Subject: SystemSoft Corporation announces record second-quarter revenues and earnings; Revenue growth exceeds 50 percent for ninth consecutive quarter
Content-Length: 11991
BusinessWire Press Release:
NATICK, Mass.--(BUSINESS WIRE)--Aug. 22, 1996--SystemSoft
Corporation (NASDAQ:SYSF) today announced record revenues and record
net income for the second quarter of fiscal year 1997.
Total revenues for the quarter ending July 31, 1996 were $9.3
million, an increase of 58 percent over the corresponding quarter in
fiscal 1996. Net income for the quarter increased by 72 percent
compared to the same period in the prior year. Net income for the
quarter was $1.5 million or $.06 per share, compared to $868,000 of
net income or $.04 per share for the same period last year. All
numbers are adjusted to reflect the company's two-for-one stock
dividend that was issued on July 17, 1996.
For the first six months of fiscal year 1997, revenues were $17.3
million, an increase of 57 percent from the $11.1 million in the
comparable period last year. Net income for the first six months of
fiscal 1997 was $2.8 million, an increase of 83 percent from $1.5
million last year. Earnings per share increased to $.11 versus $.07
in fiscal 1996.
First $9 Million Quarter In Company History
"I'm very pleased to report that SystemSoft has completed another
record quarter of revenue and earnings," said Robert F. Angelo,
chairman, CEO, and president of SystemSoft. "Our outstanding
first-half results have been driven by broad customer acceptance of
our products and our continuing leadership in developing an expanded
range of new technologies. These factors helped us complete a $9
million revenue quarter for the first time in company history. We're
excited about both our first half results and the opportunities that
lie ahead of us for the rest of this fiscal year and beyond."
SystemSoft's expanding product family has been a key factor in
its revenue growth. The company's newest product, SystemWizard, was
announced at a widely covered press conference following the
company's annual meeting on June 19. SystemWizard is quickly
becoming the company's flagship product in the emerging growth market
for call- avoidance software. Call-avoidance products reduce the
volume and length of technical support calls from consumers to
computer hardware and software manufacturers, which currently cost
the industry nearly $4 billion annually. SystemSoft's three-level
product family and Internet-based update/distribution mechanism have
already received an enthusiastic reception from analysts and
manufacturers alike.
"What's important to note about our introduction of
SystemWizard," Angelo said, "is that it is accompanied by
substantial unit volume commitments and knowledge-sharing
partnerships with leading OEMs such as AST Computer, Lotus
Development, Wang, Ziff-Davis, and Digital Equipment. We've already
shipped our first release for final evaluation to our existing
customer base, and we expect to see even more SystemWizard OEM
commitments in the second half of this fiscal year."
SystemSoft Supports Windows NT 4.0
SystemSoft is also fortifying and expanding its core franchise in
PC Card and power management with the introduction of new versions of
CardWizard and Power Profiler for the Microsoft Windows NT 4.0
operating system. The company has several licensing agreements in
place with several leading PC OEMs for CardWizard for NT, which will
ship later in the third quarter. Power Profiler will ship to OEMs in
the fourth quarter. Combined, these products make NT a more robust
and viable platform for mobile users. Windows NT 4.0 will ship on
greater than 10 percent of all notebook computers within the first 12
months of release.
"Many corporate computer users will be leaving their desktop PCs
behind and using only a Windows NT-based portable computer equipped
with a docking station," Angelo noted. "To be productive, this new
breed of mobile professional will require the significant power
management capabilities and complete PC Card support, that we have
provided on Windows 95 and Windows 3.1 systems."
In addition, SystemSoft is also extending its SystemWizard
product line to include a version to support the Windows NT 4.0
operating system. Development of SystemWizard for Windows NT has
begun and commercial shipments are expected to begin in the first
quarter of calendar-year 1997.
In the second quarter, SystemSoft also announced that Adaptec,
provider of the PC Card-to-SCSI adapter private-labeled by Iomega
for its popular Zip card, has licensed SystemSoft's PC Card software
suite for inclusion with the Zip card. With the Adaptec-manufactured
Zip card and SystemSoft enabling software, users can connect their
SCSI Iomega Zip drive to their mobile computers through the PC Card
slots on their computers.
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, 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 Corporation, Gateway 2000,
Hewlett-Packard, IBM, Intel, Microsoft, Motorola, NEC and Toshiba,
and NEC. Based in Natick, Mass., SystemSoft employs more than 180 at
its headquarters and in offices in Santa Clara, Calif., Oxnard,
Calif., Tokyo, Japan and Taipei, Taiwan.
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.
Note to editors: Access SystemSoft press releases and company
materials through the SystemSoft home page on the World Wide Web at
systemsoft.com
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SYSTEMSOFT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Six Months
Ended July 31, Ended July 31,
In Thousands, except 1996 1995 1996 1995
per share data (Unaudited) (Unaudited)
Revenues:
Software license fees $5,454 $4,284 $10,809 $8,163
Engineering services 3,155 692 5,390 1,571
Related party 682 908 1,140 1,313
Other 0 14 2 31
Total revenues 9,291 5,898 17,341 11,078
Cost of revenues:
Software license fees 577 193 980 391
Engineering services 951 560 1,704 959
Related party 208 487 423 797
Other 0 11 0 35
Total cost of revenues 1,736 1,251 3,107 2,182
Gross profit 7,555 4,647 14,234 8,896
Operating expenses:
Research and development 1,933 1,242 3,619 2,335
Sales and marketing 2,670 1,563 5,085 3,301
General and administrative 745 655 1,434 1,191
Total operating expenses 5,348 3,460 10,138 6,827
Income from operations 2,207 1,187 4,096 2,069
Interest income, net 106 163 204 312
Foreign exchange loss (23) (16) (44) (12)
Income before provision
for income taxes 2,290 1,334 4,256 2,369
Provision for income taxes 801 466 1,489 856
Net income $1,489 $868 $2,767 $1,513
Net income per
common share(1) $0.06 $0.04 $0.11 $0.07
Weighted average number
of common and common
equivalent shares
outstanding(1) 25,031 22,894 24,096 22,572
(1) Per share data has been retroactively adjusted for 2:1 stock
dividend that was issued on July 17, 1996.
SYSTEMSOFT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
July 31, January 31,
In Thousands 1996 1996
(unaudited)
ASSETS
Cash and marketable securities $11,324 1,367
Accounts receivable, net 10,419 7,561
Receivable from related party 886 693
Prepaid and other current assets 1,853 869
Deferred income taxes 1,512 1,512
Total current assets 25,994 22,002
Property and equipment, net 3,719 2,831
Purchased software costs, net 2,297 556
Software development costs, net 2,401 1,563
Total assets $34,411 $26,952
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, accrued expenses and
other current liabilities 4,597 2,687
Deferred income taxes 674 674
Minority interest in subsidiary 50 50
Common stock(1) 220 211
Additional paid-in capital(1) 27,641 24,868
Treasury stock (427) (427)
Accumulated earnings (deficit) 1,656 (1,111)
Total stockholders' equity 29,090 23,541
Total liabilities and
stockholders' equity $34,411 $26,952
(1) Amounts have been retroactively adjusted for 2:1 stock
dividend that was issued on July 17, 1996.
*T
CONTACT: Paul Sereiko
SystemSoft
508/647-2818
or
Jon Bornstein
Copithorne & Bellows
617/450-4300
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED EARNINGS |
