Here they are:
LBMS announces fourth quarter results; Reports increase in operating profit and license revenue
HOUSTON (May 28) BUSINESS WIRE -May 28, 1997--Learmonth & Burchett
Management Systems Plc (NASDAQ:LBMSY) ("LBMS") today reported
fourth-quarter financial results featuring increases in operating
profit and license revenue over the third quarter.
For the three months ended April 30, 1997, the company reported total
revenue of $6.2 million. Net income was $1,074,000, or $0.08 per
American Depositary Share ("ADS") ($0.04 per ordinary share).
The company's results compare favorably with the previous quarter ended
January 31, 1997. Operating margins increased from 11% in the third
quarter of fiscal 1997 to 16% in the fourth quarter, and license
revenue increased 18% from the third quarter of fiscal 1997 to the
fourth quarter.
For the nine months ended April 30, 1997, which represents the
company's three fiscal quarters subsequent to its restructuring and the
implementation of its new business strategy, the company reported total
revenue of $16.6 million. Net income was $2.1 million, or $0.16 per
ADS ($0.08 per ordinary share), before consideration of net
restructuring charges of $14.1 million. For the twelve months ended
April 30, 1997, the company reported total revenue of $21.9 million and
a net loss of $2.2 million, excluding the net restructuring charges of
$14.1 million. Including the net restructuring charges, the company
reported a loss per ADS of $1.28 ($0.64 per ordinary share) for the
twelve months ended April 30, 1997.
Michael Bennett, president and CEO of LBMS, stated, "Our
accomplishments during the fourth quarter were significant as we
continued to achieve improved profitability and to increase license
revenue. The successful fourth quarter results, my third quarter with
the company, clearly validate the company's strategic decision to focus
our resources on the process management marketplace."
During the quarter, the company continued to expand its distinguished
customer base through the addition of new strategic customers such as
Texaco Group Inc., Spyglass Inc., First Union National Bank, Northwest
Airlines, Hill-Rom, Harcourt Brace & Company and Checkfree Corporation.
Also, the company announced a major release of its market-leading
process management toolset - Process Engineer ("PE") 7.0. This product
release provides new capabilities that enhance LBMS' established
position of leadership in the process management marketplace while
continuing to broaden the overall market opportunity for PE.
Additionally, the introduction of Deliverables Manager, a complementary
product to PE, has been well received by current and prospective
customers. The Deliverables Manager product provides facilities to
store, manage and reuse project deliverables.
"As we begin a new fiscal year, I believe we have an excellent
opportunity to continue to build on the success of fiscal 1997
following our restructuring," said Bennett. "While growing our revenue
in the process management marketplace will continue to be our primary
focus, we believe our Deliverables Manager product provides additional
opportunities for growth."
"Our goal for fiscal 1998 is to demonstrate year-on-year license
revenue growth and sustain consistent profitability. We are aware that
the company has historically experienced a seasonal downturn in revenue
and profits in its first fiscal quarter; however, we are optimistic
that we can begin to make progress toward changing this trend."
"With the completion of my first fiscal year with LBMS, I would like to
thank our customers and shareholders for their support and the LBMS
employees for their hard work and dedication," added Bennett.
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
filings. The company continues to be susceptible to potentially
significant variations in quarterly and annual revenue and operating
results.
Based in Houston, Texas, LBMS is a leading provider of Process
Management products to Fortune 1000 companies. LBMS' integrated line
of Process Management products provide organizations with a library of
"best practices" for all areas of applications 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 .
Learmonth & Burchett Management Systems Plc
Consolidated statement of operations
(In thousands, except per share information)
(unaudited)
Three months ended Year ended
April 30, April 30,
1997 1996 1997 1996
Revenue:
Product licenses $4,007 $7,192 $12,170 $25,077
Services 2,181 3,649 9,691 16,081
Total revenue 6,188 10,841 21,861 41,158
Cost of Revenue:
Product licenses 72 226 195 838
Services 855 1,797 4,218 6,975
Total cost of
revenue 927 2,023 4,413 7,813
Gross margin 5,261 8,818 17,448 33,345
Operating expenses:
Sales and marketing 2,570 5,549 11,704 20,045
Research and
development 1,033 2,212 5,296 8,059
General and
administrative 638 1,620 3,108 5,724
Merger expense 468
Restructuring charge 14,109
Total operating
expenses 4,241 9,381 34,217 34,296
Operating income (loss) 1,020 (563) (16,769) (951)
Interest income 118 138 445 301
Interest expense (64) (25) (159) (83)
Other income and (expense) (42) 15 (51)
Income (loss) from
continuing operations
before income taxes 1,074 (492) (16,468) (784)
Income tax benefit 150
Net income (loss) $1,074 ($492) ($16,318) ($784)
Income (loss) per
Ordinary Share: $0.04 ($0.02) ($0.64) ($0.03)
Income (loss) per
ADS: (1) $0.08 ($0.04) ($1.28) ($0.07)
Weighted average
Ordinary and Ordinary
Share equivalents
outstanding 26,756 25,528 25,551 23,639
(1) Adjusted to reflect the ratio of one ADS to two Ordinary
Shares.
Learmonth & Burchett Management Systems Plc
Consolidated balance sheet
(In thousands, except per share information)
April 30 April 30
1997 1996
Assets (unaudited) (audited)
Current assets
Cash and cash equivalents $8,461 $10,960
Trade accounts receivable 4,358 9,579
Other current assets 1,023 3,498
Total current assets 13,842 24,037
Furniture, fixtures and equipment 1,512 2,982
Other assets 160
Total assets $15,354 $27,179
Liabilities and Shareholders' Equity
Current liabilities
Current maturities
of indebtedness $745 $1,003
Accounts payable 486 1,630
Deferred revenue 3,534 3,691
Accrued liabilities 5,778 5,344
Executive Stock Option
Trust indebtedness 977 903
Total current liabilities 11,520 12,571
Indebtedness 238 524
Other liabilities 8,843 2,149
Total liabilities 20,601 15,244
Shareholders' equity:
Ordinary shares,
10 pence par value 4,267 4,253
Additional paid-in capital 20,330 20,323
Adjustment for ESOT (977) (903)
Cumulative translation
adjustment (372) 439
Accumulated deficit (28,495) (12,177)
Total shareholders' equity (5,247) 11,935
Commitments and contingencies
Total liabilities and
shareholders' equity $15,354 $27,179
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