Retalix Announces First Quarter 2010 Results
Solid First Quarter with Increase in Net Income Together With Positive Cash Flow
as New Management Team Focuses on Executing its Plan;
Retalix Reaffirms Guidance for 2010
RA'ANANA, Israel, May 12, 2010 – Retalix ® Ltd. (NasdaqGS:RTLX), a leading provider of Software and
Services for retailers and distributors, announced today results for the first quarter ended March 31, 2010.
Summarized financial highlights for the three month period ended March 31, 2010:
· Total Revenues for the first quarter were $48.7 million, compared to $46.9 million in the first quarter of
2009 ended March 31, 2009.
· Income from Operations (GAAP) for the quarter was $2.9 million, compared to $4.4 million income from
operations (GAAP) in the first quarter of 2009. The 2009 amount included $1.7 million in revenues and a
$0.2 million reduction in expenses due to the outcome of an arbitration in favor of the Company. Included
in the first quarter 2010 is an expense of approximately $0.5 million primarily due to severance payments
incurred as part of an internal restructuring by the new management team to align Retalix’s operations for
future market opportunities.
· Adjusted Income from Operations (Non-GAAP)* for the quarter was $4.7 million compared to $6.0
million in the first quarter of 2009. As detailed above, the first quarter of 2010 included the severance
expenses and the first quarter of 2009 included the contribution from the arbitration.
· Financial Expense for the quarter was $0.4 million mainly due to currency exchange expenses compared to
a financial expense of $3.6 million in the first quarter of 2009 mainly due to charges related to forward
currency transactions and currency exchange expenses.
· GAAP Net Income for the quarter was $1.9 million, or $0.08 per diluted share, versus a GAAP Net
Income of $0.