Radiant Systems Reorganizes

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Radiant Systems Reorganizes

08/06/2003
ATLANTA -- Radiant Systems Inc., a long-time provider of site-management technology for the convenience store and petroleum industry, said it plans to divest its enterprise software business. The company said the separation will allow it to focus on profitably growing its site management systems business, which serves its core vertical markets of petroleum and convenience stores, food service and cinemas.

These markets represent billions of dollars in annual IT spending, a Radiant release said.

The sale will result in two separate and independent companies. Radiant will continue as a public company focused on delivering site management systems, including point-of-sale, self-service kiosk and back-office systems, designed specifically for the company's core vertical markets. The new enterprise software company, which will be privately owned by Erez Goren and members of his management team, will focus on delivering Web-based back-office products such as workforce and supply chain management to the broader retail markets.

Radiant reported a net loss of $35.8 million on $27.8 million in revenue in the second quarter, compared with net income of $1.5 million on $36.7 million in revenue in the second quarter of 2002. Loss per share was $1.29 in the second quarter, compared with earnings of 5 cents a share in the second quarter of 2002.

"The economic environment continues to dampen demand," said John Heyman, co-CEO. "While our second quarter results were disappointing, we continue to stay focused on our long-term operating model. We believe we are making the right investments in our products, markets and client relationships to take advantage of future improvements in the economy."

Through six months, the company had a net loss of $30.1 million on $57.3 million in revenue, compared with net income of $3 million on $68 million in revenue for the same period of last year. Loss per share was $1.40 through six months, compared with earnings of 10 cents a share through six months of 2002.