Bad, bad, bad news:
PowerCerv Reports First Quarter Results
PR Newswire, Wednesday, April 23, 1997 at 16:19
TAMPA, Fla., April 23 /PRNewswire/ -- PowerCerv Corporation
(NASDAQ:PCRV), a leading provider of adaptable client/server application
solutions, today announced first quarter revenues of $8.8 million and a net
loss of $1.4 million, or 10 cents per share for the first quarter of 1997
compared to $9.8 million of revenue and a net income of $369 thousand or
3 cents per share for the same period in 1996.
"While, we're disappointed with the first quarter financial results," said
Harold R. Ross, PowerCerv CEO, "we remain focused on building an expanded
distribution channel for our products and services. The fundamentals of the
business remain strong. We continue to invest in our infrastructure, people,
products and partner relationships. It's now a matter of execution."
During the first quarter, the Company increased its penetration of
international markets by winning a sale of its Sales Force Automation product
to SNS Bank in the Netherlands. In the U.S., the Company also won several new
sales to companies who licensed the entire suite of PowerCerv applications.
Additionally, the Company increased the size of its Business Development Group
to reflect its commitment to continued growth in indirect channels. This
Group was responsible for establishing key relationships during the quarter
with partners that include Unisys Corporation and MCI Systemhouse.
PowerCerv builds and delivers adaptable application solutions that provide
organizations a sustainable competitive advantage. PowerCerv's client/server
business applications for customer-centric functions include sales force
automation, customer support, distribution, manufacturing and financials. The
Company offers training and consulting services in support of its software.
PowerCerv products and services are sold through a direct sales force and
through value-added channel partners in the U.S., Europe, Asia, Australia and
Latin America. PowerCerv is listed on the Nasdaq as PCRV. For more
information on PowerCerv's products and services, contact PowerCerv at
813-226-2600, fax 813-222-0886, or visit the company Web site at
powercerv.com
PowerCerv Corporation
Condensed Consolidated Statements Of Operations (Unaudited)
(In thousands, except per share data)
Three months ended March 31,
1997 1996
Revenue:
License fees $1,659 3,054
Technology resales 477 710
Service fees 6,620 6,033
Total revenue 8,756 9,797
Costs and expenses:
Cost of licenses 312 230
Cost of technology resales 352 460
Cost of services 5,080 3,522
General and administrative 1,547 1,030
Sales and marketing 2,537 2,410
Research and development 1,442 1,355
In-process research and
development --- 100
Total costs and expenses 11,270 9,107
Operating income (loss) (2,514) 690
Interest income (expense), net 184 (96)
Income (loss) before income (2,330) 594
taxes
Provision for income taxes (886) 225
Net income (loss) $(1,444) $369
Net income (loss) per share $(0.10) $0.03
Shares used in computing net
income (loss) per share 13,842 11,703
PowerCerv Corporation
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1997 1996
(unaudited)
Assets
Current assets:
Cash and cash equivalents $12,623 $14,637
Accounts receivable, net of
allowance of $556 and
$550, respectively 11,884 11,475
Refundable income taxes 130 119
Inventories 220 261
Other current assets 371 286
Total current assets 25,228 26,778
Property and equipment, net 3,081 3,111
Intangible assets, net 3,013 3,243
Investment in third party 1,500 1,500
Deposits and other 63 61
Deferred tax asset 2,544 1,658
$35,429 $36,351
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,525 $1,071
Accrued expenses 1,570 1,755
Deferred revenue 2,539 2,333
Total current liabilities 5,634 5,159
Common stock with redemption rights200 200
Shareholders' equity 29,595 30,992
$35,429 $36,351
Alex, are you getting worried. I think this looks awful. Loss of 10 cents per share! Revenues down, expenses up, current assets down, current liabilites down. And on top of it all, total number of shares outstanding has increased, and shareholders' equity is down. I'm going to hang tight, though. There's no use in selling now.
Regards,
Seth |
