Agilysys Announces Response to COVID-19
April 08 2020 - 4:05PM
Business Wire
Cost Cutting Measures Add to Strong Balance
Sheet Including $46.5 Million of Cash and No Bank Debt
Agilysys, Inc. (Nasdaq: AGYS), a global provider of
next-generation hospitality software solutions and services, today
reported a set of actions in response to COVID-19.
Ramesh Srinivasan, President and CEO of Agilysys, commented,
“During these extraordinarily challenging times, the health and
safety of our employees and customers remain our greatest concern.
We are continuing to provide uninterrupted service to our
customers. The working-from-home arrangement for practically our
entire global workforce has worked out smoothly. We remain healthy
and productive.
“We do expect revenue and profitability levels for the fourth
quarter of fiscal 2020 and the next fiscal year to be negatively
affected by the current significant market headwinds. The extent of
the negative effect for the next fiscal year is unpredictable at
this time. We will miss the Jan-Mar quarter (Q4 of FY20) revenue
guidance outlined in our last quarterly earnings release. However,
we remain confident that all the competitive advantages we have
worked hard to build during the past few years will serve us well
once the economic environment starts moving towards normalcy.
“We entered these tough times with no bank debt and our highest
cash position since June 2017. We ended this fourth quarter with
over $46 million in cash. While we face an uncertain near-term
environment, we remain confident we will do well and continue our
growth path on the other side of this crisis. We are currently
taking significant steps to improve our own financial position
while supporting our valued customers over the short, medium and
long term.
“For the next 6 months, my CEO salary will be reduced to zero
and significant salary reductions will be put in place for all our
senior employees including the board of directors and the executive
management team. In addition, unfortunately, we are also reducing
our staffing levels, both on a permanent and temporary basis, in
roles not essential to managing the short-term in this current
environment. There are several other major cost reduction measures
that we have implemented.
“We are fortunate to be in a business where our recurring
revenue is not transaction based and our software applications are
mission critical for our valued customers. We are working to help
our customers through these challenging circumstances. We are in a
good position to have a significant number of cost dials we can
manage as necessary, without slowing down our pace of product
innovation.
“Our next earnings call is currently planned for the second half
of May, a few weeks later than a normal quarter since this is our
fourth quarter and end of our fiscal year 2020. We look forward to
discussing our business in greater detail at that time, and we hope
for the continued health and safety of our employees and
customers.”
Forward-Looking Language This press release contains
“forward-looking statements” within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by words such
as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,”
“project,” “estimate,” “expect,” “strategy,” “future,” “likely,”
“may,” “should,” “will” and similar references to future periods.
Examples of forward-looking statements include, among others,
statements we make regarding our expectations of future revenue and
profitability levels and our ability to reduce costs, improve our
financial position and continue our rate of product innovation.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, our ability to achieve operational
efficiencies and meet customer demand for products and services and
the risks described in the Company’s filings with the Securities
and Exchange Commission, including the Company’s reports on Form
10-K and Form 10-Q.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. We undertake no obligation
to publicly update any forward-looking statement that may be made
from time to time, whether written or oral, whether as a result of
new information, future developments or otherwise.
About Agilysys Agilysys has been a leader in hospitality
software for more than 40 years, delivering innovative
guest-centric technology solutions for casinos, hotels, resorts,
cruise ships, managed foodservice providers, stadiums and arenas.
Agilysys offers the most comprehensive software solutions in the
industry, including point-of-sale (POS), property management (PMS),
inventory and procurement, payment solutions, and related
hospitality applications, to manage the entire guest journey.
Agilysys is known for its leadership in hospitality, its broad
product offerings and its customer-centric service. Some of the
largest hospitality companies around the world use Agilysys
solutions to help improve guest loyalty, generate more revenue and
increase operational efficiencies. Agilysys operates across North
America, Europe, Asia-Pacific, and India with headquarters located
in Alpharetta, GA. For more information, visit Agilysys.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200408005730/en/
Dave Wood VP, Corporate Strategy and Investor Relations
Agilysys, Inc. 770-810-7920 or investorrelations@agilysys.com
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