"We are committed to building and maintaining strong customer relationships through the release of significant product enhancements. In the past year, Geac has invested more than $80 million globally -- $13 million for System21 alone -- to develop new product extensions and to maintain current applications, designed to help customers add value to their solutions," said Charles S. Jones, president and CEO of Geac. "Geac's large installed base represents one of the Company's greatest opportunities. Organic growth from this solid foundation of customers and market interest in Geac's newest Business Performance Management applications provide important new sources of revenue for the Company and reinforce a key component of our build, buy and partner strategy. We are very pleased with the success in these three critical product lines as we continue to face challenges in other markets. Although less than 13 percent of our revenue was derived from new software license sales in the first quarter of fiscal 2004, we will reinforce market traction where we have it, and continue to invest in marketing and sales in support of targeted growth areas."
Geac System21 Aurora
In just a few months since the launch of Geac System21 Aurora in April of 2003, the division has a dozen committed projects underway with customers for its new enterprise resource planning and real-time process management system. The customers who have already contracted for Geac System21 Aurora represent both small and medium-sized enterprises, and are based in countries around the world, including projects in Europe, the U.S. and Australia. They include Italian sunglasses designer Fabris Lane, traditional English confectionery manufacturer AL Simpkin, power protection systems provider Chloride, organic food producer Applegate Farms and electric heating and domestic appliances manufacturer Glen Dimplex. All of these organizations have committed to Geac's early adopter program and plan to go live within the next few months. Geac also indicated that it has a strong pipeline of more than 25 advanced-stage prospective customers behind these sales. In addition, a recent survey undertaken among Geac's global System21 customer base found that 94% of respondents indicated an interest in upgrading to Aurora, with 38% expressing a desire to do this upgrade within the next 12 months.
Geac Enterprise Server Applications
Geac's Enterprise Server division, comprising Geac's E:Series and M:Series products, represents the largest single base of profitable maintenance revenue throughout the Company. In the first quarter of Geac's fiscal year 2004, the E:Series and M:Series product line recorded new license revenue of $4.6 million worldwide, approximately 40 percent increase over the first quarter a year ago. In the quarter, 13 existing U.S. customers expanded the capability of their systems with Active Access, which enables the integration of powerful eBusiness applications that extend enterprise resource planning (ERP) solutions and business operations over the Web, and with Connector Foundation, which supports real-time communication to and from Geac E:Series and M:Series applications to other mainframe, client/server and Web- based applications to extract, add or update information.
These strategic solutions allow Geac's Enterprise Server customers to extend and transform their traditional mainframe capabilities, without incurring the high development costs typically associated with this type of integration project.
Tim Wright, CTO of Geac, commented: "These new contracts represent the first tangible proof that our mainframe customer base recognizes our commitment to technologies that allow them to continue using the current back office while expanding front office functionality -- whether Geac's or that of a competitor. It is clear that our investment in new technology to retain and grow these relationships is working."
For the first four months of fiscal year 2004, the SMARTStream division entered into agreements with 11 existing customers to enhance their current solutions significantly. The Governments of Barbados and Guyana and Houston Casualty and Chilquinta have all added Geac modules to their current SMARTStream installations to provide new web-based functionality to users across their organizations. Valeurs Mobilieres, Coastal Mountain Bus, and Morrison Health Care have looked to Geac to provide additional connectivity with third-party solutions to extend their financial reporting capabilities. Longstanding customers including the Bank of Nova Scotia, Citizen's Bank, and Fortis have expanded the number of licensed seats, increasing user access to critical financial functions and tools.
Moreover, Geac signed new contracts with 11 independent Dutch regional police forces for the implementation of Geac's SMARTStream financial solution. The new SMARTStream customers chose the SMARTStream solution for its rich financial management functionality and procurement capabilities. Four other Dutch regional police forces have used SMARTStream for more than four years.
"We are determined to meet our customers' needs for new web-based functionality, enriched product integration capabilities and expanded access across the network. The notable number of new license contracts announced validates Geac's long-term product strategy and our customers' commitment to Geac solutions in the years to come," concluded Mr. Wright.
Geac (TSX: GAC) is a global enterprise software company for Business Performance Management, providing customers worldwide with the core financial and operational solutions and services to improve their business performance in real time. Further information is available at http://www.geac.com or through e-mail at Email Contact.
This press release may contain forward-looking statements based on current expectations. Important factors that could cause a material difference between these forward-looking statements and actual events include those set forth under the heading "Risks and Uncertainties" in Geac's Management Discussion and Analysis for the fiscal year ended April 30, 2003 contained in its Report of Foreign Issuer on Form 6-K filed with the United States Securities and Exchange Commission on July 2, 2003, copies of which are available through the website maintained by the SEC at http://www.sec.gov/, and in Geac's Management Discussion and Analysis for the fiscal year ended April 30, 2003 filed with the Canadian Securities Administrators on June 25, 2003 and available through the website maintained by the Canadian Depository for Securities Limited at http://www.sedar.com/. Geac is a registered trademark of Geac Computer Corporation Limited. All other marks are trademarks of their respective owners.
CONTACT: Investor Contact: Melody Firth, Geac, (905) 475-0525 Ext. 3325;
Media Contacts: Aly Scott, Geac, (508) 871-5000; Charles Spofford, Miller
Consulting Group, (617) 262-1800