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by Chris Chiappinelli, MA Editorial Staff
Posted on Wednesday, March 01, 2006 6:25:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Fueled by its new application services business model, the provider of hosted supply chain management software caps 2006 by reporting its first full profitable year in seven years, despite flat revenue growth. |
A restructuring in fiscal year 2005 continues to reap positive returns for Descartes Systems Group Inc., a provider of on-demand delivery management and logistics tools based in Waterloo, ON. Announcing the company's fourth-quarter and year-end results on a conference call with analysts, CEO Arthur Mescher categorized the year as "the birth of a new company." A glance at Descartes' top-line, however, appears to belie the company's claims of success over the past year. In fiscal 2006, revenues declined slightly to $45.7 million from 2005's $46.4 million. Evidence of the turnaround can be found in other financial metrics: the company earned $1 million in the fourth quarter, reversing a loss of $1 million a year earlier; it closed the year with net cash on hand of $33 million, up from $21.8 million in the fourth quarter of 2005; and posted gross margins that improved from 55% to 64% year over year. [Click to continue] |
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