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Fiscal year 2002/2003:
Revenue down, gross margin up and massive reduction of losses
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ME (Fiscal year Oct. 1rst-Sept. 30th
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2001/02 (*)
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2002/2003 (*)
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Change in %
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Year
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Year
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Revenue
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4.67
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3.90
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-16%
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Gross margin
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2.80
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2.94
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+5%
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% Gross margin
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60%
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75%
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Operating result
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-5.73
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-2.17
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+62%
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Net result
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-6.11
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-1.99
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+67%
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(*) unaudited consolidated figures
Yearly Revenue down by 16%
Mandriva's consolidated revenues for the 2002-03 fiscal year decreased by 16% to 3.90M€ over the same period of the prior year. Thus is less than might have been expected given an economic downturn, the negative impact of Chapter 11 like procedure and the weakness of the US$ which is the main currency Mandrivasoft is invoicing.
Yearly Revenue (ending September)
Gross Margin improvement
Gross margin grew 5% in 2003 to 2.94M€, The gross margin to revenue ratio has improved from 60% in 2001-2002 to 75% in 2002-2003.
This improvement is primarily due to a change in the revenue mix: new revenue streams such as E-commerce, OEM and User Club which now represent 66% of total revenue, compared to 42% in the prior year. During the same period retail, sales decreased to 23% from 49% of revenue.
Yearly Gross Margin (ending September)
Major reduction in losses
Operating losses were 2.17M€ for the year (0.59E pershares), compared to 5.73 M€ in the previous year (1.58E per shares). This improvement resulted from an increase in gross margin and the continuous reduction of operational expenses,reduced by 39% from the previous year.
These reductions are a direct result of management policies to continually improve the company financial position. Over the past 18 months, the company reduced operational expenses by 5, increased gross margins by a factor of 5 and reduced its losses by a factor of 7.
Yearly Operating Result (ending September)
Perspectives
In April 2001, it was decided to refocus the company on its core business and bring it back to profitability by reducing expenses and developing high margin revenue lines. This objective is within reach now: the company has been cash flow positive since January 2003, and expects a positive operating result to be attained for the current quarter (October-December 2003).
Mandriva will continue to focus on growth, while maintaining its profitability.
The company entered redressement judiciaire (a Chapter 11 like process) on January 27, 2003. It was granted an initial six month "observation period", which was renewed in July 2003. Throughout this process, the company is assisted by a court appointed administrator. The company has taken this opportunity to eliminate a number of long term contracts unnecessary for current or planned operations.
The company is now preparing a plan to exit the redressement judiciaire and resume normal trading.
About Mandriva
Mandriva is one of the leading Linux and open source software editor (free access to the source code according to the GPL - General Public License). Mandrivasoft develops and distributes the Mandriva Linux operating system. Hundreds of developers around the world contribute to the continuous improvement of the product via Internet and its internationalization (more than 50 languages available). The company also provides related off-line services (consulting, education, support) as well as on-line services (e-support , Club).
Mandriva has offices in France, USA and Canada.
Since July 30th , 2001, the company is listed on Euronext March Libre and OTC US
Euroclear : FR00004159382 (previously 4477)
Reuters : MAKE.PA
OTCUS: MDKFF
Number of shares : 3,666,953
Contact Mandriva
Jacques Le Marois/ Thierry Bossut
investors @ mandrakesoft . com For additional information: mandriva.com/company/investors/newsletter
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