Analysts sees higher numbers
Revenue of $20.4 million, highlighting 159% year-over-year growth, exceeded $17.0 million estimate while normalized EPS of $0.14 surpassed $0.11 estimate. The reported loss per share of $0.49 included the one-time impact of a $9.1 million charge related to the UnInstaller and Walk Softly acquisitions. A strong contribution by the newly released UnInstaller product, ongoing good demand for First Aid 97 and Oil Change, and improving margins led to the robust June quarter. Going forward, we are anticipating increasing sales and marketing and R&D expenses associated with the release of the company's Windows NT-based product and First Aid 98, both slated for release in late 1997. During yesterday's conference call, management indicated an effort to reduce channel inventory for First Aid 97 to make way for First Aid 98. In addition, we note that PC Guard Dog will most likely be released late in the September quarter. Consequently, though we are raising estimates for FY 97, we are anticipating a transitional September quarter. We look towards CyberMedia's expanding product line -UnInstaller, PC Guard Dog, the new release of Oil Change, First Aid 98, the Windows NT-based corporate-targeted product currently in beta - and additional OEM and channel partnerships to drive improving performance in the latter part of 1997 and into 1998. We are raising our FY 97 EPS estimate to $0.55 from $0.51 and our FY 98 EPS estimate to $0.85 from $0.75. We are retaining our STRONG BUY rating, noting that the stock is currently trading at only 16x our FY 98 EPS estimate.
Strong June Quarter. CyberMedia experienced above-expectation contribution from its newly released UnInstaller product; we estimate that UnInstaller accounted for approximately 25% of total revenue. In addition, First Aid 97 and First Aid 97 Deluxe continued to sell well, receiving rankings once again as top-ten selling Windows-based business software products from PC Data. Revenue from Oil Change increased 40% quarter- |
