Company News — Descartes Systems Group Inc.

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Descartes improves, but year-end results weak

Friday, March 4, 2005 Updated at 9:35 AM EST

Canadian Press

TORONTO — Descartes Systems Group Inc., a Waterloo, Ont.-based company that sells logistics technology to freight carriers around the world, delivered improved but still weak quarterly results yesterday.

For the financial year ended Jan. 31, the company's loss rose to $55.3-million (U.S.) or $1.36 a share, compared with $38.5-million or 84 cents in fiscal 2004. Revenue was $46.4-million, down from $59.8 million in fiscal 2004.

Its net loss in the fourth quarter ended Jan. 31 was reduced to $959,000 (U.S.) or 2 cents a share, compared with a net loss of $10.6-million or 26 cents in the same period a year earlier.

The improvement came from reduced expenses, the result of a restructuring that slashed 130 jobs, or 35 per cent of the total, last May after Descartes missed its revenue targets for the first quarter of 2005 and sacked its chief executive officer.

Expenses were cut in half to $12-million, compared with a year ago.

However, fourth-quarter revenue, fell to $11-million.

That's down from fourth-quarter revenue of $14.4-million a year earlier. Originally, Descartes had said revenue for that period were $16.3-million but lowered that due to provisions for doubtful accounts.

Arthur Mesher, a former Descartes executive vice-president who replaced Manuel Pietra as president and CEO last May, said he was pleased with the progress the company to align its costs with its revenues.

"However, this does not detract us from our primary

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