Another Excellent Quarter for LBMS. $Net Income of Two million.
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Tuesday August 19 4:17 PM EDT
LBMS Announces First Quarter Results
HOUSTON--(BUSINESS WIRE)--Aug. 19, 1997--Learmonth & Burchett Management Systems Plc (NASDAQ:LBMSY - news) (``LBMS'') today reported financial results for its fiscal first quarter ended July 31, 1997, featuring continued profitability and a substantial increase in license revenue over the fiscal first quarter of last year.
The company reported net income of $768,000, or $0.06 per American Depositary Share, on total revenue of $5.9 million for the three months ended July 31, 1997, before consideration of a $1.3 million benefit related to the recovery of previously recorded restructuring charges. Including the restructuring benefit, the company reported net income of $2.0 million, or $0.15 per American Depositary Share, for the three months ended July 31, 1997. For the three months ended July 31, 1996, the company reported a net loss of $4.3 million, or $0.34 per American Depositary Share, on total revenue of $5.3 million.
The increase in total revenue from the first quarter of fiscal 1997 to the first quarter of fiscal 1998 is attributable to increased product revenue in the U.S., which was partially offset by a decrease in service revenue related to the discontinuance of direct service operations outside the U.S. and a decrease in maintenance revenue because of the sale of the Systems Engineer product line.
Michael Bennett, President and CEO of LBMS, stated, ``Our goals for the first quarter were to continue profitability and to begin to reverse the historical trend of declining license revenue from the fourth quarter to the first quarter. Our goals were accomplished as we were profitable for the quarter and sequential-quarter license revenue increased slightly. The effect of seasonality on first quarter U.S. license revenue was less than in prior years and license revenue was positively affected by contribution from our international distributors.''
During the quarter, the company shipped a major new release of its market-leading process management product line - Process Engineer (PE) 7.0. Additionally, the company entered into strategic partnerships with Micro-Frame Technologies to provide an enterprise process, project and resource management solution centered on Microsoft Project; with Software Productivity Research to provide knowledge-based estimation facilities; and with Formation Consulting to provide ProcessWare for establishing and managing an outsourced development environment. The new features and content included in PE 7.0 and the new strategic partnerships significantly enhance the company's established position of leadership in the process management marketplace, while broadening the overall market opportunity.
``We continue to see improvement in our financial position,'' Bennett stated. ``Also, we have made significant progress in recovering and eliminating liabilities recorded in connection with the restructuring, as demonstrated by the restructuring benefit recorded in the first quarter.''
``We have recently strengthened our development and marketing management resources through the addition of two senior executives. Bob Prochnow has joined the company as Senior Vice President, Research and Development. Bob, previously with GlobalSoft, will work closely with Rick Pleczko, Senior Vice President, Product Marketing, to lead the company's short- and long-term product development efforts,'' added Bennett. ``Terry Flaherty joins the company as Vice President, Marketing. Terry, previously with the software products group of Texas Instruments, will lead the company's marketing efforts, supporting the company's direct sales channel and providing input and support for international and indirect U.S. channels.''
Except for any historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely development, release and acceptance of new products and alliances, the impact of competitive products and pricing, and the other risks detailed from time to time in the company's U.S. Securities and Exchange Commission reports. The company continues to be susceptible to potentially significant variations in quarterly and annual revenue and operating results.
Based in Houston, LBMS is the leading provider of Process Management products to Fortune 1000 companies. LBMS' integrated line of Process Management products provides organizations with a library of ``best practices'' for all areas of application development and a comprehensive set of tools for process definition, deployment, execution and improvement. LBMS has an installed base of more than 30,000 users worldwide in areas such as financial services, technology, manufacturing, retailing, oil, government and utilities. LBMS company and product information can be found on the World Wide Web at lbms.com.
Unaudited financial information in U.S. dollars, under accounting principles generally accepted in the U.S., follow:
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