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Speedware Corporation Announces Third Quarter Results
MONTREAL, QUEBEC--
New Focus Results in Significant $3.8 million Improvement in
Operating Income
Speedware Corporation (TSE: SPW) announced today the results for
the three and nine months ended June 30, 1999. For the nine month
period, total revenues rose to $19.7 million from $18.4 million
the prior year, producing net income of $1.3 million or $0.15 per
common share compared to a loss of $5.5 million or $(0.65) per
share the prior year. The increase in total revenues was due
primarily to a 14 percent increase in professional services
compared to the same period last year.
The nine-month results for fiscal 1998 included a special pre-tax
charge to earnings of $2.9 million. Not including this special
charge, earnings before income taxes in 1999 improved to $1.3
million from a loss of $2.5 million in 1998, a $3.8 million
turnaround.
Cash from operations for the nine-month period grew to $2.5
million from a use of cash of $1.9 million the prior year. The
increase in cash is due primarily to improved operating
performance, cost controls, and the Company's ability to convert
accounts receivable to cash.
For the three-month period ended June 30, 1999, total revenues of
$6.2 million produced net earnings of $172,000 or $0.02 per common
share compared to a loss of $3.7 million or $(0.44) per share the
prior year.
"Speedware has successfully re-focused its two business units and
produced four consecutive quarters of profitable growth,"
commented William Thomson, Chief Executive Officer. "Our goal now
is to build on this momentum, capitalizing on the significant
opportunities to grow revenues with our installed customer base
and in our chosen vertical markets."
Speedware's Business Intelligence initiative has recently been
re-introduced to employees and clients with a new focus and a new
name. Visonyze.com reflects the Company's commitment to its suite
of web-enabled analytical products aimed at the telecommunications
and customer support markets. Visonyze.com's mission is to be the
eyes into the core competencies of a business, providing a
browser-enabled multi-level view that measures, analyzes and
delivers information aimed at enhancing business performance.
Speedware's Application Development Tools business has also
undergone a dramatic transformation into one that is driven by
client needs rather than product development. Growth will come
from responding as a systems integrator to the current and
emerging requirements of its installed base of some 1,500 loyal
clients and levering its position as a preferred partner for
software systems running on HP 3000 systems.
"Both initiatives have been well received by our employees, and we
are in the process of rolling the new face of Speedware out to our
customers," Mr. Thomson concluded. "Going forward, our focus on
top-line revenue growth, both in license sales and professional
services, will further enhance profitability."
/T/
Financial Highlights:
Three Months Nine Months
Period Ended June 30, 1999 1998 1999 1998
(in $,000 except
per share amounts)
Revenues 6,154 6,029 19,744 18,360
Expenses 5,261 8,954 16,412 21,626
R&D Expenses 713 759 2,059 2,134
Net Earnings 172 (3,713) 1,250 (5,493)
Net Earnings per Share 0.02 (0.44) 0.15 (0.65) |
