CAMBRIDGE, Mass., Nov 13 (Reuters) -
Three Months Ended Year Ended
September 30, September 30,
1997 1996 1997 1996
(in thousands, except share and per share data)
Revenues:
Software $14,228 $13,894 $50,393 $43,382
Support and services
13,255 8,721 46,307 29,947
Total revenues 27,483 22,615 96,700 73,329
Cost of revenues:
Software 549 839 2,547 3,106
Support and services
6,550 4,587 24,025 15,132
Total cost of revenues
7,099 5,426 26,572 18,238
Gross Margin 20,384 17,189 70,128 55,091
Operating expenses:
Sales and marketing
9,077 7,873 32,985 24,422
Product development
3,139 2,250 11,387 7,653
General and administrative
2,398 2,069 9,485 7,445
Merger expenses --- --- --- 965
Total operating expenses
14,614 12,192 53,857 40,485
Income from operations
5,770 4,997 16,271 14,606
Interest income 707 690 2,409 1,971
Interest (expense) (20) (2) (24) (38)
Other income
(expense), net (266) (22) (529) (42)
Income before
income taxes 6,191 5,663 18,127 16,497
Provision for
income taxes 2,176 1,941 6,557 6,451
Net income 4,015 3,722 11,570 10,046
Net income per share
0.40 0.37 1.15 1.00
Weighted number of
common and common
equivalent shares
10,023,662 1O,083,407 10,064,268 10,051,908
NOTE - Full company name is Project Software & Development
Inc
16:48 11-13-97
CAMBRIDGE, Mass., Nov. 13 /PRNewswire/ -- PSDI (Nasdaq:
PSDI) today announced record revenue for the fourth quarter of
$27.5 million, compared to $22.6 million, for the same period in the
prior year, an increase of 22% (25% in constant currency). Record
net income for the fourth quarter was $4.0 million, compared to $3.7
million, for the comparable period of the prior year, an increase of 8%
(26% in constant currency). Earnings per share were $0.40 and
$0.37 for each quarter, respectively.
Services revenues grew 60% to $7.7 million from $4.8 million in the
fourth quarter of 1996. There was no significant change in the gross
margin. Maintenance revenues grew 44% to $5.6 million from $3.9
million in the fourth quarter of 1996, with a 1O% improvement in gross
margins due largely to the implementation of three global support
centers.
On an as reported basis, fourth quarter revenues from North America
were $16.9 million, an increase of 22% from the same period of 1996.
Europe/Middle East/Africa grew 26% to $7.8 million and revenues
from Asia-Pacific revenues grew 7% to $1.9 million. In constant
currency terms, Europe/Middle East/Africa revenues grew 32% and
Asia-Pacific revenues grew 20%.
With services continuing to be a higher percentage of the total
evenues, the gross margin and operating margin for the quarter
declined to 74% and 21%, respectively, compared with 76% and 22%,
for the comparable period of the prior year.
Revenue for the year ended September 30, 1997 was $96.7 million,
compared to $73.3 million, in the prior year, an increase of 32%. Net
income for the year ended September 30, l997 was $11.6 million
compared to net income of $10.0 million after a charge of $1.0 million
for the prior year, for merger expenses in the second quarter of 1996,
an increase of 15%. Earnings per share were $1.15 and $1.00, for
each period, respectively. PSDI'S results have been restated to
combine the historical results of Maintenance Automation Corporation,
which was acquired on March 1, 1996 and accounted for as a
pooling of interests.
Total revenues for the year from PSDI's client/server product,
MAXIMO, grew by 46% and software license revenue grew by 24%
compared to the prior year. The fourth quarter included 13
agreements with license revenues in excess of $200,000, compared
to 11 for the comparable period a year ago.
"I am pleased with our strong performance in the fourth quarter during
which we have simultaneously reorganized to provide 7 x 24 global
support out of three locations, implemented a vertical product
marketing and selling strategy, commenced global sales training,
released MAXIMO Analyzer and the MAXIMO Mobile Application
Suite, while continuing the development of a new version of MAXIMO
and vertical application modules," said David Sample, president and
chief executive officer. "We also signed license agreements with
new customers in semiconductor, public sector, utilities, mining,
manufacturing and other industries as we expand our industry focus
and coverage."
"During the year, PSDI focused on reducing its days sales
outstanding and we are pleased that they were reduced to 79 days
from 107 days at September 30, 1996, and 87 days at June 30, 1997,
through cash collections. This partially contributed to cashflow from
operations for the year of $21.7 million, compared to $4.8 million for
the prior year, an increase of 352%,"said Paul Birch, chief financial
officer. "We exited the year with strong fourth quarter earnings and a
healthy balance sheet with $64.3 million in cash and marketable
securities, no debt and $74.0 million in equity."
The following highlights were announced or occurred since PSDI's
last earnings release:
-- Availability of MAXIMO 3.02 in Dutch, German, Spanish, French
and Swedish
-- Support of Oracle Financials 10.7
-- Support for Sybase System 11
-- Availability of MAXIMO Analyzer
-- The largest and most successful annual User's Conference held in
July, with attendance of over 1,000 users and partners
-- A beta release of MAXIMO 4.0 to 25 sites with a production release,
as scheduled, in the second quarter of fiscal 1998. Release 4.0
enhances the current release appreciably by adding functionality and
additional modules. Industry specific application modules will be
available throughout fiscal 1998 commencing with fleet maintenance
in the first quarter.
Availability of the MAXIMO Mobile Application Suite
PSDI develops, markets and supports applications software used by
businesses, government agencies and other organizations to assist
them in maintaining high-value capital assets such as plants, facilities
and production equipment. The Company's products are designed to
enable customers to reduce down-time, control maintenance
expenses, cut spare parts inventories and costs, improve purchasing
efficiency, and more effectively deploy productive assets, personnel
and other resources.
Based in Cambridge, Mass., PSDI markets its products through a
direct sales force with sales offices throughout the United States,
Canada, India, Argentina, Japan, Australia, UK, Germany, France,
Sweden, Thailand, Hong Kong, Belgium and The Netherlands
combined with a network of international sales agents.
The statements made in this release that are not historical facts are
forward-looking statements and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve
risks and uncertainties including without limitation risks related to
delays in product development and new product introductions, rapidly
changing technology, and intensely competitive market, market
acceptance of new products, foreign operations and general
economic conditions. Each of these factors, and others, are
discussed more fully in the Company's Annual Report on Form 10-K
and the Company's other filings with the Securities and Exchange
Commission.
PROJECT SOFTWARE & DEVELOPMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited)
(in thousands, except share and per share data)
Revenues:
Software $14,228 $13,894 $50,393 $43,382
Support and services 13,255 8,721 46,307 29,947
Total revenues 27,483 22,615 96,700 73,329
Cost of revenues:
Software 549 839 2,547 3,106
Support and services 6,550 4,587 24,025 15,132
Total cost of revenues 7,099 5,426 26,572 18,238
Gross Margin 20,384 17,189 70,128 55,091
Operating expenses:
Sales and marketing 9,077 7,873 32,985 24,422
Product development 3,139 2,250 11,387 7,653
General and administrative2,398 2,069 9,485 7,445
Merger expenses --- --- --- 965
Total operating expenses14,614 12,192 53,857 40,485
Income from operations 5,770 4,997 16,271 14,606
Interest income 707 690 2,409 1,971
Interest (expense) (20) (2) (24) (38)
Other income
(expense), net (266) (22) (529) (42)
Income before
income taxes 6,191 5,663 18,127 16,497
Provision for
income taxes 2,176 1,941 6,557 6,451
Net income $4,015 $3,722 $11,570 $10,046
Net income per share $0.40 $0.37 $1.15 $1.00
Weighted number of
common and common
equivalent shares 10,023,662 1O,083,407 10,064,268 10,051,908
PROJECT SOFTWARE & DEVELOPMENT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 1997 September 30, 1996
ASSETS
(in thousands)
CURRENT ASSETS
Cash and cash equivalents $25,964 $9,097
Marketable securities 38,299 36,798
Accounts receivable, net 24,021 27,030
Other current assets 4,927 3,050
Total current assets 93,211 75,975
Property and equipment, net 7,322 4,602
Computer software costs, net --- 359
Goodwill, net 1,447 1,832
Other assets 259 708
TOTAL ASSETS 102,239 83,476
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES 28,269 23,314
STOCKHOLDERS' EQUITY 73,970 60,162
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $102,239 $83,476
SOURCE PSDI
CO: PSDI
ST: Massachusetts
IN: CPR
SU: ERN
11/13/97 16:05 EST prnewswire.com |
