Wednesday July 30 8:03 AM EDT
Company Press Release
Source: New Dimension Software, Inc.
New Dimension Software Announces Record Revenues and Record Net Income Before Taxes For The Second Quarter 1997
TEL AVIV, Israel, July 30 /PRNewswire/ -- New Dimension Software, Ltd. (Nasdaq:DDDDF - news) today announced record revenues and record net income before taxes for the second quarter ended June 30, 1997. Total revenues for the quarter ended June 30, 1997 were $16,131,000, an 82 percent increase as compared to $8,860,000 in the same period last year. Net income after taxes for the quarter increased by 1,918 percent to $2,644,000 (or $0.22 per share), as compared to net income of $131,000 (or $0.01 per share) for the same period last year. Net income before taxes reached record levels during the second quarter, and was $3,209,000.
Total revenues for the six month period ended June 30, 1997 were $28,977,000, a 56 percent increase as compared to $18,572,000 in the same period last year. Net income for the six month period increased by 371 percent to $4,453,000 (or $0.37 per share), as compared to net income of $945,000 or ($0.08 per share) for the same period last year.
On a geographic basis, New Dimension Software's revenues increased in all regions of the world during the second quarter as compared to the same quarter last year. Revenues for the second quarter increased by 127 percent in North America, by 45 percent in Europe and by 32 percent in the rest of the world, as compared to the same quarter last year.
Revenues derived from product sales reached record levels during the second quarter, and grew by 122 percent as compared to the same period last year. The revenues from sales of client/server products as a percentage of total product sales were 44 percent in the second quarter. Maintenance revenues reached record levels during the second quarter, and grew by 33 percent as compared to the same period last year.
``The second quarter 1997 was a very good quarter for the Company,'' said Dan Barnea, the Company's CEO. ``The Company signed its largest single contract to date during the second quarter, a $4.3 million federal government contract with Logicon. This contract calls for the installation of a subset of the Company's tightly integrated Enterprise Production Management(TM) solution at 16 Defense Information Systems Agency Mega Centers nationwide. Under this agreement, a total of five New Dimension Software products will be installed to provide a common production management solution across MVS, UNIX, Tandem and Unisys platforms. Of the $4.3 million contract, $2.3 million in product sales revenue was recognized during the second quarter. The remaining portion of the contract is for professional services, and will be recognized as these services are performed over the next several quarters.''
Mr. Barnea continued, ``During the second quarter, the Company also signed five long-term contracts with major U.S. corporations, each valued at more than $600,000, including new product sales and maintenance revenues. Long term commitments of this nature are an indication that the Company's technology is considered to be important to the information technology strategy at these significant customers.''
``Also during the second quarter, the Company established a new business division in North America dedicated to providing professional services, due to increased demand for these services from our customers,'' Mr. Barnea said. ``We believe the establishment of this new division will enable the Company to increase its revenue base in this area. In addition to the internal division, the Company will continue to work with outside providers to supplement the professional services offering.''
He added, ``Other highlights of the quarter include the Company's first two sales of the CONTROL-I/2000(TM) year 2000 data testing and validation solution to customers in North America. We are pleased with these initial sales of the product. The Company also continues to see sales of the MultiPlatform CONTROL-SA(TM) Enterprise Security Management solution, a product of its wholly-owned subsidiary, EagleEye Control Software. During the second quarter, four new MultiPlatform CONTROL-SA contracts were signed in North America and Europe, and implementations are underway.''
New Dimension Software
New Dimension Software is a leading provider of integrated software solutions that allow IT organizations to manage data center production flow end-to-end. With the Company's family of products, all aspects of production flow are effectively managed, from the automation of applications and systems to the generation and distribution of production output. By managing the flow of information between applications, systems, end users and administrators, this tightly integrated product family helps users achieve their business goals. The Company is based in Tel Aviv, with its North American subsidiary's headquarters in Irvine, Calif. and regional offices throughout the United States, Canada and Australia. Founded in 1983, the Company's products are currently licensed to over 1,700 customers in more than 40 countries.
For More Information
For more information on New Dimension Software in North America, please contact the sales department at (800) 347-4694, ext. 522. For inquiries outside of North America, contact the Company's headquarters in Tel Aviv at 972-3-645-1111. Inquiries can also be directed to the Company's home page at www.ndsoft.com.
Certain statements made herein that are not historical, using the terms ``estimate,'' ``intend,'' ``expect,'' ``believe,'' and similar expressions, are forward looking statements within the meaning of the Private Securities Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance and achievements of the Company to differ materially from those implied by such forward-looking statements, including changes in business conditions and growth trends affecting the Company's products and markets; timing of development, announcement and introduction of new products by the Company and its competitors, and the market demand for such products; continuing availability of key components and technologies; changes in consumer and business purchasing patterns, and other factors listed from time to time in reports filed by the Company with the Securities and Exchange Commission.
Enterprise Production Management, CONTROL-I/2000 and CONTROL-SA are trademarks of New Dimension Software, Ltd. New Dimension Software, Ltd. recognizes all other companies' trademarks. |
