ATLANTA, GA - October 27, 2005 — Inovis, a leading provider of business-to-business solutions and services, announced today its financial results for the third quarter ended September 30, 2005.
The Company reported total revenues of $39.3 million for the third quarter of 2005, compared to $22.1 million for the third quarter of 2004. Inovis also reported net income of $4.7 million for the third quarter of 2005, compared to net income of $5.8 million for the third quarter of 2004.
During the third quarter of 2005, Inovis retired nearly $10 million of debt, further strengthening the Company's balance sheet. This early retirement included one-time charges of $1.6 million, resulting in an adjusted net income of $6.3 million for the third quarter of 2005.
"The continued strength of Inovis' financial performance validates our business model and enables us to invest in enhancing customer satisfaction," said Sean Feeney, president and CEO of Inovis. "We are encouraged by the sustained strength of our results and the performance of our organization, and we look forward to continued momentum in the business-to-business solutions market."
Recent Inovis highlights include:
Expanding Customer Base - During the third quarter, the Company signed more than 1,200 customer contracts, with more than 60 percent of those contracts representing renewals of existing customer relationships. To support and augment Inovis' customer outreach, the Company hosted a successful customer conference, Innovation 2005, during the quarter, which brought together user communities from across Inovis' product suite.
Investing in Customer Satisfaction - Inovis has increased its investment in customer support in 2005, as well as its investment in the infrastructure and services that drive customer satisfaction. Year to date, the Company has increased customer support staff by 20 percent, and has committed to hiring an additional 10 percent in the coming months. In addition, Inovis recently completed a total hardware refresh and OS currency update for its services environment. These refresh activities included updates to duplicate staging environments and ongoing efforts surrounding the new disaster recovery solution. Finally, the Company has augmented its operations and process personnel to increase the level of overall operational excellence.
Migrating Former QRS Customers to inovisworks.net - As a result of the acquisition of QRS, Inovis supports customers via a value-added network (VAN) reseller relationship with a competitor. Inovis has retained 85 percent of the kilocharacter (KC) traffic of those former QRS customers, and continues its successful campaign to migrate them to Inovis' proprietary VAN, inovisworks.net. To date, Inovis has secured commitments to move 395 million KCs of former DX traffic to inovisworks.net, of which 286 million KCs have already been migrated.
Delivering on Commitment to Standards - Inovis successfully passed the Global Data Synchronization Network (GDSN) Interoperability Certification test and was officially certified as a data pool on October 25, 2005. The Company also announced in the third quarter that BizManager 3.0 successfully completed AS3-2Q05 interoperability testing and has been certified by eBusinessReady®, an industry-neutral software certification program under joint partnership of the GS1 US™, formerly the Uniform Code Council, Inc.® (UCC®), and Drummond Group Inc. (DGI).
About Inovis
Inovis is a leading provider of business-to-business solutions for global trading relationships. With more than 20 years of experience, Inovis enables collaborative business processes and solves the complete B2B integration challenge for more than 20,000 customers and their trading partners. The company’s comprehensive line of B2B software and managed services help companies speed transaction flows, synchronize product information and improve supply chain processes. For more information, visit www.inovis.com.
