Patrick, Mark and all the rest, not that there are that many of you, earnings came out today after the close. I've posted them below. The company made $0.09 per ADR last quarter.
What do you think we can look for as far as price in the next 30 days? I definitely would like to know you guys opinions.
Tony
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LBMS Announces Second Quarter Results
HOUSTON--(BUSINESS WIRE)--Nov. 19, 1997--Learmonth & Burchett Management Systems Plc (NASDAQ: LBMSY
- news; ''LBMS'') today reported financial results for its fiscal second quarter ended October 31, 1997, featuring improved
profitability and a substantial increase in license revenue over the fiscal second quarter of last year.
The company reported net income of $1.2 million, or $0.09 per American Depositary Share (''ADS''), on total revenue of $6.5
million for the three months ended October 31, 1997. For the three months ended October 31, 1996, the company reported
net income of $204,000, or $0.02 per ADS, before the effect of a $17.6 million restructuring charge, on total revenue of $4.9
million. As a result of the restructuring charge, the company reported a net loss of $17.4 million, or $1.36 per ADS, for the
three months ended October 31, 1996.
For the first six months of fiscal 1998, net income was $1.9 million, or $0.15 per ADS, before consideration of a $1.3 million
benefit related to the recovery of previously recorded restructuring charges, on total revenue of $12.4 million. Including the
restructuring benefit, the company reported net income of $3.2 million, or $0.24 per ADS, for the six months ended October
31, 1997. This compares to a net loss of $4.1 million, or $0.32 per ADS, before the effect of the $17.6 million restructuring
charge, on total revenue of $10.1 million for the first six months of fiscal 1997. As a result of the restructuring charge, the
company reported a net loss of $21.7 million, or $1.70 per ADS, for the six months ended October 31, 1996.
The increase in total revenue from the first half of fiscal 1997 to the first half of fiscal 1998 is attributable to an 84% increase in
license revenue principally in the U.S., which was partially offset by a decrease in service revenue because of the sale of the
Systems Engineer product line last year. License revenue increased 16% in the second fiscal quarter over the first fiscal quarter.
Michael Bennett, President and CEO of LBMS, stated, ''We are pleased with the company's results for the second quarter.
We continued to experience license revenue growth generated by an increasing demand for tools to manage the software
development process. Our profit from operations also improved on a sequential-quarter basis and also compared with the
comparable prior-year quarter. Another significant event during the quarter was our annual users conference. This conference
was attended by a record number of Process Engineer users and we were encouraged by the enthusiasm demonstrated for the
company and its products.''
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements
that involve risks and uncertainties, including the timely development, release and acceptance of new products and alliances, the
impact of competitive products and pricing, and the other risks detailed from time to time in the company's U.S. Securities and
Exchange Commission reports. The company continues to be susceptible to potentially significant variations in quarterly and
annual revenue and operating results.
Based in Houston, LBMS is the leading provider of Process Management products to Fortune 1000 companies. LBMS'
integrated line of Process Management products provides organizations with a library of ''best practices'' for all areas of
application development and a comprehensive set of tools for process definition, deployment, execution and improvement.
LBMS has an installed base of more than 30,000 users worldwide in areas such as financial services, technology,
manufacturing, retailing, oil, government and utilities. LBMS company and product information can be found on the World Wide
Web at lbms.com .
Unaudited financial information in U.S. dollars, under accounting principles generally accepted in the U.S., follow:
Learmonth & Burchett Management Systems PLC
Consolidated Balance Sheet
(In thousands, except per share information)
Oct. 31, April 30
1997 1997
------------ ------------
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $9,335 $8,461
Trade accounts receivable 4,230 4,358
Other current assets 1,114 1,023
------------ ------------
Total current assets 14,679 13,842
Furniture, fixtures and equipment 1,526 1,512
------------ ------------
Total assets $16,205 $15,354
============ ============
Liabilities and Shareholders' Equity
Current liabilities
Current maturities of
indebtedness $165 $745
Accounts payable 698 486
Deferred revenue 3,243 3,534
Accrued liabilities 5,585 5,778
Executive Stock Option Trust
indebtedness 977
------------ ------------
Total current liabilities 9,691 11,520
Indebtedness 211 238
Other liabilities 6,166 8,843
------------ ------------
Totaltliabilitiesies 16,068 20,601
------------ ------------
Shareholders' equity:
Ordinary shares, 10 pence
par value 4,351 4,267
Additional paid-in capital 21,500 20,330
Adjustment for ESOT (977)
Cumulative translation
adjustment (401) (372)
Accumulated deficit (25,313) (28,495)
------------ ------------
Total shareholders' equity 137 (5,247)
------------ ------------
Commitments and contingencies
------------ ------------
Total liabilities and
shareholders' equity $16,205 $15,354
============ ============
LEARMONTH & BURCHETT MANAGEMENT SYSTEMS PLC
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share information)
(unaudited)
Three months ended Six months ended
October 31, October 31,
----------------------- ----------------------
1997 1996 1997 1996
----------- ---------- ----------------------
Revenue:
Product licenses $4,702 $2,757 $8,752 $4,761
Services 1,831 2,095 3,679 5,345
----------- ---------- ------------ --------
Total revenue 6,533 4,852 12,431 10,106
----------- ---------- ------------ --------
Cost of Revenue:
Product licenses 22 11 38 69
Services 842 921 1,811 2,537
----------- ---------- ------------ --------
Total cost of
revenue 864 932 1,849 2,606
----------- ---------- ------------ --------
Gross margin 5,669 3,920 10,582 7,500
----------- ---------- ------------ -------
Operating expenses:
Sales and marketing 2,850 2,217 5,297 6,739
Research and
development 1,129 1,016 2,244 3,159
General and
administrative 648 578 1,308 1,886
Restructuring
charge (recovery) 17,621 (1,256) 17,621
----------- ---------- ------------ --------
Total operating
expenses 4,627 21,432 7,593 29,405
----------- ---------- ------------ --------
Operating income
(loss) 1,042 (17,512) 2,989 (21,905)
Interest income 126 119 233 242
Interest expense (10) (35) (40) (69)
Other income and
(expense) 11 15
----------- ---------- ----------- -------
Income (loss) from
continuing operations
before income taxes 1,158 (17,417) 3,182 (21,717)
Income tax benefit
(expense)
----------- ---------- ----------- -------
Net income (loss) $1,158 ($17,417) $3,182 ($21,717)
=========== ========== =========== =========
Income (loss) per
Ordinary Share: $0.04 ($0.68) $0.12 ($0.85)
=========== ========== =========== =========
Income (loss) per
ADS: (1) $0.09 ($1.36) $0.24 ($1.70)
=========== ========== =========== =========
Weighted average
Ordinary and Ordinary
Share equivalents
outstanding 26,321 25,539 26,207 25,537
=========== ========== =========== =========
(1) Adjusted to reflect the ratio of one ADS to two Ordinary Shares. |
