-- System Software Associates Announces Fiscal Third Quarter Results --
Business Editors
CHICAGO--(BUSINESS WIRE)--Aug. 19, 1999--System Software
Associates, Inc. (NASDAQ:SSAX), a global provider of enterprise
resource planning (ERP) software and services, as well as portfolio
solutions for the industrial sector, announced today financial results
for its third fiscal quarter ending July 31, 1999.
Revenue for the third quarter was $73.1 million, down 32 percent
from a year ago. The company posted software license revenues of $21.8
million and client services revenue of $51.3 million in the current
quarter. SSA reported a third-quarter 1999 operating loss of $6.7
million, before previously announced restructuring and other charges
of $22.8 million. Results for the current quarter compared with an
operating loss before restructuring and other charges of $11.2 million
in the third quarter of 1998.
On June 30, the company announced the details of the
restructuring and other charges totaling $56.8 million. With these
charges included, the third quarter loss per share was $1.39 compared
to a loss per share in the third-quarter of 1998 of $2.42. On a
pro-forma basis, excluding restructuring and other charges in both
years as well as income tax charges or benefits in both years, loss
per share would be $.20 in the third-quarter of 1999 and $.30 in the
third-quarter of 1998.
"We closed on a $41 million credit facility, and we continue to
make progress on both our financial recovery and the company's
transition to a portfolio solutions provider," said William M. Stuek,
Chairman and Chief Executive Officer. "We expect to return to
profitability in fiscal 2000."
Earnings per share data provided in this news release does not
reflect the pending 1 for 4 reverse stock split which the Company
expects will take effect shortly, having received approval from its
shareholders for the necessary changes to the Certificate of
Incorporation.
About SSA
System Software Associates is a worldwide ERP software and
services provider with fiscal year 1998 revenue of $421 million. Its
principal product, BPCS Client/Server Version 6.0 is primarily sold to
the industrial sector including: automotive, chemicals, consumer
goods, electronics, general manufacturing, food and beverage, forest
products and pharmaceuticals.
Safe Harbor Provision
The statements contained in this release regarding SSA's future
operating results and performance and business prospects are
"forward-looking statements" subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. Where possible, the
words "expect," "outlook" and similar expressions, as they relate to
SSA or its management, have been used to identify such forward-looking
statements. These statements reflect SSA's current beliefs and
specific assumptions with respect to future business decisions and are
based on information currently available to SSA. Accordingly, the
statements are subject to significant risks, uncertainties and
contingencies, which could cause SSA's actual operating results,
performance or business prospects to differ from those expressed in,
or implied by, these statements. |
