Doug, David, Mark, and any other doubting Thomas's:
It is obvious to me that you guys either can't read, have very poor
judgement, or in the pursuit of self defeat. Assuming you are long
on the stock and not short. I just can't understand how people who
own a stock for the purpose of making money, go out of their way to
badger it down, when the company produces for them. Its almost like
you wish more bad news on yourself. I can't see anything negative with the following news. In fact, some companies with news like SYSF's
take off and double in a week. Well, enough of my exasperated
comments, here is a repeat of the news, I think you guys need to reread it:
Thursday May 29 6:13 PM EDT
Company Press Release
SystemSoft announces record revenues and profits for first quarter of
fiscal 1998
NATICK, Mass.--(BUSINESS WIRE)--May 29, 1997--
Revenues increase 55 percent -- Eleventh consecutive quarter
since IPO with more than 50 percent year-over-year growth
SystemSoft Corp. (NASDAQ:SYSF) today reported record revenues and profits for its fiscal 1998 first quarter,
completed April 30, 1997.
Revenues for the quarter were $12.5 million, an increase of 55 percent from the $8.1 million in the same period last
year. Net income for the quarter was $2.0 million or $.08 per share, an increase of 58 percent compared to $1.3
million or $.06 per share from a year ago. Both the quarterly revenues and quarterly net income are the largest
ever for SystemSoft. Per-share comparisons are adjusted to reflect the company's two-for-one stock dividend
effective July 1996.
Since its IPO in August of 1994, SystemSoft has demonstrated consistent growth in both revenue and earnings
as illustrated in the following table:
Quarter SystemSoft Quarterly SystemSoft Quarterly
Revenue ($000) Earnings Per Share
Q295 $3,717 $.02
Q395 $4,018 $.02
Q495 $4,504 $.03
Q196 $5,181 $.04
Q296 $5,898 $.04
Q396 $6,189 $.04
Q496 $7,321 $.06
Q197 $8,050 $.06
Q297 $9,291 $.06
Q397 $10,308 $.07
Q497(1) $12,019 $.08
Q198 $12,497 $.08
(1) Exclusive of one-time charge
Growth in all business lines drive continued expansion
``Today we are reporting that SystemSoft continues to achieve record quarterly revenues and earnings,'' said
Robert F. Angelo, chairman, CEO and president of SystemSoft. ``In the first quarter, we sustained the growth rate
that has been the company's hallmark since its inception.
``Our intense determination to make SystemWizard the market's de facto standard for support-call
prevention/efficiency continues to be a key driver of our corporate strategy,'' he continued. ``During the quarter,
NEC agreed to include SystemWizard in its NEC Ready desktop line. Our strategic agreements with Symantec
Corp. and Sykes Enterprises provide incredibly valuable extensions to our SystemWizard product family. The
PC-resident client component now boasts the most complete set of tools to prevent, diagnose and troubleshoot
PC problems.
``Through our new relationships with Sykes and Symantec, we've expanded the SystemWizard Client options.
These choices -- SystemWizard Premier, SystemWizard Plus and SystemWizard Platinum -- greatly enlarge the
SystemWizard value proposition to encompass a complete range of PC hardware and software diagnostics and
anti-virus software. The Sykes relationship enables SystemWizard users to access live phone support through
Sykes' call center representatives. Additionally, Sykes will integrate the communication and remote PC control
software of SystemWizard into its call centers and third party service offerings. With Symantec, our
SystemWizard technology will enjoy access to the retail market through one of the largest shrink-wrapped
software providers in the world.
``We are very pleased with the tremendous strength of our PC platform business,'' Angelo continued.
``SystemSoft's MobilePRO BIOS, CardWizard PC Card Software and our power-management products began
shipping on the NEC Versa 2600 series as well as Hewlett-Packard's Omnibook 5700 and Omnibook 800
notebooks. We also announced support for the new Advanced Configuration and Power Management Initiative
and the first integrated power-management and PC Card solution for Windows NT. The flow of innovative
technology and new customers from our platform business has never been stronger.''
Numerous quarterly milestones
During the first quarter, the company made a series of announcements that reflect both the rapid development of
its product strategy and crisp execution in product delivery.
Hewlett Packard begins shipping CardWizard and PowerProfiler for Windows NT and MobilePRO BIOS
for its OmniBook 5700 and OmniBook 800 notebooks PCs.
Announces availability of industry's first integrated PC Card and power management product set for
Windows NT 4.0.
Announces availability of MobilePro software to support Intel's three new Pentium platform chipsets.
Unveils industry's first Advanced Configuration and Power Interface (ACPI) Technology Enabling
Program.
SystemSoft system-level software begins shipping on new NEC Versa 2600 Series notebook computers
with support for Windows 95 and Intel MMX Multimedia Technology.
SystemWizard selected by HP for its HP Pavilion home PC line.
Micron Electronics, Inc. becomes first direct PC manufacturer to ship SystemWizard on its PCs, the
Millennia LXAs.
Announces strategic cross-licensing agreement integrating SystemWizard and Symantec's PC
Handyman.
Completes strategic agreement with Sykes Enterprises to incorporate diagnostics into SystemWizard and
promote Sykes' third-party telephone support services.
In addition, Packard Bell NEC also announced earlier this month that it is the first desktop vendor to ship a
completely integrated SystemWizard solution on its desktop computers. Packard Bell NEC joins AST and Micron
in shipping SystemWizard.
Earlier this month, after the close of the first quarter, the company announced that IBM has begun shipping its
CardWizard PC Card software on its IBM ThinkPad 380 series of notebook computers. According to IDC, IBM
ships more than one million portable computers annually. This roll-out is the start of their plan to ship
CardWizard on all its ThinkPad units.
Additionally during the quarter, SystemSoft restructured its SystemWizard agreement with Digital Equipment
Corp. The original agreement, which included a royalty payment obligation to Digital from SystemSoft has been
cancelled and replaced with a series of fixed payments to Digital. These payments will be made in fiscal 1998. The
new agreements benefit both Digital and SystemSoft. Digital is provided with a series of known payments.
SystemSoft will enjoy a long-term reduction in cost of goods sold and improved profitability on the
SystemWizard product line.
About SystemSoft
SystemSoft is the pioneer in problem-resolution technologies and the maker of the widely acclaimed
SystemWizard and CardWizard troubleshooting and configuration software products. SystemSoft's system-level
software products now include SystemWizard call-avoidance software, CardWizard PC Card software, Universal
Serial Bus Software, Plug-and-Play software, power-management software and BIOS. SystemSoft licenses its
products primarily to Original Equipment Manufacturers (OEMs), including manufacturers of PCs, and
independent software and hardware vendors. Its customers include Acer, Apple Computer, AST Computer,
Compaq, Dell, Digital Equipment Corp., Gateway 2000, Hewlett-Packard, IBM, Intel, Micron Electronics,
Microsoft, Motorola, NEC, Packard Bell and Toshiba. Based in Natick, Mass., SystemSoft employs more than 225
at its headquarters and in offices in Boulder, Colorado, Santa Clara, California, Oxnard, California, Yokohama,
Japan and Taipei, Taiwan.
-0-
Any statements that are not historical facts contained in this release are forward looking statements that involve
risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance,
the effect of economic conditions, intellectual property rights and litigation and the outcome of governmental
proceedings, competitive products, risks in product and technology development, the results of financing
efforts, the ability to complete transactions and other risks identified in the company's Securities and Exchange
Commission filings.
Information on SystemSoft products and services is available on the World Wide Web at
systemsoft.com . SystemWizard is a trademark of SystemSoft Corpn. All other trademarks,
tradenames, registered trademarks or registered service marks are property of their respective holders.
SYSTEMSOFT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
April 30, January 31,
In Thousands 1997 1997
(unaudited)
ASSETS
Cash and cash equivalents $ 8,032 $11,909
Accounts receivable, net 14,261 12,353
Receivable from related party 1,667 1,466
Prepaid royalties 6,698 --
Other current assets 2,853 2,444
Deferred income taxes 2,528 2,528
Total current assets 36,039 30,700
Property and equipment, net 4,881 4,936
Purchased software costs, net 4,487 3,747
Software development costs, net 1,358 1,368
Total assets $46,765 $40,751
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued expenses and
other current liabilities 9,189 5,595
Deferred income taxes 1,642 1,642
Common stock 252 251
Additional paid-in capital 69,070 68,671
Treasury stock (427) (427)
Warrants 3,771 3,771
Accumulated deficit (36,732) (38,752)
Total stockholders' equity 35,934 33,514
Total liabilities and stockholders'
equity $46,765 $40,751
-0-
SYSTEMSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended April 30
1997 1996
(Unaudited)
In thousands, except per share data
Revenues:
Software license fees $10,659 $5,355
Engineering services 1,246 2,235
Related party 440 458
Other 132 2
Total revenues 12,477 8,050
Cost of revenues:
Software license fees 972 403
Engineering services 1,146 752
Related party 314 215
Other -- --
Total cost of revenues 2,432 1,370
Gross profit 10,045 6,680
Operating expenses:
Research and development 3,135 1,686
Sales and marketing 2,907 2,415
General and administrative 986 689
Total operating expenses 7,028 4,790
Income from operations 3,017 1,890
Interest income, net 29 98
Foreign exchange gain (loss) (32) (22)
Income before provision
for income taxes 3,014 1,966
Provision for income taxes 995 688
Net income $2,019 $1,278
Net income per common share $0.08 $0.06
Weighted average number of common
and common equivalent shares
outstanding 26,856 23,160
Contact:
Paul Sereiko, DeAnna Wassom
SystemSoft Corporation
508-651-0088
or
Tim Hurley, Jon Bornstein
Copithorne & Bellows
617-450-4300
P.S. Dave, are you the same Dave Lahenky that used to work for
Sprint? |
