Bricsnet Announces Second Quarter 2002 Results
Gent, Belgium, August 29, 2002 - Bricsnet [Nasdaq Europe:BSNT], the global provider of owner-oriented, integrated software technology, services and information for the process of engineering, construction and operations of commercial buildings, today announced its financial results for the second quarter which ended June 30, 2002.
The current year results are not comparable to the previous year due to the significant reorganization and divestments that happened during the first quarter and due to the start of the new structure during the second quarter of 2002.
During this first quarter Bricsnet, has divested operations in France and Germany and has sold its CAD division and ARCAT which were not strategic for the company. The sale of these divisions provided over Euro 1 million of cash which is used to provide operating funds during this restructuring period.
On April 30, 2002, Bricsnet placed its two primary software products, Project|Center and Building|Center, into a new company, Bricsnet FM N.V., which obtained Euro 4.2 million of financing through equity and loans. The new organization is effective as from May 1, 2002 on. Bricsnet holds currently 73% of Bricsnet FM N.V. of which it fully consolidates balance sheet and operations. The new company will have its development operations primarily in the US and direct sales operations in Asia, the Americas and Europe.
Consolidated revenues for the quarter amounted to Euro 413 thousand compared to Euro 853 thousand in the previous quarter. The decrease is due to the reorganization of the company which slowed down the further development of Building|Center and which delayed decisions from potential customers. The reported revenues do not include any revenue from the CAD-business nor from the content business in the United States. The results from these operations, which mainly occurred during the first quarter, are included in the 'Income from discontinued operations'.
Research & Development Expenses
Research and development expenses during the second quarter amounted to Euro 611 thousand compared to Euro 896 thousand in the previous quarter and compared to Euro 1,198 thousand in the second quarter of 2001. The decrease compared to the previous year is due to the significant reduction in headcount as a result from the restructuring at the end of 2001 and from the divestment in the first quarter of 2002. The decrease compared to the previous quarter is a result of the further streamlining of the development organization. The current development efforts are focused on the project management ASP-application and on the facilities management application.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the first half of 2002 amounted to Euro 2,692 thousand compared to Euro 7,866 thousand in the first half of 2001. The significant decrease is due to the restructuring at the end of 2001 and to the divestments and restructuring during the first quarter of 2002. Selling, general and administrative expenses for the second quarter of 2002 decreased by 22% from Euro 1,514 thousand in the first quarter of 2002 to Euro 1,178 thousand.
Income from Discontinued Operations
The Income from Discontinued Operations of Euro 356 thousand results for Euro 103 thousand from the operations of the CAD business and of the Arcat business. The Income from Discontinued Operations results for Euro 253 thousand from the gain on disposal, including the write off of Euro 2.0 million of goodwill on Arcat.
Depreciation and Amortization
Amortization of goodwill and intangible assets in the second quarter of 2002 amounts to Euro 218 thousand compared toEuro 853 thousand in the first quarter and compared to Euro 1,540 in the second quarter of the previous year. The decrease is mainly due to the impairments recorded in the fourth quarter of 2001.
The total headcount at the end of the quarter is 48 compared to 150 at the end of the second quarter of 2001.
Balance Sheet Items
During the first quarter of 2002, the Bricsnet subsidiaries Cubulus Software GmbH in Germany and Constructeo.com SA in France filed for bankruptcy. The assets and liabilities from discontinuing operations in the amount of Euro 1,504 thousand and Euro 3,815 thousand respectively, consist mainly from assets and liabilities of these two companies. The operations from the CAD business and from the content business in the U.S. have been divested during the first quarter of 2002, which lead to the reversal of Euro 1.7 million of deferred content revenue.
The consolidated financial statements are in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
Bricsnet (Nasdaq Europe: BSNT) is a global provider of integrated software technology and services to real estate organizations. Its flagship product, Building|Center, provides a unified platform for management and decision-making across capital projects, operations and maintenance, as well as property and lease portfolios. Bricsnet supports major industries around the world where efficient management and smart decision-making in real estate and property assets are critical. Bricsnet maintains corporate headquarters in Portsmouth, NH and Gent, Belgium.
For more information:
Michel Vander Eecken
Koning Albertlaan 165
B-9000 Gent, Belgium
Tel: +32 (0) 9 2440100
Fax: +32 (0) 9 2440101
Email: Email Contact
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CONSOLIDATED BALANCE SHEET
in thousands of Euro
June 30, December 31,
2002 2001 2000
(unaudited) (audited) (audited)
Cash & cash equivalents 669 1.221 7.083
Trade receivables, net 768 3.432 2.650
Deferred tax assets - 297 -
Prepaid expenses 643 485 718
Other current assets 1.285 797 1.720
Total current assets 3.365 6.232 12.171
and equipment, net 1.196 1.886 2.480
Goodwill and other
intangible assets, net 7.694 10.459 23.338
Investments 156 156 1.000
Restricted cash 332 559 559
Other assets 88 154 197
Assets from discontinuing
Operations 1.504 - -
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