21, Symix Systems, Inc. announced financial results for the first quarter ended
September 30, 1999. Total revenue increased 19 percent to $32.1 million, compared
with $26.9 million for the same period in the prior year. The Company reported
net income of $895,000, or $0.12 per share (diluted), versus $857,000, or $0.12
per share (diluted), for the same period last year. Services revenue for the
quarter was $18.7 million, a 51 percent increase from $12.4 million for the
same period in the previous year.
remained solidly and consistently profitable despite difficult market conditions,"
said Stephen A. Sasser, Symix President and Chief Executive Officer. "Year 2000
concerns have affected the market for traditional enterprise software systems.
Symix continues to aggressively invest for the future, which centers on eBusiness
and supply chain management solutions integrated with our traditional back office
systems for midsize manufacturing and distribution companies. We are uniquely
positioned to help these mid-market companies conduct business with their customers
and suppliers over the Internet, and then support this new e-driven business
with the required levels of operational efficiency and increased speed. Symix
intends to announce a new suite of eBusiness applications, supporting services
and new partnerships to a record-setting crowd at SymixWorld 99, our upcoming
annual customer conference."
less visible and publicized than its larger brethren, Symix Systems continues
to be a profitable vendor. Particularly plausible is the fact that profit has
been posted despite a 63% increase in R&D expenses (See Chart). There are a
number of reasons for this as we emphasized in our research note on Symix Systems
in September 1999 (See Symix Sytems: Shifting SME's Focus to Their Customers).
The first reason is the Company's strong global position in the Small-to-Medium
Enterprises (SME) market within the discrete manufacturing segment of the ERP
market, where the Tier 1 ERP vendors are currently achieving very modest penetration.
Second, Symix Systems is reaping benefits from on-time release of its fully
integrated supply chain software (CSRP), which still proves to be a tall order
for most of its competitors. Third is Symix Systems' strong presence and channel
in the Asia/Pacific market, which is currently experiencing a revival.
As a summary
of our recommendations in TEC's note on Symix (See Symix Sytems: Shifting SME's
Focus to Their Customers), Symix should be included on a short list in any selection
within the SME market (companies with $30M-$500M in revenue) where discrete
manufacturing, assembly, and distribution modules are the main pillars of an