Wednesday April 16 4:08 PM EDT
ON Technology Corporation Announces Increased
Revenues And Positive Earnings for its First Quarter of
1997
CAMBRIDGE, Mass., April 16 /PRNewswire/ -- ON Technology Corp today announced increased
revenues and positive earnings for its first quarter ended March 31, 1997. Revenues for the first
quarter were $12,493,000, an increase of 10% over revenues of $11,309,000 reported for the quarter
ended March 31, 1996. Net income for the quarter was $7,000 or $0.00 per share after excluding
non-recurring charges for acquired incomplete research and development of $15,898,000 or $1.35 per
share.
During the first quarter ON Technology announced the completion of two acquisitions: csd
Software GmbH (CSD), Germany's leading supplier of PC desktop software management tools, and
Purview Technologies Inc., a leading provider of Internet management software.
"We're satisfied with these results from our seasonally softest quarter," said Christopher Risley,
Chief Executive Officer. "The results reflect the effect of our investments in CSD and Purview
during the quarter. We believe that these investments will strengthen ON's ability to produce
excellent results for shareholders later in 1997 and through the rest of the decade," said Risley.
ON Technology is a leading provider of network security, network management and network
scheduling software that helps people work together on networks and across the Internet. ON
Technology products operate on NetWare, Windows NT and Internet networks that include
combinations of Windows, Windows95, WindowsNT, Macintosh, DOS, OS/2 and Unix workstations
using IP, IPX and AppleTalk protocols.
A publicly held company trading under the symbol ONTC, ON Technology's worldwide
headquarters are in Cambridge, Mass. To receive information about ON Technology or any of its
offerings, browse the company's World Wide Web site at on.com, send an e-mail
inquiry to info@on.com, or call 617-374-1400.
Forward-looking Statement Notice: Statements contained in this press release and statements made
in the accompanying conference call that are not historical statements (including but not limited to,
statements concerning estimates of future revenues, operating expenses and product introductions)
constitute forward-looking statements and are made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The following risk factors, among other factors (including
the accuracy of the Company's internal estimates of revenue and operating expense level), may
cause the Company's actual results to differ materially from the results stated in such
forward-looking statements: variability of the Company's quarterly operating results; rapid
technological change in the software industry; competition; product development; inclusion of
groupware applications and workgroup utilities in system software and application suites;
dependence on emergence of workgroup utilities market; the Company's free trial marketing
strategy; potential acquisitions; marketing products through distributors and resellers; protection of
proprietary technology; international revenue; dependence on key personnel; possible volatility of
stock price; and other risks detailed from time to time in the Company's filings with the Securities
and Exchange Commission.
ON Technology Corporation
Consolidated Condensed Statement of Operations
(Dollars in thousands, except per share data)
Three Months
Ended March 31
(Unaudited)
1997 1996
Revenue:
Net product revenue $11,460 $10,967
Other revenue 1,033 342
Total revenue 12,493 11,309
Operating expenses:
Cost of product revenue 2,076 2,770(A)
Sales and marketing 6,306 5,471
Research and development 3,138 1,965
General and administrative 1,088 947
15,898 13,285
Charge for purchased
research and development --- ---
Income (loss)
from operations (16,013) (13,129)
Interest income, net 122 342
Income (loss) before
provision for income
taxes (15,891) (12,787)
Provision for income taxes 0 327
Net income (loss) $(15,891) $(13,114)
Net income (loss) per
common share $(1.35) $(1.23)
Shares used in per share
calculation 11,766,920 10,675,043
(A) Includes a $571 charge for acquisition-related inventory writedown.
Consolidated Condensed Balance Sheets
(Dollars in thousands)
March 31 December 31
1997 1996
(Unaudited) (Unaudited)
Assets:
Current Assets:
Cash and cash equivalents $13,007 $20,774
Accounts receivable, net 10,837 9,885
Inventories, net 2,553 2,323
Prepaid expenses and other
current assets 2,632 2,504
Deferred tax asset 1,062 ---
Total current assets 30,091 35,486
Property and equipment, net 5,998 5,841
Direct marketing costs 1,093 1,067
Other assets and deposits 87 86
Purchased intangibles, net 3,187 1,662
Total Assets $40,456 $44,142
Liabilities and Stockholders'
Equity:
Current liabilities:
Current portion of capital
lease obligations $981 $1,063
Accounts payable 7,864 5,619
Accrued expenses 1,539 2,252
Reserve for distributor
inventories 100 204
Deferred revenue 3,515 1,001
Total current liabilities 13,999 10,139
Capital lease obligations,
net of current portion 315 510
Stockholders' equity 26,142 33,493
Total liabilities and
stockholders' equity $40,456 $44,142
SOURCE ON Technology Corporation |
