Wednesday July 30 4:03 PM EDT
MEMCO Announces Second Quarter 1997 Results
Revenues Increase 110%
Net Income Up 156%
TEL AVIV, Israel--(BUSINESS WIRE)--July 30, 1997--MEMCO Software Ltd.
(Nasdaq:MEMCF) today announced unaudited financial results for the
second quarter ended June 30, 1997.
Revenues for the second quarter of 1997 increased by 110% to $5.91
million from $2.82 million for the same period a year ago. Operating
income for the second quarter of 1997 was $1.28 million, an increase of
100% versus $0.64 million for the second quarter of 1996. Net income for
the second quarter of 1997 reached $1.65 million, or $0.10 per share, an
increase of 156% over net income of $0.64 million, or $0.05 per share,
in the second quarter of 1996.
Revenues for the six-month period ended June 30, 1997 were $10.37
million, a 110% increase compared with $4.94 million for the same period
a year ago. Operating income for the six-month period ended June 30,
1997 increased by 313% to $1.98 million from $0.48 million for the same
period last year. Net income for the six-month period ended June 30,
1997 increased by 266% to $2.89 million, or $0.18 per share, from $0.79
million, or $0.06 per share, in the same period a year ago.
Commenting on the results, Israel Mazin, MEMCO's Chairman and CEO, said,
``Our strong performance in the second quarter reflects ongoing gains in
both revenues and profits and further market acceptance for our SeOS
suite of products. We believe that the strong demand for our products
reflects a growing recognition by corporations of the need to protect
mission-critical applications and data, especially given the expanded
use of the Internet and organizational intranets.''
Mr. Mazin further added, ``MEMCO's product offerings continue to grow
and evolve. This quarter we announced the controlled release of our
Proxima Single Sign-On product. Single sign-on capability is a critical
end-user need in organizations today. No single vendor has been able to
provide a complete solution to date. We believe that Proxima represents
a unique market opportunity for MEMCO. Proxima expands our product
offerings into the enterprise computing market, taking us beyond host
security where we have established a leadership position.''
Highlights
MEMCO continued during the second quarter to add new customers and to
expand its global distribution. The strategy utilizes both direct and
indirect sales channels and investments in research and development to
maintain technological leadership.
Other second quarter and recent highlights include:
Unisys Corporation has selected SeOS as a key component of their Single
Point Security program. Unisys will now offer SeOS to its customers
world-wide. MEMCO continued the expansion of its Asian distribution
channels by signing two leading resellers, Forval Creative in Japan and
Cybertek Holdings in Korea. MEMCO has continued to increase its
stronghold with customers in main markets, such as the financial market
where MEMCO added Bear Stearns & Co., Inc. to its established customer
base. MEMCO also entered into a transaction with Raytheon E Systems
totaling approximately $900,000.
About MEMCO Software
A leading provider of advanced information security solutions, MEMCO
Software offers a comprehensive product set designed to address
enterprise security concerns. MEMCO's solutions effectively enforce,
administer and control security and productivity in distributed
environments. The Company's software products include SeOS Access
Control, SeOS Security Administrator, Proxima SSO, Proxima Manager and
the SeOS Secured! family of application-security solutions. MEMCO
successfully partners and integrates its products with leading providers
of complementary technologies and has also formed strategic distribution
partnerships with Platinum Technology and Tivoli Systems Incorporated,
an IBM company. The Company's international headquarters are located in
Tel Aviv, Israel. MEMCO operates in North America through MEMCO Software
Inc., a wholly owned subsidiary based in New York City. For more
information about MEMCO Software, please visit its Web site at
memco.com.
Statements in this release concerning the Company's future prospects are
``forward-looking statements'' under the federal securities laws. In
conjunction with the Private Securities Litigation Reform Act of 1995,
the Company wishes to avail itself of the ``safe harbor'' provisions and
cautions readers that there can be no assurance that future results will
be achieved and actual results could differ materially from forecasts
and estimates contained herein. Important factors that could cause
actual results to differ materially are included but not limited to
those listed in the Company's registration statement on Form F-1,
originally filed on September 20, 1996 with the Securities and Exchange
Commission, and in the Company's annual reports as filed on Forms 20-F
and in the Company's quarterly report as filed on Forms 6-K.
(c) 1997 MEMCO Software Ltd. MEMCO, SeOS Access Control, SeOS Security
Administrator, Proxima SSO, Proxima Manager and SeOS Secured! are
proprietary trademarks of MEMCO Software Ltd. All other product names
mentioned herein are trademarks of their respective owners.
MEMCO SOFTWARE LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
Revenues $ 5,910 $ 2,815 $ 10,375 $ 4,939
Cost of revenues 658 297 1,167 555
Gross Profits 5,252 2,518 9,208 4,384
Operating expenses
Research &
development, net 961 363 1,775 870
Marketing and selling 2,358 1,272 4,214 2,573
General and
administrative 649 241 1,239 461
Total operating
expenses 3,968 1,876 7,228 3,904
Operating
income (loss) 1,284 642 1,980 480
Financial income,
net 568 41 1,322 352
Income before taxes
on income 1,852 683 3,302 832
Income taxes 205 40 405 40
Net income $ 1,647 $ 643 $ 2,897 $ 792
Net income per
share $ 0.10 $ 0.05 $ 0.18 $ 0.06
Weighted average
number of shares 16,646,412 12,678,903 16,413,464 12,678,903
MEMCO SOFTWARE LTD.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
June 30 December 31
1997 1996
(Unaudited) (Audited)
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 6,528 $ 52,016
Short term investments 48,413 3,662
Trade receivables 5,650 6,164
Other receivables and
prepaid expenses 1,152 928
Total current assets 61,743 62,770
PROPERTY AND EQUIPMENT
Cost 2,320 1,521
Less - accumulated depreciation 487 299
1,833 1,222
OTHER ASSETS NET 731 523
Total Assets $ 64,307 $ 64,515
Liabilities and Shareholders' equity
CURRENT LIABILITIES
Current maturities of long
term loans $ 48 $ 54
Accounts payable - trade 749 647
Other current liabilities 4,335 6,951
Total current liabilities 5,132 7,652
LONG - TERM LIABILITIES:
Deferred income 2,354 3,295
Loans from banks and others 132 157
Accrued severance pay 555 471
Total long - term liabilities 3,041 3,923
SHAREHOLDERS' EQUITY
Share capital
Ordinary shares of NIS 0.01 par value
Authorized 30,000,000 shares; issued
and outstanding 15,548,706 shares
as of June 30, 1997, 15,479,467
shares as of December 31,1996 49 48
Share premium 52,959 52,761
Deferred compensation (200) (298)
Retained earnings 3,326 429
Total shareholders' equity 56,134 52,940
Total liabilities and
shareholders' equity $ 64,307 $ 64,515
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Contact:
Dov Gal, CFO Dorin Miller, VP Marketing
MEMCO Software Ltd. MEMCO Software Inc.
+972.3.645.0000 800.862.2602/212.891.9622
dov@memco.co.il dorin@memco.com
Jody Burfening
Lippert Heilshorn & Associates
212.838.3777
jody@lhai.com |
