROFITABLE NEW BUSINESS MODEL YIELDS RECORD REVENUE AND RECORD NEW CUSTOMERS IN FIRST-HALF 2002.
NEW SOFTWARE LICENSE REVENUE INCREASES 35 PERCENT.
ENGLEWOOD, COLO., June 27, 2002 - Syngistix, Inc., the leading provider of supply chain management software solutions for distribution enterprises, today announced year-to-date profitability, record revenue and a record number of new customers for the first half of the year. Company projections for the first half of 2002 showed new software license revenue increasing 35 percent over similar revenue for first-half 2001, with new software license revenue accounting for 83 percent of total revenue. For the full year, Syngistix estimated total revenue growth at 50 percent, with 57 percent of total revenue coming from new software licenses and implementations. First-half 2002's strong growth in new software license revenue only partially reflected the record number of new software customers and contracts won during the period. Bookings of new software licenses and implementations for the period were approximately 11-fold greater than similar bookings for all of 2001. Syngistix will recognize license and implementation revenues as implementations occur. As a result, deferred revenue increased 68 percent from June 30, 2002, compared to December 31, 2001. "In all, I'm very pleased that despite a challenging economy, customers are finding compelling value in our new X!TE 2.6 software suite and our new business model, which centers on listening to the customer, understanding the central business problem, and partnering to address it," said Scotte Hudsmith, Syngistix president and CEO. "Software isn't perfect. It can't address every customer's every need. We have to be an active partner to deliver a complete solution. "Our new model and attitude appear to be working. Earlier this year, we saw bookings in one month alone that exceeded the company's annual revenue run rate when we purchased the company from Corporate Express in February 2001," Hudsmith added. "I thank all our stakeholders-customers, employees, investors, partners-for helping us reach this milestone." New customers included Riverside Distributors and Eaton Office Supply. Riverside purchased the company's new X!TE 2.6 supply chain software suite. Riverside is the leading distributor and wholesaler of Christian products in the United States. Eaton purchased X!TE 2.6 as well as the company's new Demand Management System (DMS) software. Similar to i2's demand chain management solution, DMS forecasts customer demand and inventory to minimize inventory carrying costs while maximizing order fill rates and customer satisfaction. Syngistix also demonstrated strong customer loyalty and growth during the period, developing and implementing projects for a number of customers in the paper, industrial and chemical sectors. It expects to announce these projects over the next few months. Also showing growth, Syngistix attracted four new partners during the period. It is currently finalizing these channel and technology partner relationships and expects to announce them shortly. Select elements of Syngistix's new business model are:
 | Growth through enabling customer success. |  | - Addressing the large number of mid- to large-sized distribution companies suffering from legacy supply chain software.
- Uniquely providing these companies a software solution and legacy upgrade path that minimizes risk, is nondisruptive, and leverages existing hardware and software.
- Providing a complete, customer-specific distribution software product-by acknowledging that software is inherently incomplete and partnering with customers to deliver a complete solution.
- Providing and integrating best-in-class complementary supply chain software products.
- Solving customers' central business problems, and becoming an integral part of customers' continued success.
| | | Growth through acquisition. Syngistix has access to significant venture capital for acquisitions, and the support and backing of top-tier venture capital and private equity firms. | | | Further strengthening Syngistix's balance sheet. Syngistix has a funding round underway to further fuel its organic growth. | | | Continuing to strengthen Syngistix's management team with the addition of a new COO and CTO. | With respect to acquisitions, Syngistix also announced today that Syngistix and Ecometry mutually agreed that Syngistix would not acquire Ecometry. However, the companies will work together when appropriate. "While we were disappointed that the transaction did not occur, we believe we made the right choice in not executing on the transaction," Hudsmith said. "After significant review and due diligence it became apparent that Syngistix should pursue other avenues to fuel its organic and strategic-acquisitions growth." About Syngistix
 Syngistix, Inc. provides supply chain management software solutions for distribution enterprises. The company specializes in providing low-risk migration paths from legacy systems to newer technologies. Its products include X!TE, an enterprise application suite focused on traditional distribution models and XPDT, which focuses on the sell, source, ship distribution model. The company, which has a 25-year track record, was formerly known as Distribution Resources Company. With hundreds of customers and more than a thousand installations, Syngistix products increase customer efficiencies in product distribution, inventory reduction and customer service. Customers include Georgia Pacific - UNISOURCE, Corporate Express and TruServ Canada. For more information, email info@Syngistix.com, or visit www.Syngistix.com. Syngistix is a trademark of Syngistix, Inc.
All other company and product names are trademarks of their respective owners. |
